1BUSINESSMATTERS

May 2013

BUSINESS MATTERS

Growing Greater

Victoria’s Destination

Events

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5 150th Fun Facts Celebrating the Chamber’s 150th Anniversary.

6 Festival Tourism The economics of entertainment.

10 Member News Keep up with what’s happening in the Chamber community.

14 Natural Gas Structuring rates for a provincial utility.

18 Calendar of Events20 Greater Victoria Recognized for Attractiveness as a Place to Invest Securing the top spot as the best overall small city in the Americas.

22 Talking the Pulse of the Local Economy This month’s Economic Snapshot takes a more in-depth look at aviation and

agri-business.

25 New Members Studies show that people prefer to do business with Chamber members.

Check out who has recently made the decision to join us.

32 Industry Profile Meet Prototype Equipment Design, our latest Industry Tour.

34 Advocacy in Action The Chamber works to have a constructive influence on public policy for a

variety of issues.

Cover photo courtesy of The Victoria International Busker’s Festival

BUSINESSMATTERSMay 2013

CONTENTS

COVER STORYFestival Tourism: A re-imagined economic enginepg. 6

Business Matters is a bi-monthly publication of the greater Victoria Chamber of Commerce and a key business resource targeted to 2,000 business leaders in our community.

The greater Victoria Chamber of Commerce is a progressive, inclusive and dynamic community leader. It is a supportive resource for business people who wish to learn, grow and create a stronger business and a more robust and sustainable community while respecting people, planet and profit.

To advertise in Business Matters, contact us at:

The greater Victoria Chamber of Commerce#100 - 852 Fort St.Victoria, BC V8W 1H8(250) 383-7191chamber@victoriachamber.ca

Publication Mail Poste-Publications 40005319

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150th

FUN FACTS

The Victoria Chamber of Commerce was founded on February 9, 1863. Its first task was to organize an armed escort to accompany gold shipments from the Cariboo Region. As the Chamber celebrates its 150th Anniversary, we look back to some noteworthy moments in Greater Victoria’s history in which the Chamber played a pivotal role.

Facts and photos collected by The Placement Group.

1861: Victoria boasts a population of 608 permanent residents.

1908: Empress Hotel, designed by Legislative Buildings designer Francis Rattenbury, opens for business.

1946: Worst earthquake in recent Vancouver Island history. 7.8 magnitude, epi-centre near Courtenay/Cumberland, chimneys topple on Chapman St. in Victoria.

2013: After 150 years of success, The Chamber looks forward to another 150 years as the “Voice of Business” in our community. Thank you for your support greater Victoria!

1862: Victoria is incorporated as a city.

1912: Esquimalt is incorporated as a municipality.

1925: Victoria Cougars win the Stanley Cup.

1942: Royal Roads becomes home to Canada’s Navy College.

1980: Islanders watch as one-legged Terry Fox begins his cross country Marathon of Hope.

1893: Construction of British Columbia Parliament Buildings begins.

Welcome To VICTORIAPOP. 608

CelebRATInG 150 yeARs

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Greater Victoria is arguably positioned to be one of Canada’s most delightful tourist destinations. The mild climate allows visitors to wander the scenic inner harbour or stroll through historic downtown streets where bookshops, chocolatiers, tobacconists, and scores of specialty shops wait in buildings that were constructed during the city’s gold rush of the mid-1800’s.

The downtown is also home to a rich British tradition and is one of the few places where a classic afternoon tea can still be had. A plethora of restaurants, museums, galleries and theatres round out the experience; they are staid, solid and quite remarkable in their own right.

So it’s no accident that these relatively passive attractions have tended to dominate the city’s promotional material. On the Tourism BC website, greater Victoria is described as having “exhilarating scenery: there’s an ocean

or mountain vista around every corner – while the city’s flower gardens are famous the world over.”

Similarly, Tourism Victoria’s website extols the “heritage architecture, colorful gardens, and traditions like afternoon tea” along with the vibrant arts scene and “the wild beauty of the Pacific Ocean and old growth rainforests.”

All true, and something of which to be proud. But there’s a new dynamic in the city, and its economic impact is enormous. John Vickers appreciates the traditional components of the city’s branding, but he’s one of those folks who are actively involved in expanding the city’s reputation beyond its more passive attractions.

“Of course Victoria is a beautiful city, but we have to get beyond that to promote not only what we have to see, but what we have to do. As beautiful as Victoria is, once you’ve seen it - the harbour and the downtown, and maybe taken a trip out to Butchart gardens-

well, those things alone may bring people here once. But what’s going to keep them coming back?” asks Vickers.

That mindset motivated Vickers to become the man behind the Victoria International Buskers Festival and the Victoria International Chalk Art Festival; both events that annually inject music, entertainment and fun onto the streets of downtown Victoria. “My events and others like them attract tens of thousands of visitors to the city. And they keep coming back. It’s an important shift in the way we have to think about tourism.”

Vickers’ approach is to create free events that rely on sponsorship, advertising, grant support and other “non-gated” sources of income, including merchandising, for their survival.

“I love this city, but I’m a realist. The music festivals and other festival activities that happen here have a tremendous potential for making Victoria a repeat tourist destination,” he says. “That’s why I started the

a re-imaginedeconomic engine

FestivalTourism

By: Tim Collins

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International Buskers Festival and why last year I organized the first annual International Chalk Art Festival. Of course we take advantage of the wealth of talent that we have on the island, but I also bring in entertainers and artists from all over the world. And the word is spreading - if you want to see these people perform, come to Victoria.”

Vickers is in the business of imagination; he creates what he calls “destination events” – activities that put greater Victoria on the international

tourist radar. “We’ve given tourists an additional reason to come here,” says Vickers, “and to bring their tourist dollars with them.”

It’s an opinion that’s shared by Earle Wide, Vice President of the British Columbia Hotel Association. The association has sponsored not only Vickers’ events but a host of other festivals over the years.

“People won’t keep coming back to Victoria just for the gardens. We need to have new, fresh and exciting ideas and events in order to make this a destination,” said Wilde. “At the end of the day, for the hotel association the

question is, ‘will it put heads in beds?’ John’s events do that.”

Of course Vickers’ events aren’t alone. At last count some 82 festivals take place in and around the garden city, ranging from music festivals to boat shows to cultural events like the Highland games. They vary in size, of course, but a core of about a dozen large festivals help to stoke the fires that generate the $1.1 billion in tourism expected by Tourism Victoria in 2013.

glenys Haskins, the general manager of the Victoria Dragon Boat Festival knows that festivals play a big role in tourism.

“We haven’t done an economic impact study,” explains Haskins, “but I can tell you that we have 2,500 paddlers every year and that up to 1,500 of those arrive here from out of town. They bring their families, friends and supporters along so that, when those boats are pulling for the finish line in the inner harbour, there can be 80,000 spectators cheering them on throughout the total three day event.”

Haskins says that those spectators not only fill hotel rooms, but shop, eat, and take in other attractions like museums and, yes, gardens, while they’re in the city. According to her, “the economic multiplier effect of these events is huge.”

An economic impact study has, however, been done on the International Buskers Festival. That study allowed Vickers to quantify his festival’s economic effect on greater Victoria. “I’ve always known that we have a major effect on the local economy,” he says. “But it’s great to be able to prove it.”

The study showed that the total economic impact of the International Buskers Festival was just over $3 million, roughly a twenty-fold multiplier effect that benefited not only the hospitality industry (restaurants and hotels) but those sectors that act as secondary suppliers to those industries. The festivals also have an impact upon employment (creating 33 full-time equivalent jobs) and upon government revenues arising from taxes, permits, licenses, etc. It’s estimated that the International Buskers Festival generated some $181,000 in these government revenues.

While the economic impact of festivals and events may be a concept which is only now being acknowledged in Victoria, other parts of the country long ago embraced the festival industry as being invaluable to tourism. A 2006 Conference Board of Canada study estimated that Canada’s fifteen largest events generated 12.6 million visits, 3.3 million of which were by tourists with a third of those coming from outside Canada. An estimated $780 million was

“At the end of the day, for the hotel association

the question is, ‘will it put heads in beds?’”

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spent by tourists visiting those events alone and an additional $300 million was generated by local event-related expenditures.

The study showed that an average large festival will contribute $43.2 million to local gross domestic product.

“We need to get a larger share of that money here in Victoria,” says Vickers.

It’s a sentiment echoed by Daryl Mar of the Victoria Jazz Society. The society hosts bookend festivals - JazzFest and the Blues Bash - to open and close Victoria’s summer music festivals.

“We had over 40,000 people attend JazzFest last year,” says Mar. The festival features some 80 performances, about half of which are free to the public.

“Our budget is about $975,000 and as much as possible we keep that production expenditure locally based. I would guess that we have about a local economic multiplier effect of at least three times our expenditures.”

The same is true of the society’s Blues Bash, with its smaller expenditure of $90,000. “It’s a good business model with enormous growth potential. But we need to market ourselves as a

destination to offshore visitors,” says Mar.

Nick Blasko, the driving force behind Victoria’s Rifflandia music festival shares that point of view. Rifflandia is entering its sixth year and the event is growing every year. “We run for four days and we’ll get about 12,500 visitors a day checking out our 16 venues. It has a significant impact on local businesses,” says Blasko.

Rifflandia has done an economic impact study that backs up that contention. The annual budget of roughly $750,000 generates 33 full-time-equivalent jobs in greater Victoria and returns about $185,000 to the economy by way of taxes. The overall economic impact of the festival is just over $3 million.

The full impact of festivals can’t always be measured. There are intangible benefits as well.

For example, consider that last year Rifflandia partnered with the Victoria Advanced Technology Council, VIATec, to help promote the creativity and imagination of Victoria’s technology sector. “We flew in venture capitalists to show them, not just the tech companies that we have here, but what a great, creative city we have,” says

to create a significant

expansion across downtown to his International Chalk

Art Festival and is excited that, with the

Buskers Festival going into its third year, performers

around the world are clamoring to get onto its stages. Still, Vickers

knows that there’s more work to be done.

“It’s time we look, not only at new events – and I’m always looking

for new ideas – but at ways we can help and improve all the festivals and events

in greater Victoria,” says Vickers. “With imagination and hard work we can thrive. But to do that in a competitive world, you can’t stand still.”

Tim Collins is a writer and journalist

living and working in Victoria.

tel: 250 590 5211 | 202 - 830 Shamrock St.Victoria BC | V8X 2V1 | www.solbakken.ca

Erik Solbakken, BA, CA

Erin J. Solbakken, BComm, CA

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“Business IS our Business”

Dan gunn, VIATec’s Executive Director. “During the day we’d be highlighting the business side of things and in the evening they could join us in these amazing concerts. It demonstrated what a fabulously creative city we have.”

gunn believes that imagination and creativity is what drives today’s economy, and that greater Victoria is rich in both. “It’s a natural fit that we partner with these innovative and imaginative festival organizers,” he says.

It’s that imagination that spurs Blasko, Vickers, Mar, Haskins, and all the festival organizers to persevere. “There’s nothing stopping us from making destination tourism a much stronger reality for Victoria,” says Blasko. “In a global economy, you need to be creative and take a chance. It’s part of reinventing tourism to Victoria.”

Make no mistake about it tourism is a vital part of greater Victoria’s economy.

Tourism Victoria recently commissioned a study by grant Thornton LLP showing that almost 22,000 jobs in greater Victoria are directly linked to the tourism sector, and that number does not include those jobs indirectly linked to industries supplying

goods and services to hotels, festivals, attractions and transportation. It certainly doesn’t touch on the peripheral benefits to industries like those represented by VIATec.

The grant Thornton study did look at the direct impact that hypothetical declines in tourism would have in greater Victoria. For the hotel industry, total losses in accommodation revenue (including room revenue, in-house food and beverage revenue, hotel/banquet revenue, etc.) would range from $18.4 million (assuming a 5% reduction in tourism) to $92.2 million (assuming a 25% reduction in tourism). Similarly, the loss in employment revenue would range from $3.4 million to $17.2 million. The study goes on to cite other equally disturbing statistics within its projections.

None of this is news to Vickers. “I love Victoria, and I know that we have one of the most beautiful places to live and work in the world - and the most amazing backdrop for events that you can find anywhere,” he says. “But we have to stop relying on the backdrop alone to attract tourism.”With that in mind Vickers has moved

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Mercy Ships Canada visits West AfricaMercy Ships Canada National Director Tim Maloney, employees Maria Manna and Lorraine McDonald recently returned from visiting the organization’s medical vessel, the Africa Mercy, in Conakry, guinea. The team was onboard the hospital ship as part of a week-long trip to learn how the ship operates.

The Africa Mercy has an all-volunteer crew of 450, half of them doctors and medical experts, who pay to serve on the 500 ft. ship with six operating theatres and a 78-bed ward. During this week the Vision Team got to personally see what their work for Mercy Ships Canada is all about: spreading the word about the international charity that, one by one, transforms the lives of the world’s forgotten poor, free of charge.

Payworks Named One of Canada’s Best Managed CompaniesPayworks was recently named a 2012 winner of the Canada’s Best Managed Companies program. “We are thrilled that Payworks was named one of

Canada’s Best Managed Companies for 2012, particularly because this program recognizes the efforts of the entire team, rather than honouring an individual. Payworks’ success is a result of the hard work and dedication of each team member, and the continued support of our partners and clients,” said Barb gamey, President and CEO of Payworks. Canada’s Best Managed Companies is a national awards program, recognizing Canadian companies that have implemented world-class business practices and created value in innovative ways. Payworks’ was honoured at last month’s Best Managed gala in Toronto.

Fairway Market Turns 50!Fairway Market is celebrating its 50th anniversary this year. Founder and Chairman Don yuen opened his first grocery store location on gorge Road in 1963, and since then Fairway has expanded into a local success! What began as a small family business has grown to become one of Vancouver Island’s largest independently owned grocery stores with 10 locations on Vancouver Island. Fairway Market’s success can be attributed to understanding the importance of family

and community, continuing to build on the earnest foundation laid by yuen. Company President Doug yuen is a fourth generation grocer who is focused on offering a diverse range of fresh, local produce and imported specialties. Fairway Market’s extensive selection of international products reflects the varied cultures and unique tastes of our community.

Tattoo Gets Council’s NodVictoria City Councillor Pam Madoff recently congratulated the Victoria Military Music Festival Society on behalf of Mayor Fortin and her colleagues on Victoria City Council. “Based on the international military tattoos in Edinburgh, Basel and Halifax, BC’s Pacific Tattoo is the only tattoo on the west coast of North America and has the potential to develop into a signature cultural event for the region”, she said. “We look forward to welcoming visiting bands and Tattourists to Victoria. I’m sure the show will delight people of all ages, while reminding everyone that our police, our fire fighters and our Canadian Armed Forces are worthy of celebration.”

Tickets for the event are now on sale

MeMbeR news

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online, at the Save-on-Foods Memorial Centre box office, and by calling (250) 220-7777. Family pack ticket pricing is available for two adults and two children.

GAIN GrowingThe german Auto Import Network (gAIN) announced plans to build a new Porsche dealership and renovate the existing Volkswagen dealership earlier this year. The expansion follows gAIN’s recent construction of the new BMW dealership in Vic West, the re-establishment of an Audi dealership in the former BMW lot, and a temporary Porsche showroom downtown. The big changes were sparked by gAIN’s purchase of Speedway Motors in 2011, and the company’s goal is to have all the new construction and renovations complete by mid 2014. The improvements are intended to better showcase the vehicles and bring them more in line with their own brands. gAIN is passionate about the cars it represents, a passion shared by their cars’ enthusiastic owners.

Hippo Sightings DowntownIt was hard to miss these buses roaming around town on their test runs

over the last few months, but Victoria Hippo Tours finally took the plunge and opened up tours to the public on April 1st. Hippo Tours started in Toronto 12 years ago and they are excited to introduce both Victoria’s locals and visitors to their fleet of unique forty passenger amphibious vessels they have affectionately named Happy, Harry, and Henrietta. The 90-minute tours take passengers through some of Victoria’s most notable landmarks before dipping into the Inner Harbour for a swim. The Hippos are offering tours seven days a week until October 31st, when they’ll hibernate again until next spring. Tours are approximately 90 minutes in length, spending 50 minutes on land and 40 minutes in the water.

Vecima Bids Farewell to Director Earlier this year Vecima Networks said goodbye to Lead Independent Director Reg Bird, who has been replaced by Barry Baptie. Baptie has been a director of the company since November 2004. Prior to his retirement that same year, he was Executive Vice President of Technology and Operations for Telus Communications. Vecima Networks provides specialized and custom

original equipment manufacturing solutions for cable television, telecommunications, and hospitality industries. The Victoria based company originated in Saskatoon, though Founder and CEO Dr. Surinder Kumar relocated Vecima’s home office to the west coast after opening a microwave research facility here in the mid 90’s. Vecima’s products are used for encryption, decryption, processing, converting and transporting all types of digital media within connected-device ecosystems. The company has facilities located in Canada, the US, and India.

Happy Birthday Creole!Creole Jewellery Design turns 22 this year, celebrating over two decades of business in Victoria. A family business since 1991, Creole Jewellery Design is a company that is enthusiastic about the design and creation of the jewellery they produce for their cliental. Trent Harris, Creole Carmichael’s son, has worked at his mother’s bench and in the store since the age of eight. He is now a partner in the business, having learned at his mother’s side, Harris studied gem setting at the Revere Academy and Advanced CAD Design through gemvision. Creole’s extensive

MeMbeR news

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MeMbeR newsexperience with platinum has gained her international recognition as a technical expert in this rare metal. Her work has been featured at the Platinum Symposium in New york City.

Broadmead Care Nationally Recognized The Broadmead Care Society has been awarded Accreditation with Exemplary Standing from Accreditation Canada in March. Broadmead Care was recognized for attaining the highest level of performance in meeting more than 500 accreditation standards. “A few years ago, in describing their commitment to their work and to our residents’ and clients’ care, our staff came up with the motto, every moment matters,” said David Cheperdak, Broadmead CEO. “We try to live that every day so we can provide exceptional care.” Broadmead Care Society provides adult day programs and residential care for more than 400 veterans and seniors at the Lodge at Broadmead and Veterans Health Centre and residential care for 40 adults with disabilities at Nigel House and Harriet House.

Belfry Impacts LegislationThe Belfry Theatre had reason to

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celebrate this spring, when the province amended the Liquor Control and Licensing Act to allow charities and non-profits to receive liquor donations from any source. The theatre, which relies heavily on funds raised by its annual Crush wine auction, discovered the previously limiting legislation last October when it planned to include bottles of wine donated from private collections in its auction. Following public outcry, the legislation was updated.

The BC government released a statement following their decision that the rule was “outdated” and that it wants to “modernize regulations that restrict British Columbians unnecessarily.” The Belfry’s win will not only allow its fundraiser to continue, but will also allow a number of other charities and non-profits the ability to make use of such donations.

FortisBC Supports Highlanders FortisBC recently announced a partnership with the Victoria Highlanders Football Club, to help spark the upcoming soccer season. Bob Anderson, Senior Manager of Residential & Commercial Energy Solutions says, “FortisBC is proud and

happy to support the Highlanders. Soccer is a high energy game and we’re in the business of providing energy. We can appreciate how important this kind of activity is to the community and are proud to be a part of it.”

FortisBC provides energy solutions from electricity, natural gas and propane to integrated energy solutions such as geothermal and district energy, to deliver energy safely and reliably.

Chamber Members Lend Expertise to CAFE The Vancouver Island Chapter of the Canadian Association of Family Enterprise (CAFE) recently announced their Board of Directors, which includes a number of Chamber members, including:

• Andy Spurling of Proline Management, Vice-Chair

• Mike Black of Capital Iron, Past Chair

• Dave Denley of KPMg MSLP, Treasurer

• Dave Fraser of Bank of Montreal• Travis Butler of Butler Brothers

Supplies Ltd.• Marilyn Spurling of Proline Property

Managers

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Congratulations to all of the

WINNERS& FINALISTS

150

business leadership Award winner:Capital IronRunner-up:Island Savings

new business Award winner:Signature Tire Plus Inc.Runner-up:UC Life Chiropractic Centre

business of the year (1-10 employees) Award winner:Patriot Electric Ltd.Runner-up:Williams Moving & Storage

business of the year (11-25 employees) Award winner:Body Dynamics HeadquartersRunner-up:Triangle RV Centre Ltd.

business of the year (26-75 employees) Award winner:Grant Thornton LLPRunner-up:Prince of Whales

business of the year (76+ employees) Award winner:Cold Star Freight Systems Inc.Runner-up:Vancity

employer of the year Award winner:Horne CouparRunner-up:Peninsula Co-op

Innovation Award winner:Pet Loss Care Memorial CenterRunner-up:FortisBC

Outstanding Customer service Award winner:Serenity Home Care Ltd.Runner-up:Robinson’s Outdoor Store

sustainable business Practices Award winner:Digital Direct Printing Ltd.Runner-up:Inn at Laurel Point

business Person of the year Award winner:David Rogers, BC HAZMAT Management Ltd.Runner-up:Kevin Walker, Oak BayBeach Hotel

young entrepreneur Award winner:Tim Teh,KANO/APPSRunner-up:Jessica Cruise,Vibes Fitness

employee of the year Award winner:Matt King, Robinson’s Outdoor StoreRunner-up:Mercedes Lopez, Arbutus Inn

COURIER, FREIGHT & LOGISTICS

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Congratulations and good luck to all ofthis year’s awards finalists!

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Visit our website www.victoriachamber.ca to view photos from the Awards Gala and videos of the winners and finalists!

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Greater Victoria has had a gas supply since the 1860s when a coal-fired gasification plant was built and supplied the capital with gas. In 1991 a natural gas pipeline to the island was installed by Centra Gas. Centra Gas was subsequently sold to Terasen Gas and has since evolved into FortisBC, Vancouver Island’s natural gas service provider.

In 2012 FortisBC Energy Utilities submitted a common rate proposal to the BC Utilities Commission (BCUC) to amalgamate its three separate natural gas utilities into a single entity serving the province. The amalgamation would also introduce “postage-stamp rates” in British Columbia, meaning users throughout the province would pay the same rates for natural gas. The BCUC rejected the proposal, continuing the discrepant rate structure where newer natural gas users pay higher rates than longtime users. FortisBC is seeking an appeal.

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A provincial initiative

The government of British Columbia initiated the Vancouver Island Natural gas Pipeline project in 1988 and fair natural gas rates were assured through the Consolidated Rate Stabilization Agreement. As part of the service provision, the provincial government required that a number of industrial users convert to natural gas. The Consolidated Rate Stabilization Agreement was later replaced with the Vancouver Island Natural gas Pipeline Agreement, and the provincial contribution to infrastructure was made through a royalty rebate program. The rebate program expired in 2011 leaving Vancouver Island residents without any further government contribution to subsidize the cost of service delivery.

Vancouver Island’s natural gas rates are over 25 percent higher than the provincial average because it is a newer natural gas customer. Similarly, Whistler was serviced with natural gas in 2009 and has the highest natural gas rate in the province. Both Vancouver Island and Whistler are being charged unfair rates because they are newer natural gas users than long existing users in the rest of the province. Fort Nelson currently maintains the lowest natural gas rates in the entire province.

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This does not follow the precedent set by other utilities such as BC Hydro.

There are a number of ways of calculating utility pricing. The two that were highlighted in the British Columbia Utilities Commission (BCUC) decision regarding FortisBC’s common rate proposal are the cost causation principle and postage-stamp rate principle. Natural gas rates are currently calculated using cost causation.

Cost causation

Cost causation is based on the principle that users only pay for incurred costs of providing service, meaning the costs are avoided if the service isn’t provided. For example a new housing development has to pay for all the infrastructure to support the development including water supply, and sewer services. The developer installs the addition to the utility and passes that cost onto the new home owners. Under cost causation, new home owners would be charged at a higher rate for water and sewer usage because they are new to the system. Even though the homeowner/developer have already paid a considerable amount to install the new services, their rate for water and sewer would be higher and the length

of this increase is unclear - perhaps in perpetuity. The Chamber believes BCUC decided to apply the cost causation principle to ensure new users to the system contribute to the legacy costs of providing natural gas in BC.

Postage stamp rates

Postage stamp rates make it so that all users pay the same rate for the same service, regardless of the direct cost of service delivery. This isn’t to say that service charges can grow disproportionately higher than the cost of service provision; rather, service provision costs are shared equally by all users. This system is less discriminatory, because all users are charged the same rate regardless of their location or length of use. Postage stamp rates allow for more fairness and competition as they remove any potential economic disincentives. Postage stamp rates effectively treat resources as a provincial issue, rather than a regional issue.

This should be the case with natural gas as it is a provincially owned resource. The provincial government led the effort to bring natural gas to Vancouver Island, and asserts that “the availability of low-cost electricity was instrumental in building British

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rates would increase by 57 percent. There is no doubt that this type of increase could be detrimental if fully implemented following a change in rates. FortisBC has proposed a 15 year phased-in timeline for Fort Nelson’s rates to ease the transition to postage stamp rates.

Calculating hydro rates

BC’s electricity rates are set based on the Heritage Contract, a document that ensures users can benefit from the low cost of long established infrastructure. Not only must rates remain affordable for users, but BC Hydro has also used postage stamp rates since its creation, and as a result has maintained customer fairness throughout the province by ensuring no single area, industry or corporation has an advantage over another. As a result of the Heritage Contract, expanding BC Hydro’s electricity production base would cause a significant increase in its rates, as the cost of building any large scale new infrastructure will impact rates. Is it possible that encouraging more widespread natural gas use could alleviate this pressure? This is a subject that requires more research.

Since natural gas and electricity compete with one another, they must share a similar pricing principle to remain fair and competitive utilities.

Areas where natural gas rates are lower offer natural gas an unfair advantage over electricity, and vice versa.

Moving forward

Natural gas is an important source of clean energy and is used for a variety of commercial, municipal and residential purposes. There is growing interest in using natural gas as a transportation fuel and the use of natural gas has been considered as a fuel in the production of electricity on Vancouver Island. Due to its low cost, there has even been talk of converting the BC Ferries to run on natural gas, if low projected prices could be sustained over the long-term. In order to best serve the province, natural gas rates should use the postage rate principle so that all users in BC pay the same rates for a provincially owned resource. Expecting Vancouver Island and Whistler residents to cover the costs of a provincially led natural gas initiative is not only unfair, but detrimental to economic development. Discrepant rate structures discourage growth for areas that already have a hard time competing. The resources are jointly owned by the province as a whole, therefore the cost to consumers throughout BC should be equal.

Columbia and establishing our resource sectors such as mining, smelting, and forest products.” Creating similar fair pricing and ease of access for natural gas will help promote economic development throughout the province. By creating postage stamp rates, any existing incentives or disincentives caused by the current rate structure will be eliminated, offering different areas a fair chance of remaining provincially competitive.

How would rates change?

If postage stamp rates are implemented for natural gas, each customer in a given customer class would be charged the same rate. Using residential rates, rates would decrease by approximately 27 percent for Vancouver Island and 36 percent for Whistler. Conversely, residential rates for the majority of the Lower Mainland, Inland, and Columbia regions would increase by just over five percent. By spreading the higher cost of serving newer natural gas users throughout the province, the shared costs are minimal. By using postage stamp rates the net effect is not increased; it is revenue neutral to FortisBC. It is essential to note that under the postage rate principle Fort Nelson would be most deeply impacted having experienced the lowest natural gas rates in the province. Fort Nelson would lose its existing advantage, and

17BUSINESSMATTERS

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18 BUSINESSMATTERS

Proof yet again that Victoria is a jewel.

www.knickerbockers.caSIDNEY

at the foot of Beaconin the Sidney Pier Hotel

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ROYAL OAK DRIVEin the Broadmead Village

Shopping Centre250-658-5578

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The Changing Consumer: Presentation & BreakfastDate: May 8, 2013Time: 8:00am - 930amPresented by: Times Colonist & The Chamberlocation: IMAX

Prodigy Group May MingleDate: May 9, 2013Time: 5:00pm - 7:00pmHosted by: Cactus Club Cafe Members & their guests only please

Six for LunchDate: May 15, 2013Time: 12:00pm - 1:30pmlocation: Moxie’s grill Members only please

May Business MixerDate: May 16, 2013Time: 5:00pm - 7:00pmHosted by: Philip Nyren Menswear & Womenswear Members & their guests only please

Solving Problems Through ServiceDate: May 16, 2013Time: 10:00am - 12:00pmPresented by: WorldHost Training Services location: The Chamber

Let’s Talk ExportsDate: May 16, 2013Time: 7:30am - 9:30amPresented by: Economic Development Canada

Chamber Events Improve your Business Climate...

...And Help You Get Stuff Done.

19BUSINESSMATTERS

wICKeD MIXeRs. MORe FUn.JUNE

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Annual General Meeting & Mayoral AddressDate: May 21, 2013Time: 11:30am - 1:30pmHosted by: Union Club of British Columbia

Sales Powered by ServiceDate: May 29, 2013Time: 10:00am - 12:00pmlocation: The Chamber

Amazing ChaseDate: June 7, 2013Time: 7:00pm - 10:30pmstarting location: Bastion Square After-party: Darcy’s Pub/Upstairs Cabaret

Six for LunchDate: June 11, 2013Time: 12:00pm - 1:30pmlocation: To be announced Members only please

Prodigy Group June MingleDate: June 13, 2013Time: 5:00pm - 7:00pmHosted by: To be announced Members & their guests only please

June Business MixerDate: June 20, 2013Time: 5:00pm - 7:00pmHosted by: grant Thornton LLP Members & their guests only please

Chamber Events Improve your Business Climate...

...And Help You Get Stuff Done.

20 BUSINESSMATTERS

For the third time, Victoria has been identified by fDi Magazine from the Financial Times as amongst the best across North and South America in its attractiveness as a place to invest. In the 2013/2014 America Cities of Future Awards announced in April, greater Victoria took home honours as overall winner in the small city category & winner in business friendliness in the small city category. In addition, the greater Victoria Development Agency (gVDA) was recognized for its effectiveness by receiving Top 10 foreign direct investment strategy (small city category) from a panel of independent judges. These three awards represent an important opportunity for greater Victoria. In 2012, Victoria’s regional gDP grew by only 0.9 percent, ranking it 25th out of Canada’s 28 metro-regions. The new post-recession reality for Victoria is that our community can no longer rely on government employment for stability. We must embrace local private-sector firms and new entrepreneurs as the future job creators – namely through high-technology, advanced manufacturing, shipbuilding & repair sectors. By growing these driving economic sectors the region can support the struggling retail and service sectors, as well as create new construction

GReATeR VICTORIA ReCOGnIzeD FOR ATTRACTIVeness As A PlACe TO InVesT

21BUSINESSMATTERS

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By Dallas GislasonEconomic Development Officer,

Greater Victoria Development Agency

and housing demand—all of which support the fiscal bottom-line of local governments.

Foreign direct investment (FDI) is a key ingredient to growing these driving sectors. A growing company needs access to capital. The type of growth-oriented capital required is not typically found locally, rather, it is found within the experienced venture capital industries, like those found in California. It is also found in larger, well-capitalized firms, as was the case when Amazon.com bought local used-book champion Abebooks.

These awards recognize greater Victoria’s strengths as a place to invest; they are a testament to the fact that world-class talent loves living here. Our local municipalities’ commitment to developing a high quality of life (through cycle lanes, infrastructure, healthcare services, etc.) is regarded as a key factor of investment attractiveness. The next step for the region is to take advantage of this opportunity by working even more closely with the gVDA to make economic development a priority.

The gVDA continually develops and nurtures the local environment for FDI opportunities, helping diversify and stabilize the local economy. To be recognized for these efforts is an honour. However, we are just getting started.

22 BUSINESSMATTERS

® / The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or other countries. M00580 (0212)

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eCOnOMIC snAPsHOTblue skies or rich earth Victoria provides wide open opportunities. This month’s economic snapshot takes a more in-depth look at two of Victoria’s industries; agri-business and aviation. Though some locals may be unaware, Vancouver Island is a region with a strong pilot community and leading aviation sector. Agri-business on the Island has been on the decline since the 1950’s when Vancouver Island produced the majority – roughly 85 percent – of its own food, however this industry is beginning a slow revival through local food initiatives and collaboration.

AviationThe aviation industry is highly cyclical, though it lasts longer than traditional boom-bust cycles, averaging approximately 10 years in length. The impacts of the 2001 regulatory shifts in security following 9/11 can now be seen in the new products being introduced by Boeing and Airbus. This may sound like an impossibly long time to see an

idea come to market, but when dealing with aeronautics and safety, advances in aviation take time. Local manufacturer Viking Air has managed to stay at the forefront of this extended cycle by investing during the downturn, to ensure their product would be ready in time for the aviation market’s current upswing.

Keeping pace in aviation also means knowing your market, and Viking has positioned itself to cater to buyers updating their fleet, as well as newer Asian buyers purchasing individual aircraft valued at over $50 million. Although there isn’t a large amount of high-value added work in the region, there are a large number of pilots living on Vancouver Island who commute elsewhere via air. While there is an abundance of pilots, there is a shortage of local aircraft maintenance for small aircraft. Although a worthwhile niche market opportunity, it doesn’t have the same lasting power without a global sales component. There are opportunities to expand to full-value support, as was the case with Vietnamese pilots who came here to learn English in order to take flying

lessons with Pacific Sky Aviation, to operate planes that were also purchased here. Offering these value-added services will help round out the long-term cycle. Although the local economy is saturated, there are lots of global demand and opportunity.

One of the growing trends is to have both Canadian and US offices (multiple-international offices) allowing companies to hire talent where it is located rather than engaging in costly and disruptive relocation practices. This has the advantage of reducing absolute cost, easing regulatory compliance and allowing companies to be much more flexible. It also maintains lower overhead and attractive pricing. Some American companies are taking advantage of Canada’s ambassador-like reputation and are growing offices in Canada, much like the trend in American tech companies opening offices here. Boeing has a design and tech support office in greater Victoria, though they don’t actually perform any manufacturing here.

There are somewhere between 1,000 to 2,000 aviation-related jobs on Vancouver Island and these numbers could easily double if small scale aviation projects and initiatives continue moving forward. Overall, the aviation industry is a very high value-add sector, and the processes used now are relatively clean.

Agri-businessFrom farm gate to dinner plate, the Capital Regional Food and Agriculture Initiatives Roundtable (CR-FAIR) was created to strengthen the local food system and increase the viability of farming. CR-FAIR consists of 30 food and farm organizations working together for the past 15 years to support greater Victoria’s agriculture sector. The roundtable promotes collaboration and focuses its efforts on creating supportive policy, promotion and education, sector development, improving access to land, leveraging investment and creating agriculture infrastructure.

Since 1996, the number of farms in the region has increased, however their average size has decreased meaning there is less actual farmland. BC’s total agriculture sector boasts gross annual

23BUSINESSMATTERS

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TAKInG THe PUlse OF THe lOCAl eCOnOMyrevenues of $36 billion, though CRD farm incomes make up just over $50 million of this number. Even with all existing farms in greater Victoria at full production, this sector only accounts for 10 percent of the farmland needed to achieve true sustainable agriculture goals. This sector is greatly challenged by the fact that half the region’s existing farmers will retire in the next decade, and that the average cost of an acre of farmland is $100,000.

Despite a decrease in farmed land, demand for local food is on the rise. There is a four percent annual growth in local agri-food production and consumption in BC, which is driven by increasing food safety and health concerns, as well as environmental sustainability efforts - since 20 percent of greenhouse gases are caused by global food transportation alone. According to the Investment Agriculture Foundation of BC’s 2008 survey, nine out of 10 BC residents believe producing enough food to avoid depending on imports is important, proving that there is high interest in supporting this sector. In greater Victoria, this interest

is challenged by low farm viability caused by high land costs and many farmers nearing retirement. Despite this, the number of farmer’s markets in BC has doubled since 2000, with direct farm purchases as well as farm market purchases on the rise.

Quite a bit of the farmland in greater Victoria currently produces hay, though there has been a rise in production crops using greenhouses. The other major change in this sector has been the significant loss of poultry and livestock production since 1996, following the loss of abattoirs on Vancouver Island.

There are a number of agri-food opportunities in the region including, “buy local” purchasing policies such as the University of Victoria’s commitment to purchasing 46% percent local food, diversified and value-added produce, as well as agri-tourism and destination food marketing. As transportation and energy costs increase, traditionally higher priced regional food products are better able to compete with imported foods and provide additional opportunities for this growing sector.

24 BUSINESSMATTERS

Regularly scheduled service to/from Vancouver

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25BUSINESSMATTERS

new MeMbeRs: February 7th - April 3rd 4 Seasons Heating and CoolingWhat started out as a passion over 20 years ago, has turned into Victoria’s most well respected and trusted heating and HVAC company.(250) 652-0886 www.4seasonsvictoria.com AccountAbility PlusWelcome to a unique business resource: an off-site accounting department for busy business owners; a learning center where we teach accounting software in small focused groups; and, consulting services to help you get the most out of your efforts.(778) 265-7440 www.accountabilityplus.ca

Advanced Listening SystemsAdvanced Listening Systems designs and installs “assistive listening devices” in public places for the hard of hearing.(250) 580-2180www.advancedlistening.ca

After Shave Barber Ltd.After Shave Barber Ltd. is an upscale gentlemen’s barber shop offering a masculine, classy, European inspired atmosphere for both the progressive and traditional gentleman.(778) 265-4293 www.aftershavebarber.com AltoPartnersAltoPartners/ Bluestone Leadership Services is a global provider of board, executive and senior leader services. (250) 888-4992 www.altopartners.com

Becon Support Services Ltd.We provide individualized, person-centered services and meaningful choices for the 100+ individuals we support and their families. Most of our homes are funded by Community Living British Columbia. One home is funded by the Ministry of Children and Family Development.(250) 727-3891 www.beconsupport.ca

Beltone Hearing Care Centre - HillsideFamily owned and operated on Vancouver Island for 38 years. They know what it takes to give the best complete and careful service to persons who are hard of hearing and their families. (250) 370-5199 www.beltone.com

BMT Group ServicesBMT group Services Ltd. is Victoria’s premier fleet management facility. Our full service mechanical bays, our semi-trailer-sized paint booth and our fully trained technicians can help keep your vehicles running smooth and looking great!(250) 886-0339www.bmtgroup.ca

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victoriachamber.ca

Our Sponsors:THANK YOU! to our many sponsors and exhibitors who helped make the April Marketplace Mixer a huge success!

Island Document Storage and Shredding Kids & CompanyL.A. Limousines Inc. Leukemia & Lymphoma Society of CanadaMaximum Express Courier, Freight & LogisticsMax FurnitureMini VictoriaMonk’s Office Supply Ltd.Old House Village Hotel & SpaParkside Resort & SpaPeninsula Co-opPrice’s Alarm Systems Ltd.Prodigy GroupRaincoast Door and Specialty wood Products

Adventure Travel Co.Agenda Office InteriorsAir CanadaArtopia Adaptive Display Arts Ltd.Brian’s Custom ClubsBusiness VictoriaCamosun CollegeCanadian College of Performing ArtsCedarwood Productions

Certified Management Accountants Society of BCChoices Adoption & CounsellingCommunication ConnectionDesjardins Financial Security Independent Network Down to Earth Gardens & NurseryFunction FoxGeoff McLean Personal Real Estate CorpGreater Victoria Chamber of CommerceInvestors Group - ChattertonInvestors Group - Yates

Royal Roads UniversityRuffell & Brown InteriorsSoftcorp Software Ltd.TD Merchant ServicesTigerTel CommunicationsUC Life Chiropractic CentreVictoria Cool-Aid SocietyView Royal CasinoThe WellesleyWhale Communications Ltd. WorldHost Training Services YWCA

MARKETPLACE MIXERwicked mixers. more fun.

@chambervictoriafollow the chamber on twitter

26 BUSINESSMATTERS

new MeMbeRsBoyd Murata Coaching and ConsultingZen philosophy + coaching will put you on a solid path towards achieving greater fulfilment at work, and a more enjoyable and rewarding life.(250) 590-5950 www.brendaboydcoaching.com Bridges For Women SocietyOur employment training and supportive programs inspire women impacted by violence or abuse, to reclaim their lives and build economic security. Providing education, training and consulting to community agencies, employers, and government.(250) 385-7410www.bridgesforwomen.ca Bunah Home InspectionsBuying a home is a big decision. It can also be a little intimidating as you weigh many factors to make the best decision for you and your family. We can help.(778) 432-2115www.bunahhomeinspections.com

CBRE LimitedCBRE Limited officially opened its Victoria office in 2013, bringing industry-leading commercial real estate services to Vancouver Island.(250) 386-0000www.cbrevictoria.com

Choices Adoption & CounsellingChoices Adoption & Counselling Services is a nonprofit, non-sectarian licensed adoption agency offering a range of services to birth parents and adoptive parents throughout BC. We have been involved in adoptions and family counselling since 1989.(250) 479-9811www.choicesadoption.ca

Constant ContactConstant Contact has small business marketing experts across the country, ready to meet you in person and help you take your organization to the next level of success.(866) 289-2101www.constantcontact.com

Hiring this summer? Business Co-opSpeed Networking event March 25 - 27, 2013 3:30 - 5:30 pm Interurban Campus Pre-register at: co-op@camosun.bc.ca Students are available from May to August Co-operative Educationand Student Employmentcamosun.ca/cese250.370.4100

It’s simple.Hire astudent.See results.

27BUSINESSMATTERS

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Haida house frontal pole, RBCM 14679 a-c (detail).

new MeMbeRsFrontier Stone Export Ltd.Frontier Stone imports and distributes a beautiful, dense collection of vein-cut travertine, cross-cut travertine, limestone, marble and onyx tile from Peru. Stocked in Victoria, Vancouver & Calgary. (250) 661-7394www.frontierstone.ca

FunctionFox Systems Inc.Simple, online timesheets & project management. FunctionFox Systems Inc. is dedicated to providing simple, secure, web-based tools to help smaller companies improve productivity and profitability.(250) 479-1285 www.functionfox.com Industrial Marine Training and Applied Research CentreIMTARC will support the growth, productivity, and competitiveness of the shipbuilding and repair sector by coordinating and facilitating workforce development and applied research. (778) 265-5005 www.imtarc.com

Island Express AirIsland Express Air is dedicated to providing a first class flight experience, safely, on time and hassle free. Flying 7 days a week from Victoria to Abbotsford, Vancouver, Nanaimo & Tofino.(604) 856-6260 www.islandexpressair.com Limitless Stone Effects Contractors Ltd.A concrete micro-top overlay system for existing or new substrates. A resurfacing tool for counters, floors, patios or anything with a solid substrate. (778) 440-0126 www.limitlessstoneeffects.com Linda Ferguson DesignsLinda Ferguson is a fashion designer who has been ‘designing clothing with ATTiTude’ for women, who invest in themselves first! Eco-friendly clothing for discriminating women.(250) 642-1842www.lindafergusondesigns.com

Core6 Environmental Ltd.Core6 are accomplished and recognized experts in their fields of environmental science. Core6 Environmental has developed strategic relationships with a range of specialists and reputable organizations that supplement our own team’s strength.(250) 686-0405www.core6.ca

Corporate Development International (CDI Global)CDI global specializes in international company searches for middle-market mergers, acquisitions, divestitures and joint ventures. We are known for the quality of our international personnel, our industry focus, and our trademark interview process.(250) 507-0436www.cdiglobal.com

Creating Occasions Creating Occasions is owned and operated by a former Fairmont pastry chef, so let those industry secrets reach your finger tips! We have the answers, specialty products and ideas you’ll need.(250) 475-2611 www.creatingoccasions.com Downunder VoiceoversIt can be hard to make your business stand out, or grasp the attention of the masses. Hiring a voiceover artist to make that message pop is a gREAT start. Take things a step further & engage your audience with a fancy-schmancy international accent.(778) 265-1413www.downundervoiceovers.com

Fantastic Cleaning Ltd.Fantastic Cleaning offers the highest quality janitorial and cleaning services on Vancouver Island, serving the greater Victoria, Mill Bay, Duncan, and Nanaimo areas.(250) 391-0435www.fantastic-cleaning.com

28 BUSINESSMATTERS

new MeMbeRs

(250) 508-4099 www.firmguru.com

Moksha YogaMoksha yoga is a hot yoga series that stretches, strengthens and tones the muscles while detoxifying the body and calming the mind. The series is a cardiovascular workout that strengthens, tones and loosens the muscles, while calming the mind.(250) 385-9642victoria.mokshayoga.ca Mount St. Mary Hospital FoundationEnhancing the care, comfort, dignity & respect of vulnerable members of our community. With the help of good neighbours like you, we can provide palliative care, programs & equipment needs for the 200 critical care residents and their families. (250) 480-3138www.msmfoundation.ca Nootka Marine AdventuresDesign your Vancouver Island holiday to appeal to everyone in your group.

Nootka Sound Resort and Moutcha Bay Resort are both fun family vacation resorts and perfect for a corporate retreat.(877) 337-5464www.nootkamarineadventures.com

NXS Innovations Inc.Every project develops a unique identity based upon the natural environment, lifestyle and desires of the customer. Our aim is to make your renovation or new building experience as worry-free and as affordable as possible.(250) 580-4811www.nxsinnovations.com

Original Joe’sOriginal Joe’s serves more than great food ranging from nachos, lime chicken and fish tacos.(778) 265-5225www.originaljoes.ca/tuscany Pacific TattooMore dancers, kilts, bagpipes, drums, bands & pageantry than we can reel off. Celebrated here in Victoria each July.www.pacifictattoo.ca

McElhanney Consulting ServicesMcElhanney is a Canadian consulting firm, providing engineering, surveying, mapping, planning, and environmental services through a network of 20 local offices across Western Canada and in Indonesia.(250) 370-9221 www.mcelhanney.com

Michael Geoghegan ConsultingBC’s most cost effective, results orientated government & media relations firm. Our focus is on getting real results for our clients. We bring over 30 yrs combined experience in working with local, provincial, federal & first nations governments.(250) 361-9242 www.mgcltd.ca

Mikhail Belikov ConsultingMikhail Belikov Consulting helps define, develop and implement business growth strategies including international expansions. Extensive expertise in a variety of industries and countries.

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Celebrating 15 Years of Business

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29BUSINESSMATTERS

Padgett Business Services PADgETT is your local small business tax, accounting and payroll specialist, catering to the needs of small business owners through a network of local owner-operated offices. (250) 744-3854 www.countbeans.com

Parkside Victoria Resort & SpaParkside is a sustainable resort hotel targeting LEED® Platinum Certification. Parkside features a 25-metre indoor pool, AquaTerre Spa, theatre, rooftop gardens, designer furnishings, gourmet kitchens and inviting suites.(250) 940-1200www.parksidevictoria.com

Pattison Outdoor AdvertisingPattison Outdoor Advertising is Canada’s largest out-of-home advertising company, serving over 100 markets from coast to coast. (250) 413-3212 www.pattisonoutdoor.com PayTrak Payroll ServicesPaytrak Payroll Services is part of an international franchise group that has been addressing the concerns of small business owners like you for over 35 years. Whether you have one employee or 100 employees, Paytrak can help.(250) 708-0070 www.countbeans.com

Performance BicyclesWe stock great bikes for all levels of riders whether you’re riding the latest & greatest or just need to keep ‘old reliable’ spinning smoothly. We provide meticulous service. (250) 727-6655 www.performancebicycles.ca

Resilient SolutionsResilient Solutions uses a strength based approach to address diverse needs & enhance the capacity of individuals, organizations, & businesses. The heart of my work focuses on the creation of a resilient mindset for individuals & organizations. (250) 886-9212www.resilientsolutions.ca

new MeMbeRs

themarketstores.com903 Yates At Quadra | 250.381.6000 7 am - 11 pm

125-2401 C Millstream Road | 250.391.1110 8 am - 11 pm

“The meat lover’s store.”

We love finding ways to make your busy life easier. You’ll find a selection of prepared meats, poultry and seafood stuffed or marinated and ready to bake

or barbeque.

Heavenly!

30 BUSINESSMATTERS

6Benefit CheckGroup insurance tips for employers and employees

Brought to you exclusively by your Chambers ofCommerce Group Insurance Plan® advisor.

Planning a holiday? You may not need to buy travel insurance.Chambers Plan health benefits include travel health coverage,providing you the protection you need when you’re travellingoutside your home province. Coverage includes emergencymedical assistance and consultation, medical evacuations,meals and accommodations, and more.

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THE CHAMBERBUSINESS MATTERS

Hillside Printing3050 Nanaimo Street

250-386-5542 • www.hillsideprinting.com

More Than Ink on Paper,

For Over 30 Years.IT’S ABOUT YOU

Proud printers of

Robert Bateman CentreThe Bateman Foundation is a national, not-for-profit charity dedicated to education and public service based on the philosophies and legacy of Robert Bateman. The Foundation’s purpose is to support educational programs delivered by others to promote lifelong engagement with nature.(250) 588-9981 www.batemanfoundation.org Signature DetailingOur experienced detailing service will keep your vehicle in top condition. We use top of the line products to provide high-quality service and the most thorough detail service available. Our staff is highly skilled and have years of experience.(250) 590-9644 www.signaturedetailing.ca Stratasafe TeamAt STRATASAFE we are committed to making the home buying process as simple as possible. We realize this process is about you - not us. It doesn’t matter if you’re purchasing your first

home or a savvy homebuyer, we will walk you through the process.250-384-8124www.stratasafe.ca

Studio Seven SalonStudio Seven is a group of creative professionals who specialize in the art and style of great hair.(250) 480-7777www.studiosevensalon.ca

Trans Mountain Expansion ProjectTrans Mountain is committed to constructing, operating, and maintaining its pipelines to the highest standards.(866) 514-6700www.transmountain.com

Walk Abouts Historical ToursReturn to the 1840’s with either the Talk of the Town or The Empress Tour and discover how Victoria has evolved over the past 200 years.(250) 592-9255 www.walkabouts.ca

Wellesley VictoriaThe Wellesley has for years been the focal point of many Victoria families & their retired parents. Independent & assisted living suites available, The Wellesley, truly is the epitome of living in style and comfort.(250) 383-9099www.retirementconcepts.com/homes/wellesley WestBay MechanicalAt West Bay Mechanical our first priority is to deliver the highest quality in products, prices and service to our clients. We are committed to making your experience the best it can be. We recognize that a reputation for excellence must be earned.(250) 478-8532www.westbaymechanical.com

new MeMbeRs

Mike van Straubenzee of Vision 2000 Travel Group

gives a speech at a Chamber mixer.

31BUSINESSMATTERS

GOT SPEEDGOT BRAINSGOT A GREAT TEAM

Prove it.? The Chase is on across downtown Victoria and you can be a

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• Credit - The Chamber • Full Colour Banner Ad - Times Colonist• Courier Services - Maximum Express • Studio Business Portrait or group Staff

Photo - Visions West Photography • Full Day Boardroom Rental - Regus • Return trip in a Sedan - LA Limousines• Simply Accounting or QuickBooks

course - Academy of Learning • Charter Bus Service - Wilson’s Transportation • Hop on/Hop off Double Decker Sightseeing

Passes - Wilson’s Transportation • Print Services - Hemlock Printers • Two Free Adult Passes Towards a

Corporate Package - Adrena Line Zipline Adventures

• Computer Services - Tecnet • gift Certificate - The Bay Centre • Business Security Risk Check - Priority 1

Computer Service • Radio Advertising - Kool 107.3 FM • Radio Advertising - C-FAX 1070 AM • Training Programs - Hone People

Development Consulting• Two Nights Stay - Accent Inns • gift Certificates - Cactus Club • Promotional Materials - Team Sales • gift Certificate - Serious Coffee • 1/6 Page Colour Ad- Business Examiner

Victoria• Strategic Planning Session - Berlin Eaton

Enter your business, or a friend’s, to win the Boost your Business package today by calling (250) 383-7191 or online at www.victoriachamber.ca

Prizes Include:

32 BUSINESSMATTERS

The Chamber and the Greater Victoria Development Association visited Prototype equipment Design during our latest industry tour in March. Those touring Prototype equipment Design got an inside look at how imagination and machining within a micron of precision is providing tools that explore the sea, repair the human body and explore unknown galaxies. business Matters was onsite as owner, Ray brougham and his team took us on this magical mystery tour of their operation in Vic west.

In a nutshell: Prototype Equipment Design is an inventive machine shop that provides cool custom items that you’ll find exploring under the sea, trolling for new planets or helping to save lives. We take concepts and make them into reality.

Number of Employees: 14

Industry Sector: Manufacturing and Dream realization.

Area of Town: Victoria West

Primary Product/Service: Precision prototypes custom-created using high-tolerance CNC machining and Surface Mount Technology circuit board assembly.

Prototype Equipment Design in 30 words or less: We are a Swiss army knife type of manufacturing facility. We use computerized machinery to produce high-tolerance parts, assembled electronic circuit boards and integrated contract manufactured assemblies.

Business Matters: What is the best part about doing business in greater Victoria?

Ray Brougham: The team can work directly with local clients and their engineering teams to take what’s in their heads and make it real. greater Victoria offers a lot of opportunity between Redlen Technologies, the military, the local universities and colleges to create challenging new projects that test the team and their expertise. I originally lived in McKenzie before moving here and opening Prototype. I love the area, “you couldn’t pry us out of here if you tried.”

BM: What is the best thing Prototype Equipment Design is doing for greater Victoria?

RB: We work directly with Camosun College and the University of Victoria along with mentorship programs like ICE to foster the next generation of creative engineers who can create something out of nothing. We also sponsor the Lego Stormers FIX IT Robotics Team, UVic Formula SAE racing team, UVic Eco Car, UVic Eco Sat and UVic Autonomous Underwater Vehicle group. Sponsorship can range from cool gadgets to clever solutions for unsolvable dilemmas and some expertise to get things moving in the right direction.

BM: What is it like working at Prototype Equipment Design?

RB: Our team at Prototype Equipment are driven puzzle-solvers. Each day provides different challenges as most jobs are short-run - under 200 pieces

PROTOTyPe eQUIPMenT DesIGn

InDUsTRy PROFIle:

33BUSINESSMATTERS

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- but high-quality pieces demanding precision accuracy with no more than a one or two micron tolerance.

Diversity and creativity really are the driving force as we work with diverse products ranging from low tech paper, wood and stone to plastic and a wide range of metals. We provide highly unique solutions for very specific problems in sectors like medical, aerospace, automotive, military and high-tech industries where a poorly tooled part can literally mean the difference between life and death. Our team is very flexible and loves a challenge, meaning we get to push our brains and some pretty amazing machinery daily to produce something really different.

BM: What are three things few people know about Prototype Equipment Design?

RB: Nobody knows we’re here, we have been very much an engineer’s machine shop.

We once built a full-scale replica of a submarine control room for a client and created parts for them that exceeded the pressure tests they had for the surrounding pipes.

We provided parts for the radio telescopes used in the ALMA project in Chile looking for new planets.

Our machines are so precise they can do surgery, if you stand really still - just kidding - but we have worked with medical teams to create new surgical tools.

BM: What is Prototype Equipment Design proudest of?

RB: We are proud of our creative and highly skilled staff and our ability to take an idea from a drawing on a napkin to a working tool.

BM: Are there any other fun facts we should know?

RB: We can also reverse engineer. Our team was brought a 30 year old nutcracker that no longer worked and $1,000 later a very avid baker had a better than new industrial-level nutcracker, that she swears never worked better. We also helped develop six different prototypes and patent drawings for a new screwdriver and screw for an inventor. He pitched it to the Dragon’s Den, got the funding and the screwdriver is in production.

Interested in participating in an Industry Tour? email eventsmanager@victoriachamber.ca

Reserve your space online at www.victoriachamber.ca/events.

Visit www.victoriachamber.ca to view more industry tours and member profiles.

150

34 BUSINESSMATTERS

The Victoria Chamber works to have a constructive influence on public policy on a variety of issues that support our members and a healthy, free enterprise system. In regular meetings with MLAs, MPs and Ministers, the Chamber lobbies government and has been successful in having our policies adopted as government legislation.

Protecting Canada’s History

In February, Victoria Chamber CEO Bruce Carter met with Minister of Canadian Heritage and Official Languages James Moore to discuss the creation of a national network for sharing Canadian artifacts. The network will allow museums across Canada to access the near three million artifacts kept at the Canadian Museum of History, helping promote Canada’s history and enabling access to many items previously held in storage. In addition to sharing artifacts, the Canadian Museum of History is planning to explore major themes and seminal events to showcase a strong sense of Canadian identity.

BC Chamber AGM

Later this month, the Victoria

Chamber will join other Chambers around the province for the BC Chamber of Commerce Annual general Meeting. The Victoria Chamber has prepared a number of new policies to present for provincial Chamber support on such pertinent issues as:

BC Ferries

The islands and coastal communities in BC heavily depend on affordable and efficient ferry service. Following the recent government of British Columbia’s community consultation to find $26 million in savings for BC Ferries, it is high time cost savings are implemented.

Natural Gas

The Chamber supports postage stamp rates for natural gas in BC. Flip to page 14 to read about how natural gas and electricity stack up against each other as BC’s top resource-based utilities.

Infrastructure Management

The Chamber encourages government to continue using public private partnerships to fund large scale infrastructure projects. Read more about infrastructure management, and the difference between P3s and conventional infrastructure in the March edition of Business Matters.

Regional Transportation

The Chamber supports the creation of a regional transportation authority in greater Victoria to incorporate transportation planning with development, funding, and maintenance.

Proposed National Marine Conservation Area

In October of 2011, the governments of Canada and British Columbia proposed a national marine conservation area (NMCA) reserve in the Southern Strait of georgia. The proposed area reaches from the southern end of gabriola Island ( just south of Nanaimo) into Saanich Inlet, down to Cordova Bay ( just north of Victoria). An NMCA is a type of marine protected area, similar to a national heritage site or park, which maintains ecologically sustainable use. Parks Canada is responsible for the National Marine Conservation Areas Program which oversees management and coordination.

The Chamber hosted a Community Engagement event in April to inform members of the potential risks and benefits to the community posed by the proposed NMCA. Nick Irving, Director of Marine Planning and Todd Shannon, Acting Park Superintendent with Parks Canada highlighted the key differences between a national terrestrial park and an NMCA. In a terrestrial park everything is prohibited, save for the few activities that are legally permitted. In contrast, in an NMCA, most activities are permitted except ocean dumping, undersea mining, and oil and gas exploration and development which are prohibited.

Although Parks Canada will oversee the area, existing federal organizations such as Transport Canada and the Department of Fisheries and Oceans will continue to manage and enforce existing regulations within their mandates.

ADVOCACy In ACTIOn

MembershipsEvents

DiningWeddings

Associate MemberMembers of the Victoria community may apply for Associate membership. Monthly dues are $20 plus applicable taxes (Annually: $240 plus applicable taxes)

Corporate MembershipThere is no initiation fee and Annual membership dues are only $670 plus applicable taxes. This en-titles five members of the company to have signing privileges at the Club throughout the year.

Ph: 250-721-7935 | club.uvic.ca Connect with us on Facebook

35BUSINESSMATTERS

JOB #Y100-12595CLIENT: YMCA VICTORIA

PUBLICATION: VICTORIA CHAMBER OF COMMERCESHIPPING DATE: NOVEMBER 15

AD DIMENSIONS: 8.5 X 11PREPARED BY: ECLIPSE CREATIVE 250-382-1103

Your Community.

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WE BUILD STRONG KIDS, STRONG FAMILIES AND STRONG COMMUNITIESYMCA-YWCA Greater Victoria • 851 Broughton Street, Victoria • Ph: 250-386-7511 • www.victoriay.com

36 BUSINESSMATTERS

Victoria Location3500 Uptown Boulevard, Victoria, BC

Contact Denise Kellyvictoriabc@kidsandcompany.ca 604-786-4047

High Quality Child Care In Your Neighbourhood

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Thank you to all who have welcomed Kids & Company into their Victoria community. We are expanding and opening our 2nd location on the Island in Langford summer 2013. Please email dkelly@kidsandcompany.ca for more

details.