Beekeepers stung by high colony losses

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MANITOBA/SASKATCHEWAN                                       JULY 27, 2007 – VOL. 3, NO. 15                                                      NEWSSTAND $2




Beekeepers stung by high colony losses
                                               A QUICK STUDY                                                                  Industry struggles
                                                                                                                               with low prices,
                                                                                                                                 bee mortality
                                                                                                                              By Laura Severs
                                                                                                                              Business Edge




                                                                                                                              B
                                                                                                                                        ees are dropping like flies
                                                                                                                                        as Canadian beekeepers
                                                                                                                                        struggle to find out
                                                                                                                                        what’s causing a collapse
                                                                                                                              in their $1.2-billion industry.
                                                                                                                                Losses across the country are
                                                                                                                              piling up and beekeepers are fac-
                                                                                                                              ing tough times, industry officials
                                                                                                                              say, especially in an economy
                                                                                                                              where honey is selling at prices
                                                                                                                              below actual production costs.
                                                                                                                                While early indications point to
                                                                                                                              unusual weather patterns and dis-
                                                                                                                              ease, there is no one common link
                                                                                                                              to the high levels of bee mortality.
                                                                                                                              In some cases, colonies weathered
                                                                                                                              the winter in one area while a
                                                                                                                              neighbouring beekeeper was hit
                                                                                                                              hard.
                                                                                                                                “We haven’t seen such high
                                                                                                                              losses before across the country,”
                                                                                                                              says Heather Clay, national co-
                                                                                                                              ordinator for the Calgary-based
                                                                                                                              Canadian Honey Council (CHC).
                                                                                                                              “We’ve seen it in pockets, but
                                                                                                                              nothing on this scale.”
                                                                                                                                Overall, the national average of
                                                                                                                              overwintering mortality has
                                                                                                                              almost doubled over last year to 29
                                                                                                                              per cent, with Ontario registering
                                                                                                                              28,379 dead colonies (or 37 per
                                                                                                                                                       an
                                                                                                                              cent); S a s k a t c h ew at 24,000
                                                                                                                              (24); Manitoba at 22,950 (27) and
                                                                                                                              British Columbia at 11,308 (23).
                                                                                            Daniel Alexander, Business Edge
                                                                                                                              See PLAN                    Page 4

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                                                                                                                                           PM40045817
Page 2                                                                                                                                                               July 27, 2007




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              SUITE 500                   PUBLISHER                                                         Victoria and Ottawa-Gatineau          disincentives for purc h a s i n g
         525 11TH AVE. S.W.              ROB DRISCOLL                   A growing number of                 had the lowest proportion.            gas-guzzling        SUVs       are
         CALGARY T2R 0C9                                             Canadian householders are                 While it’s heartening to see       possible options to encourage
           1.866.216.3343             EDITOR-IN-CHIEF                using energy-efficient lights          m o re Canadian householders          Canadians to become more
         FAX 403.264.4439                                            and water-saving showerheads,          boosting their use of compact         environmentally active, Matt-
                                      TERRY INIGO-JONES
                                                                     but they’re still far from being       fluorescents and programmable         haus said.
   ADVERTISING INQUIRIES              HEAD OF RESEARCH               full-fledged environmentalists,        thermostats, the predominance            Since the survey was con-
                                      ALEXIS D. SMOLENSK             suggests a new Statistics Canada       of single-occupant ve h i c l e s     ducted, the city of Saskatoon
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                                                                     study.                                 driven to work is a problem,          revamped its transit system last
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                                    CIRCULATION MANAGER                 A survey of more than               said Lisa Matthaus, campaigns         Ju l y, and saw a 12-per-cent
                                      ALEXIS D. SMOLENSK             28,000 households conducted            director of the Sierra Club of        i n c rease in ridership Ja n . 1
                                                                     in early 2006 found that close         Canada’s British Columbia                        d
                                                                                                                                                  c o m p a re to last ye a r, said
                                                                     to six in 10 now use compact           chapter.                              Mayor Don Atchison.
                  CANADA POST PM 40045817                            fluorescent bulbs – triple the            “To me, that points out vol-          The city was the first in the
   RETURN     UNDELIVERABLE CANADIAN ADDRESSED       MAIL TO:        proportion since the mid-1990s         untary measures can take us           Prairies to have hybrid buses,
                          SUITE 500,                                 – and more than four in 10             part of the way, and in some          and they are trying to set up
                     525 - 11TH AVE. S.W.                            have a programmable thermo-            cases, a good chunk of the way        routes moving people fro m
                      CALGARY, ALBERTA.                              stat, compared to 16 per cent in       to where we need to get to,”          hubs and outer areas of the city
                          T2R OC9                                    1994.                                  she said from Victoria.               to the downtown core faster
                                                                        Six in 10 households had a             “But in the end, we really do      than in the past, or to the north
                 SUBSCRIPTIONS@BUSINESSEDGE.CA                       wa t e r - s aving showerhead in       need to look at government to         end if needed, he said.
                                                                     2006, compared to more than            find ways of making sure every-          “If it’s going to take you an
                                                                     four in 10 in 1994.The propor-         body is recognizing the real          hour to get from one end of the
                       INSIDE EDGE                                   tion using water-saving toilets        costs of our actions.”                city to the other (by bus) and
                                                                     nearly tripled, and composting            Having a good transit system       you can (do it by car) in about
■ 20 QUESTIONS                     ■ EDGE@WORK                       also was on the rise.                  is a luxury for a lot of big cities   22, 23 minutes, I think a lot of
Software entrepreneur Wayne        Companies are learning that          But the survey found other          with commuters wanting to             people would still choose their
Purboo has enjoyed his             retaining staff is as much of a   aspects of household behaviour         park the car at home, but that        vehicle, so we’re trying to make
telecommunications                 challenge as finding them in      have not changed much since            doesn’t mean those living in          it more beneficial time-wise to
rollercoaster ride.                the first place.                  the mid-1990s.                         less populated areas don’t have       take the bus for people.”
                       Page 6                              Page 18      Chemical pesticide use was          options, Matthaus said.                  Yet for many living in bed-
                                                                     down only slightly to 29 per              “Even smaller communities          room communities near the
■ FINANCIAL EDGE                   ■ OPINIONS                        cent in 2006 from 31 per cent          might have to start looking at        city of 225,000, driving still
A strong stock market is           Banks have taken the plunge       in 1994, with the sole excep-          prioritizing more investments         remains their main way to get
making it tough for Fred           into dangerous mortgage           tion of Quebec, w h e re the           in those kinds of areas, or for       into Saskatoon, Atchison said.
Pynn of Bissett Investment         territory with gimmicky deals,    share of households applying           individuals, making investments          Pesticide use was highest in
Management to find bargains.       says columnist D’Arcy Jenish.                           en
                                                                     l aw n - a n d - g a rd  pesticides    in better technology that allows      the Prairie provinces, led by
                      Page 12                           Page 20      plunged by half to 15 per cent.        you to either work at home            Manitoba at 44 per cent and
                                                                        Most Canadians also com-            more often or carpooling with         Saskatchewan close behind at
■ STREET LIFE                      ■ EXPORT ANALYSIS                 muted to work alone in a pri-          neighbours.”                          43 per cent.
Constellation Software’s star      Strong sectors such as energy     vate car or truck, with 57 per
is shining bright on the heels     and metals are helping to keep    cent of all people working out-
of an acquisition spree.           the world economy rolling.        side the home travelling solo to
                       Page 14                            Page 20    their jobs during the warmer
                                                                     months, growing to 64 per cent
■ REAL ESTATE EDGE                 ■ TECHNOLOGY EDGE                 in colder months.
Selling a ranch, like the Alexis   As digital surveillance              The survey found that of the
Creek spread near Williams         improves, there’s the question    country’s urban centres in sum-
Lake, B.C., can come down to       of who’s watching the security    mer, Saskatoon, A b b o t s f o rd ,
whether the buyer needs a          camera staffers, says columnist   B.C., and Windsor, Ont., had
private airport.                   Tom Keenan.                       the highest proportion of peo-
                        Page 16                            Page 22   ple commuting on their own in



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  Workplace safety measures raise concerns
                                     are particularly vulnerable to      were killed and four others         the legislated employment stan-     allowed to stray outside that
  Unions say                         abuse because of their depend-      injured earlier this year while     dards,” says Jackson.               fence.”
                                     ence on the employer,” says         working at a Canadian Natural          James Leland, business man-         Under PNPs, employers must
foreign workers                      Andrew Jackson, chief econo-        Resource Ltd. (CNRL) project        ager for Ironworkers Local 97       prove that they have not been
                                     mist for the Canadian Labour        in the oilsands near Fort           in Vancouver, says unions wel-      able to hire Canadians for posi-
 need freedom                        Congress (CLC).                     McMurray. Labour leaders say        come temporary foreign work-        tions filled by international
                                        There were 171,844 tempo-        the deaths defied the excellent     ers and they should be allowed      employees, and pay salaries on
 of movement                         rary foreign workers living in      safety standards of major oil and   to change employers if they do      par with locals.
                                     Canada last year – a 122-per-       gas producers such as Suncor,       not find conditions satisfactory.      But Leland says his union put
By Monte Stewart                     cent increase from a decade         Syncrude and even CNRL.                “If they were able to change     in 100 applications for its mem-
Business Edge                        ago.Temporary foreign workers          But the CLC’s Jackson says       contractors, t h ey would go        bers on the Golden Ears Bridge
                                     entering Canada account for an      provincial employment stan-         where the work is safest, where     project, a public-private part-
    abour groups are calling for     estimated 50 per cent of the        dards often exclude temporary       the pay is best and where the       nership in the Greater
L   looser restrictions on tem-
porary foreign workers in order
                                     total, while the rest enter using
                                     exemptions under NAFTA
                                                                         foreign workers such as domes-
                                                                         tics and farm workers. He crit-
                                                                                                             conditions are best – according
                                                                                                             to their ability,” says Leland.
                                                                                                                                                 Vancouver area, but “not one
                                                                                                                                                 guy got a call.”
to boost workplace safety.           or other trade agreements, on       icizes the Ontario government       “Any other deal is just more           “And yet (contractors) keep
   Alberta has set out to provide    student visas or as spouses.        for resisting efforts by seasonal   bureaucratic red tape.”             saying they had to go overseas
more protections for workers            The provincial nominee pro-      foreign mushroom farmers to            The fact that Ottawa and the     to get ironwo r ke rs,” says
hired from other nations after       gram (PNP) allows provinces         unionize after a Supreme Court      Alberta government would            Leland.
signing a memorandum of              and territories to fast-track       of Canada decision ruled a          have to introduce more protec-         But Daniel Hirs c h ko rn, a
understanding (MOU) with             applications for entry to           provincial law prohibited their     tions points to a problem, he       Saskatoon-based        consultant
Ottawa on a future agreement         Canada to help offset skilled-      right to do so.                     adds.                               who recruits foreign workers
that calls for closer scrutiny of    labour shortages, which are            “One thing (Ottawa) could           Leland also contends foreign     for Saskatchewan- and Alberta-
hiring and workplace-safety          expected to become more             do is not issue permits to          temps constitute a “ c a p t iv e   based companies, says Service
practices. Other provinces are       acute as Baby Boomers retire.       employers to hire temporary         workforce” that is being used to    Canada ensures that temporary
expected to follow suit.             The programs have been cred-        farm workers unless they’re sat-    keep pay expectations down.         f o reign workers re c e ive the
   But labour groups say such        ited with boosting labour sup-      isfied that the provincial gov-        “When they come in, t h ey       same pay as their Canadian
pacts would not be necessary if      ply in smaller markets, such as     ernment is enforcing labour         can only work for that compa-       counterparts and no Canadians
temporary foreign workers            Manitoba, that have difficulty      standards,” says Jackson.           ny,” he says. “For us to get them   are available for jobs advertised.
could change employers if they       attracting immigrants.                 But, he adds, the Ontario        over to another company, it            Once hired from overseas,
do not find the first job to their      Ontario (44.7 per cent), B.C.    government has increased its        takes about two months – all        wo r ke rs go through training
liking. Union leaders say cur-       (21.7 per cent), Alberta (13.5      efforts recently to monitor         kinds of paperwork.                 and orientation at the jobsite.
rent rules re q u i re temporary     per cent) and Quebec (13.1)         employers and make employees           “If the guy is working there     Companies will make sure
foreign workers to remain with       employ the vast majority of         more aware of standards.            and they’re treating him shabby,    English levels are high enough
the companies that bring them        Canada’s foreign temps.                “If workers are going to be      and I have a contractor that will   so that there are no miscom-
to Canada through provincial            The federal-Alberta crack-       effectively protected, the two      treat him decently, he cannot go    munication issues, he adds.
programs.                            down comes after two Chinese        key lines of defence are union      and work for him.The Chinese
   “Temporary foreign workers        temporary foreign workers           representation or protection of     wo r ker is not going to be         See PACKAGE              Page 5



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PLAN from Page 1


 Secondary illness proving fatal for colonies
   The colonies appear to suffer                                                                                   prices due to a world honey         wrench in trying to find out
first from a primary malady,                                                                                       shortage.                           what the problem was. We’re
such as poor nutrition, unusual-                                                                                      “The wholesale price was         speculating the long winter we
ly cold weather, mite infesta-                                                                                     around $2 a pound then, now         had – it came early and stayed
tion, bacteria or other non-life-                                                                                  it’s 75 cents a pound,” says        late – plus a cool wet spring
t h reatening illness, says John                                                                                   Wa l ke r. “(To d ay) it costs us   made it more difficult for the
Gibeau, president of the British                                                                                   $1.25 to produce a pound of         bees to recover from the long
Columbia Honey Pro d u c e rs                                                                                      honey that we only get 75 cents     winter.”
Association. Then the colony                                                                                       for.”                                  Laflamme hopes to have all
dies from a secondary illness                                                                                         N ew Bru n swick has an-         the data analysed and a report
that attacks during the weak-                                                                                      nounced $100,000 as a first step    by August, but adds he does not
ened state.                                                                                                        to help beekeepers rebuild their    know of any new funding in
   “That secondary illness has                                                                                     colonies.                           the works.
not yet been discovered, and                                                                                          However, no additional fund-        He notes beekeepers can turn
may be a simple pathogen, such                                                                                     ing has been set aside in           to existing compensation pro-
as a new virus,” says Gibeau.                                                                                      Alberta, and that concerns          vided by the Canada Alberta
   The one bright spot is that                                                                                     Kevin Nixon, president of the       Income Stabilization Program
c o l o ny collapse      disord e r                                                      Philip Dobranski photo,   Alberta Beekeepers Com-             and the Alberta Financial
(CCD), prevalent in the United                          courtesy of British Columbia Honey Producers Association   mission (ABC).                      Services Corp. But Nixon says
States, where a sudden large-         The Canadian Honey Council has developed a 23-point action                      “We are seeing extre m e l y     such programs are inadequate
scale die-off of adult bees                                                                                        high losses,” says Nixon.“We’ve     for beekeepers who have been
                                      plan to help beekeepers battle the high levels of bee losses.
occurs, is unlikely to be a cause                                                                                  had two years in a row of low       hit with high colony losses.
for concern in Canada. CCD                                                                                         honey prices and beekeepers            Saskatchewan Beeke e p e rs
has yet to be diagnosed in                                       THE BUZZ                                          being hit with a huge loss. We      Association president Tim
Canada, says Gibeau.                                                                                               can’t just call up a supplier in    Wendell says losses in the
   New Brunswick has been                  Employing about 8,000 people, Canada’s beekeeping industry              April and say,‘30 per cent of my    province varied this year with
hardest hit by bee colony losses        produced 93 million pounds of honey in 2006. Almost half the               bees are dead and can we get        some beekeepers losing 80 per
over winter, losing 59 per cent         honey crop is exported, with 90 per cent sent to the U.S.                  new bees?’                          cent of their colonies and oth-
                                           But Canada has fallen out of the top 10 global honey
this past winter – the average                                                                                        “We can only get new bees        ers just 10 per cent.
                                        producers, with countries such as China, Turkey and Argentina
for overwintering losses of bee         leading the way followed by other nations including Mexico,
                                                                                                                   f rom New Zealand and                  “It looks like it was a resistant
colonies in Canada is just 15           Ethiopia and Spain.                                                        Australia, and those usually        mite, something that happens
per cent – or 4,990 dead bee               According to 2006 figures, there were 631,252 colonies in               have to be ordered in January       after a time if you’re using a
colonies. In Alberta, home to           Canada.                                                                    to receive them by springtime.”     specific mite treatment,” he
the largest number of bee               ■ 435,000 colonies are located on the Prairies, producing 83 per              With about 240,000 hives –       says. “It’s my experience that
colonies in the country, the            cent of the honey crop.                                                    or 40 per cent of Canada’s bee      when you have winter losses, it
percentage is lower at 31 per           ■ Some 80 per cent of beekeepers are hobbyists and operate                 colonies – and the largest          generally points to some form
cent, but it registered the high-       20 per cent of all colonies. The average number of colonies per            honey production, as well as the    of management issue – mites
est actual number of dead bee           commercial beekeeper is 2,000.                                             largest pollination sector in       grow resistant very rapidly.”
colonies at 77,500 during the           ■ Bees are estimated to contribute, directly or indirectly, to one-        Canada for canola, Alberta             But while Wendell is con-
same period.                            third of our food supply.                                                  remains on the sidelines, says      cerned about colony loss, he
   To deal with the situation,          ■ The annual value of honey, wax and hive products is about                Nixon.                              says there’s an even bigger issue
                                        $200 million.
the CHC has developed a 23-                                                                                           “Everything that has taken       – cheap imported honey that is
                                        ■ The annual value of honey bees through direct effects of
point action plan.                                                                                                 place so far has gone very slow-    sold in this country under the
                                        pollination is more than $1 billion. Pollination targets include
   Clay says the plan calls for:        hybrid canola, apples, blueberries and cranberries.
                                                                                                                   ly. They (the province) don’t       Canada No. 1 brand, which is a
■ Improved monitoring of bee                                                           Source: Agriculture and     seem to have any major con-         grade name and doesn’t reflect
colonies.                                                                                  Agri-Food Canada        cerns about it,” says Nixon.        the honey’s origins.
■ The establishment of a                                                                                              Paul Laflamme, head of the          “That Canada No. 1 honey
national bee lab for testing and      honeybees are vital to the             says Danny Walker, president          pest management branch of           may not have any Canadian
research.                             canola seed production indus-          of the Ontario Beekeepers             Alberta Agriculture and Food,       honey in it,” he says.
■ Lobbying the federal gov-           try – and for more research dol-       Association.                          says the province is still             But the CHC’s Clay says
ernment for at least one addi-        lars. “We were lobbying before            “But there’s still some guys       analysing results from a provin-    t h e re is good news on this
tional national apiculture            (the bee colony losses) and are        who could still use some help –       cial survey about overwintering     particular front after years of
research position with full tech-     lobbying harder now,” she says.        some of these guys will spend as      losses.                             lobbying for change.
nical support.                           In Ontario and New                  much as they can to get back             “One of the oddities that we        “The current (federal) gov-
■ Expanding provincial inspec-        Brunswick, provincial govern-          on their feet. An equal match         saw was that we could have a        ernment is working with us on
tion programs to include both         ments have stepped in with             from the federal government is        large producer with two yards,      getting the changes,” she says,
fall and spring.                      financial assistance for the hard-     well-warranted for us and the         one would be devastated with        adding in the future, the
■ Assistance/disaster relief pro-     hit sector.                            ( b e e ke e p e rs in the) other     an 80-per-cent loss, the other      Canada No. 1 honey brand will
grams for beekeepers at both             Ontario has set up the $2.4-        provinces as well.”                   would be fine with normal           only be used on 100-per-cent
the provincial and federal levels.    million Special Beeke e p e rs            Walker says he sold honey          losses of about 10 per cent,” he    Canadian honey.
■ A comprehensive profession-         Fund to provide direct com-            this winter for a third of what       says.                                  (Laura Severs can be reached at
al development program for            pensation to beekeepers who            he got in 2002, the best year for        “That really threw a monkey      laura@businessedge.ca)
beekeepers that would consist         s u f f e red higher than normal
of courses in business and live-      hive losses this past winter.The
stock management, accredita-
tion, and good practices recog-
                                      province is adding an addition-
                                      al $600,000 for research, tech-
                                                                              Housing market racks up another record
nition.                               nology transfer and the promo-         The Canadian Press                    adjusted high of 31,300 – up        first time in more than a year.
   One of the first moves will be     tion of Ontario honey.                                                       0.3 per cent from May and 10.9         Bank of Montreal economist
an information bro c h u re for          The Ontario Beeke e p e rs            Canada’s housing market had         per cent from a year ago. It was    Doug Porter said one of the
beekeepers on the monitoring          Association calls the funds a          another record month in June          the highest monthly sales level     reasons the Bank of Canada is
and treatment of pests and par-       good start, especially for bee-        as the average price jumped           on record and the third consec-     hiking rates is due to the per-
asites. “Right now we need to         keepers in the Niagara and the         more than 10 per cent.                utive month in which activity       sistent power of the housing
get the information out and           Haldimand-Norfolk areas – just           The Canadian Real Estate            scaled new heights, CREA said.      market.
make sure that all beekeepers         west of the Niagara – that were        Association (CREA) said the             Cities breaking re c o rds in        Porter said with sales growing
get the same information,” says       some of the hardest hit by hive        average cost of a home was            June we re Regina, Toronto,         faster than new listings, there is
Clay.                                 losses.                                $335,180 last month, compared         Hamilton, Kitchener, Montreal       still room for house prices to
   Clay adds that more research          “I think it’s fantastic that they   to $303,472 in June last year, an     and Saint John.                     increase further “including mar-
at the federal level is vital, and    (the province of Ontario)              increase of 10.4 per cent.              The housing figures came a        kets which were previously
the CHC is lobbying for a pol-                 d
                                      k i c ke in their $3 million,            Also in June, existing home         day after the Bank of Canada        m o re subdued, such as Toronto,
lination ecologist position –         which will help out a lot,”            sales rose to a new seasonally        raised interest rates for the       Montreal and Ottawa.”
July 27, 2007                                                                                                                                                             Page 5

PACKAGE from Page 3
                                                                               Report predicts global energy crunch
 Companies being                                                            The Canadian Press

                                                                              The International Energy
                                                                                                                 “Not only does oil look
                                                                                                              extremely tight in five years
                                                                                                              time, but this coincides with
                                                                                                                                                   The Paris-based agency fore-
                                                                                                                                                 casts escalating global growth
                                                                                                                                                 will cause spare capacity of the


  advised to put                                                            Agency has warned of the
                                                                            prospect of a global oil and
                                                                            gas crunch due to higher
                                                                            than expected demand and
                                                                                                              the prospect of even tighter
                                                                                                              natural gas markets at the turn
                                                                                                              of the decade,” the energy secu-
                                                                                                              rity watchdog for the 26-nation
                                                                                                                                                 OPEC to fall to “uncomfort-
                                                                                                                                                 ably low levels” – and non-
                                                                                                                                                 OPEC countries will not pick
                                                                                                                                                 up the slack.


 worker safety first                                                        b e l ow-par supply from the
                                                                            Organization of Pe t ro l e u m
                                                                            Exporting Countries (OPEC)
                                                                            and other suppliers.
                                                                                                              Organization for Economic
                                                                                                              Co-operation and Deve l o p-
                                                                                                              ment said in an oil market
                                                                                                              report.
                                                                                                                                                   Supply increases from non-
                                                                                                                                                 OPEC oil producers will start
                                                                                                                                                 receding starting in 2009, the
                                                                                                                                                 report says.
   “ S a s k a t c h ewan employers,   near the top of workplace
the ones I’ve talked to, they          death and accident totals,
have a whole package in place          behind perennial frontrunner
when foreign workers come              Ontario.
here,” says Hirschkorn. “They             Christie says Alberta work-
make sure that communication           place deaths have declined
is there (and) understanding is        slightly to about 120 per year
there.                                 from 155 two years ago.
   “Unfortunately, people die at          “It’s kind of a joke when we
job sites all the time.They hap-       see what has been happening
pen to be foreign workers who          for decades here,” he say s .
died (in the oilsands.) But I          “Now, we bring in fore i g n
wonder if there’s more media           workers who are really inden-
(attention) around (the inci-          tured labour.”
dent) because they are foreign            Citing federal figure s , the
workers.”                              Alberta Federation of Labour
   Hirschkorn believes provin-         reports the province welcomed
cial nominee programs are              more temporary foreign work-
“visionary” and make sense, but        ers than immigrants through
he also endorses the idea of a         the mainline entrance program
national program designed to           last year.
improve temporary fore i g n              As of last Dec. 1, there were
worker safety. Businesses must         22,392 temporary fore i g n
bear most of the responsibility        workers in Alberta, compared
for safety, because there’s “only      to 20,717 immigrants granted
so much” that governments can          permanent residence status.
do.                                       It marks the first time that
   “With this day and age of           Alberta’s temps have outnum-
Internet, it’s a small world,” he      bered traditional immigrants.
adds.“If people are hearing that          There were 74,275 tempo-
f o reign wo r ke rs are coming        rary foreign workers in Ontario
here and (Canada has) unsafe           as of last December, compared
working conditions, people             to 125,914 immigrants granted
will just quit coming. So it’s a       permanent residence status.
good idea for eve ryone                   British Columbia re c o rd e d
involved to ensure that regula-        36,210 temps with 42,079 tra-
tions are in place and (there is)      ditional immigrants. Saskat-
a safe work environment.”              chewan welcomed 2,266 for-
   The MOU between Alberta             eign temp workers and 2,724
and Ottawa, announced July 9,          n ew permanent immigrants,
calls for the two Tory govern-         while Manitoba had 3,494
ments to share information on          temporary        workers     with
workers hired from other               10,051 people granted perma-
countries to ensure temporary          nent residence status.
employment programs meet                  Christie says a survey con-
the needs of workers and               ducted by a Calgary coalition of
employers.                             unions found most of the city’s
   Ottawa also plans to introduce      temporary foreign worke rs are
tougher measures designed to           employed in the food-service
monitor the hiring of tempo-           industry and earn only $9-$10
r a ry foreign workers and curb        per hour on average, while most
fraud. Potential penalties com-        receive minimum wage.
panies could face include refusal         “Absolutely, there have to be
of future requests for more            (temporary foreign worker
international temps.                   protection) measures national-
   But Gordon Christie, execu-         ly,” he says. “Everything helps.”
tive secretary for the Calgary            He says Alberta has had tem-
and District Labour Council,           porary foreign worker pro-
p redicts the Albert a - O t t aw  a   grams for the past 40 years, but
deal will not make a difference.       they are now used on a much
He says the governments must           larger scale.
look at Canada’s safety record            All workers should be treated
for all workers – not just             with dignity and re s p e c t
foreign temps.                         re g a rdless of where they’re
   Of all Organization for             from, he adds.
Economic Co-operation and                 “We should all have the same
Development (OECD) coun-               equal opportunities (and) ben-
tries, only Italy has a worse job      efits,” says Christie. “Instead of
accident and death rate than           temporary foreign workers, we
Canada and all the English-            should be looking at immigra-
speaking industrialized coun-          tion.”
tries, says Christie.                     (Monte Stewart can be reached
   Alberta traditionally ranks         at monte@businessedge.ca)
Page 6                                                                                                                                                         July 27, 2007


                                                                          20 QUESTIONS


   Entrepreneur enjoying rollercoaster ride
  By Monte Stewart
  Business Edge

                    ayne Purboo started


  W                 out as a technologist,
                    but morphed into an
                    entrepreneur.
     The founder, president and CEO of
  Toronto-based QuickPlay Media Inc.
  is now leading his company through a
  series of transformations.
     You may not recognize QuickPlay,
  but it’s lurking behind the scenes of a
  cellphone near you.
     In layman’s terms, the company
  provides software that enables
  telecommunications company
  customers to watch short video clips
  on their mobile devices. In three
  short years, Purboo has taken a
  company from scratch to revenues
  approaching the $10-million market,
  signed up major carriers Telus, Bell
  Mobility and Rogers, and linked users
  to major broadcasters such as CBC,
  MTV, ESPN and CHUM Television.
     “I love the rollercoaster,” says
  Purboo, explaining how he evolved
  into an entrepreneur. “It definitely is a
  rollercoaster ride. Day to day is just
  up and down. I play a lot of sports. I
  played basketball for McMaster
  (University) and it’s just replaced that
  competitive need that’s in me, I
  guess.”
     Suffice to say, he has come a long
  way since he left his birthplace of St.
  Thomas, Jamaica, at the age of two.

  1. Do you actually remember
  much about Jamaica?                                                                                                                       Daniel Alexander, Business Edge
     “Only because I’ve vacationed
                                              QuickPlay Media CEO Wayne Purboo has developed his company into a telecommunications industry player.
  there, but not (from) while I was
  there. My grandmother’s there. My           was pretty easy to switch.”               manageable right now. Some days, I        me on what’s important and what’s
  family are (banana) farmers. So there’s     5. Why did you decide to switch?          probably should (use a cane.)”            not. It’s the ‘what’s not’ that’s really
  still the family farm and stuff.”              “There were a couple things that       9. What would you say helped              important when you’re a startup
  2. Why did your family decide to            were happening. I started playing         you survive that serious injury           company. Judy used to be on the
  move to the Toronto area?                   around with computers more because        and still pursue your goals?              board of Fed Ex. I was very fortunate
     “My dad was also a machinist and         of the Genome Project. I kind of             “Things changed. I got recruited       to be just out of university and able
  in the ’60s (companies) were looking        figured that they’d need to store all     out of university for a California-       to work in that kind of environment.
  for machinists in Canada, so they           the data. It was a nice mix between       based company and I just never            It definitely made me appreciate the
  moved. He was a welder and did a lot        some of the natural science stuff I was   looked back. I just kept doing            way I think about technology and
  of metal work, and turning a lathe          doing on the biology side and the         computers and computer science.           startups.”
  and stuff like that.They needed a lot       computer side. I just found I liked       Even through my injury, I actually        10. What was the important part?
  of robotics and things like canning         the computer side more. I had a car       wrote a computer program. A friend           “With a startup, you’ve got limited
  machines. It was one of those com-          accident there, too, and ended up         of mine who had a headhunting             resources.You’ve got to figure out
  panies that got shut down because of        spending a lot of time using a            business wanted something to              when to focus on what.That was the
  free trade and moved to the U.S.They        computer.”                                organize all these people that she was    biggest lesson. I was about the 35th
  did a lot of manufacturing – sort of        6. What happened in the car               seeing. I wrote a software program for    person hired at that company. It grew
  spec manufacturing – on machines.”          accident?                                 her and that really motivated me to       quite rapidly and (went public), so it
  3. What did your dad do when                   “I broke my hip and I wasn’t able      say:‘Hey, you know what? You could        was a real education for me.”
  the company shut down?                      to walk.”                                 really make some money doing this.’       11. What should and shouldn’t
     “He moved to an extrusion com-           7. How long were you sidelined?           I got the job with the California         you focus on?
  pany that did a lot of aluminum                “I was in the hospital for about two   company based here in Toronto, but           “It depends on what stage you’re
  extrusions and he just kept getting         months.When I came out, I was on          I spent a lot of time in California and   at, and it changes over time. I think
  into more machine work.”                    crutches and canes, probably about        I learned what it meant to be an          that a lot of people focus on the
  4. When you were younger, what              nine to 12 months. I was pretty active    entrepreneur. I worked for a lot of       wrong things early on. I have a whole
  did you imagine you’d grow up               with my cane.”                            great people, including Bill Carrico      philosophy about startups and what
  to be?                                      8. What was that time like for            and (wife) Judy Estrin. Judy Estrin is    should be done and what shouldn’t
     “Culturally, there’s not a lot of push   you?                                      pretty significant down in Silicon        be done. I’m still tweaking it and
  to build your own business. It’s all           “Of course, it was very frustrating,   Valley (having been named three           experimenting with it. But very
  professions. Everybody wants to be an       but it was good in that it gave me        times to Fortune Magazine’s list          quickly, with limited resources, you
  accountant or a doctor or a lawyer. I       time to think about what I really         of the 50 most powerful women in          can get a company started if you just
  actually went to McMaster because           wanted to do.This was 1990, so I          American business).They’re kind of        stop doing certain things and make
  my parents wanted me to become a            would have been 23. I would have          the original Silicon Valley entrepre-     sure that you do others that are more
  doctor. I was in the natural science        been in my third year (at McMaster).      neurs. I got a thorough education on      significant.”
  program, but computer science is in         I still have a lot of issues with it. I   what it means to run a company.
  natural science as well at McMaster. It     have arthritis in my hip, but it’s        Most importantly, they really educated    See 20 QUESTIONS                Page 8
July 27, 2007                                                                                                                                                                  Page 7




    New fisheries program reels in support
                                      He singled out the Fraser           enforcement and provide new             “more successful” fisheries than   tunities are transferred to First
 But groups say                    River salmon fishery, which has        approaches to trace fish from           salmon use.                        Nations as part of treaty nego-
                                   been the scene of conflict             the time they’re caught until              “Under a quota-based sys-       tiations.
  more federal                     between Aboriginal and non-            they’re bought by consumers.            tem, instead of racing to catch        The federal announcement
                                   n a t ive fishermen, and con-             Rob Morley, vice-president           the fish and having them all       came just days after Paul
funding required                   frontations by both groups with        of human resources and corpo-           land at the plant at once, you     Kariya, president and CEO of
                                   Fisheries enforcement officers.        rate development for the                would basically give every ves-    the Pacific Salmon Foundation,
By Monte Stewart                      Doug Kelly, grand chief of          Canadian Fishing Co. ( C a n-           sel a fixed number to catch,”      called on the fishing industry
Business Edge                      the Sto:lo First Nation based in       fisco), says his Vancouver-based        says Morley. “They would have      and all British Columbians to
                                   the Fraser Valley, says the feder-     firm, the largest commerc i a l         the whole week to catch it and     change their approach to the
    irst Nations and commercial    al initiative is a clear departure     operator on the West Coast, had         you could spread out the land-                          d
                                                                                                                                                     a l m o s t - s a c re salmon in a
F   fishers are praising a new
$175-million Pacific fisheries
                                   from Prime Minister Stephen
                                   Harper’s “ill-advised letter” to
                                                                          anticipated a federal announce-
                                                                          ment because there is pressure
                                                                                                                  ing so (packers) would have
                                                                                                                  fresh fish every day.They would
                                                                                                                                                     speech to the Vancouver Board
                                                                                                                                                     of Trade.
support program that is            the Calgary Herald in which he         to change the way B.C. fisheries        take no more than the depart-          The Pacific Salmon Found-
designed to re-integrate the       pledged to end “racially divid-        are managed.                            ment wanted taken in that time     ation describes itself as an inde-
West Coast fishery.                ed” fishing programs.                     “We’re hopeful that it’s a start     period.”                           pendent, politically neutral
   But spokesmen for both             “I say ill-advised because that     in the right dire c t i o n ,” s ay s      Such a system would provide     organization dedicated to
groups say more federal fund-      letter was written primarily out       Morley.“But it’s probably not a         better control over manage-        re building healthy, sustainable
ing is necessary for the program   of ignorance,” says Kelly.             big enough (financial) push to          ment of the fishery and more       and diverse Pacific salmon
to succeed.                           He adds B.C. already has one        make a big difference.”                 opportunities to reduce costs      stocks.
   Fisheries Minister Loyola       fishery, but the conflict sur-            He estimates as much as $800         and provide higher-valued              Kariya called on fishers to
Hearn says Ottawa will spend       rounds the sharing of the catch.       million in federal money could          products, he adds.                 revise their practices through
the $175 million to fulfil the        “I think it’s a small, bu t         be necessary for buyouts over a            But Eco-Trust Canada, a         changes in the types of nets
Conserva t ive     gove rnment’s   important, first step to investing     10- to 15-year period, based on         Vancouver-based sustainability     they use and other techniques
commitment to establish one        in Pacific fisheries,” says Kelly      the possibility of First Nations        group, argued in a 2004 study      in order to conserve the fish for
fishery in British Columbia that   of the federal program.                seeking one-third of the $2.5-          that a quota-based system          future generations.
is environmentally and eco-           But he is concerned that            billion value of quota and              would favour large cor-                “A good part of their decline
nomically sustainable. Most of     inflation in the cost of equip-        licences.                               porations and hurt small West      is because of human impacts,”
the money is expected to go        ment could drive the buyout               Morley says the B.C. industry        Coast communities that rely        says Kariya.
toward a buyout of commercial      price up. He also wants First          has to change the way it does           on fishing for much of their           Last year, he says, the Fraser
fishers that would transfer more   Nations to be “actively involved       business in order to remain             livelihood.                        was predicted to have a sockeye
of the annual harvest to First     and engaged in managing that           competitive with its main rival,           Morley notes the proposed       run of 15-16 million, but the
Nations.                           buyout.”                               Alaska. He is hopeful the feder-        buyout of commercial fisher-       actual number was 11-11.5
   Hearn says the challenges          The new money will be               al announcement will prompt             men would give many who are        million. This year’s pre-season
faced by Pacific commercial        doled out over five years and          Ottawa to grant the industry’s          looking to retire an opportuni-    sockeye forecast calls for six to
fisheries require all sectors to   will be used to establ i s h           long-standing request for a             ty to leave the industry and       seven million.
rise above the discords of the     enhanced catch-monitoring              quota-based system, which he            help the sector prepare for the
past and work co-operatively.      and re p o rting, s t re n g t h e n   contends is what many other             time when more fishing oppor-      See HABITAT              Page 9

                                                                                                                                                     Advertising Feature

    Franchising your business? Call Retailink
  K
         en Purvis can spot a                                                                 successful Western Canadian                 compete against all the other
         candidate for franchising
         a mile away.                           “ We specify ways                             franchisor.”
                                                                                                Purvis is equally happy to help
                                                                                                                                          franchises for sale and then to
                                                                                                                                          beat the competition,” Purvis says.
    They share certain key                                                                    existing franchises solve their             “This is extremely important.
  characteristics. They run small                         and means                           problems, developing specifically           I spend an awful lot of time on
  to mid-size businesses that are                        for this new                         designed programs to generate               this aspect of the engagement.”
  profitable.                                                                                 increased sales, cut losses,                   Purvis places particular
    These businesses are
                                                         franchise to                         improve franchise relationships             emphasis on the importance of
  well-managed and unique.                           compete against                          and minimize legal exposure to              creating franchises SAFELY, by
    Moreover, they are eager to                         all the other                         lawsuits. But when it’s time to help        the way.
  expand but lack the time, funds                                                             a new franchise get off the                    “There can be legal pitfalls as
  and people to make it happen.                            franchises                         ground, Purvis adheres to a                 we move down this road,” he
    For these business leaders, a                        for sale and                         proven formula, helping each                frankly warns. “To protect my
  franchise plan represents a highly                                                          customer develop an effective               clients, I work closely with them
  attractive option.
                                                         then to beat                         business plan.                              through the entire process.”
    Ken’s company, Retailink                        the competition.                            From that point forward, it’s a              In addition, Purvis personally
  International Inc., helps such                                                              three-pronged process.                      sells the first three or four
  companies expand their horizons
  – and build their profit margins –
                                                                                    ”         ■ First step: Making
                                                                                              arrangements for legal
                                                                                                                                          franchises on his client’s behalf.
                                                                                                                                             “By doing so, I actually train the
                                                 – Retailink’s Ken Purvis,
  by going the franchise route.                                                               documentation, the franchise                person my customer selects to
    Just ask the proprietors of the                franchise lawyer and coach                 agreement and the disclosure                head up their franchise sales
  health-food store for pets that is                                                          agreement.                                  team,” he says.
  now going gangbusters as a chain            the possibilities of this potentially           ■ Second step: Creation of                     With offices in Calgary and
  of franchises. Or the owner of the          lucrative and rewarding business                operations, marketing and training          Denver, Ken Purvis is thoroughly
  mobile computer maintenance and             strategy.                                       manuals.                                    conversant with franchise law on
  repair business who travelled a               “My personal belief is that a                   “Everything relating to the               both sides of the border.
  similar road.                               good coach can work wonders,”                   business must be documented,                   Interested? There’s much more
    Both these ambitious business             he explains. “I learned an awful lot            from unlocking the door in the              to learn. So drop by the Retailink
  people benefited from the expert            about the entire industry during                morning to going to the bank at             website (retailinkfranchise.com)
  advice of Ken Purvis, a franchise           my years as a franchise lawyer.                 night,” Purvis insists.                     and give Ken a toll-free call at
  lawyer and “coach” with decades             In fact, I’ve been a franchisee                 ■ Third step: Marketing the                 1-800-567-9389 or, in Calgary,
  of experience. Purvis has helped            myself and spent four years                     franchise. “We specify ways and             403-543-1044 or e-mail
  hundreds of companies explore               working in house with a                         means for this new franchise to             kjpinc@retailinkfranchise.com.
Page 8                                                                                                                                                             July 27, 2007

20 QUESTIONS from Page 6


Market direction crucial part of game plan
12. From scratch, what is
the most important thing                              WAYNE PURBOO                                                           QUICKPLAY MEDIA
to do?
   “I think the biggest thing is    ■ Born/raised/age: St. Thomas,                                          ■ Brass: Wayne Purboo, co-founder, president and CEO; Raja
a lot of people get too caught      Jamaica/Mississauga, Ont./40.                                           Khanna, chief creative officer and co-founder.
                                    ■ Education: Studied computer                                           ■ Profile: Founded in 2004, QuickPlay is a privately held firm
up in their ideas and try
                                    science at McMaster University and                                      that has approximately 80 employees and revenues under $10
to drive their idea down            business administration at Ryerson.                                     million per year. The firm’s OpenVideo service delivery platform
customers’ throats.This is my       ■ Family: Wife Nigela, three sons:                                      manages and delivers mobile TV and video services. Customers
own philosophy.You can have         Cole, 7, Christian, 6, Camden, 5.                                       include Rogers Wireless, Telus and Bell. QuickPlay also provides
an idea and you can bounce it       ■ Career: After graduating from                                         video content from major broadcasters, including CBC, ESPN,
off a customer, but then you’ve     McMaster, Purboo joined California-                                     The Score, MTV and CHUM Television, while the same media
got to spend a lot of time in       based Network Computing Devices                                         companies are customers that use QuickPlay technology to make
the first couple of years just      (NCD), working out of Toronto.                                          their content more easily available to several telecom carriers.
listening to your customers         After leaving NCD, he became chief                                      Last year, QuickPlay won the Canadian New Media Company
and delivering more custom          technology officer of billing-system                                    of the Year Award, after earning honours for the most promising
solutions than you’d probably       provider Solect Technology Group,                                       new firm in 2005.
                                    which was acquired by Amdocs            Wayne Purboo won Top            ■ Corporate Structure: QuickPlay is a privately owned firm
like. A lot of peers might get
                                    Ltd. for US$1.2 billion in 1998.                                        funded by venture capital companies.
upset with me for saying that,
                                    He remained with Amdocs as
                                                                            40 Under 40 honours.            ■ Website: www.quickplay.com
but I think in the very early
                                    vice-president of strategy until he founded QuickPlay in 2004.          ■ HQ: 43 Hanna Ave., Toronto, M6K 1X6
stage you have to deliver some      ■ Awards: Purboo was named as one of Canada’s Top 40 Under              ■ Phone/Fax: 416-916-7529/416-535-2415
custom solutions so you             40 by Caldwell Partners in 2006.
understand the space – you          ■ Moonlighting: Sits on boards of private technology companies.
understand the problem –            Volunteers for Pathways to Education, a program designed to            important that entrepreneurs        significant revenues, reference-
better.Then, over time, you         keep kids in school, and Sheena’s Place, which helps people            continue to create value.We         able customers. It was very
have to start to look at the        overcome eating disorders. Coaches minor hockey and soccer in          created a lot of value.”            easy to raise money. It’s a great
market direction and decide:        Oakville, where he now lives.                                          16. What gave you the idea          market. It’s the fastest-growing
How do we innovate beyond           ■ Passions: Technology, sports.                                        for QuickPlay?                      market in mobile content, so
the requirements that we’re                                                                                   “I was running strategy for      it’s actually pretty easy to raise
seeing from our customer?          sake. I actually get really         (acquisition) deal in Canadian      Amdocs and meeting with a           money.”
And how do we build for            excited about the implementa-       history.”                           lot of carriers and the 3G          19. What intellectual
the future as opposed to just      tion of technology and how          15. What was your role in           (third-generation wireless)         property issues come
building for our customer? So      technology can be used to           that takeover?                      licence had just happened in        into play when you’re
the company’s got to morph         better people’s lives and to           “When we were acquired, I        Europe. In talking to a lot of      aggregating the content?
over time. A lot of people         entertain people. I don’t get       was running strategy for            (telephone carrier executives),        “Most of it, like with ESPN,
can’t get that either, in that     so riled up on technology           Amdocs, a huge telecom              I recognized that they all          MTV, CBC or any of these
they can’t cut off from the        without there being some            billing company. I did all the      wanted to have the capability       guys, they really want to con-
customer. So they continue to      real benefit to it. So I think      technology due diligence. It        to deliver (content-rich) media     trol their content.We support
deliver custom solutions or        I’m more of an entrepreneur         was pretty overwhelming (to         to their customers, but they        something called forward lock-
they just don’t look into the      than a technologist. (This          be involved in a deal that big).    didn’t have the infrastructure.     ing. So once it’s on the device,
future, because things are rosy    view) is morphing over time. If     We were still pretty young.         So we built the infrastructure.”    they can’t forward it. It’s
and they’re making money           you’d asked me the question         We had a great company              17. How did you get                 associated with that device.”
from the existing customers        10 years ago, I would have          and it was growing.We had a         through that first year?            20. If you couldn’t be at
that they have. So a foreign       told you I was a technologist.      number of companies from               “A lot of funding.You’ve got     the helm of QuickPlay
competitor comes in and            But I’m becoming more               around the world – some             to keep winning customers so        anymore, what would you
just stomps all over them.         and more focused on                 very big companies, like BP         that your investors see that it’s   do?
A key thing is being able to       how technology can be               (British Petroleum) and Bell        a good market to be in. But            “I want to get to the point
recognize what you’re doing,       consumed.”                          Canada. For me, it was a bit of     you’re not going to recover         where I can do more not-for-
and what stage you’re at, and      14. What was the first              a shock that we were bought.        your investment (right away.)       profit work, because I see the
then being able to transition      company that you                    We were about to IPO, and           You’re going to invest for a        same sort of issues – fund-
the company through the            launched?                           this was a pre-emptive transac-     number of years and build the       raising and being able to solve
different stages as smoothly as       “The first one that I didn’t     tion. It was my first time being    product up and then get to          a problem and things like that.
possible. It’s not just one big    launch, but was a principal in,     that close to a transaction, so I   some critical mass.”                I really think by the time I get
exercise. It’s multi-stage.Your    was Solect Technology Group.        learned a lot – how it happens      18. How much did you                to 45 and I’m a little bit older,
personnel – everything – is        Right after I left NCD, which       and what happens and all of         raise when you started              I can carve up my time and do
affected. It’s important to        was the California company          the different components.           QuickPlay?                          not-for-profit work. I think
understand that.”                  (mentioned earlier), a friend of    Obviously, it’s a huge feather         “The initial raise was about     there’s definitely a need to give
13. Do you see yourself            mine who was running Solect         in our caps for all of us that      $300,000. It was mostly me.         back. It’s one of the reasons I
as an entrepreneur first,          asked me to join. I did a lot of    worked on it. It was a very         Actually, it was pretty much all    coach, and I have three kids in
or a technology specialist         jobs there, from engineering to     successful deal. It pumped          me. In the series A, we raised      the system. At this (minor
first?                             sales, and ended up being the       $330 million across our             about $3 million. In series B,      sports) level, it’s all volunteer. I
   “That’s an interesting          (chief technology officer.) We      (350-400) employees in              we raised $14 million.We            feel a definite need to do more
question. I like applied           sold the company in 1998 for        Canada, so it was a lot of          went on a roadshow and made         for the community.”
technology, so I don’t like        US$1.2 billion, which is still      money that went into the            a big pitch. By that time, we          (Monte Stewart can be reached
technology for technology’s        the largest private technology      Canadian economy. It’s very         had significant track records,      at monte@businessedge.ca)


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July 27, 2007                                                                                                                                                                Page 9

HABITAT from Page 7
                                                                              Ottawa moves to help farmers
Quota system may                                                            The Canadian Press                   Agricultural Income Stabiliz-
                                                                                                                 ation (CAIS) program, created
                                                                                                                                                    farmers have predictable pro-
                                                                                                                                                    gramming.”


provide incentive                                                             Farmers       who    suffere d
                                                                            through drought and mad-cow
                                                                            disease will begin re c e iv i n g
                                                                            cheques this month as part of a
                                                                                                                 in 2004, left many producers in
                                                                                                                 bureaucratic limbo, filling out
                                                                                                                 complicated forms with no
                                                                                                                 guarantee they would qualify
                                                                                                                                                       Of the money, $400 million
                                                                                                                                                    will go directly to producers
                                                                                                                                                    who apply for the cost of
                                                                                                                                                    production aid, which covers
   Kariya wants a more limited        techniques), and the Pacific          $1-billion program to stabilize      for the funds.                     soaring fertilizer, fuel and
season opening, revisions to          Salmon Foundation has a great         the industry, the federal agri-         “What has become clear is       labour costs between 2000 and
fishing areas and reduced har-        role to play in educating peo-        culture minister says.               that many farmers say the pro-     2004.
vests. He says the value, and         ple,” says Armstrong. “I don’t          The announcement by                gramming was just so complex          Strahl said those who applied
ultimately the market price, of       think (Kariya) is chastising peo-     Chuck Strahl backs up a com-         and so difficult to administer     under the old CAIS program
the fish should be increased in       ple. He’s working with them to        mitment from the spring budg-        that they’ve almost given up,”     will be eligible to receive the
the spirit of conservation and        find new solutions.”                  et to change how producer            he said.                           cheque. Those who didn’t par-
wants the industry to build in                          – with files from   subsidies are delivered and to          “We made a promise to           ticipate in CAIS or began
the cost of habitat restoration.                   The Canadian Press       create a new savings account         change the programming and         farming after 2004 can send in
   Kelly, who has worked close-          (Monte Stewart can be reached      for future aid.                      we’re going to keep that prom-     an application to receive the
ly with Kariya, calls limited         at monte@businessedge.ca)               Strahl said the old Canadian       ise – this is going to help many   subsidy.
openings and revised fishing
areas “an excellent idea.”
   He says the Salmon Table, a
group that includes the Sto:lo
and other lower Fraser River
First Nations, commercial fish-
ers, re c reational anglers and
environmentalists, has been dis-
cussing the idea of a smaller
opening that would limit the
number of boats that go out or
the time that those boats have
to harvest fish. The Sto:lo are
also seeking to protect the
Cultus Lake salmon.
   “ ( P rotection of declining
species) requires a new way of
managing our fisheries,” says
Kelly.“It requires the regulators
– the Department of Fisheries
and Oceans – to step up to
the table and manage fisheries
differently.”
   Canfisco’s Morley says the
c o m m e rcial industry        has
already changed many of its
salmon-harvesting practices.
The industry has re d u c e d
exploitation rates, which refer
to the catch of spawning fish
on the Fraser, to 40 to 50 per
cent for sockeye and 20 to 25
per cent for other species, from
as high as 70 per cent.
   He adds a quota system could
provide incentives to fish more
selectively in return for a larger
allocation of fish.
   Vancouver-based         railtour
operator Rocky Mountaineer
Vacations Inc. is providing the
Pacific Salmon Fo u n d a t i o n
with $400,000 over eight years
to find ways to enhance the
awareness of train passengers
about the salmon industry and
restore fish habitat.
   Rocky Mountaineer pre s i-
dent and CEO Peter Arm-
strong says the company has an
obligation to “give something
back” because its trains roll
along rivers and serve wild
salmon.
   Armstrong also has a person-
al motive: He says he wants to
be able to take his grandson
fishing in the future. If all com-
panies fulfil their obligation to
look after the land and salmon,
he adds, the bounty that the
fish provide people will contin-
ue well into the future.
   “Sometimes it’s just our
ignorance (that prevents the use
of new fishing technologies and
Page 10                                                                                                                                                                             July 27, 2007




Storied CP Rail’s doors are open for new owner
  Icon rejected                       Canadian Pacific Railway has
                                      become the latest buyout can-
                                                                            Inc., a company formerly
                                                                            known as Brascan.
                                                                                                                    provinces together to form a
                                                                                                                    new country.
                                                                                                                                                              own rail passenger cars, making
                                                                                                                                                              it second only on the continent
takeover bid, but                     didate and could soon join a
                                      growing list of Canadian busi-
                                                                               But CP Rail indicated the
                                                                            doors remained open for future
                                                                                                                       As part of the deal, Nova
                                                                                                                    Scotia and New Bru n sw i c k
                                                                                                                                                              to the Pullman Co. of Chicago.
                                                                                                                                                                 The Canadian Pacific con-
 m o re expected                      ness icons taken over by foreign
                                      companies or private investors.
                                                                            discussions, which means it
                                                                            could be only a matter of time
                                                                                                                    were promised a railway to link
                                                                                                                    them with the two central
                                                                                                                                                              glomerate was split up in late
                                                                                                                                                              2001 and CP Rail became an
                                         An imminent takeover of the        before the 120-year-old freight         Canadian provinces – Quebec               independent company widely
The Canadian Press                    operator of Canada’s second-          hauler gets a new owner. If it’s        and Ontario.                              owned by retail and institution-
                                      largest railway isn’t in the cards,   not Brookfield, it could be                It was the promise that a              al investors.
  Created more than a century         as the Calgary company con-           other private investors, or one         transcontinental railway would               The rail operator was the last
ago with the mission of helping       firmed it had rejected takeover       of many U.S. rail companies             be built within 10 years that             of Canadian Pacific’s main
build a nation by uniting its         discussions with Toronto-based        looking to integrate their oper-        brought British Columbia into             operating companies that were
people from coast to coast,           Brookfield Asset Management           ations in a continental network.        Confederation four years later.           spun off – which included
                                                                               If CP Rail is acquired by a             On Oct. 21, 1880 a group of            PanCanadian and Fo rd i n g
                                                                            foreign buyer, it would join            Scottish-Canadian businessmen             Coal, CP Ships and CP Hotels

    ‘Narcissistic’ CEOs                                                     Inco, Dofasco, Falconbri d g e,
                                                                            Alcan and Hudson’s Bay Co.
                                                                            to be swallowed up by U.S.
                                                                                                                    finally formed a viable syndi-
                                                                                                                    cate to build a transcontinental
                                                                                                                    railway. The Canadian Pacific
                                                                                                                                                              – to remain independent.
                                                                                                                                                                 CP Rail now operates in
                                                                                                                                                              Canada and the U.S. with a

    like to roll the dice                                                   or overseas companies. Mean-
                                                                            while, BCE Inc. is in a deal to
                                                                            be acquired by the Ontario
                                                                                                                    Railway Co. was created on
                                                                                                                    Feb. 16, 1881.
                                                                                                                       The engineering feat was
                                                                                                                                                              22,500-km rail network that
                                                                                                                                                              serves the principal centres of
                                                                                                                                                              Canada, from Montreal to
CP/AP                                 highest company official.             Teachers pension fund.                  completed on Nov. 7, 1885 –               Vancouver and the U.S. north-
                                         They also looked at tran-             While many of these compa-           six years ahead of schedule –             east and midwest re gions.
    The bigger the ego, the           scripts of interv i ews with          nies have been business icons           when the last spike was driven            Alliances with other carriers
wilder the ride.                      CEOs to study how often a             for decades, few have the sto-          at Craigellachie, B.C.                    extend its market re a c h
    Companies led by narcissistic     first-person singular pronoun         ried history of CP Rail, found-            The Canadian Pacific Rail-             throughout the U.S. and into
CEOs tend to make more fre-           was used.                             ed in 1881 to link Canada’s             way grew into Canada’s first              Mexico.
quent strategy changes and               Hambrick and Chatterjee            populated centres in the East           c o n g l o m e r a t e, to include          The company employs about
larger acquisitions, according to     developed an index, ranked the        with the relatively unpopulated         hotels, real estate, shipping, and        16,000 people and carries
a new study by Penn State             CEOs according to their levels        West.                                   oil and gas businesses.                   everything from grain and coal
University researchers.               of narcissism and analysed               The idea first surfaced in July         CP Rail built some of its              to lumber, potash and manufac-
    “More narcissistic CEOs           company performance. Their            1867, when Canada’s Confed-             own steam locomotives as early            tured goods such as cars, appli-
gravitate to bold and highly          study will be published in the        eration brought four eastern            as 1883. It would later build its         ances and furniture.
v i s i ble choices,” writes Penn     January 2008 edition of the
State        management      Pro f.   journal Administra t i ve Science
Donald Hambrick and gradu-            Quarterly.
ate lecturer Arijit Chatterjee.
“Thus, narcissism may be
                                         Hambrick had consulted in
                                      the computer sector before, so
                                                                              Looking for top value for your
thought of as an ingredient that      he focused on that business
stimulates distinctive, extreme
managerial actions.”
                                      because he had a hunch there
                                      might be a variation among
                                                                              marketing/advertising dollars?
    But the moves do not always       executives’ egos, he said.
amount to success.
    “The greater the narcissism,
the more extreme the com-
                                         He credits former Chrysler
                                      chairman Lee Iococca as being
                                      the forefather for today’s flashy
                                                                              Look no further!
panies’ performance will be.          CEOs.                                    With its editorial excellence and unrivalled distribution, Business Edge News Magazine
Big wins or big disasters,”              The style has also been               presents an affordable and highly effective vehicle through which your business can speak
Hambrick said.                        encouraged by factors includ-            directly to a massive audience of high-income consumers and business decision makers.
    While there might be more         ing increasing emphasis on
ups and downs, companies led          “pay-for-performance” stock              Compelling editorial content has always been a foundation of our business, but
by more narcissistic CEOs             options and a company’s will-            the Edge’s distribution to 180,000+ Canadian companies truly sets us apart from
don’t do better or worse overall      ingness to hire executives from
                                                                               our competitors.
than companies with less nar-         the outside, he said.
cissistic executives, the study          Charles Elson, director of the        Business Edge advertisers can target any or all of our four editions
found. “It’s just a wilder ride,”     Weinberg Center for Corporate
Hambrick said.                        Governance at the University             (Ontario, Man/Sask, Alberta and B.C.), reaching the majority of business addresses
    Researchers measured the          of Delaware, said he wasn’t sur-         in the major centres. There is always comprehensive coverage of the downtown districts
n a rcissism of 111 CEOs of           prised by the study’s findings.          in Toronto, Vancouver, Calgary and Edmonton. Rotating distribution, meanwhile, ensures
computer software and hard-              “This only emphasizes the             that over the course of two issues advertisers can reach about 98 per cent of business
ware companies using indica-          need for strong independent              addresses through Canada Post in all of the cities below.
tors including the prominence         boards to monitor these indi-
of a CEO’s photograph in a            viduals,” Elson said.“This really        Minimum number of businesses reached per edition*:
company annual report, the fre-       makes the point for effective
quency of a CEO’s name in a           corporate governance pro c e-            Toronto     33,000          Winnipeg  9,300          Calgary       28,000           Vancouver      26,000
press release and the executive’s     dures in publicly traded com-            Mississauga 11,200          Saskatoon 3,100          Edmonton      14,500           Richmond        4,200
pay compared to the second-           panies.”                                 Markham      3,900          Regina    2,900          Red Deer       1,800           Surrey          4,300
                                                                               Ottawa      10,700                                   Grand Prairie  1,300           Burnaby         2,300
                                                                               London       5,250                                   Fort McMurray 1,250            New Westminster 1,600

  Maple Leaf to close pork plant                                                                                                    Banff
                                                                                                                                    Canmore
                                                                                                                                    Lethbridge
                                                                                                                                                     200
                                                                                                                                                     225
                                                                                                                                                   1,500
                                                                                                                                                                   Victoria
                                                                                                                                                                   Nanaimo
                                                                                                                                                                   Kamloops
                                                                                                                                                                                   4,350
                                                                                                                                                                                   1,350
                                                                                                                                                                                   1,550
The Canadian Press                    Toronto-based food company                                                                                                   Kelowna         2,500
                                      says.                                                                                                                        Vernon          1,100
   Maple        Leaf     Fo o d s        Maple Leaf says it expects to
(TSX:MFI) says it will close its      provide other positions for the         * Individual city circulation numbers are all more than 50% of total business addresses per city based on Canada
                                                                              Post unaddressed mail data as of Sept. 1, 2006.
Marion Street pork-processing         salaried employees currently at
operation in Winnipeg in              the Marion Street plant.
October and move the work to             Some of the hourly workers                           Contact us now for more information
its plant in Brandon.                 will have a chance to work at                             on advertising in Business Edge
   The Marion Street operation        other Maple Leaf plants. Others
employs 145 people and                will get financial support and                                1.866.216.3343 ext 25
processes between 15,000 and          outplacement and employment                                   Ads@BusinessEdge.ca
20,000 hogs per week, the             counselling services.
July 27, 2007                                                                                                                                                            Page 11




Securities law enforcement seen as weak
The Canadian Press                                                                                             He also said it revealed that     which promote, sell and then
                                                              QUOTE . . .                                    police and prosecutors lack the     manipulate stocks to rip off
   Canada’s securities law                                                                                   specialized knowledge of capi-      naive investors, are much easier
enforcement system has failed                                                                                tal markets they need to deal       to operate in Canada than in
in three years to bring any
major cases to trial – including
                                        “In Canada, we are not doing our                                     with white-collar crime.
                                                                                                               “Shareholders are unhappy
                                                                                                                                                 the U.S., Lamoureux said.
                                                                                                                                                    The Cory-Pilkington report
that of Conrad Black – and              part to crack down on white-collar                                   about being unable to obtain        was discussed at a conference
needs significant improvements          crime.Very few people have been                                      compensation for losses caused      last month on securities law
before it will carry any weight,                                                                             by wro n g d o i n g ,” Lamoureux   enforcement at Osgoode Hall,
legal experts say.
   In the past few years, Canada
                                        convicted in Canada.                 ”                               wrote.
                                                                                                               And Canadian legislators are
                                                                                                                                                 at which Jim Flaherty, the fed-
                                                                                                                                                 eral finance minister, called for
has poured $120 million into                                                       – Claude Lamoureux,       apathetic about white-collar        a national securities regulator.
an RCMP securities enforce-                                                     president and CEO of the     crime, he said in an interview.        Meanwhile, more suggestions
ment project with nine teams                                              Ontario Teachers’ Pension Plan       “In Canada, we are not doing      for improvement are expected
across the country.                                                                                          our part to crack down on           soon from Nicholas LePan, a
   But it won’t be successful,        capacity and could not take on        In a recent art i c l e, Lam-    white-collar crime. Very few        former superintendent of
critics say, unless it follows five   another important case,” she        oureux heaped praise on the        people have been convicted in       financial institutions, who is
recommendations from a wide-          said. “There isn’t capacity else-   Cory-Pilkington report, noting     Canada,” said Lamoureux, who        studying the effectiveness of the
ly cited recent re p o rt co-         where in the system to take on      it found many high-pro f i l e     argues the solution lies with       RCMP teams.
authored by former Supreme            these cases. Most municipal and     cases in Canada have gone          Parliament.                            Meanwhile, pensioners have
Court justice Peter Cory, now         p rovincial police forces are       unprosecuted, there are few real     “Our laws need to be              formed a new group to lobby
chancellor of York University,        focused on other issues.”           deterrents to insider trading,     changed to make it easier.          for better enforc e m e n t . The
and Marilyn Pilkington, a pro-           Meanwhile, Claude Lam-           investigations are not managed     Somehow we don’t think this is      Common Front for Retire-
fessor at York’s Osgoode Hall         oureux, the president and CEO       effectively and “securities com-   important. Everyone’s blaming       ment Security, announced last
Law School.                           of the Ontario Teachers’            missions as both regulator and     the other guy and in the end        week, is an umbrella organiza-
   Cory and Pilkington said the       Pension Plan, said the problem      adjudicator have the appear-       nothing gets done.”                 tion of seniors’ and re t a i l
RCMP integrated market                is systemic.                        ance of bias.”                       For example, boiler rooms,        investor associations.
enforcement teams (IMETs),
which also include civ i l i a n
financial experts, have so far not
accomplished much for several
reasons:
■ Commercial crime isn’t seen
as an urgent priority and
RCMP officers tend to be
seconded to other units and
projects, draining resources.
■ RMCP officers who seek
promotions for career reasons
must leave the unit to move up
to a higher rank, disrupting
investigations.
■ The units need an independ-
ent senior supervisor, such as a
former pro s e c u t o r, to ke e p
cases tightly focused and mov-
ing forward.
■ The teams need more civilian
financial experts to bolster their
brain trusts.
■ T h e re has been a high
turnover at the senior com-
mand level; each new com-
mander needs to be educated
about the unit and its impor-
tance.
   “What they have done has
not engendered confidence,”
Pilkington said in an interview.
“They haven’t established they
are effective. One of the key
things is to have accountability
and discipline in the investiga-
tion. There has to be someone
who can exe rcise tight ac-
countability. Nail it down and
get moving. The investigations
can’t drag on and on.”
   So far, there is no independ-
ent person, from outside the
RCMP, doing that, she said.
   Long investigations are unfair
to suspects and are ineffective
deterrents, Pilkington said.
   “The establishment of inde-
pendent market enforc e m e n t
teams created the expectation
that important capital markets
frauds would be investigated,
but when they had taken on
nine or so cases, they then
advised that they we re at
        FRANCHISE                   Page 12                                                                                  July 27, 2007        EARN 14% AFTER TAX PAID
      YOUR BUSINESS



            See page 7



            ★ 1: THOMSON CORP.                                          ★ 2: TSX GROUP INC.                            ★ 3: NUVISTA ENERGY LTD.




Pynn struggles to pick out bargain stocks
                                                                         stock could be range-bound        with the TSX to lower their                 THIRD STAR
  Sees financial                        PRO’S 3 STARS                    and there are going to be a       fees.We think there could be       ■ NuVista Energy Ltd.
                                                                         lot of approvals that they’re     some reduction in their            (TSX:NVA)
 services sector                    interest rates, while other          going to need to put the          profitability going forward, but   ■ Recent Price: $13.95.
                                    groups in the market have            two companies together.           we also think that they will       ■ 52-Week Range:
as ‘place to hide’                  continued to move up. I think        The stock has been a little bit   still remain very profitable and   $11.14-$16.47.
                                    that (the financial services sec-    sloppy since the announce-        continue to grow. Starting in      ■ Snapshot: NuVista is
  (Business Edge writer Sasha       tor) is a good place to hide.”       ment of the acquisition, so       2009, they will be able to get     an independent oil and
Konotopetz regularly profiles the                                        we think it’s a good time to      into derivatives – they have a     natural gas exploration
top stock picks of some of                     FIRST STAR                buy.”                             deal with the Montreal             and production company
Canada’s most accomplished          ■  Thomson Corp.                     ■ Risk Rating: Moderate.          Exchange that prevents them        with properties located in
investment pros.)                   (TSX:TOC)                            ■ Web Watch:                      from competing with that           east-central Alberta and
                                    ■ Recent Price: $45.80.              www.thomson.com                   exchange – so they have some       west-central Saskatchewan.
   FEATURED PRO: Fred               ■ 52-Week Range:                                                       longer-term growth potential.      The company produced
Pynn is president, chief            $42.50-$51.95.                                 SECOND STAR             The company has no debt,           11,692 barrel of oil equivalents
investment officer and a            ■ Snapshot: Thomson is a             ■  TSX Group Inc. (TSX:X)         very strong cashflow, a large      per day of oil and natural gas
portfolio manager with              global provider of integrated        ■  Recent Price: $42.57.          cash balance and you get a         combined in 2006.
Calgary-based Bissett               information solutions to             ■  52-Week Range:                 3.5-per-cent dividend yield        ■ CEO: Alex Verge.
Investment Management               businesses and professional          $40-$53.47.                       while you wait.”                   ■ Head Office: Calgary.
(www.bissett.ca).                   customers in the fields of           ■ Snapshot: TSX group             ■ Risk Rating: Moderate.
   Fund Form: The                   tax, law, accounting, financial      operates Canada’s two national    ■ Web Watch: www.tsx.com           See 3 STARS            Page 17
Bissett Canadian                                services, scientific     stock exchanges:Toronto Stock
Equity-A Fund                                   research and health      Exchange, serving the senior
has a one-year                                  care.                    equity market, and Toronto
return of 19.1 per                              ■ CEO: Richard           Venture Exchange, serving the
cent compared to                                Harrington.              public venture equity markets.
the group average                               ■ Head Office:           The company also operates
of 19.5 per cent                                Toronto.                 Natural Gas Exchange, a lead-
(through June 30,                               ■ Vital Stats:           ing North American exchange
2007).The fund has                              Price/Earnings           for the trading and clearing of
an annualized return                            Ratio, 29.9;             natural gas and electricity
of 8.8 per cent since                           Revenue (last 12         contracts, and Shorkan Brokers
its inception in                                mos), $6.5 billion;      Ltd., which is the country’s
March of 1983.            Fred Pynn             5-Yr Revenue             first fixed-income inter-dealer
   Management                                   Growth, -1.7 per         broker.
Expense Ratio: 2.6 per cent.        cent; Earnings (last 12 mos),        ■ CEO: Richard Nesbitt.
   Pynn’s Strategy: “It’s been      $990.4 million; 5-Yr Earnings        ■ Head Office: Toronto.
harder to find stocks (recently)    Growth, 12.7 per cent; Market        ■ Vital Stats: Price/Earnings
and this is mostly because the      Cap, $29.3 billion; Shares           Ratio, 22.1; Revenue (last 12
market is so strong.The             Outstanding, 640.3 million;          mos), $366 million; 5-Yr
(S&P/TSX Composite Index)           Dividend Yield, 2.23 per cent.       Revenue Growth, 14.4 per
hits new highs almost every         ■ Pynn’s View: “Thomson              cent; Earnings (last 12 mos),
day.The stock market is going       has sold virtually all of their      $133.2 million; 5-Yr Earnings
up faster than earnings, so         businesses that distribute on        Growth, 34.3 per cent; Market
valuations are increasing, and      paper, so their (distribution) is    Cap, $2.92 billion; Shares
this is occurring against the       almost completely electronic.        Outstanding, 68.6 million;
backdrop of higher interest         In the short run, the issue that     Dividend Yield, 3.57 per cent.
rates, so it’s getting much more could hold back the stock a bit         ■ Pynn’s View: “This stock
difficult to find stocks to buy     is their acquisition of (Reuters     has been punished because the
at this point in time.              Group). Basically,Thomson            banks are talking about setting
   “This year, financial services   and Bloomberg will be the            up an alternative trading plat-
stocks are approximately flat       main (information solutions)         form for equities in Canada.
against a market that is up         providers to the financial           The stock has been under
quite substantially year to date. services sector, globally.The          pressure because of potential
I think the financial services      fit between Thomson and              competition, but we think that
sector has already felt some of     Reuters makes a lot of sense,        the competitive threat is quite
the pain from the higher            but because the deal is a com-       small.This could turn out to
Canadian dollar and higher          bination of cash and shares, the     be just a way of negotiating
July 27, 2007   Page 13
Page 14                                                                                                                                                           July 27, 2007




Constellation basks in glow of a lucky star
   (Street Life is a regular feature                                                                                                           heading into a curve.Tech-
that profiles what’s playing in the    CONSTELLATION SOFTWARE                                    ROYAL LASER CORP.                             nology like that can make for a
stock market.)                                                                                                                                 sweet ride; especially for share-
                                                                                                                                               holders, who must be loving
By Nicole Strandlund                                                                                                                           the stock’s new 52-week highs.
Business Edge                                                                                                                                        Act IV: Trouble for
                                                                                                                                                            Teknion
         Act I: Dancing                                                                                                                        ■ The player: Teknion
         with the stars                                                                                                                        Corp. (TSX:TKN)
■ The player: Constellation                                                                                                                    ■ Action: Down 24 per
Software Inc. (TSX:CSU)                                                                                                                        cent or $0.70 in a month
■ Action: Up 17 per cent                                                                                                                       (from $2.90 June 13)
or $4.01 in a month (from                                                                                                                      ■ Recent Price: $2.20
$23.98 June 13)                                                                                                                                ■ 52-week high/low:
■ Recent Price: $27.99                                                                                                                         $4.80/2.20
■ 52-week high/low:                                                                                                                               Weakening industry growth
$27.99/19.50                                                                                                                                   and the negative effect of
   A constellation’s star count         INTERMAP TECHNOLOGIES                                       TEKNION CORP.                              exchange rates resulted in an
may grow as astronomers                                                                                                                        ugly quarterly financial release
make new discoveries in the                                                                                                                    for Toronto’s Teknion Corp.,
sky, but Toronto’s Constellation                                                                                                               an office systems and related
Software may be setting a                                                                                                                      office furniture company.
record for growth-by-                                                                                                                             For the quarter ending May
absorption.                                                                                                                                    31, 2007, sales were $166
   At the end of May, the                                                                                                                      million, fairly close to the
vertical market software com-                                                                                                                  $164 million in the same quar-
pany completed (through a                                                                                                                      ter in 2006. But the net earn-
subsidiary) its fifth acquisition                                                                                                              ings tell the story; $150,000
in 2007, and the 11th since                                                                                                                    for the 2007 quarter, com-
Constellation went public in                                                                                                                   pared to $5.8 million in the
May 2006. Granted, some of                                                                                                                     same quarter the previous year.
those acquisitions have been                                                                                                                      As if that wasn’t enough
small – but not all stars are the                                       posted a net loss of $3.9          when you stepped on a floor         trouble for Teknion, the com-
same size.
                                           STREET LIFE:                 million for the fiscal year.       switch to turn your brights         pany also announced a financial
   The purchase in May in-                   ANALYSIS                      In March 2007, Royal Laser      on? Times have changed. And         restatement. An inventory
volved the business assets of                                           also chose to turf plans to        they’re changing still.             valuation error in Teknion’s
AEK Computers , a small                ■ Action: Down 16 per            acquire the creditor-protected       Denver-based Intermap             Malaysian subsidiary resulted in
Illinois-based software firm           cent or $0.11 in a month         assets of Hamilton Specialty       Technologies, which has offices     a $6.1-million inve n t o ryover-
focused on the recreation              (from $0.67 June 13)             Bar Corp., as a result of failed   in Calgary and Ottawa, has          statement at Nov. 30, 2006, and
industry and government agen-          ■ Recent Price: $0.56            negotiations with its labour       been humming along building         overstated net earnings of
cies. In mid-June, Constellation       ■ 52-week high/low:              union, United Steelworkers         a database of digital geometric     $260,000 for Q2 2006 and
shelled out again, this time           $1.39/0.56                       Local 4752.                        maps that include elevation         $239,000 for the six months
making a US$4-million invest-             “Challenging” rarely means       Royal Laser’s stock recently    data. And a few days ago, the       ending May 31, 2006. (2006
ment in Atlanta-based VCG              positive news in a financial     hit a new 52-week low at           company announced a deal to         sales and net earnings nu m b e rs
Inc., a supplier of staffing and       release. But how else could      $0.56. Getting back up? That’s     supply 3D elevation data and        above are as restated.)
recruiting software.                   Royal Laser describe its past    the real challenge.                geometries for the entire              The stock is down 24 per
   But why stop at 12? Con-            fiscal year?                          Act III: Bright future        country of Germany to Visteon       cent in a month, and has lost
stellation acquired lucky 13 in           During the twelve months      ■ The player: Intermap             Corp., an international auto-       more than half its value in less
July, buying Maryland-based            ending March 31, the Toronto-    Technologies (TSX:IMP)             motive technology developer.        than four months (from $4.55
Mainstreet Software Corp.              based custom metal and           ■ Action: Up six per cent            No, this won’t turn into          March 21, 2007).
   As a result, shareholders must      wood products manufacturer       or $0.37 in a month (from          another dash-mounted route             NOTE: The above is not
be thanking their lucky stars –        acquired Venture Steel Inc.,     $6.23 June 13)                     planner. Instead, the initial       intended as investment advice
the stock is up 17 per cent in         which brought increased          ■ Recent Price: $6.60              focus of the joint project is for   to buy or sell any mentioned
the last month, and 53 per             revenue (pushing the 12-         ■ 52-week high/low:                predictive adaptive front-light-    securities. Investors should do
cent since going public (from          month result to $240 million),   $6.50/4.20                         ing systems.That’s right – the      due diligence before investing.
$18.30 on May 19, 2006).               but was affected by a weak          Remember the days when          car of the future will anticipate   Quotes are based on results
     Act II: Limping Laser             North American auto industry,    you had to turn your driving       the road ahead and direct its       through July 16, 2007.
■ The player: Royal Laser              resulting in lower-than-         lights on manually? Or, heaven     headlights to afford the driver        (Nicole Strandlund can be
Corp. (TSX:RLC)                        anticipated sales. The company   forbid, the really olden days      better visibility, even before      reached at nicole@businessedge.ca)
July 27, 2007                                                                                                                                                              Page 15




                                   Oh stop, we’re blushing!
                              We at Business Edge News Magazine would like to say THANK YOU to the companies
                                     that have been bold enough to advertise in a relatively young publication
                              with edgy, highly relevant editorial and unrivalled distribution to Canadian businesses.

                                                      We would also like to say YOU’RE WELCOME . . .

       “Marketing through Business Edge has always been very successful for us.           thinkprofits.com began advertising in your paper, our business has
       I have been using it now going on two years and find it directs mostly             grown exponentially, attracting new clients from all over Canada. This has
       qualified leads to us. Ninety per cent of our business over the past two years     confirmed to us that our decision to participate in your product was a sound
       has come from our Business Edge advertising.”                                      one. I look forward to a long and happy relationship.”
                                                                        – Ken Purvis,                                                   – Shawn Moore, President/CEO,
                                                              Retailink International                                                                 ThinkProfits.com

       “Everyone here is amazed with the amount of leads that come out of our             “Business Edge News Magazine has increased our company’s exposure
       Business Edge advertising. You seem to have found an excellent formula             significantly. Business Edge’s feature on investing in clean & sustainable
       (strong business coverage combined with your unique distribution) to reach         geothermal energy and our trade show exposure resulted in considerable
       that highly sought-after SME decision maker.”                                      buying into our company.”
                                                                    – Paul Emond,                                                  – Gary Thompson, President & CEO,
                                                                   Versature Corp.                                                       Sierra Geothermal Power Corp.

       “Targeted distribution, coupled with factual and appealing editorial, has          “We have never had better response to an ad than from our 1/3-page ad in
       positioned Business Edge as a reputable publication and the perfect vehicle        Business Edge News Magazine. Not in the Globe & Mail, not in Western
       for us to reach the corporate industry. The publication has consistently acted     Standard, not in National Post. It shows the quality of the readership and the
       as a results-driving tool for us.”                                                 effective ad-creation team.”
                                                                  – Sheenah Rogers,                                                         – Thomas Beyer, President,
                                                 Three Sisters Mountain Village Ltd.                                                      Prestigious Properties Group

       “The quality of The Business Edge is reflected in the quality of readers           “I originally contacted Business Edge because of its reputation as the leading
       that call us every time they read about League in its pages. League is very        business publication in Alberta and was pleasantly surprised to learn that it
       selective about the investors we invite to join us in our private REIT and we      was launching a localized version in B.C. I have advertised two projects in
       couldn’t be happier with the results we’ve achieved thanks to this fine news       the Edge and both campaigns delivered excellent returns on investment,
       magazine. Every ad brings an excellent return on our investment. The value         consistently delivering qualified leads from all over the western provinces.”
       we receive is tremendous.”                                                                                                                          – Mia Crouch,
                                           – Emanuel F. Arruda, Chairman & COO,                             Real Estate Project Sales and Marketing Specialist, Victoria
                                                                  League Assets Corp.
                                                                                          “We are trying to build a premium brand. To do that we need to select media
       “We couldn’t be happier about our decision to advertise with Business Edge.        and programming that supports and shares our positioning. Business Edge
       As a growing company, we need measurable results from our advertising              delivers on editorial content, readership and reproduction, which puts our
       dollar. We advertise in a wide variety of business publications, but we            brand in the right environment.”
       continue to receive more qualified leads from our Business Edge ads than                                                                        – Bob Anderson,
       from any other source. Additionally, no other publication has offered more                                            Okanagan Hills Development Corporation
       creative input into our advertising campaigns than Business Edge . . . and
       more importantly, they work. For Wardell, advertising with Business Edge           “As a reader, Business Edge provides me with the current and critical
       has proved to be a sound investment, one that we plan to continue well into        information I need to help make successful business decisions. As an
       the future.”                                                                       advertiser, Business Edge provides a successful forum for us to promote our
                                                       – Mark E. Wardell, President,      projects to critical thinkers and key decision makers throughout Alberta,
                                              Wardell Professional Development Inc.       B.C. and Ontario.”
                                                                                                                                  – Christopher J. Wein, Vice President,
       “Business Edge has given us access to markets that no other publication has                     Sales, Marketing & Product Design, Assured Developments Ltd.
       been able to deliver to us. We have had many calls from qualified people and
       continue to do so. I would recommend this publication for those businesses         “As a Canadian-based developer of luxury resort properties in The Mayan
       that want good results.”                                                           Riviera, Mexico, advertising in Business Edge continues to provide us with a
                                                                     – Ron Aitkens,       wealth of inquiries regarding our various projects from astute investors and
                                                 Harvest Capital Management Inc.          those considering a second home in North America’s fastest-growing resort
                                                                                          community. The inquiries from Business Edge, on a dollar-for-dollar basis,
       “I just wanted to send you a note to say thanks for publishing a high-quality      far exceed any other media that Royal Oasis Resorts utilizes.”
       publication. It’s challenging for entrepreneurs to make all the right choices in                                                    – J. Chris Boehm, President,
       allocating their advertising dollars these days. We have print/websites/                                                         Royal Oasis Developments Inc.
       search-engine optimization/pay per click/ radio/TV and so much more to
       choose from. The simple fact is that we need to advertise in all media to          “We have found Business Edge to be an extremely successful marketing
       maximize our business growth. The question remains, which ones do we               vehicle for our company. A large number of our leads are generated through
       choose and for how much of our advertising budget? When choosing which             placing ads in this highly respected publication. It has been a great use of
       Canadian national business publication to run with, we decided to go with          our marketing dollars and we will continue to use Business Edge to market
       Business Edge and I must say that I am very happy with the results we have         all of our current and upcoming projects.”
       achieved. Your writers provide great editorial content and the circulation                                          – Jen Swanton, Vice President of Marketing,
       ensures it is well read, right across Canada. Since my company                                                            Bridgecreek Development Corporation



                           Contact us now for more information on how to get the
                            best value for your marketing and advertising dollars

                                       1.866.216.3343 ext. 25
                                       Ads@BusinessEdge.ca
Page 16                                                                                                                                                                      July 27, 2007




 Cows, views . . . and room to park the jet
  B.C. ranch on
  the block for
 cool US$23.5M
By Monte Stewart
Business Edge

          ome pro p e rty deals


S         depend on how many
          cars a place can accom-
          modate.This one hinges
on room for a plane or two.
   The Alexis Creek ranch, near
Williams Lake in the Chilcotin
district of British Columbia,
features a seven-bedroom home
with nine bathrooms, sweeping
rive r f ront views, access to
several lakes and a free herd of
cattle with a few bulls.
   But the main dealmaker is
likely a 1,500-m paved landing
strip, complete with heated
hangar, which qualifies as a
federally approved commercial
airport.
   It’s probably the least that
you’d expect when you consid-                                                                                                                  Photo courtesy of Cascadia Pacific Realty Ltd.
er the property’s list price is a   The asking price for the Alexis Creek spread, near Williams Lake, ranks among the highest for ranches in B.C.’s history.
cool US$23.5 million.
   The asking price ranks           to American entrepreneur Stan              shore before it’s local,” s ay s        “I facetiously say that we’ve       “Ranchers can’t afford to buy
among the highest for ranches       Kroenke, who owns the NFL’s                Ridd.                                got a DOT Class Two airstrip        ranches anymore – in a lot
in B.C. history. But the Alexis     St. Louis Rams, the NBA ’s                    The current owner is due for      that happens to be surrounded       of areas,” says Ridd. “If you
Creek ranch’s listing agent does    Denver Nuggets, the NHL’s                  a nice windfall. He picked up        by a ranch,” says Ridd. “It’ll be   want to make money and
not sound overly worried about      Colorado Avalanche and many                the property for less than $5        a destination for (the new          own a ranch, you’ve gotta go
a lack of potential buyers.         other sports properties.                   million from German Prince           owner) to go and enjoy the          to Saskatchewan, Manitoba,
   “Some of them take over a           But the Alexis Creek price              Richard Wittgenstein in 1992.        lifestyle of his property.”         northern B. C. or northern
year (to sell),” says Irv Ridd,     is downright lofty compared                   “But (the current owner) has         The ranch also contains 331      Alberta – somewhere the land
president and CEO of Cascadia       to the $5.7 million that                   added millions of dollars worth      acres of housing subdiv i s i o n   is more reasonable on a price-
Pacific Realty. “Sometimes, we      the famed 4,000-acre (1,600-               of infrastru c t u re,” says Ridd.   land, about 10 acres of com-        per-acre basis.”
get surprised.”                     hectare) King ranch in south-              “He’s added a seven-bedroom          mercial business development           Ridd says he has not calculat-
   He says the likelihood of the    ern Alberta sold for in 1997.              and nine-bathroom house, a           property in the centre of the       ed the land cost at Alexis Creek
successful buyer owning a plane        Bill Bateman and his son                five-bedroom guest house and         neighbouring town of Alexis         – which has 10,000 deeded
is quite high.                      Cody, of Cochrane, bought that             apartments for his staff, 10 pivot   Creek and a substantial bu t        a c res and 250,000 acres of
   The current owner, a Seattle-    place, which was owned by the              irrigators and a paved 5,000-ft.     unestimated value of timber         Crown grazing land, of which
based electronics firm magnate,     late reclusive King brothers. But          DOT- a p p roved (Department         in a region hit hard by the         the ranch has exclusive use –
parks his plane there every two     Ridd, who has been peddling                of Transportation) Class Two         mountain pine-beetle epidem-        because the price per acre
weeks. But the 70-something         c o m m e rcial and “ s u b j e c t ive”   airstrip and hangar.”                ic.                                 won’t matter to the new owner.
owner has decided to sell in        sites for about 27 years, expects             Cascadia Pacific Realty is an        Ridd says it’s unusual to        The buyer will simply want
order to spend more time with       the buyer for the rural B.C.               exclusive affiliate of Christie’s    include cattle in the list price,   proximity to a major centre.
his grandchildren.                  ranch will likely come from                Great Estates and will market        because cattle have differe n t        “It’s only 30 minutes by air-
   The $23.5-million list price     outside Canada.                            the ranch, first developed in        prices depending on the time        craft” f rom the Lower
seems paltry in comparison to          “Considering who’s been                 1887, through the international      of year.                            Mainland, he adds.
the record $93-million sale of      buying ranches the last few                firm’s publications and net-            But the cows will be, no pun        (Monte Stewart can be reached at
the Douglas Lake ranch in 2003      years, my bet is it will be off-           work.                                intended, a moot point.             monte@businessedge.ca)
July 27, 2007                                                                                                                                                                 Page 17



   Mining companies catch eye of private equity funds
The Canadian Press                       Last August, Texas Pacific        would work for private equity        With consolidation, price            quicker than commercial banks
                                      G roup bought Aleris Inter-          in certain circumstances in        cycles are likely to be less           in providing funding. It would
   Private equity funds are           national for US$1.7 billion.         industrial and base metals, but    volatile and remain at higher          allow managers to focus on
poised to move into the boun-            And in April, Apollo              less so for gold and uranium.      levels, allowing for more debt         longer-term strategies rather
tiful world of base metals, says a    Management bought Xstrata              That’s because gold and          to be assumed,Topping said.            than the quarter-to-quarter
re p o rt from international          Aluminum for $1.15 billion.          uranium are more expensive.          “The re g u l a t o ry env i ro n-   basis presently.”
accounting firm Ernst and                Slater said he doesn’t know of      “You need a low cashflow-        ment for mining companies is              The pre s s u re to pro d u c e
Young.                                any private-equity mining deals      to-debt ratio for private equity   severe and expensive, particu-         quarterly profits is clearly pay-
   The so-called “barbarians at       that have taken place in Canada      as they tend to use high lever-    larly for startup situations.          ing off for metal company
the gate” may have steered clear      yet, but said they have already      age,”Topping said.                 Private equity tends to operate        shareholders.
of mining in the past by factors      begun sniffing around. There
such as the cyclical nature           are, however, many candidates.
of the industry, political risks         Globally, there is BHP
and the specialist knowledge          Billiton, Anglo American, Rio
required, but current cashflows       Tinto, Slater said, all of which
in base-metals companies are so       have colossal cashflows.
rich they have begun to attract          The ideal mining company
interest among equity funds.          would have assets in areas with
   “If they can buy BCE               low political risk, Slater said.
(TSX:BCE), t h ey can bu y               “You could see a competing
BHP,” said Ian Slater, who is         offer for Alcan (TSX:AL) or
Ernst and Young’s Canadian            Alcoa. Inmet Mining Corp.
mining leader, based in               (TSX:IMN) is a perfect oppor-
Vancouver.                            tunity.You also have smaller sin-
   “The mining companies have         gle-mine companies in Canada
massive cashflows. They’re just       such as Taseko Mines Ltd.
churning out cash. They’d be          (TSX:TKO) or Northgate
very attractive for private equi-     Minerals Corp. (TSX:NGX) in
ty,” Slater said.                     B.C.,” Slater said.
   According to the report, big          “Teck       Cominco        Ltd.
mining companies are now              (TSX:TCK.B) would also be
s o u rces of pre d i c t a ble and   perfect,” though having two
secure cashflows.                     classes of shares means chair-
   “Major mining companies            man Norman Keevil’s agree-
are running out of capital proj-      ment to sell would be needed,
ects and are aggressively return-     he said.
ing cash to shareholders,” the           Since mining companies are
report states. “Several of these      already subject to an enormous
organizations have unu s e d          amount of environmental and
credit capacity, are consciously      other regulations, re m oving
unhedged and are aggressively         some of the financial reporting
consolidating . . . If metals         requirements of being a pub-
prices remain high, we expect         licly traded company could ease
that these characteristics will       some pressure on the compli-
only become more pro-                 ance side.
nounced.”                                George Topping, senior base-
   Two global deals have taken        metals analyst with Blackmont
place in the last year, both in       Capital, said he broadly agrees
the aluminum sector.                  that some mining companies

3 STARS from Page 12

 NuVista proving to be
 energy sector survivor
■ Vital Stats: Price/Earnings         opportunistic acquisitions.”
Ratio, 22.4; Revenue (last 12         ■ Risk Rating: High.
mos), $148.8 million; Earnings        ■ Web Watch:
(last 12 mos), $30.7 million;         www.nuvistaenergy.com
Market Cap, $728.3 million;
Shares Outstanding, 52.2              ■ Pynn’s Edge Record (last
million.                              12 mos): -0.4 per cent.
■ Pynn’s View: “(NuVista) is          Best Pick: Alliance
a very low-cost producer, with        Atlantis Communications
excellent management and              (TSX:AAC.B) +37.4 per
offers steady growth, but the         cent. Worst Pick: Kingsway
reason I would look at buying         Financial Services Inc.
the stock today would be the          (TSX:KFS) -22.6 per cent.
fact that natural gas prices are
all beaten up.This company is            Disclosure: Pynn owns
a survivor. In fact, if natural gas   shares in the Bissett funds in
prices go even lower, that            which the featured stocks are
could cause financial distress in     held.
the industry, and with the               (This feature is provided for
strong finances and manage-           informational purposes. Investors
ment team that NuVista has,           are advised to do their own
that will just provide them           research or consult a qualified
with opportunities to grow            investment professional before
their business by making              making investment decisions.)
     Use Someone                       Page 18                                                                                                                              July 27, 2007

     Else’s Money



         See Page 2



Employee engagement a hot-button issue                                                                                                                  perspective of what it returns to
     Companies face daunting task                                                                      QUOTE . . .                                      the business.”
                                                                                                                                                           The re t u rn on investment
     to keep workforce productive                                                                                                                       (ROI) from staff training is sig-

By Rene Mauthe                            The remaining 20 per cent of
                                                                                “If you can win the                                                     nificant; studies in Australia and
                                                                                                                                                        Ireland across a wide range of
Business Edge                          employees who aren’t engaged             war for retention,                                                      enterprises found ROIs for
                                       are the ones that truly test an                                                                                  training ranging from 38 per
                                                                                the war for talent is

I
      n today’s hyper-competi-         organization’s leadership, she                                                                                   cent to more than 100 per cent,
      tive employment market,
      finding the right employ-
                                       adds.
                                          The effects of improving
                                                                                immaterial. If you                                                      the Connecting the Dots study
                                                                                                                                                        found.
      ees is a big challenge.          employee engagement are tan-             don’t have too many                                                        Bailey notes that staff training
   But keeping an existing             gible, Goman notes.                                                                                              has to be directed toward busi-
wo r k f o rce pro d u c t ively en-      “Engaged employees stay.              empty spaces to fill,                                                   ness goals, and that senior man-
gaged in their work, while             They’re more likely to speak                                                                                     agers shouldn’t worry about
making sure staff have the most        highly of the company. They’re
                                                                                you don’t have to                             – Sean Slater,            their staff taking flight once
current training and skills, is
also a daunting task for many
                                       more likely to refer their
                                       friends for jobs.
                                                                                compete for talent.                ”         national practice
                                                                                                                             director with Ceridian
                                                                                                                             Canada, a national
                                                                                                                                                        t h ey re c e ive extra training.
                                                                                                                                                        Giving an employee the oppor-
Canadian companies.                       “When you add all of this                                                                                     tunity for extra training and
   Experts agree that this             together, it becomes a very big                                                       employee benefits          enrichment typically bu i l d s
involves different but comple-         piece of the productivity and                                                         and human                  loyalty, he adds.
mentary strategies that will help      p rofit picture. Engagement                                                           resources firm                However, many small to medi-
boost productivity and a com-          leads to higher performance,                                                                                     um-sized enterprises lack the
pany’s bottom line.                    which leads to higher produc-          ing only now that a lot of our       have combined to push staff          managerial or human resources
   “If you can win the war for         tivity and profits.”                   pro d u c t ivity pro blems are      training to the lower echelons       expertise to develop proper
retention, the war for talent is          Productivity and profits are        traced to a lack of emphasis on      of many organizations’ long-         training systems, Bailey notes.
immaterial,” says Sean Slater,         also tied to increased training,       training,” he says.                  term agendas.                           Ceridian Canada’s Slater says
national practice director with        s ays Allan Bailey, CEO of                “More and more these days,          “Typically, historically, train-   a focused staff-training system
Ceridian Canada, an employee           Learning Designs Online, a             you need employees who are           ing has been seen as a soft ben-     can become an integral part of
benefits and human resources           training      firm based        in     able to compete in the knowl-        efit to an organization. It has      an employee assistance program
firm. “If you don’t have too           Mississauga.                           edge economy.                        been, until relatively recently,     (EAP).
many empty spaces to fill, you            Bailey recently completed a            “In Canada, something like        very difficult to imagine how           The presence of a compre-
don’t have to compete for tal-         study for the Canadian Council         40 per cent of the Canadian          to measure the value of your         hensive EAP can also help deal
ent.                                   on Learning’s Work and                 workforce has not (achieved)         investment in training.              with the personal issues that
   “It’s about what you can do         Learning Knowledge Centre              the level of skills needed to          “In company accounting, it’s       can sap an employee’s morale
to add to the employee experi-         called Connecting The Dots . . .       compete effectively in the           kind of counted as a hidden          and productivity, he adds.
ence so employees are more             Linking Training Investment to         knowledge economy.”                  cost, a discretionary cost. It’s
likely to stay with you. Part of it    Business Outcomes and the                 B a i l ey says several factors   never been looked at from the        See @WORK               Page 19
is creating an environment they        Economy.
want to work in.”                         One of the study’s key find-
   With       re c ruitment      and   ings was that Canada’s econom-
replacement costs ranging any-         ic growth has been lagging pre-
where from three-quarters to           cariously behind that of its
1.5 times an annual salary per         major competitors, such as the
employee, companies have to            U.S. “It seems clear that this
make sure their employees per-         downslide is rooted in a chron-
form at their best, he adds.           ic national blindspot – a lack of
   “You’ve spent all this time to      awareness that investing in the
get these employees. What are          human capacity of Canada’s
you going to do to wrap your           workforce is paramount to suc-
arms around them?” he says.            cess,” the study says.
   E m p l oyee engagement –              Bailey notes that even a basic
making sure that staff care            comparison highlights the
deeply about their work and            training shortfall.
their organization – has                  “Less than 30 per cent of all
become a hot-button issue for          Canadian working people ever
many firms, says Carol Kinsey          receive training,” he says. “In
Goman, a California-based              this economy, this puts us in a
change management consult-             rather invidious situation vis-à-
ant.                                   vis our competitors. In the
   “Engagement levels are going        U.S., about 45 per cent of
down in every industry. That’s         workers receive training.
because the economy is going              “It dovetails with other wor-
up and job opportunities are           rying statistics that have been
out there.”                            floating through the ether over
   The percentage of the work-         the last number of years. One of
force that is engaged and high-        them is Canada’s productivity
ly committed to making their           growth, which is about a quar-
organization succeed is only           ter that of the U.S. and has been
about 29 per cent, Goman says.         for the last decade.”
Another 50 per cent are not               Canada’s      competitive n e s s
engaged, but they’re not disen-        slipped from sixth place in the
gaged, either. “They don’t real-       late 1900s to 15th place as of
ly give a lot of effort to what        2004, Bailey notes.
they’re doing.”                           “In Canada, we’re recogniz-
July 27, 2007                                                                                                                                                                            Page 19




 Entrepreneur takes charity to new heights
                                                                                                                                                              Shamba Space, aside from the
 Corporate HQ                                                                                                                                                 indirect benefits of raising its
                                                                                                                                                              corporate profile in the business
features special                                                                                                                                              community.
                                                                                                                                                                 The first Shamba Night Patio
‘Shamba’ space                                                                                                                                                Party will take place on July 31
                                                                                                                                                              with an event for Little Geeks,
for local events                                                                                                                                              a new Toronto-based charity
                                                                                                                                                              that collects, refurbishes and
By Eli Schuster                                                                                                                                               redistri butes donated home
Business Edge                                                                                                                                                 computers to disadvantaged
                                                                                                                                                              children.



A
               n t h o ny    Lacavera                                                                                                                            Andy Walker, founder of
               doesn’t just believe                                                                                                                           Little Geeks, said that “Shamba
               in donating his time                                                                                                                           came along at a perfect time”
               and        money     to                                                                                                                        for his organization, which is in
worthwhile charities. He is                                                                                                                                   the process of raising money for
incorporating            philanthro py                                                                                                                        its long-term future.
into the operating culture of his                                                                                                                                Since Little Geeks is looking
business and into the daily lives                                                                                                                             to partner with local high-tech
of his employees.                                                                                                                                             companies,“downtown space is
  Lacavera, 33, is the founder                                                                                                                                critical” for fundraisers.
and CEO of nine-year-old                                                                                                                                         He estimated that his group
G l o b a l ive Communications                                                                                                                                would have to spend between
Corp.                                                                                                                                                         $3,000 and $5,000 for a typical
  With 175 employees in                                                                                                                                       venue in downtown Toronto to
Toronto and another 50 in                                                                                                                                     hold a comparable fundraiser.
sales offices across the country,                                                          Catherine Farquharson photo courtesy of Globalive Communications      “This is magic for us,” said
Globalive operates under two                                                                                                                                  Walker, adding his group is
                                         Globalive founder and CEO Anthony Lacavera takes a break in the space set aside for charities.
main brands: YAK Commun-                                                                                                                                      “trying to fill our coffers and
ications, which handles a full           f u n d r a i s e r, L a c avera noticed   word for “farm,” the Shamba         points because “downtown is           get on our feet.”
array of long-distance calling           that many of his own employ-               Space offers charities a heated,    key.”                                    Little Geeks can raise an
cards and cellular long-distance         ees wanted to help out. This               environmentally friendly cedar,        It is a five-minute walk for       impressive $200,000 by selling
services to residential cus-             incident gave him an idea that             bamboo and traventino stone         tens of thousands of com-             two hundred $100 tickets –
tomers; and One Connect,                 would make charitable work                 “urban farm” overlooking Lake       mu t e rs, and it could easily        enough to make a long-
which offers hosted VoIP serv-           fun and easy for them, and                 Ontario and the lights of           attract wealthy, upwa rd l y          term rent commitment and
ices to 5,000 small businesses           make philanthropy a part of                downtown Toronto.                   mobile professionals looking          become established.
across Canada.                           Globalive’s daily routine.                    Shamba Space provides char-      for an after-work destination.           Wa l ker said his group is
  Lacavera founded Globalive                Globalive ’s new corporate              ities with a first-class venue,        As the head of a private com-      thinking of branching out into
one year after finishing a cor-          headquarters at Yonge and                  including catering, a full          pany, Lacavera did not want to        the Niagara region, and has
porate engineering degree at             Wellington – in the heart of               kitchen, 14-ft. glass bar, three    discuss numbers.                      spoken to individuals in Los
the University of Toronto.               Toronto’s financial district –             meeting rooms, security card           Asked about the amount of          Angeles, Oklahoma City and
  Globalive and Lacavera have a          includes a 2,500-sq.-ft. outdoor           access and a state-of-the-art       money Globalive invested in           Florida who are interested in
history of philanthropy.                 patio “Shamba Space” on its                audio-visual system featuring       Shamba, Lacavera described it         developing similar projects.
  O n c e, while serving as a            12th floor that can be used by             an LCD pro j e c t o r, DVDs,       as “sizable” and reluctantly put         The Shamba Space has also
sponsor for the Art Gallery of           local charities at no cost.                Internet display options, a 60-     it “well into the hundreds of         been booked for fund-
Ontario’s “ M a s s ive Party”              Named after the Swahili                 in. plasma screen TV and 10         thousands of dollars,” adding         raisers for Habitat for Hum-
                                                                                    smaller television sets.            that it would likely cost “tens of    anity and POGO, a children’s
@WORK from Page 18                                                                     The space can be used for a      thousands of dollars” to rent         cancer charity.
                                                                                    sit-down dinner of 80 to 100        out a similar ve nue for an              Interested charities can call

 ‘Soft stuff’ helps improve                                                         people, or a cocktail party for
                                                                                    200.
                                                                                       Lacavera thinks the location
                                                                                                                        event.
                                                                                                                           Lacavera said that Globalive
                                                                                                                        re c e ives “no direct financial
                                                                                                                                                              1-877-SHAMBA-1 or visit
                                                                                                                                                              www.shamba.ca
                                                                                                                                                                 (Eli Schuster can be reached at
  company’s bottom line                                                             is one of the biggest selling       benefit” from establishing the        schuster@businessedge.ca)


   “Every day, 30 per cent of
an employee’s effort at work is
discretionary. It’s really contin-
                                         Slater says. “It really comes
                                         down           to         helping
                                         managers. A good full-service
                                                                                     Paper appoints interim publisher
gent on the level of engage-             EAP is providing as many                   Business Edge                                                             McDonald Dickson as
ment if the employer’s going to          services to managers as it is                                                       MOVING ON                        project officer.
get that 30 per cent or not,”            to their employees and their                 FP Newspapers Income                                                       McDonald Dickson comes
Slater says.                             families.                                  Fund (TSX:FP.UN) says               and CEO of its mutual fund            with extensive agricultural
   “Presenteeism – showing up               “Ultimately, that is going to           Winnipeg Free Press publisher       dealer subsidiary Rice                experience including recent
at work and not really being             drive the business results the             Andrew Ritchie has resigned,        Financial Group Inc. Velan-           employment with the
there – is a huge expense and            employers are searching for.”              effective immediately.The           off has held various senior           Manitoba Pork Council.
huge risk to any company.”                  Carol Kinsey Goman agrees               fund said Ritchie “will now be      positions over the last 30 years         McDonald Dickson succeeds
   M a ny factors can pull an            that astute managers and                   pursuing other interests.”          with a number of mutual fund          Kristin Yaworski-Lowden,
employee’s attention away,               organizations need to focus on               Bob Cox, the newspaper’s          dealers, investment dealers and       who takes the new position of
including illness, c h i l d - c a re    the “soft stuff ” to help boost            editor, has been appointed          insurance providers.                  value chain co-ordinator.
issues, financial pressures, drug        productivity and the bottom                interim publisher.                     Jovian is a management and            MRAC is a private, not-
and alcohol abuse, and family            line.                                        The Winnipeg Free Press,          holding company with inter-           for-profit organization that
concerns, he says.                          “When you show people                   owned by FP Canadian                ests in a variety of financial        provides funding for sustain-
   We l l - d eveloped EAPs can          they’re not just cogs in a                 Newspapers Limited                  service firms specializing in         able projects to advance the
become a powerful tool for               machine, that they’re individu-            Partnership, publishes seven        wealth and asset management.          agriculture and agri-food
managers and supervisors as              als with lives outside the organ-          days a week, with an average        Its head office is in Winnipeg        industry in Manitoba. Its head
t h ey work to retain and                ization, you’re going to find              seven-day circulation of about      and its executive office in           office is in Winnipeg.
d evelop their wo r k f o rc e, he       your engagement scores zoom-               124,000 copies.                     Toronto.                                                 – with files from
adds.                                    ing and your productivity and                         ■ ■ ■                                 ■ ■ ■                                 The Canadian Press.
   “The ‘bumper sticker’ around          profits going up.”                           Jovian Capital Corp.                The Manitoba Rural                     (E-mail notices and photos at
that is people don’t quit their             (Rene Mauthe can be reached at          (TSXV:JVN) has named                Adaptation Council                    least two weeks before publication
jobs, they quit their managers,”         rene@businessedge.ca)                      David Velanoff as president         (MRAC) has hired Lindsay              date to murdoch@businessedge.ca)
Page 20                                                                                                                                                             July 27, 2007




 Banks looking to increase ‘share of wallet’
C
            anada’s chartered                                                                                                                   ratio for individuals now stands
            banks haven’t quite              Mortgage deals wandering into low-rent district                                                    at 120 per cent in part because
            sunk to the level of                                                                                                                so many people are carrying
            those shrill, high-  banking industry. For the past         share of wallet. One way for a      quarter of one per cent to 4.50     large mortgages.
volume vendors of discount       15 years or so, since the end of       bank to get its hands further       per cent and the chartered             Homeowners who have paid
furniture and cheap electronics the last major recession in             into your wallet is to offer        banks immediately raised their      down their mortgages in many
who are constantly bombard-      other words, the banks have            easier terms of credit than the     prime lending rates.                cases have then turned around
ing us with ads touting zero     been making it easier for              competition. Another way is to         Many observers believe that      and borrowed against the
down, zero interest, zero        homebuyers to obtain credit.           pay the interest penalty for        the central bank may boost the      equity in their homes to pay
payments for 18 months.            Where they once demanded             homeowners who are willing          cost of money by a similar          for household improvements
But when it comes to their       25 per cent upfront before             to move their mortgages across      amount once more and                and other things. Indeed,Tal
mortgage-lending                            granting a mort-            the street before the term has      maybe twice by the end of the       says home-equity loans have
practices, they’ve                                     banks
                             OPINION gage, theloweredhave               expired.                            year in order to keep a lid on      become so popular that they
wandered into                               steadily          that         The banks have greased the       inflationary pressures caused       have helped keep consumer
the same low-rent                           bar, the result being       wheels of a booming market          largely by the overheated           spending healthy in recent
district.                                   that downpayments           in both new homes and               economies of the western            years.
  In the past year or                       currently average           resales. Coming out of the          provinces. But some experts            Canadians have been
so, most have begun                         about 15 per                recession in the early 1990s,       contend that the bank’s ability     binging on credit since the
offering zero-down                          cent, according to          housing starts dipped to            to raise rates in order to fight    last recession, thanks in no
mortgages, in which                         industry experts.           110,933 in 1995 and then rose       inflation is severely limited       small part to the loose lending
the prospective                                To some extent,          annually for nine years to a        because the level of personal       practices of the chartered
borrower doesn’t                            the bankers are             peak of 233,431 in 2004,            indebtedness in Canada is so        banks, but this party has the
have to put a nickel                        merely responding           according to Canada Mortgage        high.                               potential to end badly.
on the line in order                        to changes in the           and Housing Corp.                      “A moderate increase by             If inflation begins to rise,
to make what is                             real estate market.            Last year, they stood at a       historical standards of one to      older people living on fixed
generally the largest D’Arcy Jenish         Housing prices have         very healthy 227,395.The            1.5 per cent would be very          incomes and Baby Boomers
and most important Business Edge            risen so sharply in         resale market has been equally      powerful in terms of its impact     heading for their golden years
investment in the                           recent years – from         robust, growing from 260,993        on consumers,” says Benjamin        will demand action from the
average person’s life.The        a national average of $150,720         transactions in 1995 to             Tal, an economist with CIBC         Bank of Canada. Otherwise,
banks have also begun allow-     in 1995 to $314,258 in May             483,700 last year.                  World Markets and the author        the value of their savings and
ing borrowers to stretch the     2007 – that not many first-               The housing boom has             of a widely quoted report on        the quality of their lives will
amortization period from the     time buyers, and even many             occurred despite rising prices      personal bankruptcies issued in     decline.
old maximum of 25 years to a     who are moving up to bigger            because interest rates have         early July.“The savings rate is        But a sharp spike in interest
new one of 40 years, and         homes, can come up with a              been low and stable, the job        close to zero, which means          rates could be a knockout
mortgagees who take up           25-per-cent downpayment.               market has been strong and          people don’t have a cushion         blow for all those homeown-
that offer will find themselves    But competition between              easy credit has been available at   against economic shocks.”           ers, many of them younger
paying next to no principal for the banks has also played a             the banks.                             Tal points out that the use of   couples, who bought homes
years and years to come.         role.They are all furiously               But now there are signs that     credit has been rising by about     with next to nothing down
  These newfangled gimmicks, chasing the mortgage market.               one part of that equation may       10 per cent a year while            and are already struggling to
which have been borrowed         They are all trying to grow            be changing. In mid-July, the       incomes have only been grow-        pay their sky-high mortgages.
from the U.S. market, are part   their business and, to use an          Bank of Canada raised its           ing by half that amount. As a          (D’Arcy Jenish can be reached
of a long-term change in our     industry phrase, increase their        trend-setting rates by one-         result, the debt-to-income          at jenish@businessedge.ca)




  Strong sectors driving economic growth
                                                 Prominent among these is the price       overall rise in the index,                           the dollar could trade down
  It may take months                          of oil. Political and other supply          therefore, means that the          EXPORT            toward the mid-80s. However,

 for global slowdown
                                              tensions notwithstanding, it is clear       strong sectors are simply        ANALYSIS were oil prices to approach the
                                              that demand remains strong and that         outweighing the soft                                 $90 level, the dollar could inch
                                              excess capacity is building only very       ones.                                                up towards parity with the U.S.
 to become apparent                           gradually, as prices are up over $20 in        It is likely to be several                        dollar.
                                              six months.                                 more months before                                      These changes to the outlook
          ast spring, EDC Economics              On top of this, EDC’s latest survey of   evidence of slower global                            mean that Canada’s export


L
modestly.
          was forecasting no growth in
          Canada’s exports for 2007.
          Recent developments are
leading us to upgrade this outlook
                                              Canadian exporting companies shows
                                              that trade confidence has actually
                                              improved during the last six months.
                                              The trade confidence index has risen
                                              to 72.9, up from 71.4 six months ago
                                                                                          growth becomes truly
                                                                                          compelling.
                                                                                             Meanwhile, the world’s
                                                                                          central banks need a
                                                                                          slowdown to reduce the
                                                                                                                                               revenues are likely to grow by
                                                                                                                                               two to three per cent this year.
                                                                                                                                               Even so, the export upgrade is
                                                                                                                                               almost all due to higher prices
                                                                                                                                               for energy, metals, petrochemi-
   At the heart of the story is a forecast    and 70.7 last year.                         risk of future inflation,                            cals and fertilizers. Excluding
moderation in global economic                    The survey indicates that companies      and that means some                                  those categories, other export
growth, led by an abrupt slowdown in          have become slightly more bullish on        upward pressure on             Stephen Poloz         sectors will be in decline.
the U.S. economy.                             both foreign and domestic economic          interest rates and some        Export Development       The bottom line? A slightly
   Evidence of a global moderation            conditions.                                 currencies.                    Canada                stronger global outlook means
is accumulating – the U.S. consumer              Of course, this positive sentiment          This includes the                                 an upgrade for Canada’s export
is retrenching, leading economic              is far from universal, as the sectoral      Canadian dollar, which has been              revenues. But the upgrade is mainly
indicators have rolled over, Asian            breakdown of trade confidence               pushed higher by speculation that both       due to higher prices, which means that
exports are easing and financial              continues to show a two-track               interest rates and oil prices will contin-   the risks associated with the outlook
markets are being driven increasingly         economy.                                    ue to move higher.                           are increasing, not falling.
by speculation.                                  Confidence is up in energy, metals,         Assuming the anticipated synchro-           (Stephen Poloz is a senior vice-president
   Yet, there is no denying the signals       technology and transportation, while        nized global moderation emerges in           and chief economist for Export Development
indicating that the world economy             light manufacturing is stagnant and         the second half of the year and oil          Canada. He can be reached at
remains strong.                               forestry has deteriorated further.The       prices ease toward the $60 level, then       spoloz@edc.ca)
July 27, 2007                                                                                                                                                                 Page 21




  Environment plays big part in ad’s effectiveness
Industry veteran                            FEEDBACK                      consumers associate advertisers
                                                                          with the channel.
                                                                                                              in a racy magazine, even if
                                                                                                              the reader is exactly who I am
                                                                                                                                                    order to cover the cost.
                                                                                                                                                       Illuminating all outdoor
 not big mobile                     working with marketers such
                                                                             I would consider recom-
                                                                          mending the mobile billboards
                                                                                                              trying to reach. I believe that
                                                                                                              environment plays a big part in
                                                                                                                                                    locations would definitely
                                                                                                                                                    result in more commuters
  billboard fan                     as Visa Canada, Coca-Cola and
                                    General Motors.
                                                                          to my clients if the media
                                                                          company can prove to me that
                                                                                                              adve rtising effectiveness. I don’t
                                                                                                              think throwing my clients’ ad
                                                                                                                                                    seeing the ads . . . but I
                                                                                                                                                    strongly believe that there is a
  Re: Advertisers hit the road         Today, I work with Calgary         the trucks are reaching my          on the side of a truck elevates       bigger issue that should be
with mobile message, by Laura       ad agencies and marketers,            clients’ target with minimal        the brand. But, like all advertis-    addressed when it comes to
Severs, Business Edge, June 29,     helping them invest their             waste.                              ing media, there can be a fit.        outdoor advertising.That is the
2007, and online at                 media budgets effectively.               Today, clients are looking for   But it has to be the right            creative (design).Too many
www.businessedge.ca.                   I have never been a big fan        advertising and media options       adve rtiser with the right mes-       clients and agencies ignore the
                                    of mobile billboards. My first        that tightly target their current   sage to be effective trying to        need for distance testing. I see
  just read through the article     exposure to them was when I           customers and prospects in          reach the right target.               too many posters, superboards
I on mobile billboards. I
have been in the advertising
                                    was developing a media strate-
                                    gy for Visa, promoting their
                                                                          order to maximize effective-
                                                                          ness and minimize wasted
                                                                                                                Your article also touched on
                                                                                                              transit shelter advertising and
                                                                                                                                                    and transit shelter ads that are
                                                                                                                                                    packed full of copy, logos and
business, specifically media        sponsorship of the Toronto            exposures against folks that        the new illumination technol-         pictures. Outdoor is intended
planning and buying, for 15         International Film Festival. My       they are not trying to build a      ogy being developed. I think          for people in transit and the
years, having spent most of         challenges with the advertising       relationship with. If I am          that Carmanah Technologies            creative should be developed
that time with some of the          channel are that there is a lack      targeting everyone, then great!     Corp. may be before its time.         with this in mind. If the ad
country’s largest ad agencies       of targeting and how                  But if I want to reach business     While going green is definitely       can’t be read, it won’t be
                                                                          people who decide what              a strategy and concern for            effective.
                                                                          courier company or technolo-        some marketers, I doubt that             The problem with a poster

It’s home, sweet home                                                     gy company they should part-
                                                                          ner with, I would definitely
                                                                          consider a different strategy.
                                                                                                              the demand will be significant
                                                                                                              enough to persuade the
                                                                                                              outdoor companies to make
                                                                                                                                                    that is image heavy and uses
                                                                                                                                                    reverse white type that is not
                                                                                                                                                    legible from the street isn’t the

  for Canadian SMBs                                                          I believe that marketers are
                                                                          judged by consumers on how
                                                                          they communicate with them,
                                                                                                              the capital investment. I can
                                                                                                              imagine that such a change
                                                                                                              would be quite pricey and
                                                                                                                                                    printing, it’s the design.
                                                                                                                                                       The problem with a poster
                                                                                                                                                    that uses a small font size that
                                       The results also show 65 per       but also where. I would never       doubt that advertisers, for           is not legible from the street
 Entrepreneurs                      cent of importing SMBs and 56         consider adve rtising a food        the most part, will be                isn’t the poster location, it’s the
                                    per cent of exporting SMBs            product in a restaurant wa s h-     willing to pay the increase           design.
 say domestic                       view globalization positively,        room, even if my target was         in media costs that would                         – Stacey McIntyre,
                                    while a little more than half of      there. Or a conservative brand      be passed on to them in                                          Calgary
market suff i c i e n t             their non-importing, non-
                                    exporting counterparts are
Business Edge                       undecided.
                                       Despite      this     outlook,
   It appears that comfort          Canadian SMBs are optimistic
trumps growth for Canadian          for success, b e l i eving the
businesses.                         Canadian economy is more
   Small and medium-sized           likely to grow than that of
businesses (SMBs) say they are      rapidly expanding markets such
hesitant to expand their busi-      as India.
ness beyond Canadian borders,          In fact, two-thirds of those
according to the UPS 2007           surveyed expect to see Canada
Canada Business Monitor.            growing over the next three
   The study on SMB trends          years second only to China in
shows 37 per cent of Canadian       terms of economic growth.
entrepreneurs surveyed believe         Furthermore, 24 per cent and
they have enough business to                                    e
                                    22 per cent, re s p e c t iv ly, of
deal with in Canada, while an       SMBs see the Middle East
additional 17 per cent say glob-    and the U.S. declining eco-
al trade is out of the question     nomically over the next three
until they expand their business    years.
domestically.                          “Most Canadian businesses
   “This is disconcerting when      are positive about globalization;
one considers that SMBs make        however, many feel challenged
up 98 per cent of Canadian          on how to begin international
businesses,” says Mike Tierney,     trade,” said Tierney.
president of UPS Canada.               The Canada Business Monitor
   “Canada runs the risk of         results identified sourcing with
being left behind in the            trustwort hy suppliers and
increasingly competitive global     understanding complex trade
market unless there is a shift in   practices as major barriers to
the practices of our entrepre-      SMBs expanding globally.
neurs to capitalize on the inter-      Though they are reluctant to
national trade opportunities        dive into global commerce, the
available to them.”                 vast majority of SMBs in
   The study indicates those        Canada believe globalization to
SMBs that have chosen to con-       be positive or neutral, with
duct cross-border and inter-        only 15 per cent viewing it
national trade see the benefits     negatively.
of doing so and intend to con-         The favourable view of glob-
tinue the practice.                 alization is similar to data from
   Canada Business Monitor          the Europe Business Monitor, in
results show that almost half of    which businesses overwhelm-
SMBs trading internationally        ingly said the shrinking of
plan to expand their workforce      global commerce is a positive
in the coming 12 months ver-        development – a direct contrast
sus 26 per cent of the SMBs         to Latin America, where SMBs
that do not participate in inter-   are split down the middle on
national trade.                     the benefits of globalization.
                                     Page 22                                                                                      July 27, 2007
  New Life Capital
  Helps You Profit
     See Page 12

 Security camera misuse no laughing matter
                                     names with location informa-                                                                                  their system, saying that each
  Technology                         tion, eliminating the need for                                                                                project is a little different.
                                     operators to cross-reference                                                                                  While they acknowledge that
changing digital                     video feeds with facility maps.                                                                               it’s probably not economical
                                        Using closed-circuit TV                                                                                    for a mom ’n’ pop store to buy
  surveillance                       (CCTV) cameras for video                                                                                      a VDI system, Godfrey insists
                                     surveillance apparently dates                                                                                 that costs are coming down
   practices                         back to the Second World War,                                                                                 quite dramatically,“and some-
                                     when the Germans used them                                                                                    times you can do things with



E
          ver wonder what’s on       to record V2 rocket test flights.                                                                             this technology that would just
          the other side of one         The technology got a huge,                                                                                 not have been possible before.”
          of those shiny security if unwanted, boost in the                                                                                           The social implications of
          camera domes?              1970s and 1980s when Irish                                                                                    surveillance technology have
  Who’s watching you? Who’s          Republican Army bombings                                                                                      not been overlooked.Techno-
watching the watchers? If you        drove British officials to launch                                                                             critics like University of
had the bad judgment to run          widespread surveillance, which                                                                                Toronto electrical and com-
naked past a camera at age 19,       they are now crediting with                                                                                   puter engineering professor
could that digital trail haunt       the recent arrest of terrorists.                                                                              Steve Mann constantly remind
you when you went                                    Security cameras                                                                              people of the freedom that we
for a job at age 25?        FUTURE/ are getting dirt                                                                   Tom Keenan, Business Edge give up when we put cameras
  The answer to all         PRESENT cheap. I recently                    University of Toronto professor Steve Mann checks out a                   everywhere.
the questions, is, of                             saw a wireless cam-    conference bag outfitted with a security camera.                             Mann often appears in
course, “it depends.”                             era for sale in                                                                                  public with his own video
Depends on where                                  (of all places)        them, and the DVR (digital            some risk. After all, you can       camera, practising what he
you are, what you’re                              Winners for            video recorder) that’s best for       find thousands of security          calls “sous-veillance” (viewing
doing, and to some                                $139.99.There it       them, and to tie them all             cameras online if you know          from below) to counter Big
extent, even who                                  was, sitting between   together to work as one               how to search. (Hint: Check         Brother’s surveillance (viewing
you are.                                          the clearance-priced solution.”                              out Google Hacking, which           from above.)
  Some folks get                                  underwear and the         Moir also speaks of systems        allows you to even target a            As for the question of
watched on video                                  tacky wall decora-     convergence, which she defines particular brand of camera.)               whether or not your teenage
more than others.                                 tions. Hang it out-    as pulling together information          My students have uncovered       streaking adventure might
And technology is                                 side your front door from CCTV systems, access               cameras in bank vaults, a pet       haunt you, most companies do
emerging that will        Tom Keenan              and you can have       control, fire alarms and video        wash and behind the reserva-        eventually destroy security
automate and sys-         Business Edge           your own reality TV analytics into one system                tions desk of a major hotel.        videos. Universities typically
tematize the use of                               starring the mail-     that makes it very easy for           But according to VDI chief          cycled their VHS tapes on a
digital surveillance in whole        man, paper carrier, and perhaps operators to respond.                     technology officer Michael          30-day circle, and that practice
new ways. Companies with             the younguns drinking out on           While security is often            Godfrey, you won’t find the         has often been carried forward
important assets to protect          the front porch.                    viewed as a cost, she suggests        Pearson airport cameras on the into the digital world.
need to take notice. And what           Meanwhile, Richmond Hill,        that video information could          web.                                   But as it gets cheaper to buy
could be more important than         Ont.-based Visual Defence Inc. also serve marketing and legal                “Most of these systems are       storage media than to pay
the safety of the travelling         (LSE:VDI) aims to provide           purposes, and be turned into a        closed systems. As you put any      somebody to erase it or
public?                              “security convergence” by           profit centre.                        IP device on a network, you         destroy it, this could change.
  Consider the still rather-         knitting together security             Air Canada’s Pearson Airport have to think about how                      So you just might want to
newish Terminal One at               systems, even if they come          system is one of VDI’s show-          secure it is,” he says.“That is     keep on your shorts, or cover
Pearson International Airport.       from different vendors.             piece installations and Moir          an issue because you’re going       your face, if you plan a
You’d have to be blind not to           “We’ve got software plat-        notes that the airline is able to     from a purpose-built network        drunken rampage past a
notice the security cameras          forms that help our clients         use other people’s cameras to         to a large network. One of the camera anytime soon.
everywhere. Some belong to           move from the analogue world “ensure that catering trucks                 main things we do is to look           Web Watch:
the Greater Toronto Airports         (of videotapes) to the digital      are getting loaded at the right       at the security and firewall and       www.visualdefence.com
Authority (GTAA). Others are         world,” says VDI marketing          time” and for other operational IT issues.”                                  http://wearcam.org/
part of an Air Canada system         manager Bethany Moir. “We           functions.                               He adds he has a camera at       mann.htm
called the station operation         also talk about convergence in         Like most modern applica-          his cottage and “your students         (Tom Keenan is a professor at
centre (STOC). Nobody                terms of vendor convergence;        tions, Internet protocol plays        might be able to hack into          the University of Calgary and an
wants to say exactly how many being able to give our clients             a part in bringing together           that.”                              expert on technology and its social
cameras are out there, but Air       the freedom to use the camera       these networks of security               Moir and Godfrey are             implications. He can be reached at
Canada watches them on an            manufacturer that’s best for        appliances. And not without           circumspect about the cost of       keenan@businessedge.ca)
18-screen “command and
control video wall” inside the
STOC.
  “The new STOC video
                                      Legitimate e-mail marketers struggle with perception
system, with its increased           The Canadian Press                               annoying electronic junk mail to attempts           “With all the reports we provide, with all
functionality, enhances Air                                                           to steal personal information.                    the technology we provide, with all of the
Canada’s ability to manage and          Try for a moment, as you empty the               “It’s not only security but it also has to services provided, it continues to grow.”
monitor operational video            bulging recycle bin on your e-mail desk- do with just an inconve n i e n c e,” s ay s                But where does that attitude leave legiti-
from multiple sources around         top, to spare a kind thought for the e-mail Danielle Fo u rnier, general manager for mate e-mail marketers?
the airport,” says Thor Hoff,        marketer.                                        McAfee Canada, a leading Internet securi-           Treading carefully, says Paula Skaper, past
Air Canada’s manager for IT             If that seems hard as you banish another ty firm. “Quite honestly it’s more bother- president of the Vancouver-based Inter-
infrastructure projects for the      batch of come-ons for faux Rolex watches some because once you open up one, there national Internet Marketers Association.
Toronto hub.                         and male-enhancement products to cyber- tends to be many more following.”                            Skaper, whose firm Kinetics Media spe-
  So instead of having dupli-        oblivion, then you see part of the problem          While they bemoan the rising number of cializes in e-mail marketing campaigns, says
cate cameras, they can pull up       that purveyors of legitimate products face.      spam e-mails filling their inboxes, many her industry works hard to distance itself
relevant video feeds, even if           The Internet may be the cheapest, most Canadians probably can’t help opening from anonymous mass-mailings designed
they belong to a different           versatile marketing tool retailers have ever some of them.                                         to evade spam filters.
owner. Hoff says they’ve also        devised, but those very attributes have             “I believe there’s just more of a curiosi-
gone to simplified camera            clogged it with spam – everything from ty,” says Fournier.                                         See CONSENSUS                        Page 23
July 27, 2007                                                                                                                                                                      Page 23




 System keeps critters from shocking fate                                                                                                                                 mu
                                                                                                                                                        of external co m n i c a t i o n s .
 Power lineman                                                                                                                                          “Greenjacket protects the most
                                                                                                                                                        sensitive areas in the substation
  came up with                                                                                                                                          and prevents birds or wildlife
                                                                                                                                                        from touching those energized
   bright idea                                                                                                                                          portions.”
                                                                                                                                                           The birds can also benefit.
By Laura Severs                                                                                                                                         “They can now come and go,
Business Edge                                                                                                                                           they’re not going to be harmed
                                                                                                                                                        and they’re not going to short-
           ower outages triggered                                                                                                                       circuit the equipment, so there’s


P          by squirrels or bird s
           can be a costly annoy-
           ance to power pro-
viders and consumers.
   But a Canadian-built solu-
                                                                                                                                                        an env i ro  nmental aspect as
                                                                                                                                                        well,” Gourley says.
                                                                                                                                                           The solution harkens back to
                                                                                                                                                        Niles’ day as a power lineman,
                                                                                                                                                        adds Gourley.
tion, the brainchild of a power                                                                                                                            “Marty was being called out
lineman, is sparking intere s t                                                                                                                         in the middle of the night to do
from one of the largest high-                                                                                                                           repairs and seeing the costs that
tech companies in the world.                                                                                                                            were being incurred and they
   Greenjacket is a tight-fitting                                                                                                                       were really just doing patch-
insulated material tailored for                                                                                                                         work solutions – there weren’t
specific energized equipment.                                                                                                                           protective devices to prevent
Special prefabricated dielectric                                                                                                                        this from happening again.”
polymer covers are designed to                                                                                 Photo courtesy of Cantega Technologies      The lineman initially came
eliminate the 20 per cent of         Cantega’s Greenjackets cover the vulnerable points in this power transmission substation.                          up with a plan to spray a pro-
power outages that are attrib-                                                                                                                          tective polymer onto the power
uted to wildlife coming into         come up with a pretty unique              And while there are competi-       market globally and there’s a         equipment onsite.That idea was
contact with electricity trans-      solution. Together we can              tors, the company says its prod-      huge market beyond sub-               subsequently revised into the
mission systems.                     expand across Canada.”                 ucts are customized to fit            stations that we really can’t         die-cast product after spraying
   Marty Niles, a former senior         Boyce notes 3M has been             the power devices – equipment         quantify yet.”                        proved too complicated and
power lineman from Lac La            involved in the electrical mar-        size can vary at each substation         Cantega has also been              costly.
Biche, Alta., is now president       ket since the 1950s. 3M Canada         – while its competition gener-        working with Calgary-based               “With wind there would be
of Edmonton-based Cantega            will start marketing the product       ally uses a one-size-fits-all         AltaLink – responsible for the        overspray and there was a need
Te c h n o l ogies, a two-year-old   in the West and then move east.        formula.                              maintenance and operation of          to do a lot of masking. Also,
company that he created after           Cantega CEO Al Gourley                 Ravens and other birds use         approximately 11,600 kilome-          you couldn’t do it if the
seeing an opening in the power       says power outages cost the            power transmission substations        tres of transmission lines and        weather was too cold or too
market for such a device.            U.S. economy $75 billion a             as perch points and can trigger       260 substations in Alberta – to       hot,” says Gourley.
   And now 3M Canada – one           year. Of that, about 20 per cent,      a power outage in addition to         re t rofit substations that have         Now Cantega makes an ini-
of the largest international sub-    or $15 billion, can be attributed      frying themselves. Squirre l s ,      high histories of bird-caused         tial visit to the site, takes meas-
sidiaries of St. Paul, Minn.-        to wildlife-caused outages.            raccoons and other wildlife can       power outages.                        urements and later returns with
based 3M, a $22-billion diversi-        “It’s turning out to be a very      also inadvertently cause power           More than 15 AltaLink sub-         the customized Gre e n j a c ke t
fied technology company – has        good fit for them and for us,”         outages by coming in contact          stations now          have    the     components.
obtained exclusive rights to sell    s ays Gourley. “ G re e n j a c ke t   with exposed electrical equip-        Greenjacket system in place –            “This way, we’re able to
and market Greenjacket within        needed distribution and mar-           ment.                                 the pre-measured pieces can be        reduce the installation time,”
Canada                               keting, and they needed a prod-           Gourley says Cantega was           snapped off and then snapped          s ays Gourley, adding while
   “We are always looking for        uct like this. It happened very,       a l ready working with Sask-          back on should AltaLink need          m a nu facturing custom-sized
ways to expand our portfolio         very quickly and they’re a ter-        Power and Manitoba Hydro              to work on the equipment –            parts may be more expensive,
and working with small busi-         rific company with a global            when it was approached by             and there has only been one           costs are less as the installation
nesses is a great opportunity for    brand and global recognition.”         3M.                                   incident of a bird-related power      time is dramatically lower.
that,” says Bill Boyce, Alberta         Cantega is targeting trans-            “Our target is the global          outage at those locations.               And that’s not just for the
re gional director for 3M            mission substations where it           market, frankly, starting out            “In our experience, its been a     birds.
Canada, which is based in            believes the product is most           from Western Canada – it’s a          great solution,” says Scott              (Laura Severs can be reached at
London. “We think they ’ve           needed.                                several hundred million-dollar        Schreiner, AltaLink’s manager         laura@businessedge.ca)

CONSENSUS from Page 22


Educating clients just part of job for e-marketer
   There’s no formal industry consensus          Skaper says her firm uses a double            rented e-mail lists through a reliable           Skaper’s clients, which range from
on rules for e-mail solicitation, but there   opt-in process for client e-mail lists.          broker or “deployment vendor” who              real estate firms to banks and travel
is an agreed-upon set of best practices,      Recipients who’ve registered to receive          retains control of it through strict usage     companies, like the speed and accuracy
she says.                                     e-mails get an e-mail asking them to             rules.                                         of e-mail marketing.
   “We only do permission marketing,”         confirm their permission.                           She counsels clients against dealing          “I can send something out instanta-
Skaper says of companies like hers.              “If you’re practising proper permis-          with companies willing to hand over            neously on behalf of a company and
“There must be a clear opt-in to receive      sion-based e-mail marketing, whenever            their lists unconditionally.                   within 48 hours they know if it’s work-
the kind of information that we’re            you collect information from your cus-              There’s a reason for Skaper’s pru-          ing,” says Skaper.
sending.”                                     tomers and they opt in, you’re immedi-           dence.                                           “And I’m doing that without incur-
   That means you need to have signed         ately confirming that with an e-mail                Despite the scourge of spam, e-mail         ring any printing costs or any mailing
up with a company – perhaps through           address,” says Skaper.                           marketing is a mushrooming, lucrative          costs.”
its website or while registering a product       “You restate what they’ve just signed         business.                                        Feedback from recipients reinforces e-
you bought – to get its e-mails.              up for, and you do that immediately.                Kinetics Media, which Skaper says has       mail’s effectiveness as a marketing tool.
   Skaper says part of her job is to          And you encourage them to add your               tripled in size in the last two years, sees      “When (companies) ask ‘How do you
educate clients that what they’re doing       sender e-mail address to their . . . safe list   a 34-per-cent opening rate to its              want us to talk to you?’ the customer’s
is not the electronic equivalent of old-      so the messages get through.                     permission-based e-mails.                      saying, ‘Well, e-mail me because I’d
fashioned junk mail.                             “You let them know it’s always going             “About a third of people open the           rather get stuff in my inbox than have it
   “We don’t want to annoy people,” she       to come from this address. It’s a matter of      messages, and somewhere between four           piled up on my front step.’
says. “Otherwise we’re just wasting our       communication.”                                  and 12 per cent in general will click            “It makes life easier, even with all the
client’s money.”                                 Skaper’s firm sometimes works from            through (to the information),” she says.       spam.”
Page 24   July 27, 2007

				
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