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FREEJULY 2006 WWW.EDMONTONIANS.COMVOL.XVII NO.7

World ChampJelena beats

U.S. PlaymateMia St. John

~ See Forbes ~

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EDMONTONIANS JULY 2006

he United States government continuesto bolster its homeland security.Beginning in 2007, Canadians without apassport will be barred from entering

the U.S. by air or sea, unless they have a specialU.S. border crossing card or other accepteddocuments. In 2008, this requirement will be thenorm for land entry as well. This month we askedEdmontonians for their thoughts regardinghomeland security.

HOW SATISFIED ARE YOUWITH BORDER SECURITY?

Respondents were asked to rate their satisfaction withthe level of security at Canadian borders. Approxi-mately two-thirds (65 percent) were satisfied withborder security with 17 percent very satisfied. Nineteenpercent were very or somewhat dissatisfied with thelevel of security at Canadian borders.

Almost two-thirds (63 percent) of respondentsindicated they hold passports, and 65 percent agreedthat passports are an effective way to help secure the

country. Almost half (48 percent) agreed the govern-ment is doing the best it can to protect the country,while 33 percent disagreed. Only half (49 percent) feltthat a passport should be a requirement to enter theUnited States.

HOW CONCERNED ARE YOU ABOUT TERRORISM?

Respondents were then asked to rate their level of concernthat Canada is a target for terrorism. Sixty-six percentexpressed some level of concern, while 30 percent werevery concerned. Almost 60 percent did not feel that Canadais safe from terrorism, while 30 percent feel it is.

WHAT COULD BE DONETO IMPROVE BORDER SECURITY?Finally, survey participants were asked to identify whatcould be done to improve the security at our borders.The most common response, made by 12 percent ofrespondents, was mandatory passport/photo identifi-cation requirement. Eleven percent suggestedincreasing security staff on patrol as a method to improve security at our borders. Numerous other

suggestions were made including: stricter immigrationstandards (five percent); more checks and moreconsistent screenings (four percent); and strictermonitoring and documentation of inbound and out-bound activities (four percent).

Over three-quarters (80 percent) of respondentsbelieve that an increase in safety is worth someinconvenience caused by tightened security.

The Poll Station surveyed 100 City of Edmontonresidents on the topic and, while the results of theresearch are not statistically reliable, they doprovide a qualitative indication of whatEdmontonians are thinking. ✔

Linda Banister is a certified management consultantand the owner of Banister Research and ConsultingInc., a full service provider of market research andprogram evaluation services. If you have a questionyou would like included in the Edmontonians Poll,contact Linda at 780.451.4444 or e-mail [email protected]. For further informationon the firm visit www.banister.ab.ca.

EDMONTONIANS JULY 2006 3

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Scott Kay Vintage Platinum Collection

he lights flash and the music pulsatesbetween fights at the WIBF LightweightChampionship of the World. There are sixmatches: three men’s, three women’s. The

crowd reaction is flat; they’re waiting for the main event,Edmonton’s own Jelena Mrdjenovich.

Nearly 800 boxing patrons nosh on coq au vin and cherrycoconut cheesecakebefore the show;about as many againsit in bleachers orstand at the back ofthe Shaw ConferenceCentre. Cleavage isthe fashion du jourfor the event thatdraws more womenthan expected. Thebikini girls work theirhips and the room;they carry big cardsso we know whichtwo-minute roundwe’re about to watch.Event sponsors

Bonnie and Gerry Gilroy—he used to box back in theday—are front and centre. They’ve taken time out frombuilding their mammoth Independent Jewelers store nextdoor to Lexus of Edmonton.

An older gentleman complains that heavyweight fightersSheldon Hinton from Edmonton—dressed in outsized,orange shorts—and Vancouver’s Mike Lewers, “fight like80-year-old men.” Hinton wins. Boxing enthusiast AlexMason who appreciates technical finesse says the fightcard—especially the men’s—is terrible. “It’s embarrassing.”But he wants your agent to know that Edmonton fans, likeColin Williamsen, are great. Local fighters win four of thesix matches, promoted by Glen Carriere of KO Boxing.

Finally Jelena enters the big hall. The crowd erupts; shereceives her audience like a rock star. It’s a big deal sincethe fight is airing on Fox and she’s meeting the rankingfighter—the older and more experienced defending champ,Mia St. John who once graced the Playboy cover. Itdoesn’t matter because Jelena rules the night…and hercareer gets launched in the United States. And the fans loveher. The clock strikes midnight, and Jelena turns 24. Nice.

She dreamed of raising over a million bucks inan hour. Impossible, you say? Not for Elaine Warick,recognized by the YWCA for doing just that. Chair DonnaZazulak of Derks Bridal Fantasy oversaw the Women ofDistinction gala that recognized 13 women for their work inthe community; Elaine won in the category of businessmanagement and the professions. She’s the gal whoimagined having friends over for One Hour Only to learnsomething about Norquest College… and a funny thinghappened: many of those companeros reached into theirwallets. Elaine and her group at the foundation and

development office started offering a modest but healthybreakfast three years ago for 400 guests and, last year, theyraised $1.5 million. In an hour. No silent auction, no dance,no stage show—except Patrick Laforge and thoseinspiring Norquest students. Elaine would be the first to saythe One Hour Fundraiser wouldn’t be possible withoutmany volunteers and lots of friends. Masterful.

Take a page from Edmonton’s Germancommunity, advised Thomas Lukaszuk, PC representativefor Castle Downs. The politician spoke last month at theUpper Crust café to members of the Italian Chamber ofCommerce. Thomas was referring to the prophetic taskundertaken by Horst Schmidt during the Lougheed yearsto develop trade relations between Alberta and Germany.Italians want to do the same and it’s in JonathanButterworth’s plans to create a network of opportunities tohelp unite Edmonton-based companies that have dealingswith Italy. In the last year alone, the charming enthusiastorganized the Flavours of Italy, a fashion show, and areception to welcome a bank sponsorship—marking theChamber’s third anniversary in Edmonton. Spotted in thecrowd eclectic were Gay Derk of Derks Formals, FilMaiorana of Real Stone Works, Joe Cairo of MarvelGroup, and Dr. Carlos Pechtel de Avila.

If you love Latin music and dancing, set asideAugust 15th for the LatinFest in Churchill Square. TheBallet Folklorico “Mexico” of Edmonton Society came intobeing five years ago, although many of the dancers hadbeen performing together for several years. The group ispopular with many of the local charities, Heritage Days,extended care facilities and so on. It’s a great event; yourtoe never stops tapping. If you feel like joining in, nobodyminds. See you there.

I can be Googled. In fact, that’s the way anumber of people have found me. The latest was a friendfrom about 20 years ago. It was a pleasant surprise to hearfrom Ron Koyich and to spend some quality e-mail time.He’s retired, living in Hong Kong and has home inAustralia where he keeps his twin engine aircraft. Not badfor an Edmonton boy. Some choice quotes from his e-mail:

“After working with Bev Brooker and Don Wheaton, Iwent on to CITV in the engineering dept for a couple years,then to Ampex in Toronto… in Australia… in Hong Kong,where I was dumped on the street in the 1990 down-sizingof that company during a recession.

“I set up my own company selling television broad-casting equipment. I got the distributorships for a number ofother manufacturers from Canada, Europe, Australia. Didwell at it and retired in 1997.

“Met my present wife Sarah, an Australian lass—whobecame my third and final wife in 1993—in 1990, while wewere both traveling from Hong Kong to Bombay. Didn’t goout while in India, as we were both too busy, but did gettogether back in Hong Kong, only to find out we lived inthe same building!

Ron was here for a wedding, and we had a chance tograb a few minutes at the Edmonton Flying Club where abunch of us had learned to fly. It was like old home week.

Giuseppe Albi, GM of what is now called EventsEdmonton, has been doing some traveling in the past fewmonths. First it was Italy for a trip to his birthplace and tovisit relatives. He came across a real stampede on theoutskirts of Rome—horses, cowboys, square dancers, anarts and crafts booth, and even North American Indians. Allthe trappings of a Wild West show, in Rome already.

Nashville was Giuseppe’s next stop. At LP Field (similarto the Shaw), he caught performances byTerri Clark, TrishaYearwood, Kenny Chesney, Trace Adkins and WinonaRider. He attended Sunday Morning Gospel at RymanAuditorium, home of the Grand Old Opry. Brenda Lee wasthe M.C., and the featured act was George Hamilton the IV.

He’s back for Taste of Edmonton, the food fest inChurchill Square, organized by Events Edmonton. Thisyear there will be three stages: The Taste of Wine, in alarge tent in front of the Art Gallery of Alberta, will beset up like a friendly bar with small groups playing.Ten liquor merchants, representing various distributors,will offer different wines every day—a very happy tent.There’ll be continuous music on the main stage,featuring such names as Sahan Hogan, Jack Sempleand Cruzers group. The City Stage is for up-and-coming entertainers.

I asked around about slate companies and, to aperson, all suggested Blanchette Slate. The companywas started in 1997 by Rachel and Kevin Blanchette.Both love the production of quarrying slate. Theyimport from at least 22 countries, but mainly China andIndia. If you want to see some great slate, stop byshowroom at 11577 - 149 Street. It’s like walking in thehallways of the Vatican… well, maybe not quite.

Rachel explained that “…part of the price you pay isfor my relationship with quarry operators. Not all stoneis created equal and I trust [these people] to give usexceptional product. What’s also happened, because ofdifference in quarries, is that slate can be sliced muchthinner. We can ship almost twice as many for the samecost, making it less expensive landed in Edmonton.”Makes sense.

If you haven’t got your golf/entertainmentcard for this season, I recommend the First Class Card.It’s put out by my good friend John Ough. John had avery bad accident a number of years ago and has morebraces than the High Level Bridge. Call 780. 448.9676for a card. ✔

Additional reporting by Edmontonians staff.

Call Muggsy Forbes at 780.482.4545 or e-mail [email protected]

TT

Champ Jelena wins third belt...and your scribe gets Googled

FUNNYpompous & unfair

By Muggsy Forbes

“the Champ”Jelena Mrdjenovich“the Champ”Jelena Mrdjenovich

EDMONTONIANS JULY 2006 5

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CONSPIRACY THEORY

CONSPIRACY THEORY

CONSPIRACY THEORY

MAKINGmoney

By Ron Hiebertometimes stuff just happens. There is no reason.Its occurrence is random—completely unplanned; yetthere is a contingent of people who can’t accept life’sarbitrary nature. They see manipulative forces behind

everything. To them, events are either controlled by something orsomeone.

In the financial realm, there are some amazingly creativeconspiracy theories. You need to understand them and their basicflaws so that you aren’t separated from your wallet by them.

THE BIG OIL CONSPIRACYNo industry inspires more conspiracy paranoia than big oil.Currently, there are many variants spinning off of one major theme.The main belief is that the current high price of crude is the resultof the major producers and refiners agreeing—behind the scenes—to limit the amount of product that they bring to market, thusdriving prices to their current sky-high levels.

This theory is rooted in a comprehensive failure to comprehendhow free markets work. If the big multinational energy companiesactually could control demand, why did they wait more than twodecades since the last major supply demand imbalance of the early1980s to try it again? This is a pretty wimpy cartel. Over the spanof 20 years, oil prices twice hit $10 per barrel, driving some majorplayers like Dome Petroleum into bankruptcy. If oil’s price had justkept up with inflation, it would be $100 per barrel today. Whycouldn’t the major players get prices to grow at greater than twopercent per year? Some conspiracy.

Anyone that understands demand destruction realizes that whenprices go up too far too fast, people reduce consumption of thatproduct and the market finds other ways to produce it. OPEC’sbiggest worry right now has to be high prices encourage thedevelopment of renewable energy sources like hydrogen, windpower, solar energy and bio-fuel. Once the infrastructure is in placeto produce alternative energy, it will forever compete withhydrocarbons—inevitably driving their prices down. OPEC shouldincrease production until oil prices drop back down to $40 perbarrel. That would ensure a very nice profit for member countries,while keeping prices low enough to curtail the development ofcompeting sources of energy.

THE INVASION OF IRAQThe second big oil conspiracy theory is that the United States invadedIraq to secure oil production for the western world. Conspirators usethe argument that, in past lives, George Bush and Dick Cheney ownedand worked for energy companies and, as a result, were put up to theinvasion by big oil.

This is an engaging idea but, unfortunately, the math doesn’t work.Iraq is producing about one million barrels per day, or 365 millionbarrels of oil per year. At an average price of $70 per barrel, all thatthe U.S. could make by usurping its production is $21.6 billion dollarsper year. The U.S. is spending 10 times that amount each year onmaintaining its military presence in Iraq. One has to assume thatAmerica didn’t get to be the world’s richest country by being thatfinancially stupid.

BIG PHARMA & THE FDAThe Food and Drug Administration in the United States is responsiblefor approving drugs for use by the general population. Because it hasthe most rigorous and exhaustive evaluation procedures in the world,getting a drug onto shelves in America is considered the gold sealstandard in much of the rest of the world.

There is a lot at stake here. A mediocre drug can easily achieve ahalf billion dollars in sales per year over its 17-year patent life, and ablockbuster could earn 20 times that much.

A process that has so much potential profit based on its outcome isalways suspect to tampering and back room deals. Here again,conspiracy theorists don’t disappoint. Chat rooms and conspiracy sitesare rife with stories of the cozy relationship drug companies have withthe FDA, and how big pharma continually pays off the scientificcommunity doing the testing to get the outcomes that they want.

Once again these stories make great headlines, but the informationthey’re based on isn’t worth lining the bottom of your birdcage.America is the most litigious society on Earth. People are paranoidabout getting their reputation and net worth nuked by class actionsuits. Just look at Merck. They had their anti-arthritic drug Vioxxapproved after extensive trials for public consumption. It was laterfound that usage of the drug resulted in a very slight increase in theincidence of heart attacks and strokes. Waves of class action suitsfollowed and it is now estimated that it could cost Merck up to $40billion to settle them all. Interestingly, many countries, includingCanada, have re-approved Vioxx use after re-examining the evidence.

Bayer, Wyeth and Merck, to name a few, have been taken to thefinancial wall over litigation. To think that the entire government andmedical research community are willing to risk their careers andfinancial security over a bribe is beyond belief. If the drug companieshave such an effective lobby, why are they experiencing the lowestgrowth rates in 50 years?

A CONSPIRACY AGAINST YOUR WALLETLetting conspiracy theories overwhelm common sense leads toinvestment disaster. The belief that individuals or groups workingclandestinely behind the scenes can control major global events is anidea with big consequences. It says that no matter what the economicor political headwinds, instigators of a conspiracy have enoughcontrol to make a certain outcome happen no matter what. Believingin a predetermined conclusion means that you can put your financialbrain in neutral and let your guard down. Why pay any attention topolitics, commodity prices, economics, currencies, interest rates,competitive dynamics, management competency or any of a host ofother things that affect a stock’s value if it doesn’t make any differ-ence? Believing this drivel is tantamount to giving your brain—andeventually your wallet—a financial lobotomy. Intelligent investinginvolves critical thinking, analysis, and a lot of hard work. ✔

Ron Hiebert, a director at ScotiaMcLeod, teachesinvestment classes at Grant MacEwan College. Theauthor of Wealth Building can be heard weekdays at7:34 am, on CFCW radio (790 AM). Contact him at780.497.3215 or [email protected]

SSFOUNDER

DICK MacLEAN

JULY 2006Vol. XVII

Published by 399620 Alberta Ltd. on the first day of eachmonth at 333, 10240 - 124 Street, Edmonton, Alberta,Canada T5N 3W6. ©All rights reserved. No part of thispublication may be reprinted or reproduced in any formwithout written permission from the publisher.

Manuscripts: must be accompanied by a stamped, self-addressed envelope. Edmontonians is not responsible forunsolicited manuscripts.

All stories Copyright ©Edmontonians

Publications Mail Agreement No. 40023292Return undeliverable Canadian addresses to:Circulation Department333, 10240 - 124 StreetEdmonton, AB T5N 3W6Email: [email protected]

SHARON MacLEANPublisher and Advertising Director

Telephone: 780.482.7000Fax: 780.488.9317

e-mail: [email protected]

INSIDEPOLL STATIONBorder Security/Banister . . . . . . . . . . . . . . . . . . . .3

FUNNY, POMPOUS AND UNFAIRChamp Jelana/Forbes . . . . . . . . . . . . . . . . . . . . . .4

MAKING MONEYConspiracy theory/Hiebert . . . . . . . . . . . . . . . . . .5

INTERNATIONAL BUSINESSWal-mart/Wegmann-Sanchez . . . . . . . . . . . . . . . .6

FEATURESOut of the West/McHugh . . . . . . . . . . . . . . . . . . .7Friendly competition/O’Toole . . . . . . . . . . . . . . .10China?/ O’Toole . . . . . . . . . . . . . . . . . . . . . . . . .12Water, water/McHugh . . . . . . . . . . . . . . . . . . . . .13Legislative systems/Kowalski . . . . . . . . . . . . . . . .14Workforce/ O’Toole . . . . . . . . . . . . . . . . . . . . . . .15Edmonton’s image/Nizar . . . . . . . . . . . . . . . . . . .15

BIZINTELScience and Tech/Croucher . . . . . . . . . . . . . . . . .16 BizIT/Michetti . . . . . . . . . . . . . . . . . . . . . . . . . . .16Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . .17Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . .17

LIVELY LIFESTYLESAbsolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . .18MenuMagic/Berry . . . . . . . . . . . . . . . . . . . . . . . .18

BARB DETERSEditor

[email protected]

COLUMNISTSLinda Banister

John BerryLinda Bodo

Cheryl CroucherMuggsy Forbes

Ron HiebertBruce Hogle

Greg MichettiDavid NorwoodNizar J. Somji

Jessica Wegmann-Sanchez

FEATURE WRITERSPeter Drake McHugh

Talea MedynskiMichael O’TooleMarg. PullishyPeter Roccia

PHOTOGRAPHERSTerry Bourque

Cheryl CroucherBarb Deters

GRAPHIC PRODUCTIONRage Studios Inc.

INFORMATION TECHNOLOGYMichetti Information Solutions Inc.

THIS MONTH’S COVER

Jelena Mrdjenovichphoto by Terry Bourque

No. 7

1717YEARS

C E L E B R A T I N G

6 EDMONTONIANS JULY 2006

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ngela Hofmann, director ofinternational trade for Wal-Mart, recentlygave a presentation called Doing Businesswith Americans at Business Link and

Export Link’s Beyond Borders conference inEdmonton. The point of her talk was “helping smallbusinesses and agricultural suppliers to tap into doingbusiness with Wal-Mart.” Very enlightening: I had noidea that Wal-Mart was so interested in smallbusinesses and suppliers, nor that it wanted to attractthem to its different international stores, nor that itprovided so much support for them to get started ininternational trade.

As Hofmann explains, “There are 6,534 Wal-Martsworldwide, 2,670 of which are outside of the U.S.serving more than 138 million customers weekly in 16countries worldwide in Europe, Asia, and the WesternHemisphere.” In the Americas, there are stores inCanada, the U.S., Mexico, Costa Rica, El Salvador,Honduras, Guatemala, Nicaragua, Brazil and Argentina.

Hofmann works in “global procurement: a division ofWal-Mart Stores, Inc. that works as a buying agent forour stores around the world, with a worldwide presencein over 20 countries.” Her department’s agenda is to“take a lot of the mystery out of the supply chain… byidentifying suppliers, supporting buy trips, helping withlabeling.” She explained that many smaller suppliersdon’t think to do business with Wal-Mart, but theyshould. For instance, she suggested “Argentina, oursmallest market in the Western Hemisphere with only14 stores, is a good place for a small company to testthe market. In the U.S. alone, there are 68,000 suppliersdoing business with us.”

And Wal-Mart builds flexibility into the relationship.According to Hofmann, a supplier “can export directly

or have your product considered for a Wal-Mart brand.You can even have your own brand locally, but haveyour product under Wal-Mart’s brand in an export

market.”I was especially interested to

meet Hofmann because of all thenegative press that Wal-Mart has

gotten for many of its policies. Iremember sexist hiring practices being

one of the accusations leveled at theretail/whole-sale conglomerate; yet Hofmann

herself, with her powerful position, seems tobelie this allegation. When asked directly, shelaughs and shakes her head, “Not in the last 10years, at least.” Instead, she tells a story of Wal-Mart seeking her out for the job from her formerposition as legislative counsel for a U.S. senator;

and when she hesitated because of her toddler andtwin babies, Wal-Mart insisted they would offer her a

flexible schedule and allow her to work from homewhen necessary.

Hofmann also explains that the retail giant is movingtoward environmentally friendly programs, in terms ofhow it powers some of its stores and also in stacking awhole new line of organic foods and fibres. She urges,“If you’re doing organic, you should probably give us acall.”

A GLOBAL NETWORK FOR WOMENFor business women in some sectors it maystill be difficult to break into the old boys network. Butnow women professionals in international trade have aset of connections ranging all over the States andeverywhere in between…. from Nairobi to Geneva,from Cairo to San Juan. Angela Hofmann is also the president of theWashington chapter of OWIT, the Organization ofWomen in International Trade, and she found out

about the Beyond Bordersconference through this connection.I mention this particularly because itturns out that OWIT has a strongAlberta presence. The president ofthe worldwide association with 22U.S. chapters and 18 internationalchapters is Calgary’s own LeanneHackman-Carty.

And right here in Edmonton wehave the president of the Albertachapter, Cheryl Lockhart. BothLockhart and Hofmann laud thebenefits of OWIT, including regularmeetings and programs, interactionswith other professional associations,and access to other members aroundthe world.

Beyond the benefits forinternational travel, Hofmannexplains OWIT helps women with“mentoring and job banks. Oftensenior members will look at junior

members for job placing.” And Lockhart stresses toothat the benefits are wide ranging in the community:“Our high quality programs also attract non-membersand men.” In fact, the official OWIT policy invites all“women and men who are active members of theinternational trade community” to benefit from its“support, inspiration, information and networkingopportunities.”

INTERNATIONAL STRATEGIESLockhart herself was another presenter at theBeyond Borders conference, leading a session onFinding Partners in Export Markets, tapping herexperience consulting for International StrategiesLtd. The company “assists its clients to research andselect foreign markets and customers, make maximumuse of government programs and resources, qualifyleads, undertake marketing missions and secure salescontracts.” Her former experience working in Ottawafor Agriculture Canada and in other internationalbusiness led her to want to do her own consulting forcompanies, most of whom she helps with entry into the

United States. However, she is now also working withclothing manufacturers in Bali on a program funded byCIDA, the Canadian International DevelopmentAgency. Lockhart tailors her services to the clients’need. In Bali, for instance, she started out thinking shewould need to “help the manufacturers find buyers, butit turned out they had plenty of buyers… they reallyneeded help knowing how to function in the globalmarket.” She helped them negotiate cultural differencesbased on the need for more immediate response incommunications and to provide plenty of lead time soas to get order details correct the first time beforeinternational shipping.

On business trips to the States and elsewhere,Lockhart regularly hooks up with members of thevarious OWIT chapters, allowing her instantconnections to the business community in those cities,which is why she feels it is such an importantorganization for people in a profession like hers. Soonshe’s hoping to get women organized to also found achapter in Indonesia—the 19th outside the U.S.

VEGGY-POWERED CARS AND A DELEGATION FROM MWANZAThe Leduc-Nisku EDA (Economic DevelopmentAuthority) is always active on the internationalbusiness scene. It’s not for nothing it is known asAlberta’s International Region. It recently hosted asuccessful biogas conference with representatives fromGermany, Austria, the U.S., and Canada sharingknowledge about this up-and-coming technology. Itturns out Alberta is a leader in biogas production, andthere is interest in bringing another plant to theInternational Region. For Marketing and Commu-nications Director Kris Hodgson, one of the moreconcrete examples highlighting the benefits of thisenergy source was “when Scott McKay, foundingdirector of the Sustainable Energy Group in StonyPlain, held up a bag of compost and said, ‘Do yourealize this one kilogram bag could power a car for twokilometres?’” Wow, who knew?

And from June 9th to 16th the International Regionhosted a delegation from Mwanza, Tanzania, as afollow-up to a trip by Leduc Nisku EDA members tothat country last November. The Tanzanians came hereto “brainstorm with Albertans on ideas for govern-ment,” according to Hodgson. “They are particularlyinterested in waste management and the Nisku businesspark and our R & D—how they can develop businesssimilarly in their own region.” On June 12th, theywere inducted as members of Alberta’s InternationalRegion… and they met with Leduc County Council todiscuss more effective business plans to take back toAfrica.

AND NOW, I BID YOU GOODBYE…This will be my last month as the internationalbusiness columnist for Edmontonians since my ownwork in this very arena has picked up too much toleave me time for researching the column. I have trulyenjoyed connecting to the fascinating people from theEdmonton area who are involved in marketing theirgoods and services worldwide. It’s been a real kickreporting this news, so now I want to try my hand atmaking some news. Until I started to dig and delve intolocal stories, I had no idea how vibrant, diverse and far-reaching Edmonton business is. We must make thisknown to the larger community.

Thank you for the privilege of helping to sing thesong of Edmonton: A great place to live… a great placeto work… and a great place to do business. And aspecial thanks to my wonderful editor Barb Deters andto Sharon MacLean, the brilliant woman who bringsus all Edmontonians. ✔

Jessica Wegmann-Sanchez, Ph.D., is Director of CorporateCommunications for BIDMEXICOInternational Inc., an Edmonton-based company specializing in foreignbusiness development in Mexico. E-mail: [email protected]

GREA

TER EDMONTON

INTERNATIONAL BUSINE

SS

By Dr. Jessica Wegmann-San

chez

AA

Angela HofmannWal-Mart

7EDMONTONIANS JULY 2006

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t is an organization so far below the radar thatalmost nobody has heard of it… but absolutelynecessary to the continuing well-being andprosperity of the upper and outer reaches of

North America.It is called the Pacific NorthWest Economic

Region—PNWER, pronounced pen-wer by those in theknow. This unique, bi-national organization may havepolitical clout and influence far beyond its modest size.

And, from July 16th through 20th when it holds its16th annual summit, 500 delegates from Washington,Oregon, Idaho, Montana, Alaska, British Columbia,Alberta and the Yukon will descend on Edmonton toswap ideas about how good neighbours can be betterneighbours.

PNWER has been working since 1989 to smooth outcross-border issues that smack of protectionist attitudes.For an organization that perceives itself to be apolitical,it is sometimes a daunting task. When there is noagreement, the group works to build relationships andto keep trade on a two-way street.

Much of the role is to foster understanding.Canadians well understand that we are each other’slargest trading partners… Americans, not so much. Infact, most Americans are surprised to learn that Canadais the largest supplier of oil to the U.S. and that Albertahas the second largest known reserves in the world—thank you, 60 Minutes. Canada is the top consumer ofexports from 39 states. Idaho’s exports to Canada in2002 totalled $306 million US, while its imports fromCanada were $436 million. Washington state exports toCanada were $2.9 billion, while imports totalled $9.9billion. Trade between Canada and the four-PNWER-state members south of the 49th parallel totals $16billion annually.

Still, the relationship does not always go smoothly.The long trade dispute over softwood lumber has cost

Canada $1 billion even though the truculent Bushgovernment lost internationally at nearly every turn andsullied its reputation for fair play. The closing of theAmerican border to Canadian cattle on what many saywas a trade-related issue was also a point of anger withCanadians. But PNWER keeps on trucking; keeping thelines of communication open. Indeed, with such avariety of governments and businesses involved, it is awonder PNWER can accomplish anything at all. But itdoes.

It might be said of PNWER that what unites thisregion is greater than the differences that, from time totime, rent the fabric of cooperation. The organizationappears to be an idea whose time has come in a worldwhere free trade isn’t very free. From headquarters inSeattle, it reaches out to its member states andprovinces in a unique manner.

“Any time you think about a forum of institutions,can you think of anything more dull and dry andboring,” muses current President Glenn Anderson (R-Fall City). “But the Pacific NorthWest EconomicRegion is a place to get the political posturing out ofthe way and work on the issues.” And there are issues.

HANDS ACROSS THE BORDERHow do you get people and goods across the U.S.-Canadian border with a minimum of hassle and withoutjeopardizing, or appearing to jeopardize, Americanhomeland security?

What is to happen when thousands of tourists head toVancouver for the 2010 Winter Olympics? What is theregion to do with oil, natural gas and electricity beingdeveloped in Canada and Alaska? What aboutimproving the region’s energy grid? And how can bothsides of this international frontier better handle apandemic? Should health care workers be able to gowhere they are needed in an emergency, even if thatmeans crossing the border?

Cooperation is everything with the partners clearlyrecognizing that a ‘beggar-your-neighbour’ policybetween the states and provinces is not a good way todo business.

“We all benefit more from leveraging the assets wehave instead of duplicating them,” says Anderson.

Executive Director Matt Morrison has become aphilosopher while watching the machinations of such adiverse group of individuals, groups, organizations andgovernments. What’s his overview?

“There are some truths on both sides of the borderthat we sometimes don’t like to hear. But, the reality isthat the economic watersheds here are north and south.Often western parts of the countries find we have morein common with each other than with distant govern-ments in Ottawa or Washington.”

So, do Americans really know so much less aboutCanada than Canadians know about America? “I thinkthe big difference is you get our news and we don’t getyours. Canada is often in reactive mode to America but,when we meet, often some of the states feel that theyare the ones reacting just because there are sometimesgreater populations in Alberta or B.C. It’s exactly thereverse of the situation on the national scale.”

There is good reason for the region to pull together.Morrison points out that in the last decade GDP forCanada was 90 percent… for the U.S., it was 102percent… but for the PNWER signatories, it was 130percent. “We have had a disproportionate amount ofgrowth and now the oilsands may soon doublecapacity.”

THE BUSINESS OF DOING BUSINESSWhile PNWER has no legislative capacity in eithercountry, observers say many of the ideas first discussedat such meetings do go on to become legislation at thestate/provincial level and at both federal levels.

As in many international organizations, the basis ofdecision-making at the executive committee level is byconsensus, a delicate matter where both egos andsovereignty can be points of discussion. But what reallysets this organization apart is the involvement of theprivate sector, which within PNWER includes non-elective public sector NGOs, other non-profitorganizations, and state/provincial delegations. All siton the private sector council and vote for its board ofdirectors. The council puts the power of decisionmaking in the private sector where often, problems andopportunities are first identified.

Roisin McCabe, with Alberta International andIntergovernmental Affairs, makes the point that theorganization is not just for big business: “Industryassociations and those who want to be aware of whatmight happen in the future use the conference to makecontacts and to better understand the issues.” Interestedindividuals and businesses can still register for the

IIBy P. Drake McHugh

Continued on page 8

Out of the WestOut of the West...comes PNWER...comes PNWER

If it were a nation beingcompared to the world’s

leading industrial economics,PNWER would rank 10th

with a combined populationof more than 20 million,and 12th with an annualgross regional product of almost $700 billion

If it were a nation beingcompared to the world’s

leading industrial economics,PNWER would rank 10th

with a combined populationof more than 20 million,and 12th with an annualgross regional product of almost $700 billion

PNWER presidentGlenn Anderson

Executive DirectorMatt Morrison at theAlberta Legislature


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summit at www.pnwer.org.The intensive summit runs the gamut of interests and

issues that have been identified for discussion by theorganization’s 17 working groups and councils—resolutions will be presented and debated. In addition,tours that might bring a yawn from Albertans are ofgreat interest to delegates who will visit the MackenzieHealth Sciences Centre, Stollery Children’s Hospital,Mazankowski Alberta Heart Institute, the recently-opened Nanotechnology facility, Alberta ResearchCouncil Containment 3 Laboratory, Alberta EmergencyManagement Operations Centre, Edmonton WasteManagement Centre, the Alberta oilsands, and EPCORGenesee 3.

EPCOR’s director of government relations, TimBoston, attempts to put the situation in perspective.EPCOR has energy and water business interests inAlberta, B.C., Ontario, and Washington and New Yorkstates. He is keen to showcase the Genesee III super-critical coal burning electricity generating plant. Hesays it is not yet a zero emission process, “but this is ahuge step above previous technology. Everybody has astory to tell, and perhaps some of these people aren’taware of the advances we’ve made. If you are in theindustry, you always want to ensure that you are notworking at cross-purposes. Energy is huge for Albertaand for the region. It’s not just production… but how tofacilitate transmission. We’re all looking at the samethings and looking to partner in the entire region. It’s awin-win situation for everyone.”

Ron Tenove, a Washington state managementconsultant and co-chair of PNWER’s working group ontransportation, has some interesting observations: “Overthe last two years, the issue of homeland security is… atop-tier consideration so, in many cases, changes willbe made at a variety of levels… This is often the placethey are talked about first, sometimes years before thelegislators take action.”

Tenove sees transportation issues as complex andwith huge potential to change the region. “Fifty percent of all container traffic to Europe goes through theport of Rotterdam. If you can imagine Seattle andexpansion in Vancouver and Prince Rupert, you canhave an idea of the potential we have.”

His group is also looking at border transport, corridordevelopment to take energy to market, and rapid railbetween Seattle and Vancouver. “If you think of this asa big jig-saw puzzle,” he says, “then it begins to makesense. So often in these jurisdic-tions, we are eachother’s best customer. It is only natural to want toexpand those ties and set common goals where wecan.”

And, according to Morrison, PNWER is looking forways to allow easier passage for “trusted travellers andlow-risk goods and services by land, sea or air.” This isparticularly timely for the up-coming 2010 WinterOlympics. Discussions will focus on the developmentof common themes and brands throughout the North-

west to direct tourists, and to upgrade transportationfacilities such as the railway line between Vancouverand Bellingham. For Washington state, it is a gift: Allthe economic risk is being borne by Canadians. Thereality is that many people will fly into Seattle and thenhead north. Estimates of economic benefits vary fromtens to hundreds of million of dollars in expectedcontracts and state tax revenues alone.

DIFFERENT, YET…The differences between a parliamentary democracyand a republic can lead to friction and misunder-standing when elected officials charged withrepresenting their constituents have to make biggerdecisions than might suit a particular lobby group.

Historically, the situation is not without humour. TheAmericans set out to build very powerful states as ahedge against too much centralized power: Canadiansset about building a strong federal system for defenceagainst the new republic to the south. Somewhere alongthe way, the countries swapped power structures. TheAmerican central government is extremely powerfulwhile the Canadian federal government is relativelyless so; but provinces have far more clout than dostates. Throw into this an international frontier and it isno wonder there are frictions. Nonetheless, similaritiesabound, and geographical imperatives have greaterpower to influence.

Perhaps oddly, the idea for the organization beganwhen Jim Horsman—then deputy premier of Albertaand now government relations advisor to the Universityof Lethbridge—connected with Washington StateSenator J. Alan Bluechel at a State Legislative Leadersconference in New Orleans in 1988. Bluechel had beenborn in Alberta and attended the University of BritishColumbia, as had Horsman. Both had noticed that thepeople in the states and provinces of the Northwestshared much in common, including an ability to getalong together sometimes better than with theirrespective federal governments thousands of milesaway.

They also knew that the idea had no chance ofsuccess unless it was politically non-partisan: fourlegislators—two Democrats, two Republicans—fromeach jurisdiction, their Senates and Houses of Repre-sentatives, while the Canadians moved to involverepresentatives from all parties in their legislatures.Articles of ratification were passed in 1991 by variouslegislative means at the state and provincial levels.Amendments were passed in 1994, adding thegovernors and premiers, and updating other positions ofthe statutes.

“We exist to encourage the Commonwealth of thePacific Northwest,” trumpets Morrison. “We probablyhave the best economy and the best environment ofanywhere in the world. Whether it be in nano-technology, resource capital or any area, we have theopportunity to diversify and we have respect for oneanother.

“And,” Morrison concludes with a chuckle, “all of usnow have a better understanding of all forms ofdemocracy, and that is a very good thing”. ✔

Continued from page 7

PNWER past president and host of the 16th AnnualSummit Rob Penner, minister of Alberta Municipal

Affairs, with PNWER founder, Jim Horsman


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Executive WelcomePersonal marketing to select business customers

Call Jeanne Wright todayPhone: 780.487.2001

E-mail: [email protected]


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y the time you get here to Washington,you’re really firing on all the big cylinders!”Murray Smith declares in a surprisinglyrelaxed semi-chuckle. Hard on the heels of

an address to the Center for Strategic and InternationalStudies and the serving of diplomatic canapés to 150 guestsat the Smithsonian, Alberta’s very own officialrepresentative to the United States eases suavely into thehigh protocol of an early morning chinwag withEdmontonians.

When he’s not jawing on the Hill and its environs, Smithhas been known to don a set of white flannels and “chuck afew” on the cricket field, as he colourfully puts it, and canfake his way passably through any discussion of the finerpoints of the silly mid-off rule.

Incidentally, Smith is also a prime player in an altogetherhigher value game. “I’m the co-chair of the energy portionof PNWER, of the energy planning initiative,” he says, in avoice that seems to challenge anyone to chuck a few of thehardest hydrocarbon-themed questions back at him.

The bi-national regional energy planning initiative is afar-reaching cross-border project that began to take shapeafter the 2003 PNWER summit in Calgary. Its aim is toaddress challenges such as congestion in the westernelectrical grid by focusing on the multi-jurisdictional issuesof regional data sharing, unified permitting and trans-mission corridor planning. The initiative provides for thedevelopment of a bi-national regional council in

collaboration with a whole smorgasbord of energyauthorities and providers, including all the major playersfrom within the PNWER footprint.

“One of the most diiiiificult things to site in the worldtoday is a transmission network,” Smith laments, exercisinga certain diplomatic privilege in the elongation of vowelsounds. “And so that’s the genesis of looking at how wecan plan for future power load or the growth in theeconomy, the growth in demand, and where we get thesupplies from. And that started the energy initiative.”

With a few well-chosen historical allusions, Smith takeshis acquiescent listener on the telephonic equivalent of asweeping Stateside helicopter ride across the dams on theColumbia and Snake Rivers. From there, we visit thepolitical foundations of that formidable old doyenne ofenergy provision in the Pacific Northwest—the BonnevillePower Authority—in the days of President FDR, and thencemove to the current U.S. government’s reluctance toadvance any funds to the BPA to handle either new load ornew transmission. Now, and only now, Smith swoops to thePNWER-relevant nub of the tour: the burgeoning signifi-cance of energy delivery initiatives north of the border.

“There is a very convenient route that runs down the eastside of Alberta from Fort McMurray,” he specifies, inreference to TransCanada’s much vaunted Northern Lightsproject. “It can cross over into Montana or into Idaho, andthen through a corridor from Idaho actually right down toLas Vegas, but also into the PNWER region. So one of the

things we were able to get going was a feasibility analysis.Then, of course, the companies of Alberta transmit naturalgas through the pre-built portion of the Alaska pipeline intoCalifornia and Oregon. So there’s an energy presencealready in natural gas sales.” Smith completes his trio ofcherished north-to-south energy routes by tracing his fingeralong Kinder Morgan’s Trans Mountain oil pipeline fromEdmonton through to Vancouver and down into southernWashington state. “These three energy commodities have agreat interest to this trading region,” and, by implication, tothe formative cross-border work of the bi-national regionalenergy planning initiative.

Turning to the specifics of the progress that the newplanning body could bring, Smith cites a low-key example,but one that illustrates the potential for greater bureaucraticsimplicity. “There’s a small tie-in line that is currently beingproposed for Montana-Alberta, that is faced with, I want tosay, in excess of 200 permits! So if we can start findingways of either eliminating some of the duplication or havesome of the permits for one jurisdiction serve the others, I’dcertainly call that progress. And this is work that has neverbeen done before.”

Smith ends his current reflections on an engaginglyholistic note as he surveys the various challenges that a bi-national mindset may help to overcome:

“There are no silver bullets. You have to embrace thewhole issue of conservation, hybrid, low-sulphur diesel aswell as basic pipeline constraints, transmission capacity

Friendly competitionFriendly competition

“B“BBy Michael O’Toole

Yukon is at the beginning of a long and promising new era.

We believe the opportunities in Yukon are second to none. As we move forward with the expansion anddiversification of our territory’s economy, the timing is right to take full advantage of Yukon’s opportunities forgrowth, diversification and prosperity.

As incoming President of the Pacific Northwest Economic Region (PNWER) I am committed to ensure that theeconomic growth of Yukon develops in a regional and bi-national basis. The strategic vision of PNWERestablishes a strong foundation for success across one of the fastest growing regions in North America.

I invite you to take part in these prosperous times, and join us in building PNWER’s future and Yukon’s future, together.

PNWER PresidentHon. Minister Jim KenyonMinister of Economic DevelopmentGovernment of Yukon

We repeat: The Pacific Northwest is not a seperate countryWe repeat: The Pacific Northwest is not a seperate country

Enbr

idge

Pho

to


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constraints for both electricity and oil. Those are the kindsof things where it’s great to have a cross-border forum.”

CROSS-BORDER ENERGY ENLIGHTENMENTMatt Morrison, executive director of PNWER, is the manwho could be seen as being at the eye of a cross-borderstorm, or, if you prefer, balancing in a place of perfect“equipoise” between the state, provincial and nationalinterests that the organization has to accommodate. Hisoutlook is pleasingly reassuring, if a tad left field to those ofus who have grown used to the seeming inevitability ofborder-related controversies.

“In many ways, we think and act like a region. WhetherBC, Yukon, Alaska, Alberta or Washington, we feel closerto each other than to Ottawa or DC.”

Not that the two capitals can be completely ignored. Withreference to PNWER’s ongoing energy planning initiative,Morrison takes cheer from the fact that the U.S. Departmentof Energy has supported it, and that Natural ResourcesCanada may be persuaded to do likewise.

“We had an excellent meeting with [Canada’s Minister ofNatural Resources] Gary Lunn last week. Again it’s anopportunity to really take the trilateral discussions that havegone on in energy planning in North America and get downto the brass tacks in a region that is highly interdependent.It’s very timely because the U.S. Energy Policy Act, signedin Albuquerque last August, commits the U.S. todeveloping energy corridors throughout the 11 westernstates. And it was PNWER that got the Department ofEnergy and the Bureau of Land Management to sit downwith Alberta and BC officials, because they weren’tincluding Canada in this discussion of priority energycorridors.”

Morrison laughs incredulously at his own recollections.“Yeah, it’s amazing, since the energy is coming from northto south. It’s very important that the U.S. understand thepotential of Western Canada… we find continuously thatpeople who should know don’t know.” The importance ofthis cross-border enlightenment is heightened, in Morrison’sview, by the fact that the U.S. is not about to buildsignificant new refining capacity despite its huge demandfor gasoline.

Other energy concerns on Morrison’s regional mindinclude biofuels and the revamping of tax and royaltyregimes across the whole Pacific Northwest.

Mel Knight is the MLA for Grande Prairie-Smoky and aveteran PNWER stalwart in the role of chair of the Energy IWorking Group.

“All of the players in PNWER certainly have a commoninterest when it comes to being able to move energy,whether it’s molecules or electrons, back and forth acrossthe borders as seamlessly as we can,” Knight remarks.

“There’s difficulty, of course, with all of these bi-nationaldiscussions. For a long time, places like Wyoming wouldlook at Alberta as a huge competitor in any attempt to moveAlberta electrical energy into, maybe, the Nevada market.When we sit at PNWER roundtablesnow, or when we meet with ourcolleagues at the Energy Council,there’s a pretty positive aspect to it.But let’s not fool ourselves. There aresome circumstances where perhapssome individuals feel a bitprotectionist… Although we try tokeep it as friendly as we can, it’s stillcompetition.”

Knight’s reference to the EnergyCouncil brings us appropriately toanother key facet of the Edmontonsummit. This august body, formed 30years ago by a handful of Americanlegislators, encompasses the 10 majorU.S. producing states and a number ofinternational affiliates, the first ofwhich was Alberta, after the provincejoined in 1991, first represented byJim Horsman, Alberta deputy premier and PNWERfounder. In a notable move, the Energy Council executive isattending this year’s PNWER summit under invitation.

Knight reveals the rationale: “I was Alberta’srepresentative on the Energy Council and also on theenergy working group with PNWER, so I did a bit of workand got the two kind of married up because there are somestrengths to be gained by having both of these groups attendsome of these sessions together.” Significantly, as part of itsinvolvement in this year’s event, the Energy Council is co-hosting the China energy roundtable, along with theUniversity of Alberta’s China Institute.

THE CHINA CONNECTION“We are bringing in a number of Chinese state officials,”explains Morrison. “It’s a critical issue to look at how weare engaging China. So this time, we’re focusing onChina’s demand for alternative energy technologies. Wereally do hope to engage the Chinese in regional dialogue,but there are huge issues there that have big implications.”

Few people, if any, in North America understand thoseimplications better than Dr. Michael Raymont, CEO ofEnergyINet Inc., who has been a key player in facilitatingPNWER’s new trans-Pacific engagement. Raymont spoketo Edmontonians this summer shortly after returning fromhis 47th visit to China (the first occurring a few monthsbefore the death of Mao Zedong—aka Mao Tse-Tung—in1976).

“I think I’m up to four times this year already,” he

observes drolly, and without any trace of the expectedtravel-weariness. “They [the Chinese government]announced, when I was there in November 2005 as part ofMinister Dion’s delegation, a program of $184 billion U.S.

on renewable energy and R & Dprojects between now and 2020.”

While acknowledging that fewassumptions can be made with regard toChina’s involvement in the EdmontonPNWER summit, Raymont, likeMorrison, is a strong advocate ofdialogue with Beijing. He alsoemphasizes the scope for commercialprogress:

“I think it’s actually a tremendousbusiness opportunity for NorthAmerican businesses to both work withChina and potentially supply technology,and I think we should have no concernsabout supplying energy technologies tothem. There may be people who haveconcerns about perhaps intellectualproperty. I think those issues can now bedealt with in China. It’s my experience

that they can be, today. Five years ago, I wouldn’t havegiven that same answer. And the situation is improvingevery minute, but prudence around contractual details isimportant.”

Raymont sounds a further note of realism by remindingus that China’s participation in the PNWER roundtablesession is something of a new experiment. “I think theChinese will be cautious in wanting to understand what thisreally is other than an opportunity to engage in dialogue andso forth. But we will have to be careful as PNWER and asAmericans and Canadians not to confuse them that,PNWER is…” Raymont pauses for a moment of light-hearted wordplay, “…a separate country. PNWER is anorganization that has some cross-border cooperative issues,but maybe PNWER is also a model for trans-Pacificcooperation.”

So can we expect the Edmonton summit to fosterfuture SINO-PNWER tête-à-têtes, tackling perhapssome of the more sensitive issues that still standbetween the two hemispheres? Raymont is maintainingan open mind. “I think that’s really up to how well thisgoes and whether PNWER turns out to be anappropriate format for engaging China as differentiatedfrom bilateral Canada-China and U.S.-Chinainteractions. Can PNWER add anything to that? I haveto say at this point I don’t know. It’s going to beinteresting and, arguably, exciting to see whathappens.”

Arguably laconic, but definitely true. ✔

Murray Smith inWashington D.C.


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ast November, PNWER held its regionaleconomic leadership forum in Whistler, BC.A whole day was devoted to the galvanizingbut undeniably contentious issue of China’s

immense energy demand and what it really means forenergy security in the Pacific Northwest.

China is once again high on the PNWER agenda atthis summer’s annual summit in Edmonton in theshape of the China energy roundtable, an intriguingexperiment in trans-Pacific cooperation co-hosted bythe Energy Council and the University of Alberta’sChina Institute. In the wake of the failed effort by thestate-run China National Offshore Oil Corporation(CNOOC) to take over U.S.-based UnocalCorporation, increased critical scrutiny is now beingdirected toward the China connection associated withAlberta’s oilsands and other Canadian projects, such asthe Enbridge Gateway Pipeline between Alberta andBC.

Mel Knight, MLA for Grande Prairie-Smoky and co-chair of PNWER’s Energy I Working Group, explains:“Where the issue started to bubble a bit was asuggestion that bitumen could leave Alberta and landup in the Chinese market. And, of course, some U.S.states initially got excited about that because China’seconomy is expanding at a tremendous rate and theyhave an insatiable appetite for energy.”

On this theme, Matt Morrison, PNWER executivedirector, recalls the irony of one particular moment atthe Whistler shindig eight months ago: “It wasabsolutely fabulous to hear some very conservativeRepublicans saying ‘How can we trust the Chinese?’and then having the vice-president of Enbridge tell thestory that the purpose of the Gateway Pipeline, in asense, was really to get oil down to the Long BeachCalifornia refineries… it was the LA refineries that wentto China and said, ‘Look we need a partner to justify thecost. Would you join this deal?’ And that was veryenlightening for our American friends to hear that.”

For anyone currently losing sleep over the Asiangiant’s ‘insidious’ energy ambitions, Morrison has ablunt interrogative. “Do we really want China to investtheir $120 billion into Iran, or should we be engaged?I mean let’s look at the future: Do we want to engageChina where we are partners with them economically?That’s a great dialogue.”

Which brings us to the politically sticky matter ofthe oilsands, in which, as Knight observes, the Chineseare now investing, and where they could be said tohave gained a tentative toe hold.

“And the answer to thatis ‘Who’s been investingin the oilsands for the last30 years?” Knight leavesthe question open, butanyone hearing it is apt toglance southwardsmomentarily. “There’salready been offshoreinvestment and we don’tdiscriminate betweeninvestors. We don’tnecessarily question thatit’s a company that’s notcontrolled inside theprovince of Alberta. Wedon’t ask them how muchof their company isowned by U.S. investorsand how much is ownedby Chinese investors forinstance. The corporationthat runs the energybusiness for the Chinesegovernment hasinvestments in 17different countries andliterally hundreds ofenergy companies. Sothey’re invested in theU.S. and Canada already, whether we’ve taken thetime to investigate that or not.”

Nevertheless, for Murray Smith, Alberta’srepresentative in Washington DC, one of NorthAmerica’s largest issues today is sorting out how wewill deal with the entry of corporations that areowned by foreign governments into either essentialservices or resource sectors or even general businessoperations. What, he ponders, are the appropriatepolicies, in this case, for a continent built on freemarket capitalism? The recent Unocal and DubaiPorts debacles may point the way to an entrenched“Hell no!” mindset, at least in the U.S. corridors ofpower. Whatever policies may ultimately result withrespect to foreign state-backed investment, Smithreminds us that, from a PNWER viewpoint, China isjust a natural trading area.

“Don’t be afraid of China,” he urges. “Be happythat there’s a middle class emerging of some two orthree hundred million people in China—a colossalopportunity… but, at the same time, we’re seeingnew competition for resources that we’ve nototherwise had.”

Veteran China engager Dr. Michael Raymont, CEOof the Calgary-based Energy Innovation Network(EnergyINet), who has been closely involved withPNWER in the preparations for the China energyroundtable sessions, is even more robust in hisdismissal of prevailing fears.

“Frankly, if China comes in and buys a minorityposition in an energy company in North America,specifically an oil and gas company, I think it’s of noconcern at all,” Raymont states with a calmdirectness. “They currently own well less than one

percent of any assets inNorth America in theenergy industry. And inCanada, 43 percent of ourenergy industry is ownedby the U.S., and somethinglike 65 percent of it isowned by foreigners. Thefact that China might comein and own one or two orfive or even 10 percent ofit, in my view, would be agood thing, because theycan bring some veryinteresting perspective andsome technology whichmany people are unawareof. They’ve advanced veryrapidly in terms of someaspects of oil patchtechnology.

“And finally, I thinkbroadening of ourcustomer base in theenergy business is not abad thing for Canada.Now, in the U.S., you willhave a different reaction tothat. They would like tothink of Canada,

particularly the oilsands, as being “our” quoteoilsands, and I’ve been told that.”

Redirecting his thoughts to China, Raymontstresses the value of dialogue, dialogue and moredialogue with the Asian power. “The Unocal decisionhad more repercussions in China than are acknow-ledged in the U.S., perhaps in North America. Onecould say the Chinese overreacted. One can say theAmericans were naïve or narrow-minded in thatdecision. There was certainly a cooling of interactionbetween China and the U.S., which actually hasprovided the opportunity for China to engage Canadamore fully, but it’s also pushed China to engageVenezuela, Sudan, Nigeria, and other such countriesthat the U.S. aren’t particularly keen for them toengage.”

While PNWER will be focusing primarily onChina’s demand for alternative and renewable energytechnologies at this year’s event, the evolving shapeof the Canada-China-U.S. ménage remains firmly in‘watch this space’ mode.

“The issues are still boiling a bit on the back-burner,” Knight concludes good-humouredly. ✔

By Michael O’Toole

Does China make you nervous?Does China make you nervous?LL

Michael Raymont

Do we really want China to investtheir $120 billion in Iran... ?

Enbridge Edmonton

Enbridge Photo

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t is not easy to have some sort of idea of thecomplexity of the PNWER partnership.Legislators, governments and businessesfrom two provinces and a territory and five

states in the United States, not to mention thenational governments and a devil’s convention ofassorted lobby groups sitting down in conferencesand workshops in an attempt to hammer outconsensus. It is something like a bag of all sorts,any one of which may be poisoned by politicalnecessity, misunderstanding, disagreement ornational interest. Oddly, it seems to worksurprisingly well… possibly because mutualinterest trumps individual action. Still, from anAlberta perspective, it may be instructive to look atwater.

Along Jasper Avenue in Edmonton, a bumpersticker reads: Alberta: Awash in oil, dying of thirst.Everybody wants more of a finite commodity.There is not enough to go around. Near FortMcMurray, it takes three barrels of water toproduce one barrel of oil. Snow melt from themountains no longer comes in the quantity it usedto… aquifers and ground water are at risk.PNWER founder Jim Horsman—now an advisorto the University of Lethbridge—is deeplyconcerned about water, indicating that the sides arenot equal north and south of the 49th parallelbecause water is becoming a political issue. He iswary of the U.S. seeking mass exports of acommodity that “may be more important than oil.”

Montana is the latest state to say it wants a newdeal. It wishes to rewrite the water agreement withAlberta. “In dry years we have not been receiving ourappropriate amount,” said Mary Sexton, director ofMontana’s department of natural resources andconservation.

“Alberta’s position is (that) nothing has changedsince then (1921) to warrant reopening the order,” firedback Alberta Environment spokesperson Sherri-DawnAnnett. “The implications are enormous for Alberta ifthis order is reopened,” she said.

And it may not just be in that area where politicali-zation of issues leads to odd offspring. Canadians aredeeply stung and uneasy about softwood lumber whereOttawa won most of the legal challenges and thencapitulated to the Americans. There is not only worrythat when you have no legal basis, you can bully yourway to victory. The agreement has ramifications andpotential to sour north-south relations. Or as one bitterobserver put it, “If America isn’t good for its word,what is it good for?” The hyperbole runs as high on theAmerican side of the frontier.

Observers argue that this shows why PNWER isunique and much needed as a forum for opendiscussion and consciousness raising. It refuses to takeon a political role that can lose direction in acrimonyand accusation. For instance, it firmly sidesteps

disputes between two participing jurisdictions andkeeps an eye on the far horizon of what will be goodfor the region. Planning, protection and sustainabilityare on the agenda. Political bashing and finger pointingare considered poor formand Alberta is not facing anyemergency not shared by thepartner political entities.

The good news is thatAlberta is as well advancedas anyone in beginning toameliorate the situation. Atthe University of Lethbridge,Greg Shyba, executivedirector of the AlbertaIngenuity Centre for WaterResearch, points out that “80percent of water is used foragriculture and, with trendsin global warming, we wantto be more efficient. There isthe added problem that rainsmay not be falling at thesame times of the year, soit’s difficult to know when itwill be available.

“We look at quantity and quality,” he says. “Wehave some things in common with our neighboursbut some things different too. For instance in Idaho,60 per cent of irrigation is from ground water andthe energy to get it to the surface becomes an issue.In Alberta, we have agreements with our neighbours.We have a treaty with Saskatchewan to pass on 50percent of our water and they have an agreementwith Manitoba to pass on 50 percent of their water.In the South Saskatchewan River, we don’t haveenough water to meet our own needs.

“Internationally, we look at the economics. Youhave to ask, should we be using irrigated water togrow corn to make a sugar base for soda pop forkids or should we be looking at cereal crops to feedpeople.” He argues that there is no right answer butthat, increasingly, discussions will have to be heldon the topic.”

The Centre conducts fundamental research at theUniversities of Lethbridge, Calgary and Alberta witha $600 million grant from the Alberta IngenuityFund.

“We deal with all aspects of water, quantity andquality,” Shyba explains. And he thinks the nextlarge issue for Alberta will be pharmaceuticalwaste. Drugs such as Ibuprofen are flushed downtoilets. So far, research is indicating that this drugis leading to feminization of fish… males turn intofemales. It puts the fish population at risk andnobody yet knows what it does to humanpopulations.

“The bad news is we could really use morefunding… and the good news is we are making someinroads and people are far more aware of the issuesthan they used to be. That has to happen before changeis possible.” ✔

By P. Drake McHugh

II

ph: 780.454.2975 • fax: 780.482.2819

www.terrybourquephotography.ca • [email protected]

Water, water everywhere and nary...

Phot

o by

Dr.

Dan

John

son

Landsat by Dr. Craig Coburn

Alberta’s Oldman River

The Milk River runs fromMontana into Alberta and back


Proof__3_________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

t is my great pleasure to write a piece on thedifferences or similarities between the U.S. andCanadian legislative systems. As a member whohas served in the Legislative Assembly of the

Province of Alberta since 1979, I have had numerousopportunities to visit the United States on official, not tomention social occasions, as a member, a cabinet ministerand as Speaker.

In comparing Canada and the United States, one candraw many parallels. The two countries share a uniquerelationship and a mutual respect for one another.Entrenched within each other’s cultures, the two nationsare a likely source for comparison.

It has always amazed me that two nations that share somuch in common and have such close links in virtuallyevery level of cultural and economic activity can be sodifferent when it comes to our respective systems ofgovernance. A large reason for the differences is thatCanada did not break its ties to Great Britain as did theUnited States. We are members of the Commonwealth,the successor to the British Empire. The CommonwealthParliamentary Association ties together the parliamentsthat follow the Westminster—British Parliament—model.

As we know, the United States decided about 230 yearsago to depart from this model, choosing to form arepublic.

Canada’s system is one of responsible government.Now that, of course, is not to imply that the US systemoperates irresponsibly, but rather to illustrate thedefinition of responsible government is one by whichCanada adheres to the principle of parliamentaryaccountability.

So what does this mean? In Canada, the executive branchor government is a part of the legislative branch and, assuch, the prime minister and ministers are also members ofthe assembly and must propose, debate and defend bills inthe House. The most notable expression of responsiblegovernment in action is during Question Period whenmembers who are not in the executive/cabinet get to askquestions of the government. This high drama is the part ofthe proceedings broadcast on television news. It is also thepart that poses the greatest challenge to Speakers—we arethe ones charged with maintaining order and decorumduring what can be heated and rancorous exchanges.Stripped of its emotion, Question Period—whether inCanberra, Westminster, Ottawa or Edmonton—provides agreat example of the strength of responsible government. InCanada, and subsequently Alberta, the prime minister orpremier and cabinet ministers are confronted with questionsof which they have no advance notice. Noting that it iscalled Question Period not Answer Period, responses oftendon’t meet questioners’ expectations. Interestingly, there isno requirement that the government answer the questions

posed.In the U.S., the executive branch is elected

separately from the legislative branch. Inother words, the president and his cabinetcannot introduce bills nor can they vote onproposed legislation. The president does,however, have the power to veto legislation,a power that the Prime Minister of Canadadoes not hold.

Ultimately though, the supreme power lieswith the people in both countries. Throughthe rights and freedoms afforded througheach nation’s constitution—the citizens ofboth Canada and the United States createand sustain the systems that govern them.

Both our countries have federal systemswith two orders of sovereign government.Senates ensure that the regions arerepresented in the central government. In theU.S., the senate has developed into what isarguably the most powerful legislative bodyin the world—its 100 members wieldenormous power. In Canada, senators arestill appointed by the prime minister and theinstitution has, I suggest, considerably lesscredibility and influence than its Americancounterpart. Unlike the United States, theCanadian senate is the only second chamberin existence in the country. Provinces do nothave second chambers.

So what would a visitor see in Alberta’sChamber? To begin with, the Speaker entersthe Chamber in a robe with tabs and a tri-corn hat thatmight remind U.S. visitors of the American Revolution.The Speaker is led into the Chamber by the Sergeant-at-Arms who wears a black cut jacket and gloves and carriesa sword—the only weapon allowed in the Chamber.Historically, everyone carried a sword, so the desks werepositioned at such a distance that members on oppositesides of the House could not reach each other. In thosedays, since all members had one hand on their swords,they would bang their desks with their free hand to showsupport, instead of clapping. It is a tradition thatcontinues to this day.

We start every day of the legislative session with aprayer. American visitors may be surprised that Canadadoes not have the same separation of church and state asdoes the United States. As Speaker, I have attempted tomake the prayer a type that provides a time for reflectionand thanks.

The biggest difference in our structures is that oursystem is a constitutional monarchy: Queen Elizabeth IIis also the Queen of Canada. Although our head of state

in Canada is technically the Governor-General—theQueen’s official representative—it is the monarch whosename is invoked. I was honoured to escort Her Majesty tothe Legislature Building together with Alberta’s Premier,the Honourable Ralph Klein when she visited Alberta inMay 2005 on the centennial of provincehood. Sheaddressed the Assembly in a province-wide broadcast, thefirst time a monarch has done so in the province’s 100year history.

Now, as Alberta’s Assembly celebrates its centennial, Ilook back on the development of this province and reflecton its history in this country.

Both Canada and the United States started down verydifferent roads and, some may say, ended up in theopposite direction from where they began. But what ajourney it has been… for all North Americans. ✔

During the 16th Annual PNWER Summit, AlbertaSpeaker Ken Kowalski and Washington RepresentativeJeff Morris will co-chair a special session in theLegislature Chamber on the practical differences betweenthe U.S. and Canadian political systems.

By the Honourable Ken KowalskiSpeaker of the Legislative Assembly of the Province of Alberta

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Vive la differenceVive la difference

Alberta SpeakerKen Kowalski


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recall a discussion I had with an investment analyst.He wondered if I had considered investing in Chinaand the Pacific Rim. He lauded the huge growthpotential of the region and provided some

compelling reasons as to why we should be involved there. While it is true that the opportunities in Asia, and

specifically South East Asia, are significant, we have ourown “China” located in our backyard: the PacificNorthwest and, in particular, Northern Alberta. Theopportunities in this area over the next decade or socompare favourably to almost any other part of the world.And, being in the heart of the region, it is far easier andless expensive to capitalize on these opportunities.

The boom in the north is driven primarily by oursouthern neighbour’s thirst for a secure energy supply.Canada is already the #1 supplier of crude oil andpetroleum products to the U.S., and the oilsands are agrowing component of our oil exports, expected torepresent 60 percent of our crude oil production by 2010.Northern Alberta is also resource rich in other areas such asmining and forestry, creating diverse opportunities thatAlbertans and Edmontonians can harness.

At a recent conference, a focused question was asked ofme: “Sure there are huge opportunities in the North, but isthere real money to be made?” Given the somewhatobscene amount of money investors and corporations arepumping into the area, the expectation is that, no matterwhat you do… what business you are in, there is money tobe made. Therein lies both the challenge and opportunity.

With a seemingly endless supply of natural resourcesand money to be invested, the key to sustainabledevelopment in the North is the availability of skilled andunskilled individuals required to facilitate the growth.

A common comment these days is that “if you arebreathing, we are willing to hire, train and employ you.”This demand has created a ripple effect throughout Alberta,

across British Columbia and stretches to Newfoundlandand across the ocean to other parts of the world. In fact,Canada recently announced the lowest unemployment ratesince 1974, with a national average of 6.1 percent. Albertais significantly below this average with a 3.4 percentjobless rate.

This shortage has had two major impacts. First, the costof hiring unskilled workers in major centres such asEdmonton has escalated. Second and more critically, therates commanded by unskilled workers in the serviceindustry have reduced the incentive for these people toacquire the trade skills needed to address the acute labourshortage for skilled workers. This will have a significantlong term impact on the makeup of our local populationand our ability to retain our standard of living—at somepoint, the ability for the service industry to pay theseinflated wages will cease. Coupled with the growing costof housing in many parts of Alberta, the inflated wages willhave little or no impact on the standard of living and, inmany cases, could contribute to a lower standard of livingover the long term.

You’ve undoubtedly been personally affected by thisshortage as well. For example, the drive-through at yourlocal Tim Horton’s might be closed because there is notenough staff to deal with both the counter and the drive-through. One local Tim Horton’s even reduced its hoursbecause it could not find enough staff to remain open 24hours.

With the exception of Quebec, no Canadian province hasagreements with the federal government for immigration,thus compounding the long term effect. The federalgovernment is equipped with policies to attract skilledworkers. The provinces need to have the ability to attractand bring in temporary unskilled labour to meet the shortterm needs, while creating training and vocationalopportunities for currently unskilled local labour to benefit

permanently from these growth opportunities. We have aunique opportunity to fundamentally enable an entiregeneration to acquire the critical vocational skills to fuelthe development of the North and improve our overallstandard of living.

For Edmonton, we are faced with an additionalopportunity: to enhance our image. Today, as the gatewayto the North, we are perceived as a city that provides low-level services to northern development. We have thereputation as a “government city”, a “call centre” havenand a place for the North to secure supplies and low-endservices.

However, Edmonton is also—and it seems almostsecretly—home to a large number of technologycompanies, engineering firms and other high end-solutions companies that are equipped to assist in thedevelopment of the North. If technology solutions aresourced from American firms, and high endengineering services are sourced from Calgary orAmerican firms, Edmonton will lose out on a greatopportunity.

The challenge is for local leadership to ensure thatour image and our reputation accurately reflect the realstrength of Edmonton.

So, back to the original question “Is there money to bemade?” Indeed, there is a lot of money to be made. Howsuccessful we are at properly positioning Edmonton willdetermine if we are able to comeaway as net long term beneficiaries,or whether the increased costs thatcome with the northern boom wipeout any gain. ✔

Nizar J. Somji is Chairman of theBoard of Matrikon Inc., which tradeson the TSE under the symbol of MTK

II

ETHICScorporate

Enhance Edmonton’s image — NOWBy Nizar J. Somji

eil Windsor is evidently one of PNWER’sgreat multi-taskers. As fate would have it,Edmontonians caught up with theorganization‘s Workforce Development co-

chair precisely as he was drafting a key resolution forthe Edmonton summit. This happy coincidence seemedto add a special authenticity to the natural thrust andparry of the conversation. With such a cue sheet beforehim, Windsor, the executive director of the Associationof Professional Engineers, Geologists andGeophysicists of Alberta (APEGGA), needed littleprompting:

“I hope we will get a resolution passed that will urgestate boards to adopt a policy that they will waivecertain examinations that are required—in fact, thatthey would actually accept full reciprocity betweenCanadian and U.S. engineers with, say, eight yearsexperience after licensure so that they would almostautomatically be licensed in another jurisdiction.”

If that sounds ambitious, it’s only a reflection of thefact that workforce mobility is on the list of the topthree burner issues for almost every employer,legislator and lateral thinker within the region.Windsor’s interest in the matter, from a PNWERperspective, goes back to the late 1990s, when he firstbecame intrigued by the organization’s evidentcommitment to the goal of removing regulatory andlegislative barriers to the free movement of varioustypes of professionals, without undermining standards.

Coupled with the perennial discussion of labourmobility are the underlying concerns regardingworkforce and facilities shortages and the implicationsthey bring in terms of the region’s prospects forsustainable growth and prosperity.

“There’s a huge shortage of manpower, equipmentand materials,” says Windsor. “You’re looking at $250to $300 billion of work in this region over the next 10to 15 years. That’s an incredible amount of activity. Wecan best develop that by sharing our strengths andhelping each other with weaknesses. If we havefacilities in Alberta that may be under-utilized, whywould they be building similar facilities in Alaska?Why not use ours, and vice versa?”

Windsor advocates, among other efficiencies, asystem of cooperative scheduling of major projects. Hereminds us that while, here in Alberta, we may identifya certain requirement for the oilsands, BC is alsobuilding huge facilities for the 2010 Olympics, andneighbouring U.S. states are engaged on their ownlarge-scale infrastructure upgrades. And they’re all,potentially, drawing on the same labour pool.

“These people can’t work in three places,” Windsorpoints out, “so it benefits all of us to recognize what isthe regional workforce, what are the regional strengths,what are the weaknesses, and what do we have to dojointly to try to resolve those weaknesses and help oneanother? And you can do that to some degree byscheduling activities and ensuring that not everyactivity of the same kind peaks at the same time.”

Windsor and his PNWER workgroup colleagues arealso set on tackling the long-term challenges posed bythe need for reliable accreditation of offshore labour,given that, in some professions, perhaps a third of theindividuals licensed every year are likely to come fromoutside North America.

“These are the key issues we’ll be focusing on atthese sessions,” he reprises. “Looking at the skillsavailability, the demand for skills. What is therequirement? What is the capacity of our educationalinstitutions to generate more skilled professionals?What are the offshore skills that we can bring in, andwhat is our requirement for offshore labour? And ofcourse sharing regionally, knowing within the regionwhat we have and where we can access those skills.”

According to Matt Morrison, executive director ofPNWER, the responsibility for economic progress liesvery much in the region’s own lap. “We do feel that bybringing stakeholders together the best solutions aregoing to be hammered out by the people on the ground,not in Ottawa or DC,” he states emphatically. Morrisonalso stresses the cross-border amity that is essential tothe economic development of the whole PacificNorthwest: “In a region like PNWER, it’s not likethere’s this huge U.S. versus a little Canada. We’reequal partners.”

Of course, relations have not always been quite that

rosy, as Morrison himself concedes. “I take a step backand say, if you look at the U.S.-Canada file, it’s beendominated by reaction to things like the WesternHemisphere Travel Initiative, the BSE closure of theborder for live cattle, the softwood lumber dispute, andon and on. Issues that from a Canadian perspective[have involved] reacting to things that the U.S. isdoing. But PNWER offers the opportunity to beproactive and take a stance at doing things the way weshould be doing them, developing solutions before theirritants cause us to react.”

Like Windsor, the team at Alberta EconomicDevelopment, headed by Minister Clint Dunford, wasalso in the throes of drafting summit-related artefactswhen Edmontonians paid a conference call to theirimpressively assembled ranks.

At PNWER 2006, AED will be making a jointpresentation, along with BC, on the recently-negotiated Trade Investment and Labour MobilityAgreement between the two provinces. This providesfor a much freer flow of goods, services and people,as well as greater reciprocity in terms of labour andaccreditation standards. While applicable purelywithin Canada, TILMA, which will come into effecton April 1st 2007, is seen as a potential model forimproved standardization and deregulation throughoutPNWER and is already generating interest from othermembers.

Another focus within the trade and economicdevelopment discussions at the event is likely to bethe issue of moving specialized equipment such ascomputerized oil well service rigs back and forthacross the border when similar equipment and trainedpersonnel are not available locally. A PNWER-sponsored pilot project involving border customs andimmigration officers is already proposed.

A third major theme that Alberta EconomicDevelopment will be highlighting at the summit is theregional potential of the aerospace industry. InAlberta alone, the sector’s various clusterscollectively employ around 6,500 skilled workers,and will be reaching out for strategic partners amongthe other jurisdictions within the organization. ✔

Developing a regional workforceCooperative scheduling would be key

By Michael O’Toole

NN



In all the years I’ve known Dr.David Wishart, I don’t think I’ve everseen him without a baseball cap on hishead. But don’t let that casual weardeceive you. David is one smart guy. Andhe’s making his mark on the scientificfront by combining his interest in biologywith his expertise in computing science.

This professor at the University ofAlberta is currently the lead researcher ontwo very important projects, one dealingwith metabolomes and the other withprions.

First, metabolomes. David defines theseas “essentially all the metabolites or smallmolecules that you’ll find in your blood,urine, tissues or body fluids that are thechemicals of life. And metabolomics isreally the study of the chemicals of life.”

He believes there are about 2500 ofthese small molecules or metabolites inthe body, but no one has ever cataloguedor characterized these before. And that’sthe gist of his Human MetabolomeProject, which gets funding from GenomeCanada and Alberta Ingenuity amongothers. When the project is finished inanother year-and-a-half, the developmentof this library will change the way we domedicine.

As David explains it, “If you go to thedoctor’s office and they ask you for aurine sample or they take a blood test, thethings they’re actually looking at are smallmolecules. Small molecules give awonderful indication of exactly what’sgoing on in the body. The problem is thatthe number of molecules that doctors canmeasure is only 10 or 20. Withmetabolomics, we’re going to have a listnow of 2500 molecules.”

Software programs developed bycompanies like Edmonton’s Chenomxcan analyze samples using severalhundred metabolites in minutes ratherthan days for a fraction of the currentcosts.

The second big project David isresearching has to do with prions. Theseare the proteins associated with mad cowand other brain riddling diseases. Allbiological organisms seem to have prions.It’s only when something goes haywireand the prions start misfolding thatproblems arise. Tragically, the misfoldingstarts a chain reaction that doesn’t stop

until the victim dies. But after twodecades of intense research, scientists stilldo not know what causes the prions tostart misfolding in the first place.

That’s where David is already making alot of headway. With funding from thenew Alberta Prion Research Institute,he and his team are using nuclearmagnetic resonance spectroscopy andcomputer simulations to determine what ishappening with the prions at the mostbasic atomic level.

Some early results are unexpected,remarks David. “For instance, chickensand frogs don’t seem to get prion diseases.Analyzing the dynamics shows uscertainly that amphibian and chickenprions have a very different dynamicresponse. That hadn’t been noticed before.

“We’ve also noticed unusual behaviorwith some of the prions in solution thathadn’t been remarked on before. This ispartly because of the way we’ve preparedthe prion proteins and it may offer a verysimple route to making available theunfolded prion protein.”

And guess whose prions are helpingDavid get to the root of the mad cowproblem? None other than the lowlyhamster. Seems the hamster is very prone toprion diseases. Fortunately for David andhis lab mates, the prions are not infectious,providing a safe model for the researchersto work with. However, it does give you adifferent perspective on the rather dementedbehavior of the little rascal running madlyon the wheel in its cage.

Last summer I reported on theefforts of Lloyd Osler of OVISTECHCorporation to break into the globalpandemic market with EpiTrack Sentinel.Health authorities appear to be rather slowto catch onto the product. Too bad,because it could be extremely useful intracking and possibly containingpandemic outbreaks. Well, maybe thisnews will shake them up.

Lloyd is forging ahead with anagricultural application for his real timeintelligent software technology, thanks tosome help from the Alberta ResearchCouncil, Precarn Inc., HardingInstruments, Xanantec TechnologiesInc. and the University of Alberta.

Called FARM—for feedlot animalremote sensing—the agricultural versiontracks the health of cattle through signalssent from wireless collars and ear tags. Thetransmitted data is monitored in real timeover the internet.

“There have been several instances wherethe system has detected a decline in ananimal’s health before the feedlot operatordid,” says Lloyd. “This means animals willreceive treatment faster and producers cantrack disease outbreaks, which will reducelosses and costs for the producer.”

FARM is currently being field tested nearThorsby. OVISTECH expects to have thetechnology commercially available for thedairy industry in six months, and for thebeef industry in about a year.

As for other applications, Lloyd saysFERIC, the Forest Engineering ResearchInstitute of Canada, has expressed aninterest in using the tracking technology infighting forest fires.

Science&Techwith Cheryl Croucher

INTELINTELBizBiz

PODCASTS: IS ANYBODY LISTENING?Podcasts… a dash of Tivo, ahandful of audioblog and a whole lot ofWayne’s World all wrapped up in iPod cool.Defined as the broadcasting of video oraudio files over the Internet for playback ona PC or portable device, the two-year oldprocess evolved from the words “broad-casting” and Apple’s iPod music.

A single web site like podcast.net boastsliterally thousands of available podcasts;with over 6,000 in the entertainmentcategory alone. The variety is downrightastonishing.

The heart and soul of podcasting perso-nifies the freedom of the web. It’s creatingaudio and video content for those who wantto listen or view it exactly when, where andhow they want.

However, there might be one funda-mental flaw with podcasts and podcasting:Is anybody really listening?

PODCASTS: ANYBODY HOME?Podcasts are similar to blogs—maybe theonly people who read blogs are those whowrite to them.

Time out for a quick survey: How manyblogs have you read and how many pod-casts have you listened to lately? That’swhat I thought.

However, for some, podcasts threaten theentire broadcasting business.

Canadian Association of BroadcastersPresident Glenn O’Farrell has expressedsolid concern: “If we allow technology to

irreversibly undermine broadcasters’ abilityto continue in that tradition, we risk losing,little by little and bit by bit, the mostpowerful vehicles of cultural expression inCanada.” Further, he has hinted at sometype of government intervention to helpdeal with technological advances he feelswill hurt the industry. Call me crazy, butisn’t hiding behind the government skirt inan attempt to un-ring the Internet bell atough thing to do?

CONTENT IS KINGThankfully, O’Farrell’s view isn’t shared byall in the business and away from thepolitics of Ottawa. The CBC, CorusEntertainment and CanWest/Global—Canadian media heavyweights, view thiselectronic adversity as opportunity.

Doug Rutherford, veep of news/talkprogramming for Corus, sees podcasting asanother means of distribution and similar tosatellite radio. “Podcasts are something thatrepresent new territory for broadcasterscoming of age and we have to adapt. Now,I don’t have all the answers… but I doknow that radio broadcasters are a verycreative bunch.”

So, what will make podcasts work?“Anything that makes memorable

content,” says Rutherford. “If it is talk radioor music delivered via terrestrial, web orpodcast, the message is the same: Contentis king.”

“There are now three devices to viewinformation: the personal computer, thetelevision and a mobile unit like a cellphone or PDA,” says Vyomesh (VJ)Joshi, executive vice-president atHewlett-Packard Imaging andPrinting Group.

“In the months and years ahead, the bigmoney in this consumer market segment isgoing to be made in the methods the threedevices connect, or talk to each other. Con-sumers want this done easily, seamlesslyand don’t really care how it happens. Butthey will pay for it.”

PODCASTING 101Let’s look at education. The University ofCalgary will be the first university in thecountry to introduce podcasting on a largescale featuring portable MP3 technology asa teaching tool in four courses. Studentscan listen to lectures at their convenience,either on a home computer or a portableMP3 player

“Utilizing podcasts means providingeducational material that is portable,functional, relevant and convenient forboth faculty and students,” says DavidJohnston, director of the U of C’s e-strategy project.

“We are taking relatively new technologyand using it in new ways to enhance theteaching and learning experience. Students… are very interested in the portability andconvenience of podcasts.”

Says Ryan Cameron, 20, a third-yearstudent who is pursuing a double major incomputer science and English, “There arealways good points made in every class... ifit’s podcast, you can listen to it over andover, and wherever you want.”

Dr. Harry Vandervlist, who willteach iENGL 231, adds: “It’s importantthat the recordings be well done andinteresting. Using podcasts probablywon’t save instructors any time, butwhat they will do is give both theinstructors and their students more

flexibility in how they use their time.”

MOTHERCORPMeanwhile, if anybody gets podcasting, it’sthe Canadian Broadcasting Corporation,where its CBC Radio 3 is arguably thepremier location in the world for undis-covered artists to easily upload their musicand have it available for everyone to play.

Claude Galipeau, executive director ofdigital programming and business develop-ment of CBC, points out the success of itspodcast-laden CBC Radio, and the overallsuccess of its website, the most visited byCanadians. The Mothercorp deserves fullmarks for staying well ahead of the curveon all this. Since it owns part of theSIRIUS satellite radio operation in Canada,I’ll wager CBC will be very aggressive inthe video podcasts arena when thatmatures. The industry just has to figure outhow to make money from a platform—theInternet—that has a lot of free attached toit.

So, will podcasts decimate the radioand TV business as we know it? Heckno; not even close. If anything, they willcomplement it by offering users exactlywhat they want, when they want.

Better yet, there is a good chance thenext undiscovered Shaina Twain is outthere creating her own podcast rightnow. ✔

Gregory B. Michetti of theAlberta-based systemsintegration firm MichettiInformation Solutions, Inc.can be reached viawww.michetti.com

BizIT 101with Greg Michetti

Continued on page 17

David Wishart

Lloyd Osler



My first encounter with terrorismoccurred as editor of the Trail DailyTimes when the B.C. government putDoukhobor children into camps aftertheir parents refused to send them topublic schools.

Peaceful law-abiding Doukhoborsprotested by women marching nakedon any occasion in Trail or Nelson,especially when visited by dignitariesthe likes of former P.M. JohnDiefenbaker.

But Stefan Sorokin’s more radicalSons of Freedom Doukhbors, actedlike the Taliban of today, and started alengthy period of terrorism: plantingbombs in the Trail post office andEaton’s store, and the constantdynamiting of West Kootenay powerlines and CPR tracks until all train

travel in the Kootenays was halted. I’ll also never forget that Sunday

morning when photographer TedMoore and I arrived before theRCMP at the village of Ootischenia,where every home had been burned tothe ground, and all families left withonly cast iron stoves and stonefireplaces. That terrorism ended whenSorokin’s ex-bodyguard provided TheTimes with the necessary informationto expose Sorokin.

I bring this into focus now with thecontinuing attention surrounding whatwill be a lengthy trial of those 17individuals charged with terroristactivities in Ontario, details of whichyou’re fully aware.

I’ve written before aboutcontributions and leadership of the35,000 Muslims in Alberta, such asthe Hamdon and Shaben familiesbuilding the first mosque inEdmonton. That leadership was also

evident last month when CalgaryImam Syed Soharwardy foundedMuslims against Terrorism, andlaunched Project Unity Now whichfavours banning radicals fromCanadian mosques who preach hatredand violence.

I think such moves will eliminategarbage being preached by people likealleged terror-cell leader QayyumAbdul of Mississauga who statedCanadian troops went to Afghanistanto rape Muslim women. OrScarborough Salaheddin IslamicCentre Imam Aly Hindy who said thearrest of the 17 Ontario Islamics wasdone “for the sake of pleasing GeorgeBush.” Further: “The CSIS and RCMPare feeling threatened—not ofterrorism but of losing their jobs. Theyneed to create an atmosphere of fear inthis country to keep their jobs. Theytalk of homegrown terrorism. This ishomegrown baloney.”

Well, I’m delighted to know AlyHindy is such an expert on Canada,and so knowledgeable about one ofthe finest police forces, in one of thefinest countries this world has everknown.

The vast majority of immigrants tothis wonderful nation, and theirchildren, appreciate the opportunitiesprovided by Canada, and happilyfollow the tenet of former GovernorGeneral Georges Vanier whoproclaimed: “I am not English… I amnot French… I am a Canadian.”

Where, pray tell, Ali Hindy, do yourloyalties lie? I think other Muslims, aswell as other Canadians,deserve to know. ✔

Bruce Hogle is the formernews director at CFRN TVand recently retired headof the Alberta PressCouncil.

Media Minutewith Bruce Hogle

Our expertise in biotechnologycontinues to put Edmonton on the map. InJune, two of the four awards presented atBIOTECanada’s National PresidentsAwards Dinner in Toronto went toEdmonton people.

Dr. Alex McPherson of Biomirareceived the award for “contribution toadvancing the benefits of biotech forCanadians.” Having just stepped down fromhis top position at Biomira in May afteralmost 16 years, his tenure made Alex thelongest serving president and CEO of anybiotech firm in North America. Biomira gotits start as a spinoff of research into cancertherapies at the UofA and today bills itselfas “the cancer vaccine people”. Given howlong it takes to prove the efficacy of thesemedical advances and get them into themarket, Alex should probably also get anaward for his sheer perserverence.

Also recognized by BIOTECanada wasMBEC BioProducts Inc which shared theaward for “promising early stage company”with Rimon Therapuetics Ltd. of Toronto.MBEC BioProducts helps people deal withtheir microbial biofilm issues—what youmight know as slime. For example, ifyou’re wearing contacts, sporting anartifical joint or using a catheter, you run therisk of infection related to errant biofilms.MBEC BioProducts provides test for these.

And if you read PROFIT Magazine,you’ll see that Ceapro Inc. is namedamong Canada’s fastest growing companieswith a ranking of 173 in the top PROFIT100 and Next 100 listings. Ceapro isanother U of A spinoff, this one commer-cializing the technologies developed by Dr.Mark Redmond in fractionating oats foruse in therapeutic bioproducts… from earlyscreening for diabetes to shampoos for pets.

And finally, congratulations toNINT. After almost three years ofconstruction, the new building which willhouse the National Institute for Nano-technology on the U of A campus wasofficially opened June 22nd during theNanoForum Canada Conference inEdmonton. Among the buildings specialfeatures is Canada’s “quietest” lab. Thismeans the space has ultra-low vibrationand minimal sound and electro-magneticinterference. And, just in case you’rewondering why that is so important, youtry working with little nano assemblagesthat size out at 1/80,000th the diameter ofa human hair. ✔

Cheryl Croucher is anEdmonton broadcastjournalist and host ofInnovation Alberta. You canhear the program onCKUA Radio Tuesdays at8pm or download it when

you visit www.innovationalberta.com.E-mail [email protected]

I had a call from a friend recently,hoping against hope that Air Canada willrestore its non-stop Europe service fromEdmonton. He told me he was planning alate September trip to England and hadbeen checking the Air Canada website forthe best connections. When he called up theflights by schedule (as opposed to by fare)for his departure date, he was astonished tosee a choice of not one but two non-stopdepartures from Edmonton International toLondon Heathrow. He wondered if, in fact,Air Canada had made a mistake on itswebsite, substituting Edmonton for Calgary.Calgary does have two daily Air Canadanon-stop flights to London from May toNovember (dropping to one daily non-stopfor the winter months). And the flightnumbers looked very much like theCalgary-London service.

I checked the site too, and found that forseveral days on either side of my friend’sdeparture date, Air Canada did indeed showtwo daily non-stop flights from Edmontonto London Heathrow. Curiously, however,no non-stop return flights were shown.Knowing it was too good to be true, Ichecked with Traci Bednard, director ofcommunications for Edmonton Airports.Sure enough, she knew what was going on(this happened two years ago as well). “Theshort answer is Calgary is closing down onerunway for a period of time, which limitstheir operations. Therefore, AC will routethe aircraft through Edmonton creating anon-stop for that period of time to Europe.”(I believe it’s two to London and one toFrankfurt.)

The Calgary airport is closing its longestrunway for about 10 days. Europe-boundaircraft consequently cannot take off with afull load of fuel; they must stop somewhereto take on the rest of the fuel. Edmontonhappens to be conveniently on the routefrom Calgary to both London and Frank-furt, so those flights will stop in Edmontonto take on the full complement of fuel andboard passengers. The return flights,however, are light enough to land on theshorter runway in Calgary, having burnedthe majority of their fuel on the flight fromEurope. So no return non-stops toEdmonton.

Many of us have wondered why AirCanada couldn’t land at least one of its twodaily Calgary-London flights in Edmontonto take on passengers. We’ve been throughthe arguments before, and we can alwayshope that, at some point, Air Canada oranother carrier will realize that the substan-tial and growing population base in theEdmonton region can indeed support non-stop flights to Europe. In the meantime, ifyou’re planning head to London orFrankfurt the last 10 days of September thisyear, take advantage of those non-stops. Myfriend did; he’s delighted that for once he’llbe flying directly to Heathrow.

Recent warnings about longer-term water shortages on the prairies makeeven sweeter the fact that an innovativeenvironmental project has scored asignificant award for Edmonton. The Cityhas won the prestigious FCM-CH2M HILLSustainable Community Award for excell-ence and innovation in municipal servicedelivery that has advanced sustainablecommunity development. The award waspresented at a recognition ceremony atFederation of Canadian Municipalities’ 69thannual conference and Municipal Expo inMontreal on June 3rd.

The award recognizes the City’sleadership in the wastewater category for anew 5.5-kilometre pipeline constructed,through a partnership arrangement withPetro-Canada, to deliver high-qualityrecycled water from the Gold BarWastewater Treatment Plant to Petro-Can’s Edmonton refinery. This was amutually beneficial project, meeting therefinery’s water needs for new processesand providing surplus water for other users

along the river valley, including the Sun-ridge and Nordic ski clubs for snowmakingand the parks system for irrigation and pondrecharging. The first of its kind in Canada,the project demonstrates innovativetechnology and sets a new standard forenvironmental best practices.

Petro-Canada funded capital costs of thepipeline, as well as the membrane treatmentfacility and pump station at the Gold Barplant. The cost of the membrane facility andpump station was approximately $13million, while total project costs are about$25 million. The City of Edmonton willsupply the recycled water to StrathconaCounty, on behalf of Petro-Canada. TheCounty will in turn purchase the recycledwater, operate and maintain the pipelinefrom the plant to the refinery, and deliverthe recycled water to Petro-Canada and itsdesignates, including Air Products for usein hydrogen production. The innovativepartnership between the City of Edmontonand Strathcona County was negotiated afterPetro-Canada considered and opted againstbuilding its own on-site wastewatertreatment plant.

“The recycled water line reinforces theCity’s international reputation in environ-mental management and our expertise inadvanced wastewater treatment,” saidEdmonton Mayor Stephen Mandel. “Theunique project serves as a model for other

industries and municipalities and has provento be a win-win business relationship. Thetreated water meets Petro-Canada’sindustrial requirements, while the Citybenefits through enhanced water quality andimproved plant capacity with no extra coststo our taxpayers.”

“CH2M HILL is proud to be one ofthe founding partners of the SustainableCommunities Award as it enters its seventhyear. This Award recognizes theachievement and commitment of municipalgovernments to improve the quality of lifefor Canadians,” said John Murray, Presidentof CH2M HILL Canada. The company,which has an Edmonton office, providesprogram management, design, technologyand construction/turnkey services to privateindustry and public sector clients.

The City’s Smart Choices initiative,which Edmonton developed to re-think theway it grows and redevelops, is beginningto produce results. The highest profileproject arising from the initiative to date is

arguablyCenturyPark, thehigh-densityurbanvillagebeingdevelopedon the siteof theformerHeritageMall. But

recent proposals have come forward for theStrathearn neighbourhood to replace themulti-building Strathearn Apartments,and in Glenora for the area of 142 Streetand 103 Avenue. Both involve mixed-usedevelopments incorporating the urbanvillage concept—that is, one can walk toshops, services, restaurants, and so on—with a mixture of low-, medium- and high-density housing. More developmentproposals are forthcoming.

This is exactly what the City has beenhoping to achieve, helping to slow—ifnot stop—the amazing urban sprawl thathas characterized the metro region’sgrowth over the past decade. Of coursethere is opposition, but if the developerscarefully communicate what they wantto do and, equally important, if theprojects truly help to rejuvenate andintensify older neighbourhoods, they area significant step in the right direction.Densification used to be a bad word, butwe know now that carefully plannedmixed-use, high-density projects

actually contribute to ahealthy city and a goodquality of life. ✔

David Norwood is afreelance writer/editor.Contact

[email protected]

Civic Buzzwith David Norwood

Continued from page 16



our yard looks absolutely perfect.The lawn is lush, flowers in bloom, andtrees form dense canopies of green. Timeto invite some friends over for an

afternoon of fun and games. Host a lawn-gametournament with a few cocktails to kick-start the affairand some munchies thrown in for good measure.

Fire up the barbeque, and serve the trendy version ofsliders—mini burgers that fit perfectly into the populartapas concept—to complement the country, the gameand the liquid refreshments.

Sliders first appeared in the U.S. in the early 1920s,at the White Castle restaurant chain, the oldestAmerican hamburger joint. They were the originalgreasy burgers—hence the name. But, now that they’vegone gourmet, sliders have achieved a new cult crazestatus all over North America. California is a sliderheaven. The Upper East Side in New York has becomea mini-minefield of restaurants offering sliders. TheOvertime Bar and Grill in Edmonton is said to have thebest sliders in town.

We didn’t stop at presenting sliders made from leanground beef. We also prepared pork/beef, bison andlamb burgers. While the ingredients that went into themeat mixtures are relatively standard, the toppingswere what gave the sliders individuality.

BASIC BURGERS1 lb. ground meat 2 Tbs. Dijon mustard1/2 cup bread crumbs or oatmeal 2 Tbs. barbeque sauce1 tsp. each salt, pepper, rosemary 1 egg1 medium onion, finely chopped 1/4 cup chopped chives1 clove garlic, finely chopped(1 tsp. Herbs de Provence)

In a large bowl, combine all ingredients. Mixthoroughly by hand to ensure even distribution of allseasonings. Form into eight 2 1/2 to 3 inch patties. Grillto well-done. In last few minutes, if desired, top withappropriate cheese and allow to melt. Remove fromgrill and serve on petite dinner rolls, brioche orbaguette slices.

We added Herbs de Provence to the lamb burgersonly. Use you imagination and add herbs that enhanceyour toppings and match your theme country. Forexample, go Greek by adding oregano to the meatmixture, and top the sliders with feta cheese and olives.

Here’s our summer line-up for backyard fun. All thegames are available at Lee Valley Tools.

The GameThe origins of croquet are a little cloudy. Somebelieve that it developed from the French game PallMall, but arguments link it more to golf than croquet.What is known is that the game traveled from Franceto Ireland, then to England in the mid 1800s. At first,croquet was most popular among women; it was anew experience for them to be able to play anoutdoor game in the company of men. Early games ofcroquet were carefully chaperoned and the practice ofTight Croquet became all the rage. Here, a foot wasplaced on the ball before hitting, causing the target tofly into the bushes. Inevitably, young men andwomen were forced to go into bushes to search forthe ball…

The Drink Pimm’s is a traditional English summer drink. It isthought to be the most suitable cocktail to drink whilewatching croquet at Wimbledon. Created in 1840 byJames Pimm’s, it is customary to serve the orange-based gin with soda water over ice, garnished with aslice of cucumber or mint sprig. Start with half Pimm’sand half soda. Test various strengths until you aresatisfied, or fall down…whichever comes first.

The SliderTop the beef burger with Stilton cheese, thin cucumberslices and watercress. Spread the bun with thick, creamydill dressing, or dill seasoned cream cheese.

The GameBocce is an ancient game… its birth lost in theshadows of antiquity. Not only is it among the earliestknown outdoor pastimes, but it is played in morecountries than any other ball game, with the exceptionof soccer. Bocce was played between battles duringRome’s Punic Wars which started in 264 B.C. Soldiersselected a small stone called a leader and threw it first.Then larger stones would be thrown at the leader andthe stone coming closest to it would score. The gameprovided exercise and relaxation for the soldiers.During the same period, Vulgar Latin emerged as adominant language of the common man. The Latinword bottia—meaning ball—is the root of the Italianword boccia or bocce, as the game came to be known.It’s one of the lunch hour games played in ChurchillSquare during non-festival days.

The Drink Bellini’s were invented in 1934 at Harry’s Bar in Venice,a well known haunt of Ernest Hemingway and OrsonWelles. Faced with an abundance of seasonal whitepeaches, owner Guiseppe Cipriani created the drink andnamed it after the 15th century artist, Giovanni Bellini.Mix one-third fresh peach juice and two-thirds chilledsparkling wine. Make sure to pour the peach juice intothe glass first. Guaranteed to improve your game.

The SliderTop the pork/beef burger with shaved parmesan, procuittoand grilled Romano tomato slices. Spread the buns withpesto or Italian veggie spread. Serve with caper buds.

The GameHorseshoes dates back as far as the 2nd Century wheniron plates or rings were nailed on horses’ feet. One of thesports featured in the Greek Olympic Games was discusthrowing. The discus was a circular plate of metal orstone 10” or 12” in diameter that was pitched with a strappassed through a circular hole in the centre. Grecianarmies that could not afford the discus took discardedhorseshoes, set up a stake, and began throwinghorseshoes at it. The game migrated to North Americawith soldiers returning from WWI.

The Drink The Caesar is considered Canada’s national drink. In1969, while working for The Westin in Calgary, WalterChell was asked to develop an original drink to celebratethe opening of a new restaurant. Three months ofexperimenting eventually yielded a mix of hand-mashedclams, tomato juice, vodka, Worcestershire sauce, salt,and pepper. The Mott Company eventually developed itsown clamato juice and, after an initial dispute, hired Chellto consult and promote the product.

Rim a tall glass with celery salt and fill with ice. Addone ounce vodka, top with Clamato juice, splashes ofWorcestershire and Tabasco sauces, dashes of salt andpepper. Instead of the usual celery stalk, garnish with apepperoni stick or pickled asparagus spear. Takes the painaway when you miss a shot.

The SliderTop the bison burger with Armstrong sharp cheddar cheese,Canadian back bacon, and grilled onion rings. Spread thebun with spicy mayo. Serve with grape tomatoes.

YY

with Chef John Berrywith Linda Bodo

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The GameBoules, otherwise known as pétanque, is perhaps thesport that is closest to French hearts. Similar to lawnbowling or bocce, the French version is traditionallyplayed with metal balls on a dirt surface beneath planetrees, with a glass of pastis at hand. The object of thegame is to throw your balls—usually with somewhat ofan arched back-spin—so they land closer to thecochonnet (small object ball) than those of youropponent, or strike and drive the object ball toward yourother balls and away from your opponent’s.

The Drink Pastis is an aniseed-flavoured alcoholic drink which is aclassic apértif in Provence. Amber coloured in the bottle,it turns a milky white when mixed with water. It is oftenreferred to as the milk of Provence.

Here is an absolute version that is sure to improve yourgame. Heat one side of a brown sugar cube until lightlycaramelized. While hot, attach to the middle of a 6”bamboo skewer. Pour one ounce of pastis into a taperedglass and lay skewer across the top. For serving, pourwater over the sugar cube into glass. Guests can use the

skewer as a swizzle stick and melt any remaining sugar…or use it to threaten their opponents.

The SliderTop the lamb burger with goat cheese, thin radish slicesand black sesame seeds. Spread the bun with GreyPoupon mustard. Serve with tapanade. ✔

Contact Linda Bodo at [email protected] orvisit absolutebodo.com. Contact John Berry [email protected]

ENGLAND

CROQUET

PIMM’S

BEEF SLIDER

HORSESHOES

CAESAR

BISON SLIDER

BOULES

PASTIS

LAMB SLIDER

BOCCE

BELLINI

PORK/BEEF SLIDER

CANADAITALY FRANCE



The price a purchaser is prepared topay for acquiring a company is largelydependent on their assessment of thatcompany’s capacity to continuegenerating the same results under newownership. They assess the company’sclient base, ability to sustain currentlevels of revenue, value of the tangibleassets and quality of its people. Onaverage, it takes six months from thetime a vendor is introduced to a buyerto close a deal. During that period, thepurchaser will be watching thecompany carefully so it is critical thatthe operations continue with as fewcrises and surprises as possible.Financial performance should be asprojected or at a minimum deviationsshould be readily rationalized. The workforce should not undergo any materialchanges, particularly at a senior level, asit will diminish the perceived value ofthe company, sometimes to the pointof collapsing the deal. Valued key

employees are currently verymarketable, especially in Alberta’scompetitive market. Owners cannotafford to have any of their seniorpeople walk while they are trying to selltheir company.

A practice known as GoldenHandcuffs is becoming morecommonly used by employers toprevent this. It is an incentive systemdesigned to discourage keyemployees from leaving. It paysemployees a bonus of 50% when thesale is closed and an additional 50% ifthe employees stay with the companyfor some reasonable period of time,usually 12 months after the sale. Tobe effective, the financial reward mustbe significant and payable within arealistic period of time. The amount isusually related to the worth of theindividual’s total remunerationpackage; 100% of currentremuneration is not uncommon. Thelonger the period of payment, thelarger the carrot must be. We have

seen deals that provided a two yearbonus three years after closing.

Buyers who are interested inretaining key employees may also offerthem the opportunity to buy into thebusiness under the same terms as theirpurchase. If the deal is highlyleveraged the amount the employeehas to come up with is a lot less thanwhere there is a significant equitycomponent.

Gone are the days when employeesare satisfied simply with theiremployment, remuneration, vacationentitlement and benefits. In today’s hotmarket, employer incentives are a smallprice to pay to safeguard a sale oracquisition. Key staff is usually involvedin the sale process and you want themworking positively towards a successfulclosing. If you are thinking of sellingyour company, please email me [email protected] or call me at780.448.9386. For more informationabout Foundation Group visit ourwebsite at www.foundationgroup.ca.

GOLDEN HANDCUFFS

with Stephen W. Kent, CA(780) 448-9099

ACQUISITIONS, DIVESTITURES & CORPORATE FINANCE

edmontonians jul06

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