Business MattersVol. 6 Issue 4 June 29, 2010

business services sh wget what your business needs

• Page 4 • Page 60 • Page 8

www.victoriachamber.ca Victoria, British Columbia

providing local governments further control over the methods of tax collection and the option for expanding the services that they wished to fund.

The combination of the municipal autonomy, the elimination of the business vote, and the increasing service pressures on municipalities

has given licence to what appears to be municipal governments’ service delivery creeping into what is rightly the responsibility of senior government

and the never ending tax increases that are borne disproportionately on the backs of business.

Why Should You Care? What Can Be Done?

A vibrant local business community is vital to the health of the region. Small, local businesses make up the majority of our business community. Of those with employees, 88% have less than 19 employees and 96% have less than 50 employees. These business owners are your neighbours employing your neighbours. They contribute to the many community organizations and charities that support the social well being and cultural richness of our community.

Yet many small businesses operate on a thin profit margin. They can be easily buffeted by economic cycles and substantially affected by ever-increasing taxes and additional business costs brought on through fees, levies, and by-law regulations. Because tax increases are not linked

Local Government’s Role in Business Prosperity

Over the years, the priority of businesses change, but one constant is the issue of fair taxation. And on this front, the prominence of municipal taxation has risen slowly to become the primary issue of many businesses in the chamber’s membership. Local governments have a significant role to play in keeping the business environment prosperous through fair and sustainable business taxes and a reasonable and efficient regulatory environment. Yet over the last number of years, business owners, both locally and across the province, have voiced their concerns that this is not happening.

Unlike federal and provincial taxes, municipal taxation to business in no way relates to business revenue. Rather than taxing business profits, municipalities tax the value of property. Municipal taxes can and do go up even if the economy, and therefore business profitability, goes down.

As municipalities consider budget increases to fund service expansion, infrastructure costs, and labour agreement increases, they focus primarily on their need for revenues rather than on the tax payers’ ability to pay. And while the question of the ability to pay is relevant to both business and residential tax payers, it has been well-documented that the tendency of municipal governments is to raise the lion’s share of tax increases from the business classes while at the same time keeping tax increases for residential taxpayers as low as possible. Though most business owners expect that they will pay a higher mill rate on their assessed property value than homeowners, over the years the difference

between the two has grown to a point that it just does not make sense.

A primary reason for that is the change in taxing authority given to municipalities in the mid eighties. Prior to 1984, taxation for municipal purposes was set at the same mill rate for all taxpayers – residential or businesses – and slightly higher rates were allowed on non-municipal services, such as school fees. This restricted local governments’ ability to set arbitrary rates.

In 1984, two things happened to change the tax environment. Property classes were expanded to the current nine classes we now have in British Columbia and the provincial government granted local government full autonomy in the setting of mill rates between the various classes. This gave municipalities maximum flexibility to allocate tax collection to distinct property types. The ratio that defines the difference between the level of the tax mill rate for business and for residents immediately grew and has now become as high as 20:1 for industrial properties and up to 6.8:1 for commercial businesses.

(See table 1, p.3). In addition to the 1984 change, the provincial government eliminated the business vote in municipal elections in 1993.Then the Community Charter was introduced in 2003,

to revenues, they simply eat into business profits and the ability of the company to reach their full potential in the community.

As municipal taxes, fees and regulatory expenses increase, the capacity to provide good training, increase compensation, hire apprentices, invest in business expansion or provide funding to community organizations decreases. Business owners begin to look at options for decreasing their expenses so they can keep up with increasing cost. Their options include minimizing the space they occupy, cutting work hours, laying off staff, and increasing prices. It is clear that the financial health of the local business community affects the health of the whole community.

How Can the Situation be Improved?

There are a number of things that could be done to encourage municipal governments to pay closer attention to their role in providing an atmosphere for business prosperity.

The first step would be for municipalities to bring a greater degree of prudency to municipal spending. This is something we all do in our business and household budgeting. We evaluate our revenue or income and adjust our spending based on the available amount of money. We need municipalities to do the same – consider budgets with no revenue increase and look for internal efficiencies on services already funded.

While we understand that municipal governments are under pressure to deliver more and more services, they simply have to say no to service expansion, especially in areas of service delivery that are in the

Victoria’sEconomyGreater

Tourism

Downtown shopping on Government Street.

Local Government’s Role in Business Prosperity

A publication from the Greater Victoria Chamber of Commerce

• Page 111

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continued on p.3

Because tax increases are not linked to revenues, they simply

eat into business profits and the ability of the company to

reach their full potential in the community.

David MarshallActing Chair

Bruce CarterCEO

In this special edition of Business Matters, I am pleased to be able to offer to the Greater Victoria community a glimpse into some of the work that the Greater Victoria Chamber of Commerce does on a daily basis on behalf of its business members.

We are proud to be the largest business organization on Vancouver Island with over 1500 business members representing over 28,000 employees. And, having been founded in 1863, we may also be one of the oldest. In any case, we are certainly one of the most active member-driven organizations, offering a range of benefits to every business.

Two of the primary roles of the Board of Directors are to listen to Chamber members, and to act on issues where broader advocacy is needed. In response to growing concerns from our members, the Chamber is currently focusing on the municipal tax burden to business, the inequities in the municipal taxation system, and the services that business receives – or does not receive – for its tax contribution.

Our goal is to work with municipalities to ensure a common understanding of the conditions needed to create and sustain a successful and vibrant small business environment. Thereafter, we will consistently advocate for such conditions, emphasizing their

The Greater Victoria Chamber of Commerce is the Voice of Business in Greater Victoria. The team at the Chamber works tirelessly to advance issues that benefit the entire community. Indeed the Chamber’s vision statement clearly articulates our role: “Respected leader of socially responsible business development.”

This broad mandate for the Chamber leads us in supporting the provision of services for business and encourages the Chamber to take a leadership role in improving our community. As a leader in the community we seek to provide advice in areas where we have credibility and expertise – business issues.

As a community, we are blessed with a vibrant and diverse economy. Although not immune to the recent global economic strife we have fared better than most communities. As a community we must continue to adapt and evolve to remain vibrant and the Chamber will strive to work with the community to ensure we maintain and improve our quality of life.

We will accomplish this by providing support to our business community through networking, support programs such as credit card rates and employee extended health benefits, and services such as education programs, economic

messages

leadership role in creating a healthy business climate – one that, in turn, provides sustained employment and more vibrant cities. We are working to create a fuller understanding of business’ views as Councils consider such issues as the capital and operating cost allocations for sewage treatment, the refurbishment or rebuilding of the Johnson Street Bridge, cost structures for fees and services, and the cost and complexity of municipal processes, including that associated with development permits. The Chamber’s role is the voice; we expect local government to listen, to show leadership, and to create a more sustainable taxation and regulatory environment.

Tourism is a vital part of our local economy and the Victoria Chamber is actively advocating for policy changes that would help that sector deal with some specific recession-related and taxation challenges. We are seeking secure funding for our provincial marketing organizations, improvements in the federal and provincial tax environment, and an extension to the Victoria International Airport runway.

These are only a few of the issues that, in fact, range from infrastructure investment to dealing with social issues such as homelessness. I invite you to visit the policy page on our website and give thought to the array of issues that we address on behalf of business. And if your business is not yet a member of the Greater Victoria Chamber, I invite you to take a closer look at some of the benefits membership can bring to your business. We would be honoured to serve you.

development and advocacy. Advocacy is the shaping of public policy to the benefit of our community. The role of advocacy is extensive involving policy research, an integrated communications strategy, and meeting with decision makers at every level to achieve the changes we need.

This feature edition of our regular members’ Business Matters magazine here in the Times Colonist is meant to give a broader insight into the Victoria Chamber. The Chamber continues to adapt its communication strategy to ensure our message is heard. I hope you find this section informative and invite your feedback. I am confident the Chamber members are well represented and invite anyone who is not a member of the Chamber to call 250-383-7191 and join the chamber today.

There is a popular quote: “The world is run by those who show up.” source unknown. The Victoria Chamber strives to be a presence in our community and “show up” in order to provide leadership in socially responsible business development.

Business Mattersvictoriachamber.caTuesday, June 29, 2010

Take 2 great companies,bring them together andgreat things start to happen!Starting July 1st, islandnet.com and Horizon Netjoin forces to bring you an exciting list of new and better services.

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member newsJuly 1st marks a change to the Internet landscape in Victoria. Mark and Steve Morley of Islandnet.com and Deid Reimer and Suzanne Baril of Horizon Net are pleased to announce that their forces are joining ranks. The newly merged company will continue offering service as Islandnet.com from their location at #101 - 777 Goldstream Avenue.

Islandnet.com was one of the first Internet Service Providers in Victoria, established in 1993. One of the first services offered was dial up internet access, at 1/100th the speed of the current high speed home connection.

Horizon Net started business in Victoria in 1995, as a competitor of the established Islandnet.com. Over the years, many Internet Service Providers have come and gone but both Islandnet.com and Horizon Net have remained strong. Clients will benefit tremendously with the merger of the two successful businesses by having a list of new and improved services available to them.

The Vancouver Island Region of BC Human Resources Management Association (BC HRMA) delivered 50 newly graduated Certified Human Resource Professionals (CHRP) to the business community.

CHRP represents the ethical standards, body of knowledge and level of expertise sought by today’s employers. Certification is fast becoming a requirement in hiring mid-level and senior HR managers and consultants.

Established in 1942 and with membership of over 5,000 HR professionals, BC HRMA is the province’s largest HR association. The Vancouver Island Region alone has over 580 members. BC HRMA is dedicated to advancing professional people practices through professional development opportunities.

Cedarwood Productions is in production of a new 13 episode TV series for CHEK TV, Flavours of the

West Coast. This travel and cookery series will highlight the best of BC’s wonderful scenery and cuisine. The show will be hosted by Victoria’s very own Steve Walker-Duncan, local Canadian Culinary Federation Chef of the Year and owner of the Ambrosia Centre. Cedarwood is proud to be working with local sponsors Terasen Gas, BC Ferries and Liquor Plus in the production of this exciting new series profiling the best of BC.

Cedarwood Productions is an award winning local video production company that offers full script to screen production services for both corporate and broadcast clients, making everything from web, promotional and training videos to TV commercials, TV documentaries and now this exciting new 13 episode TV travel and cookery series, Flavours of the West Coast.

Sooke Harbour House owners, Sinclair and Frederique Philip, received the Lifetime Achievement Award at Vancouver Magazine’s 21st Annual Restaurant Awards, along with the award for Best Restaurant on Vancouver Island. This year’s Lifetime Achievement Award also marks the 21st consecutive year that the Sooke Harbour House Hotel has received the award from Vancouver Magazine as Best Vancouver Island Restaurant.

Sooke Harbour House is known for seasonal, regional foods many years before it was in vogue to do so. Over the past 31 years almost all of the food served at the Sooke Harbour House has come from its own certified organic gardens and farm, local area farms in Sooke and Metchosin, and the ocean around their doorstep. They also have a regular supply of free range lamb from across Sooke Bay at Silver Spray Farm, local rabbits, Tamworth pigs, suckling kid, Vancouver Island bison, and pastured Cowichan Bay chicken. “On top of this, “says owner Frederique Philip,” we were perhaps the first restaurant in Canada to make widespread use of

edible flowers, grown outdoors, twelve months of the year.”

Carmanah Technologies is providing solar-powered lanterns to mark oil spill containment booms in the Gulf of Mexico. The provision expands the long-standing relationship that Carmanah holds with the US Coast Guard and in the provision of solar-powered lighting to disaster clean-up. Carmanah also provided lighting for the Hurricane Katrina cleanup efforts.

Troy Fimrite, CEO of Viking Pacific, is pleased to announce the hiring of Bruce Ryan as the new president of Victoria operations of the company. Viking Pacific is a private investment bank specializing in mergers and acquisitions, restructuring and connecting existing investors with start up companies. Bruce was currently involved with Three Point Properties as a consultant on its Bamberton project.

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Uptown! is opening UP! Morguard Investments Limited is pleased to announce that the anchor stores of Uptown are already opening their doors - Shopper’s Drug Mart (open 24/7), Walmart, Best Buy and Future Shop are now either open or will be within a few short weeks. More fine retailers and services are open now or will be over the summer and early fall. Look for these businesses and more in Uptown! BC Assessment, BCBG Max Aria, Candy Cures, Cascadia Liquor, The Children’s Place, Consumer Protection BC, Jackpot, Megson Fitzpatrick Insurance Services, Melanie Lyne, Mexx, Moores Clothing For Men, Qoolah Yoghurt, Salon Felice - an Aveda Concept Salon and Spa, SOHO Boutique, Sweet Nancy’s, and Urban Barn... and more announcements coming soon!

Own a business? Run a business?Fill out our survey on municipal taxation and

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Find the survey at www.victoriachamber.ca

*Survey open until noon July 15, 2010

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ABOUT BUSINESS MATTERSBusiness Matters is the news magazine of the Greater Victoria Chamber of Commerce. It is published six times per year and distributed free-of-charge to members of the Victoria Chamber.

The Chamber accepts no responsibility for unsolicited submissions. The business profiles, and the views and opinions expressed by advertisers in this publication are not necessarily those of the Chamber.

Content Editor: Shannon RenaultLayout Editor: Tessa Cogman

Business Matters

purview of senior governments. The fact is that taxpayers simply cannot afford higher and higher taxes. With annual budget increases of 3.5% or more, municipal spending outpaces the rate of increase in the income of most individuals and businesses. And while federal and provincial governments have reduced the tax burdens on individuals and businesses, municipalities are simply clawing back that money through increases.

Balance needs to be brought back to the municipal taxing and governance process. The chamber has advocated for the return of the business vote for some time, based on the tenet of no taxation without representation. Arguably if businesses were able to vote, municipal politicians would give more thought to the impact of their decisions on business vitality. The possibility of reinstatement of the business vote was reviewed as one of the possible outcomes of the recently completed Local Government Election Task Force. However, due to the complexity of the issue, reinstating the business vote was not an action that made it to the list of thirty-one recommendations.

But the business vote is certainly not the only means of engaging local government on small business issues. The chamber has called for other measures to address some of the business community’s concerns.

Though credit should be given where due to some municipalities that have made an attempt to reduce or at least hold the line on the discrepancy between the residential and business tax payer groups, by and large, there has not been a lot of progress made across the province. And while it is desirable for municipalities to set tax rates and be directly

accountable to the electorate for doing so, it seems unlikely that municipal governments will on their own eliminate the current troublesome discrepancies.

Municipalities are, in essence, entities of the province and the Chamber is calling upon the provincial government to introduce a form of accountability and transparency to the municipal taxing process. This may be accomplished by introducing ratio limitations to bring taxing levels back to a more sustainable spread.

More importantly, business and residential taxpayers want to know that their tax dollars are being invested wisely; that citizens and businesses are getting a good return on their money. Unfortunately, there is no form of municipal auditing to show value for money.

The Chamber has presented policy to the province, suggesting that a provincially appointed municipal auditor, with the authority to audit the use of municipal tax dollars and

compare the outcomes across municipalities would be of great value to tax payers. Municipalities may retain all of their taxing flexibility, but operating in a more transparent and accountable environment would increase the likelihood of more prudent tax increases and more efficient municipal spending.

Municipalities could give more weight to the question of consumption of service when allocating tax levels. A consumption study done in Vancouver by MMK Consulting in 2007 showed that non-residential property holders paid 57.4% of the property taxes while consuming only 24% of municipal services. This works out to non-residents (businesses) paying $2.42 for each dollar’s worth of municipal service consumed, while residents pay 56 cents for each dollar’s worth of service they consume, this is a 4.3:1 consumption payment ratio.

victoriachamber.ca Tuesday, June 29, 2010

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1982 1984 1994 2009

Ratio Res. Rate Ratio Bus. Rate Res. Rate Ratio Bus. Rate Res. Rate Ratio

C Saanich 1.00 6.7 3.82 1.75 5.49 2.74 2.00 6.39 2.69 2.38Colwood NA NA NA NA 8.90 1.99 4.48 9.72 2.71 3.58Esquimalt 1.00 15.37 6.39 2.41 12.65 4.24 2.98 14.04 4.70 2.99Highlands NA NA NA NA 3.70 1.51 2.45 8.28 2.24 3.70Langford NA NA NA NA 6.85 2.69 2.55 7.29 2.31 3.16Metchosin NA NA NA NA 6.75 1.77 3.81 7.63 1.73 4.42N Saanich 1.00 3.29 1.23 2.67 7.18 1.20 5.96 10.32 1.52 6.80Oak Bay 1.00 8.03 7.42 1.08 5.67 4.05 1.40 5.02 2.81 1.79Saanich 1.00 11.93 6.07 1.97 11.80 4.14 2.85 12.42 3.25 3.82Sidney 1.00 10.99 5.26 2.09 9.77 3.40 2.87 7.82 2.76 2.84Sooke NA NA NA NA NA NA NA 8.54 2.60 3.29Victoria 1.00 14.46 6.89 2.10 13.34 4.49 2.97 13.00 3.55 3.66View Royal NA NA NA NA 11.20 1.94 5.77 8.65 2.16 4.00

Figures provided from Ministry of Community and Rural Development, 2009 most recent year available

Table One

Local Government’s Role in Business Prosperity continued from p.1

Business Matters’ content is copyrighted:Greater Victoria Chamber of Commerce,Victoria, B.C., Canada.

Greater Victoria Chamber of Commerce#100 - 852 Fort Street, Victoria BC V8W 1H8Ph: 250-383-7191Fax: 250-385-3552email: chamber@gvcc.orgwww.victoriachamber.ca

... operating in a more transparent and accountable environment would increase the liklihood of more prudent

tax increases and more efficient municipal spending.

continued on p.5

*How to Read Table One

This chart shows the business and residential property tax rates per municipality, tracking the changes over time as the tax flexibility for local governments changed. To read this chart, one would say, “In North Saanich (for example), business paid $3.29 and residents paid $1.23 per $1,000 or assessed property value in 1984. By 2009, business paid $10.32 and residents paid $1.52 per $1,000 or assessed property value. In 1984 the business paid 2.67 times the amount of tax on property of equal value; by 2009 that ratio was 6.8 times.”

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Business Mattersvictoriachamber.caTuesday, June 29, 2010

Business Incorporations as a % of BC

Contact: Sasha Angus, Economic Development Officer at sangus@gvda.ca or call (250) 383-7191 ext. 204For the full Economic Indicators report go to www.gvda.ca/reports

The Greater Victoria Development Agency works on leveraging the region’s abundant energy and innovative spirit to sustain economic growth. Our goal is to support the growth of local business, retain our best and brightest people and companies, and attract new business investment. We work in partnership with business and academic partners to show the world that Greater Victoria is a natural place to do business.

Bankruptcies per 1,000 Businesses

Unemployment Rate

Royal Roads University

Major Funding Partners

Township of Esquimalt

Value of Building Permits

Victoria’sEconomyGreater

Camosun College VIATeCVictoria Airport Authority

Victoria Harbour AuthorityVictoria Real Estate Board

Downtown Victoria Business Association

Cube Global Storage

Regional Partners

The regional unemployment rate in Greater Victoria has increased sharply through the latter half of 2008 and early 2009, rising from 3.1% in the second quarter of 2008 to an average of 6.4% in 2009. This is consistent with the downturn in global financial markets and the decline in national economic output that began in the fourth quarter of 2008. Since the beginning of 2010 Victoria has seen a decrease in unemployment which currently stands at 5.4%. The longer-term trend since the late 1990s has been for declining unemployment, due largely to strong economic conditions for much of the past decade. Greater Victoria’s unemployment rate has been consistently lower than the provincial rate – not since 1995 has the regional unemployment rate been as high as the provincial rate.

Bankruptcies are an indicator of the general health of the econo-my. During growth periods, the number of bankruptcies tends to fall while the reverse occurs as the economy slows. From 2003 to 2008, the rate in Greater Victoria was well below both provin-cial and federal averages, reaching a low of 1.3 bankruptcies per 1,000 businesses. In 2009 the rate increased slightly to 1.6 bankruptcies per 1,000 businesses.

Total building permit values in Greater Victoria declined between 2007 and 2009. This is consistent with the trend in the rest of the province. The trend over the past decade in Greater Victoria has been for steady growth in values each year of 10-25%. This is marginally higher than both Metro Vancouver and BC as a whole. The gap in growth rates expanded in 2009 with the provincial permit figures dropping faster than Greater Victoria. Total building permit values measure construction activity and are a leading indicator of the economic cycle. Building permits tend to move with the economy. During periods of economic growth they rise, while during slowdowns they fall.

Greater Victoria had strong year-over-year growth in incorporations between 2003 and 2009. Growth stabilized in 2006-2007 and has shown consistent growth over the past three years. As a share of the BC total, Greater Victoria now accounts for close to 7% of provincial incorporations. Incorporations are a proxy for the number of new businesses in an area and are an indicator of the general health of the economy. As the economy grows, incorporations will rise while as the economy slows they fall.

Roger SkillingsChair

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Business Matters victoriachamber.ca Tuesday, June 29, 2010

Roger SkillingsChair

The main goals of the Greater Victoria Development Agency (GVDA) are to assist existing businesses to grow, retain existing companies and attract new business development to the region. These are the driving forces behind all of our activities. In the Agency’s 2009 annual report, activities cited include helping over 150 local businesses, building the region’s first comprehensive set of economic indicators, a new regional promotional video, and partnering to deliver the “Sweet Spot: Location Matters” campaign with the Times Colonist and Rogers Broadcasting.

Other highlights of the annual report show how GVDA helped the region to be recognized by the Financial Times of London as a top investment destination notwithstanding the challenging business environment in 2009. It also notes the work of the Agency in selling the region to the world through its first

The Greater Victoria Chamber of Commerce is exploring opportunities to partner with other interested parties to examine the consumption of service levels in some of our regional municipalities. We look forward to discussing the results of this study.

However, as the current system is unlikely to change in the short term, municipal governments need to take the lead and proactively address tax fairness and play a role in increasing prosperity for their citizens. Each of us, after all, has only one wallet from which we pay our taxes. Shifting of the tax burden from the senior governments to the municipal governments does nothing to improve our collective situation.

It should also be noted that a sharp tax shift from business to residents is also not the goal. Tax fairness encompasses all taxpayers. Instead we need to see operational efficiencies and prudence in government spending, and a gradual movement to create a more equitable tax environment.

As citizens, we can all become more informed about the municipal taxation process and the impact of council decisions on community vitality. Each organization that hosts a municipal election forum could make a point of asking one or two questions related to business prosperity and economic development.

We know that our local governments have the most evident impact on the community. And though issues of the economy and the cost of living and doing business are often looked to as only senior government concerns, there is considerable impacts that result from local government decisions. The cost of doing business and our quality of life is a primary concern for all of us and we look to our local politicians to take a lead on encouraging an economic environment that lays the ground for increased financial security for businesses and citizens.

Local Government’s Role in Business Prosperity continued from p.3

publication of the Business in Greater Victoria investment guide. We are proud of the 2009 first publication, which was sent to major cities across North America and around the world. We look forward to the second publication to be issued in 2010 highlighting the vibrant and diverse business sectors in our region through articles and advertising from interested contributors. There are still advertising spaces available, interested parties are invited to visit www.gvda.ca for more information.

The GVDA recently returned from a trade mission to China in partnership with the City of Victoria. The mission showcased Greater Victoria as one of the world’s most livable cities and the strengths and opportunities in our local economy. It promoted Greater Victoria’s tourism, higher education and technology sectors, leveraging the region’s long‐standing relationship with Suzhou while establishing new relationships in

Sasha AmgusEconomic Development Officer

Above: Sasha Angus, Economic Development Officer outlines the region’s economy to Chinese officials and executives in Nanning.

Above: Mayor Fortin and delegation at the friendship cities signing ceremony in Changsha.

The Greater Victoria Chamber is advocating for changes in our property tax system in BC. Specific recommendations include:

• provide control and oversight on the level of property taxation levied between various taxpayer groups to ensure fair and equitable taxation practices;• introduce immediate relief to class four tax levels while at the same time providing equity to classes six and one by re-introducing ratio regulations;• introduce a structured, clear and consistent annual reporting system to taxpayers that outlines the total cost of municipal taxes, fees and levies as well as the cost of taxes collected for other authorities by municipal governments;• establish a mechanism, such as a Provincial Municipal Auditor General, that allows for the continual review of local government taxation to ensure accountability and our continued competitiveness; and • introduce changes with definitive timetables that provide certainty for taxpayers while allowing municipalities time to adjust and to ensure a smooth transition for the taxpayers.

both the private and public sectors. The delegation included representation from the region’s tourism and university sectors as well as a number of individual companies. Approximately $400,000 of new business was generated in addition to two new agreements which were signed with the cities of Changsha and Nanning.

If you own a company and you are looking for assistance on how to grow in the region or expand into international markets, or if you are seeking to develop a company in Greater Victoria, the Greater Victoria Development Agency should be your first phone call. Get in touch with Economic Development Officer Sasha Angus at 250-383-7191 ext 204 or visit us at www.gvda.ca.

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Business Mattersvictoriachamber.caTuesday, June 29, 2010

new membersAccounting Comes AliveWhy look at numbers in black and white when there are so many beautiful colours! Accounting Comes Alive™ is an education company. We specialize in developing accounting training materials.p: (250) 516-6311e: shelley.humble@accountingcomesalive.caw: http://www.accountingcomesalive.ca

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An Occasion For All Seasons Event Planning Inc.Event planning for formal dinners and corporate dinners, weddings and special occasions.p: (250) 884-2932

Ballet VictoriaBallet Victoria creates and performs three major productions each season. We aim to be an innovative ballet company that Victoria can call its own. p: (250) 380-6063e: info@balletvictoria.caw: http://www.balletvictoria.ca

Black Olive RestaurantA unique fine dining restaurant.p: (250) 384-6060e: theblackolive@shaw.caw: http://www.theblackolive.ca

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G.E. Miller Builder & Contractor Inc.Custom renovation and new home construction, commercial builders.p: (250) 744-3038e: shirley@gemiller.caw: http://www.gemiller.ca

Gecko Two EnterprizeEducational advising, coaching and consulting, mostly around employment and post-secondary choices for adults.p: (250) 361-1414e: brenda.mcbride@shaw.ca

Govan Brown Szeto Construction Management Inc.Govan Brown Szeto Construction Managers Inc. has a new office in Victoria, BC to serve south Vancouver Island. A specialist in commercial interior construction, we provide construction management, general contracting and design+build services. p: (250) 704-4439e: kkinakin@govanbrown.comw: http://www.govanbrownszeto.com

Grunts Hauling & Junk Removal Serving Victoria & Area for all its removal needs. With a wide variety of services to offer please call for your free estimate! p: (250) 857-3298e: gruntshauling@gmail.com

Island I.T. Inc.We are the FIRST DELL partner on the Island and we offer the ENTIRE line of DELL products at “value added” pricing. We provide ALL aspects of Information Technology service and products to home, small-medium and large businesses.p: (250) 385-3355e: service@theislandit.comw: http://www.theislandit.com

Island Meat & SeafoodService oriented butcher in the Cook St. Village focussing on local meat and seafood. Open to all requests. House made sausages, patties, cordons and other products.p: (250) 382-3331e: orders@islandmeatandseafood.comw: http://www.islandmeatandseafood.com

Liberty Mortgage Services Ltd.Provide short term residential & commercial real estate financing.p: (250) 298-8294e: mlavigne@libertymortgage.caw: http://www.libertymortgage.ca

Mothering Touch Centre and Birth ServicesA retail store and centre for new and expecting parents. We provide childbirth preparation and pre/postnatal yoga classes, among a variety of services.p: (250) 595-4905e: eva@motheringtouch.caw: http://www.motheringtouch.ca

My CaregiversOur primary service is professional home support and nursing services for Victoria area seniors. We provide service excellence, with compassion, dignity and respect at the core.p: (250) 415-1233e: info@mycaregivers.caw: http://www.mycaregivers.ca

My Travel CanadaWhether it’s a destination wedding, honeymoon, family vacation, a reunion, friends getting together for fun, or a romantic getaway... we’ll find you the perfect vacation! A division of Thomas Cook Canada, MyTravel Victoria is your business, vacation and cruise travel headquarters!p: (250) 382-3121 e: victoria@mytravel.caw: http://www.gomytravel.ca

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About

• Only complete business show in Greater Victoria • Access to over 90 exhibitors from the business community • Event media partnerships giving comprehensive media exposure for exhibitors

• Local and regional business awareness through high profile location and exposure

Exhibitor Information

Why Exhibit?• Trade shows generate sales leads and boost sales• Trade shows deliver a captive group of potential buyers• Trade show visitors are decision makers• Your audience is: professional/executive/influential business people

Exhibitor Package

• Booth space including back wall and side drape, one 6ft skirted table and one chair• Mention in the September issue of Business Matters magazine and on the Chamber’s website• 25 invitations to the event, for your clients and/or staff

Register Early!

Booths are sold on a first come first serve basis by booth #. To book your booth #

please visit our web site at www.victoriachamber.ca

Floor Plan: Crystal Garden

Show Information

Date: October 6, 2010

Location: Crystal Garden 713 Douglas St.

Tradeshow Hours: 12 p.m. - 7 p.m.

Set-up: October 6, 9 a.m. - 11:30 a.m.

Networking Reception Hours: 5 p.m. - 7 p.m.

Networking Reception

Networking is a powerful business tool. Use it! Join us for hor d’oeuvres, refreshments and an opportunity to network with the Greater Victoria

business community.

Time: 5 p.m. - 7 p.m.

Where: Crystal Garden, 713 Douglas St. RSVP online at www.victoriachamber.ca

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Business Matters victoriachamber.ca Tuesday, June 29, 2010

events calendarJuly:–06– CEO Coffee Hour: Tourism Victoria, 4th Floor, 31 Bastion Sq. • • • 8:30am–9:30am–08– Prodigy Group July Mingle: Cactus Club Cafe (lounge), 1125 Douglas St. • • • 5:30pm–7:30pm–14– Business Education Series: Effective Social Media for Your Small Business: Chamber Office, #100 - 852 Fort St. • • • 11:45am–1:00pm–15– July Business Mixer: CFB Esquimalt, 1586 Esquimalt Rd. (Wardroom) • • • 5:00pm–7:00pm

August:–05– Prodigy Group Rooftop Beach Volleyball Tournament: Sticky Wicket Rooftop, 919 Douglas St. • • • 5:00pm–7:00pm

–18– Business Education Series: Victoria Real Estate: More Ups and Downs in One of the Country’s Strongest Markets: Chamber Office, #100 - 852 Fort St. • • • 11:45am–1:00pm

–19– August Business Mixer: LL Brougham Inc., Chartered Accountant, 202 - 300 Gorge Rd. West • • • 5:00pm–7:00pm

Nexus FacilitationProvides facilitation and mediation services to families in business.p: (250) 891-4330e: niki@nexusfacilitation.comw: http://www.nexusfacilitation.com

Parkside Victoria Resort & SpaParkside is a sustainable resort hotel targeting LEED® Platinum Certification. Parkside features a 25-metre indoor pool, rooftop gardens, designer furnishings, gourmet kitchens and inviting bedrooms.p: (250) 940-1200e: guestservices@parksidevictoria.comw: http://www.parksidevictoria.com

ProcuraProcura provides a comprehensive software solution for point-of-care, clinical and back office administration for home and community care organizations across Canada.p: 1-877-776-2872e: cdnsales@goprocura.com w : www.goprocura.com

ReWerxReWerx delivers solutions that help organizations continuously improve effectiveness, competitive position and sustainable performance. p: (250) 294-0719e: info@rewerx.comw: http://www.rewerx.com

Robin Black & AssociatesBusiness advisory services for technology commercialization strategies and financing. 30 years of experience specializing in the Medical Device and Life Science sectors.p: (250) 508-7138e: robincblack@shaw.ca

SAS Comfort ShoesNOW OPEN - BC’s first SAS Comfort Shoe Store. Shoes are made from the hands of Master Craftsmen and come in a large selection of styles, sizes and widths.p: (250) 382-7463e: info@sasshoes.caw: http://www.SASshoes.ca

Sunstar CreativeOur clients are savvy business owners who recognize the importance of having a dynamic online presence. At Sunstar Creative, we specialize in digital marketing, social media and website/blog design.p: (250) 588-2877e: info@sunstarcreative.caw: http://www.sunstarcreative.ca

Torbram Electric SupplyWholesale electrical supply company for residential & commercial.p: (250) 480-4818e: rfeeney@torbramelectric.comw: http://www.torbramelectric.com

Turner Immigration LawWe practice immigration and citizenship law exclusively, representing individuals and businesses who require work permits or permanent residence. Jim Turner has been a lawyer since 1987, with clients from over 75 countries.p: (250) 590-3560e: jim@turnerimmigration.comw: http://www.turnerimmigration.com

Vancouver Island Fitness Centre for Women – Oak BayVI Fitness is about health and wellness. 100% island owned. Offers classes, weight training, cardio, yoga, pilates, childminding and personal training.p: (250) 595-3354e: oakbay@vifitness.caw: http://www.vifitness.ca

WannawafelDeveloped by a Belgian family and quickly became a waffle heaven for you. A first in BC and Canada. Tested by the Dragons’ Den.p: (778) 433-1238e: renaatkrista@shaw.caw: http://www.wannawafel.com

Wells Gray Tours (Victoria) Ltd.Bringing almost 40 years of experience to Victoria, Wells Gray Tours specializes in packaged group travel with departures from Greater Victoria. Cruises, day tours, motorcoach, international adventures and theatre tours are just a few of the products.p: (250) 590-7889e: victoria@wellsgraytours.comw: http://www.wellsgraytours.com

Floor Plan: Crystal Garden

* Located off Humbolt Street

Networking Reception

Networking is a powerful business tool. Use it! Join us for hor d’oeuvres, refreshments and an opportunity to network with the Greater Victoria

business community.

Time: 5 p.m. - 7 p.m.

Where: Crystal Garden, 713 Douglas St. RSVP online at www.victoriachamber.ca

• Cash bar• Parking in VCC parkade or on surrounding streets

For a full events calendar, visit www.victoriachamber.ca

Sponsors:Notes:• 89 - 8’ x 8’ booths • 8 - 10’ x 8’ booths (49 on level 1, 48 on level 2)• Bars and F & B (Food and Beverage), during Networking Reception (5-7pm)• 1 - Exhibitors Loading area

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Business Matters

Tourism Highs and Lows

One of life’s most classic lessons is that you never know what you have until it’s gone. Yet, we seem to unfortunately have to live this lesson first hand until it is truly learned.

Tourism as an industry sector is made up of a melting pot of businesses merging together to provide indelible experiences for our visitors. These businesses directly employ over 117,000 people in BC and in 2008 produced 13.8 billion dollars in revenue and 947 million dollars in provincial tax revenue. And yet, right now the tourism industry is facing tremendous obstacles. This is nothing new. The lack of any concerted effort to remedy them is however, and a clear sign that this dynamic economic driver is being taken for granted.

All this economic impact comes from selling… an experience.

It’s not an easy job. A tourism experience has more moving parts than a Swiss watch factory. It requires the coordination of booking agents and operators, web presence, transportation partners, accommodations, restaurants, attractions, city safety and cleanliness, arts and culture offerings, outdoor activities and more. Every single person that interacts with each and every visitor has the ability to maintain and enhance that experience, or derail it.

Indeed delivering on tourism is so intricate and the product so intangible; for some this seems to dilute the importance of the tourism industry. Yet, the numbers don’t lie. 2008 saw 3.6 billion in export revenues and 17,774 tourism-related business establishments in operation.

The tourism sector is one of the many casualties of the global economic contraction of 2009 and as British Columbians start to feel a recovery, the markets that we sell to are still in tough shape. The US economy continues to twist as jobless rates increase, the Japanese economy has been in steady decline for years, and European markets are suffering. Our ability to draw from a smaller global pool of potential visitors becomes more of a challenge than ever before.

In light of this, there has been a tendency to rely on nearby tourists. Even though 47% of tourists that came here in 2008 were from

within BC, those travelers are only responsible for 28% of tourism-related expenditures. It is our international visitors, making up nearly 50% of money spent here in B.C., that carry the load. So if you were running a business, which would you want in your shop; a local visitor or a tourist from Germany, the UK or the United States?

Our ability to reach these markets has become more restricted as funding levels continue to decline. This is an industry that did nothing but thrive from 2002 to 2008 because it had a properly structured and funded provincial marketing entity and systems that allowed any investment to be leveraged to their maximum potential. Although our landscape has changed, we as an industry, as businesses, need to persevere and move forward.

Tourism Victoria is a multi-faceted organization that has a global presence in our key markets in

order to work with tour operators and travel agents and ensure our destination is represented in as compelling a manner as possible.

In addition, we work with travel writers and other travel media on the many unique features of Victoria and promote print and electronic coverage. We work with meeting planners and business sectors and associations so that they consider Victoria as a place to host their meetings and conferences. We use digital and traditional marketing and promotional campaigns to sell Victoria as a great spot to visit for many different demographic and psychographic segments of our target markets. And we run the busiest Visitor Centre in Canada representing some 800 members to over 700,000 people a year.

We don’t do this in isolation. We do it with our many partners in the accommodation, attractions, transportation, restaurant, tour operator and retail sectors. We do it in conjunction with our municipal and provincial partners. We do it with other destination partners like Vancouver Island, Vancouver, Richmond, Whistler and Seattle. And we do it with local partners like the Chamber of Commerce, the Harbour Authority, the Downtown Business Association and the Greater Victoria Development Agency. And there are many other partners beyond these, with room for more.

victoriachamber.caTuesday, June 29, 2010

The Royal BC Museum sits atop the ‘Must See’ list for visitors and locals alike. In addition to offering an unforgettable experience and playing a unique role as guardian of our provincial cultural and environmental history, this cultural icon is a major economic force for business in the region.

Even in a down tourism year like 2009, the Royal BC Museum generated an $18.5 million economic boost for south Vancouver Island businesses.

“That’s a significant amount of money spent by incremental visitors to the area who came here specifically to visit our popular galleries,” says Pauline Rafferty, CEO of the Royal BC Museum. “We are proud to be a partner in creating important spin-off benefits for other businesses in the tourism, cultural and business sectors.”

And this is just the tip of the iceberg. In 2007, the blockbuster Titanic exhibition drew a whopping 470,000 visitors during its six-month run and generated $30.2 million in tourism revenue for businesses in and around Victoria. Every feature exhibition over the past decade has created a positive economic impact.

Success grows with business partnershipsRafferty says the future can be just as bright as the past, but it will take a renewed emphasis on creating business partnerships with corporations and the local tourism sector to keep up the momentum.

“Presenting these exciting exhibitions can be great successes for the entire business community, but it takes the coordinated support of that same community to make them really sparkle,” says Rafferty. “When we can share the financial risks with others who benefit, we can seek out even more opportunities.”

This year, the Royal BC Museum turns the spotlight on itself, and British Columbia, in Royal BC Museum: Behind the Scenes. The exhibition, which opened just last week to rave reviews from visitors, draws you deep into British Columbia’s natural beauty and the amazing diversity of life in this province. It is part of worldwide events to celebrate the 2010 UNESCO International Year of Biodiversity.

Visitors step into what feels like an authentic natural history museum lab – complete with a curator’s desk, live-animal terrarium, high-tech microscopes and hundreds of specimens. They will meet museum curators, collection managers and volunteers – and learn how they dig, dredge, dive and document their way to new scientific discoveries.

Work is also well underway for the winter 2011 arrival of The Warrior Emperor and China’s Terracotta Army – another stunning

international touring exhibition that is expected to bring a pleasant spike in tourism revenue for local businesses during the typically slow winter months. The Royal BC Museum is encouraging the business community to contact its development office to explore the many partnership opportunities available to make this exhibition a success and provide a major off-season boost to the local economy.

For all its success, the Royal BC Museum is not content to sit still. Right now, the aging facility built as a Centennial project in 1967 is operating at maximum capacity. It is becoming more difficult to accept the complex touring exhibitions that are so vital in attracting new visitors to the region.

In early 2010, the Royal BC Museum unveiled its 100-year plan for what it needs now and into the future to realize its vision as British Columbia’s foremost cultural centre.

The plan will eventually see the complete renewal of its two hectare site in the heart of the provincial capital. This will include a new temporary exhibits gallery and state-of-the art facilities for the B.C. Archives, collections and scientific research. Other amenities envisioned include shops, cafés, office space, a community gallery and a centre for dialogue. All new buildings would have at a minimum a Gold Leadership in Energy and Environmental Design (LEED) rating.

The first step in this renewal process in underway now as the Royal BC Museum works with the City of Victoria and the community to rezone its property in order to validate its current operations and allow for future growth.

“There are many ways for businesses and the community to get involved and play a part in our plans for the future,” says Rafferty.

“This is a very exciting time and together we can create another 100 years of success, inspiring wonder and curiosity of all things British Columbia.”

Royal BC Museum is major economic driver for region

www.royalbcmuseum.bc.ca

American Bullfrog (Rana catesbeiana)

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Did you know?The herpetology (amphibians and reptiles) collection contains more than 3,300 specimens – the oldest BC specimen was collected in 1888.

Every feature exhibition over the past decade has created a positive economic impact.

“”

Tourists enjoying a horse carriage ride in Victoria, BC.

A tourism experience has more moving parts than a Swiss watch factory.

continued on p.9

8

Business Matters

Tourism in Victoria has been credited with creating a positive economic impact of approximately one billion dollars annually. The process for arriving at this number isn’t exact, but the true economic impact is likely greater. The consumption of every traveller to our city is tough to measure and it goes beyond the basics of food, accommodation, transportation, and attractions. Retail sales alone are difficult to discern between tourists and residents. Millions of people come to our city every year and expenditures occur in many levels of our economy.

The economics are a vital reason why we need to pay attention to our city. Another is our high number of repeat visitors. This means that as a destination we are often competing against ourselves. What Victoria was, and how it presents itself to the world today is a market factor. We are blessed with a wonderful harbour, the envy of many cities in the world. And yet, it is checkered by a decrepit Belleville Terminal and other signs of neglect. This isn’t actually a tourism issue,

victoriachamber.ca Tuesday, June 29, 2010

The Cruise Industry – Tourism’s Gem for Victoria

In 2009, Ogden Point had 220 cruise ship visits bringing a total of 578,706 passengers and crew to shore. Total spending is estimated at $33.6 million, with a total economic impact of $164.2 million.

On Monday April 26, 2010 Holland America Lines’ Zaandam kicked off Victoria’s record-breaking cruise ship season. This year, Ogden Point will see 228 cruise ship calls, from 22 different ships, from nine different lines. “Scheduled sailings have increased for this year demonstrating the strength of the cruise ship business in Victoria,” said Paul Servos, CEO of the Greater Victoria

Chamber’s Advocacy on Tourism IssuesStable and Predictable Funding for Destination Marketing

Concerns have arisen about the funding stability for provincial and regional destination marketing with the introduction of HST and the folding of Tourism BC into a function of the Ministry of Tourism, Culture and the Arts. The Chamber is advocating with our tourism partners for funding to be allocated as a portion of industry performance, as per previously provided to Tourism BC, and for that funding to be protected from the normal budget appropriation cycle (through legislation).

Foreign Convention and Tour Operator Rebates

The current rebate program for foreign companies planning conventions and tours into Canada is too cumbersome and foreign tour operators are not using it. Instead they are simply pricing Canadian products at 5% higher to recoup the expense of GST to their business. This makes Canadian products less competitive than other destinations. The Chamber is advocating with our tourism partners to have the rebate program changed to one that is less cumbersome and less costly to use and ensure it applies to the full HST.

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Harbour Authority (GVHA). “Victoria is the largest port of call in Canada because of location, unique character and the warm welcome to cruise passengers from the community.”

Many individuals and businesses in the Greater Victoria region benefit from cruise ship calls including tourism destinations, retail stores, and transportation providers. The ships also support another sector: longshoremen and logistical support staff, waste and recycling services, and local businesses provisioning the ships. Western Stevedoring, GVHA’s agent for managing the Ogden Point port facility, anticipates provisioning 22 calls from two Princess vessels. “The cruise lines are happy with the high level of service at Victoria,” said Bob Barlow, manager at Western Stevedoring. “Along with providing excellent customer service to the cruise lines, provisioning ships has the added benefit of increasing employment.”

but moreover that of pride in our city, for our citizens.

Almost every aspect of Victoria that attracts our tourists is first and foremost for our citizens. Effective and green transportation, a clean and safe downtown, beautiful open spaces, vibrant

arts and culture, a dynamic sports and outdoor activity landscape, world class attractions, a well preserved and presented heritage offering, leading edge schools and universities, fine restaurants, great retail and perhaps most importantly, warm and welcoming people.

These are all things that combine to make us proud of being Victorians. And all our community assets need to be watched and tended to. Now is a time to wade through all naysayers; all those that find reasons why we can’t get things done, and actually move things forward. Let’s take care of, nurture and develop our city for citizens first. The tourists will follow.

continued from p.8

Mitigation for HST for Large Tourism Businesses

While most companies can claim all their input tax credits on business expenses under the HST, large companies with revenues of $10M or more have some ITCs that are restricted for a period of up to five years. However, even within that restriction, the energy companies use to produce their products for sale can be claimed – with the exception of tourism businesses. The Chamber is advocating that large tourism businesses be provided a provincial tax credit/rebate to compensate for the ITC restriction on their energy usage in production.

Extension to the Victoria International Airport Runway

The Chamber supports the extension to the runway at Victoria International Airport. It will allow for direct flights from Europe and position Victoria with the capacity to home-port cruise ships. The Victoria Airport Authority estimates that the ability to land jumbo jets will add another $37 million dollars to Greater Victoria’s economy annually.

9

Business Mattersvictoriachamber.caTuesday, June 29, 2010

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KEEPING YOUR BUSINESS ENTIRELY YOUR BUSINESS

Regan McGrathChair

Capitalizing on New Growth Opportunities: How the Prodigy Group can help you and your business.

The spring economic forecast from the Conference Board of Canada predicts growth of 3.2% in the Greater Victoria region in 2010, with an average of 2.8% growth over the next three years. This growth means new opportunities to create business and to grow existing businesses. In order to take advantage of the growing economy, we will need to have the right skills and the right networks in place to help maintain, grow and establish our businesses.

With over 300 members the Prodigy Group is quickly becoming a leading resource for establishing business contacts in Victoria. We hold monthly mingles as well as four special events a year for emerging leaders to establish business connections. If you are an emerging professional, become a Prodigy Group member to promote your business and establish the contacts you will need to be successful. If you are an established business looking for new talent, becoming part of the Prodigy Group network will allow you to access the best and the brightest emerging professionals in your field.

Membership opportunities extend well beyond our well-known mingles. The Prodigy Group is designed to promote growth and value in our members. This year alone our mentorship program has successfully paired ten promising protégés with established business leaders in the community. These partnerships encourage the exchange of industry knowledge and the growth of tangible business skills. Our community connections program has allowed Prodigy Group members to show community leadership through placements on not-for-profit boards and other community advisory roles.

If you are an emerging professional who is looking to develop your business network and tangible business skills then the Prodigy Group is for you. I look forward to seeing you at our next event.

Regan McGrath, Chairrmcgrath@kpmg.ca

Networking for Everyone!July MingleJuly 8th, 2010 | 5:30 to 7:30 pmCactus Club Café (lounge), 1125 Douglas St

www.prodigygroup.ca

www.prodigygroup.ca Sales@ProdigyGroup.ca

Your greenest advertising space.

Become a Sponsor of the Prodigy Group Golf Tournament

September 17, 2010 Prospect Lake Golf Course

Emerging Leaders of the Prodigy Group EmbraceMentorship from Experienced Victoria Chamber Members

With the retirement of many baby-boomers, and the looming talent shortage expected in the next few years, Victoria’s emerging leaders are in need of strong mentorship from experienced business and community leaders, now, more than ever.

Realizing the importance of this, Janell Karst and Jesse Szczepanowski, committee members of the Prodigy Group and founders of Blue Ocean Education Inc., launched the Prodigy Group Mentorship Program in 2009. “This program is unique to

Victoria,” explains Karst, “as we are able to tap into the diverse network of the Victoria Chamber members.”

The flexible program matches emerging leaders of the Prodigy Group with

experienced Victoria Chamber members for personal and professional development opportunities. “Mentorship is not just about an experienced mentor imparting their infinite wisdom and experiences to a young up and comer,” says Karst. “In fact, some of the most successful mentoring relationships are those in which there is a knowledge transfer between the experienced and emerging.”

Karst, who will be the 2011 Chair of the Prodigy Group, is excited to grow the awareness and reach of the Mentorship Program. “We see this program as a critical succession strategy to build future community and business leaders within the Victoria Chamber.” The Prodigy Group Mentorship Program is open to any Victoria Chamber member and is accepting mentors and mentees to join the program on a rolling basis. For more information, please visit the Prodigy Group website www.prodigygroup.ca or email Janell@blueoceaneducation.com.

Al Hasham and Rahim Khudabux are a great example of a truly successful mentorship relationship.

In 2004, Al Hasham launched his company Maximum Express and at the same time, began what would be a six-year mentorship relationship with Rahim. By 2006, Al helped Rahim purchase his first wholesale business, and invited Rahim to join the three partners at Maximum Express and create a sister company, Maximum Furniture Home and Office. Today, Rahim is a business partner and GM for Maximum Furniture largely due to mentorship.

“We are coming up on two years in business,” says Rahim. “Maximum Furniture has been able to triple the size of its showroom and recently was an award

finalist for ‘New Business’ from the Greater Victoria Chamber of Commerce in 2010.”

Al currently serves on the Board of Directors of the Greater Victoria Chamber of Commerce and Rahim, following in Al’s community leadership footsteps, joined the committee of the Prodigy Group in 2010.

To celebrate mentorship in the community, Al and Rahim hosted the first annual Prodigy Group May Mentorship Mingle at the Maximum Furniture showroom in May.

Rahim Khudabux & Al Hasham,

Maximum Express & Furniture

A True Mentorship Success Story

Special EventsIt’s summer time again and the Prodigy Group is getting geared up for our annual volleyball and golf tournaments. For more information or to register, please visit www.prodigygroup.ca/events

All proceeds from these events will be donated to Community Micro Lending.

Rooftop Beach Volleyball TournamentLocation: Sticky Wicket Rooftop, 919 Douglas St.Date: Aug 5, 2010 from 5:00 PM - 8:00 PMMembers: $10 + HST per person or $50 + HST for a team of 6Non-members: $20 + HST per person or $100 + HST for a team of 6

Enter as a team or sign up as an individual, but be sure to register early, as this event sells out every year! Whether you’re a seasoned pro or a first time player, you’ll have a blast playing volleyball and mingling with the other teams. Prizes will be awarded to the top finishers and the team with the most spirit.

Prodigy Group Golf TournamentLocation: Prospect Lake Golf Course, 4633 Prospect Lake Road

Date: Sept 17, 2010 from 3:00 PM - 8:00 PMMembers: $60 + HST per personNon-members: $100 + HST per person

Get your team of four together and join us for an afternoon of golfing followed by dinner and drinks in a relaxing setting, ideal for networking.Roundtrip transportation will be provided for participants from downtown Victoria out to Prospect Lake.

For more information or to register, please visit www.prodigygroup.ca/events

Community ConnectionsToday’s job market is highly competitive. Businesses are looking to employ professionals who are involved and take leadership roles within their community.

What are YOU doing to be a leader in the community?

Community Connections offers Prodigy Group members opportunities to volunteer. Utilize your skills set to benefit the community by gaining valuable experience on committees and boards within Victoria.

Looking to gain the energy and fresh insight of an emerging professional? Organizations can send in their volunteer postings toCommunityConnections@ProdigyGroup.ca

Visit the Community Connections page on the Prodigy Group website for more details.

The Power of Mentorship at the Greater Victoria Chamber of Commerce

Another successful mingle! May 2010 at Maximum Furniture.

Running the Amazing Race April 2010

10

Business Matters victoriachamber.ca Tuesday, June 29, 2010

ask an expert

>> Maurice Lagasse: Managing Director, WCS Web Conferencing Solutions

A Guide to Virtual Conferencing

The Business Realities of HST in British Columbia and Ontario>> Steven Van Alstine:Vice-President, Compliance Programs and ServicesCanadian Payroll Association

Virtual conferencing offers effective tools for reducing costs, environmental impact, as well as increasing the quality of communication between organization stakeholders. However, as with any tool the trick is in using the right one for the job at hand. Each virtual conferencing solution has its own advantages depending on your specific requirements and budget.

Video conferencing refers to hardware and room-based solutions. Vendors offer a range of solutions from video phones to boardroom installations which include cameras, audio systems, and television.

Video conferencing offers the clearest view of a remote presenter or group. It is ideal when two groups or teams need to work amongst themselves as well as with the remote group or presenter. The challenge is that it does not offer individual participants the collaboration tools of web conferencing, each attendee must have access to the video conferencing equipment or facility (which may involve time and travel), and each facility set-up is relatively expensive to buy, maintain, or rent.

Web conferencing refers to browser based solutions such as LiveMeeting or GoToMeeting. Web based conferencing requires a meeting host, an optional webcam, and an audio device – which can be a headset for online audio, or a telephone for teleconferencing. Participants need internet access and a computer with speakers, headset or a telephone for audio.

Web conferencing is ideal for any meeting where file sharing and collaboration are important. As participants can connect from any internet enabled computer, it is more convenient and much less expensive than video conferencing. In addition to file and screen sharing, web conference meetings can include whiteboards, annotation tools, surveys, polls, text chat, Q&A, breakout rooms and meeting recording.

The main downside is the quality of video and online audio. Internet audio, if available, is still of unreliable quality and as video uses system resources and internet bandwidth, the video image can slow or freeze at either end of the connection.

Webcasting is a conference presentation platform and is ideal for presenting information to large audiences. Webcasting has evolved into a virtual conferencing tool because newer applications allow participants to ask questions via a text chat box, respond to surveys or polls, and download files. Webcasting can be used to extend the reach of live conferences by capturing and transmitting speakers and their PowerPoint presentations

Effective July 1, 2010, the provinces of British Columbia and Ontario implement a harmonized sales tax (HST). The new HST replaces the existing Goods and Services Tax (GST) and provincial sales tax, and is administered federally. As you are responsible for ensuring your organization remains compliant, you need to be aware how the HST will impact your work.

How HST Works

As of July 1, 2010, the HST applies on most goods and services at a rate of 12% in BC (5% federal portion plus 7% provincial portion) and at a rate of 13% in Ontario (5% federal portion plus 8% provincial portion). The HST is administered by the Canada Revenue Agency (CRA) and uses the same tax base and structure as the GST, with limited exceptions.

Generally, the HST will apply to goods and services purchased on or after July 1, 2010. During the transition period—from May 1 to July 1, 2010—the HST applied to most amounts that were paid or were payable on or after May 1 for goods and services provided on or after July 1, 2010.

With the implementation of the HST, sales will continue to be non-taxable for the provincial portion of the tax on books (including audio books), children’s clothing and footwear, children’s car seats and car booster seats, children’s diapers, feminine hygiene products, print newspapers, and qualifying prepared foods and beverages sold for a total of $4.00 or less.

HST & Reporting

There is no special requirement to register for the HST. Businesses in BC and Ontario that are registered for the GST are automatically registered for the HST, and are required to collect and report the HST according to their current GST filing frequency. Like under the federal GST, registered businesses that sell taxable or zero-rated goods and services are still able to claim input tax credits (ITCs) on their purchases for each reporting period.

In addition, the CRA announced changes to the GST/HST reporting requirements on January 4, 2010. Under the proposed changes, GST/HST registrants (excluding charities) with greater than $1.5 million in annual taxable supplies (including those of all their associates) would be required to file their GST/HST returns electronically for all reporting periods that ended on or after July 1, 2010. The four electronic filing options are GST/HST Netfile, GST/HST Telefile, GST/HST EDI filing and remitting, and Internet File Transfer (GIFT). (In certain situations, a registrant will be required to file electronically using a predetermined option.)

to online attendees, or to hold a virtual conference where all participants are online. Options include branding the webcast viewer, pay-per-view events, and limiting viewing to geographical regions.

Webcasting offers a substantial cost savings over in-person conferences. There is no limit to audience size, and live presentations can be repurposed for 24/7 on-demand viewing. Webcasting offers better quality audio and video than web conferencing when hardware encoders are used to capture video and audio. Webcasts are streamed online and viewed via a media player such as Windows Media Player.

The downside is that quality webcasting requires advanced technical skills and equipment; fortunately, there are a growing number of webcast production companies that can capture and manage your online training or events with ease.

In summary, each technology is best suited for particular circumstances:

• Video conferencing is best when working with small groups of 2 to 15 per location, and where having a clear view of all participants in the remote location(s) is of value.

• Web conferencing is best for meetings and presentations where participants are spread out geographically or where collaboration tools are essential.

• Webcasting is best for mid to large audiences where reliable online audio video quality is important and branding is beneficial.

Each technology offers a wide range of pricing and features. Choosing the right solution for your circumstances will ensure your training, meeting or conference’s success, and the satisfaction of presenters and participants alike.

The author, Maurice Lagasse, helps organizations take full advantage of remote conferencing technologies. WCS Web Conferencing Solutions offers remote conferencing production services from its office in the Victoria Executive Centre (board or seminar room) or on location. Maurice can be contacted at Maurice@WCSwebconferencing.com

HST & Taxable Benefits

The remuneration—salaries, wages, allowances, gratuities and commissions—that employers pay to their employees are not subject to federal and provincial sales tax (GST/HST/PST/QST). However, the benefits they provide to their employees may be subject to sales tax. Generally, if a benefit is taxable for income tax purposes, the CRA considers that the employer supplied a good or service to the employee and collected the applicable tax.

With the implementation of HST in BC and Ontario, the value of most taxable benefits that are provided to BC and Ontario employees and that are currently subject to GST are subject to the HST. Employers will be required to collect and remit the applicable amounts.

Be Prepared

If your organization has payrolls in BC or Ontario, you need to ensure you have taken all the necessary steps to prepare for the implementation of HST effective July 1, 2010. Make a list of what payroll processes are affected and review what actions have been taken. Continue to work with your IT department and/or service providers to make sure point-of-sale, accounting and payroll systems have all been upgraded properly. Hold follow-up meetings with those responsible in accounting, human resources and benefits to ensure the HST has been implemented correctly.

Steven Van Alstine, CPM, CAE is the Vice-President, Compliance Programs and Services for the Canadian Payroll Association (CPA)—the national association that has been representing employer payroll interests in Canada since 1978. www.payroll.ca

Resource Websites:

Canada Revenue Agency• HST Home Page: www.cra-arc.gc.ca/gncy/hrmnztn• HST for BC: www.cra-arc.gc.ca/gncy/hrmnztn/bc

Government of BC • HST Home Page: www.gov.bc.ca/hst

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