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www.worksafesask.ca www.safesask.com I BELIEVE IN MISSION: ZERO

Pictured (left to right) Garth Tomlinson - Manager Business Development; Sean Hamelin - District Manager, Regina; Jim Brunette - General Superintendent; Mike Zurowski - Construction Manager We believe ZERO is possible. With approximately 20 million man hours worked on our sites in 2014, we had a record low lost-time frequency rate at 0.03. What that means is that more than 99.8% of our 1,312 projects had ZERO lost time incidents and over 96.5% of those projects had ZERO recordable incidents. Mission: Zero means our goal of creating incident-free work environments is front of mind every day. We will work relentlessly to reach ZERO injuries and send everyone home uninjured every day. Sean Hamelin District Manager, PCL Construction Management Ltd.

“ Join the Mission: Zero movement by signing the Saskatchewan Health & Safety Leadership Charter. Call 306.352.3810 or email [email protected] for more information. ” WITH busIness & IndusTry AssocIATe publIsHer, pAul Huber Saskatchewan

t’s a very interesting VOLUMe 4 iSSUe 2 time for Saskatchewan editors erin Legg, Sherry Lee, Lori McKay politics. Our Premier, Brad Wall, recently Art Direction Lisa Redden, Senior Iwent to bat for the oil and gas sector at the Annual Design amber Moon, Candace Haiko, ghislaine Moffitt Premiers’ Conference where he staff Writers helped showcase the sector’s Melanie Furlong, Tobie Hainstock importance in growing Canada’s Cover Photography economy and creating jobs. esprit Photography Considering the recent change Photography in Alberta’s government, Wall’s alicia Leclercq, Calvin Fehr, Canadian Light timing could not have been Source, esprit Photography, greg Huscar better to build positive publicity Photography, Heather Fritz, Saskatchewan around himself and the sector, Mustard Commission, Saskatchewan Research Council, Tourism Saskatoon and to appeal to companies to Contributing Writers look east to Saskatchewan as a Blythe Martin, Brook Thalgott, Byron & place to live, work and invest. Shannon Briske, Canadian Light Source, Karen Yeske, F. R. Finlay, Saskatchewan Research Infrastructure — our theme this Council, WorkSafe Saskatchewan issue — is one of the core tenants Advertising Consultants of a successful economy and alison Brochu, Brooke Watson, Jason Booker, industrial sectors, yet our cities Sandy Zielinski seem to be in constant repair and Henry Dyck disrepair. Other major projects [email protected] such as pipelines or wastewater 306.220.9483 facilities often seem to be tied Associate Publisher to political bickering that stalls Paul Huber or sidelines construction. A [email protected] 306.551.6632 constant dialogue on this issue is necessary and we hope we have brought up some valuable points. Distribution & subscriptions [email protected]

Our feature on oil and gas royalties brings some clarity to a confusing and complex Business & industry Sask is published four times a year. We process. The topic is commonly thrown around in the media and political circles reserve the right to edit any materials chosen for publication including photographs. We reserve the right to reject or accept — for a variety of reasons. Ultimately, royalty revenues are an important source of any article, photograph, image or advertisement. all contents of Business & industry Sask is copyrighted 2015 with all rights provincial income and the general public deserves to have a firm understanding reserved, except for original articles submitted to Business & about how they work. industry Sask, where copyright resides with the author. no other part of this publication may be reproduced without the written permission of Business & industry Sask or its writers. We also take a look at culinary tourism. Saskatchewan is becoming a location for The name Business & industry Sask, its logo and material cannot be reproduced without the written consent of the fine dining — a direct result of our incredible homegrown produce. Check out this publishers. The views and opinions expressed in the expert article for some great ideas on amazing Prairie eats. advice columns herein are those of the authors and do not necessarily represent the views and opinions of Business & industry Sask or the companies it represents. The information As always, please visit our website www.businessandindustry.ca and follow us on contained herein is of a general nature and is not intended to address the circumstances of any particular individual or Facebook and Twitter. entity. although we endeavour to provide accurate and timely information, there can be no guarantee that such information Sincerely, is accurate as of the date it is received or that it will continue to be accurate in the future. no one should act upon such information without appropriate professional advice after a Paul Huber, Associate Publisher thorough examination of the particular situation.

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1600–8th Avenue, Regina | 306.525.9125 www.parklandcarpetoneregina.com CONTENTS

SASKATCHEWAN CULINARY TOURISM 40

8 Safety Make ZERO Your Mission

11 HR/Management Leading & Managing Your Intangible Infrastructure

15 Saskatchewan Industry FORTIS Infrastructure: Critical Ingredient in the Economic Recipe; Understanding Oil & Gas Royalties YOUR PARTNER IN PROVIDING 28 Science & Technology Crystallography Facilities Upgraded at Canadian Light Source; Limitless Future MINING for Biotechnology in Saskatchewan SOLUTIONS

32 Legal Saskatchewan’s New Environmental Legislation & Brownfield Redevelopment 22 34 Finance/Business Sense 39 Marketing 46 Sask Life Infrastructure for Business Growth Marketing Your Website Fashion as an Industry in — SEO or SEM? Saskatchewan

6 Business AND INDUSTRY saskatchewan Upcoming Conventions, EVENTTrade Shows, Workshops and Events CALENDAR AUGUST - OCTOBER 2015

▶ SEPTEMBER 10 Moose Jaw Chamber of Commerce President’s Event AGM Heritage Inn, Moose Jaw

▶ SEPTEMBER 19  27 Organic Week www.organicweek.ca

▶ SEPTEMBER 23 SEPTEMBER 19 27 2015 All Nations Job Expo Evraz Place, Regina

▶ SEPTEMBER 25  27 Business Expo A nity Place, Estevan ▶ SEPTEMBER 30  OCTOBER 2 Prevention Matters 2015 Conference TCU Place, Saskatoon ▶ OCTOBER 23 SCBEX Awards SEPTEMBER 25 27 Living Sky Casino, Swi Current

OCTOBER 23

Business AND INDUSTRY saskatchewan 7 [ safety ]

MAKE ZERO YOUR MISSION COURTESY WORKSAFE SASKATCHEWAN The bold red billboards are bright against Workers’ Compensation Board data shows 86 per cent of registered companies reported zero injuries in 2014. the blue sky. “Make ZERO your mission.” Zero is possible. But how was that achieved in a highly What does that mean for Saskatchewan competitive economy? employers? What does that mean for you? Sean Hamelin, district manager for PCL Construction Management Inc., explains working toward zero means ord Moker, CEO of Safe Saskatchewan, estimates 350,000 continuously striving for injury prevention, every people are impacted by Mission: Zero every day through minute on the job. “We do everything we can to make the efforts of employers who have signed the Saskatchewan sure our work is performed safely. Everyone on a PCL Health & Safety Leadership Charter and are striving job site must have safety first and foremost on their Gto achieve zero injuries within their companies. The Saskatchewan minds. When someone enters our office or a project site, ABOVE: R.H. Electric Photo by Greg Huszar Photography

8 Business AND INDUSTRY saskatchewan the first thing we do is ask them to sign unacceptable! Working with and around in. Not so we can keep track of who visits live electricity was commonplace. It was a us, but so we understand who we have an risk that was not necessary.” obligation to keep safe.” Safety persistence has paid off for PCL, Jason Hrywkiw, general manager of R.H. Great Western Brewing Company and Electric of Yorkton, agrees. “We create R.H. Electric. Hrywkiw says creating a safety work plan before every job. a safety work plan before every job We have a responsibility to each other increases the efficiency of the work being and also to our customers and our done. “Our safety program has decreased families to do our job in the safest downtime and boosted teamwork. way possible.” Employees are encouraged to look out for each other and point out potentially Creating the safety culture wasn’t easy for unsafe acts or conditions.” Hamelin, Hrywkiw or for Wayne Morgan of the Great Western Brewing Company. The Great Western Brewing Company All faced employees, contractors and a saw a measurable decrease in its injury public who expected jobs to be done a rates. Morgan says, “Lost time days certain way. Morgan says, “There was an were reduced by over 50 per cent in attitude that ‘I’ve done it this way for 20 2014 versus 2013. We have come a long years and it hasn’t killed me yet.’ ” way over the years with the help of all of our employees, but we are not Hrywkiw faced the same obstacles there yet.” bringing in new safety restrictions to his industry. “The old boys used to tell you All agree zero is attainable. Hamelin says, the way to check for power was to lick “We believe zero is possible and won’t your fingers, touch the wires and see if accept attitudes or behaviours that think TOP PCL, Sean Hamelin (second from left) your hair stands up. It was completely otherwise. We will work relentlessly ABOVE Wayne Morgan, Great Western Brewing Company

Business AND INDUSTRY saskatchewan 9 to reach our goal of zero and to send everyone home uninjured every day. Setting up a Safety Program? In 2014, more than 99.8 per cent of 4 Tips from these Leaders! our 1,312 projects had zero lost time incidents, and over 96.5 per cent of those 1. Sign the Saskatchewan Health and Safety Charter projects had zero recordable incidents. With approximately 20 million man • It’s a great start hours, we had a record low lost time • The annual data helps show where you’ve been and frequency rate at 0.03.” where you need to go, and reminds you that we are all in this together to make Saskatchewan safer Safety and working toward Mission: • The Charter shows your employees, customers and Zero isn’t primarily about reducing community you are committed corporate costs. The goal is for families • It is a reminder to you about your safety commitment to live whole, unharmed lives with zero injuries. Morgan explains, “We all know 2. Learn from others! the cost benefit of reducing loss time • For every task, procedure or policy you are trying to incidents, but it’s the human cost of an develop, most have been done before injury that we want to see eliminated. • You don’t have to reinvent the wheel, especially We want to give them the tools and when developing a safety program; there are lots of knowledge they need to ensure a safe resources out there that can be tweaked and tailored and respectful workplace. We also want to suit your company them to take that knowledge home to use there.” 3. Commit Taking safety knowledge home, making • Remember: your culture isn’t going to change in a day safety a habit at work and at play — that’s • It takes hard work and commitment to maintain a creating a safety culture. That’s making safety program zero your mission. • Safety is always about continuous improvement; it can’t be a destination Contributed as a regular safety feature by WorkSafe Saskatchewan. Check out 4. Don’t Force Feed the next issue for more on how to make • Coach Saskatchewan the safest province in which • Build safety into tasks and processes to live, work and play. www.worksafesask.ca • Be a visible safety leader: walk your talk

10 Business AND INDUSTRY saskatchewan

EXPERT MANAGEMENT AND

ADVICE

ADVICE HUMAN RESOURCES EXPERT

Leading & Managing Your Intangible Business Infrastructure Key factors that impact your success at new skills and knowledge to better all levels: meet client needs? 6. Skills and Knowledge. An open 1. Leadership. e people in and positive attitude to learning new leadership positions must be clear skills is essential. Ensure upgrading on the vision and mission of the skills is a part of the business business. How positive and e ective culture. How well equipped is the is leadership’s impact on the business to manage current and organization’s performance? changing demands of customers? 2. Clarity. ere must be a clear 7. Collaboration. e ability to work understanding of the business goals together collaboratively and to help and of everyone’s role in achieving Photo by Calvin Fehr support each other is a key factor these goals. How clear is everyone in business success. How well do regarding the business vision, Peter Neufeldt divisions, branches, units and teams mission, values and their own role work together to meet business and President, Peak and expected behaviour in achieving client needs? Performance Consulting goals and business targets? 8. Trust. e development of high 201 - 2161 Scarth Street 3. Operational Management. levels of trust in other members of Regina S4P 2H8 E ective management and your team is essential. Is there an 306.790.4570 supervisory skills are powerful determinants of business success. overall high level of transparency [email protected] and resulting high level of trust www.peakperformanceconsulting.ca How e ective is mid-management at successfully guiding daily operations, throughout the organization? inspiring sta and keeping them 9. Customer Engagement. Building o satisfy, delight and even accountable while staying focused a close relationship with clients amaze your customers, you on both short and long-term goals to enhances understanding and must have an e ective and achieve the desired results? ful llment of their needs. How well e cient “intangible” business 4. Communication Skills and does employee behaviour support infrastructure.T e infrastructure must Practices. E ective communication successful customer relationships? be designed to bring people together to is the most universal challenge 10. Talent Management. Accurately work as an e ective team to achieve the in all organizations. Eliciting anticipating and identifying future business vision, mission and goals. extraordinary performance from sta needs enhances the potential for successful succession planning. Use your e ective intangible business ordinary people requires high How well is the business positioned infrastructure to develop strategies that levels of understanding that can to meet current and future enable achievement of the business’s vision, only be achieved with e ective mission and short and long-term goals. communication. How e ective is competencies needed to achieve its Positive leadership, co-operation, excellent everyone in the business — especially vision, mission and goals? communication and highly e ective those in leadership positions — at teamwork are essential for success. What sharing information appropriately Peter Neufeldt, is President of Peak do you need to do to achieve higher levels and giving and getting feedback? 5. Attitude. Performance Consulting and is an expert of success in your business? Studies by the Carnegie Institute have determined that 85 per on leadership development and building Rate the intangible infrastructure of your cent of all success and achievement is strong e ective teams. He is co-author business according to the scale below: the result of having the right attitude. with Brian Tracy of the soon to be released Does the general attitude motivate book, Success Today. For leadership Œ We are at least 80% there employees, embrace a culture training, coaching and more information  Proceed with caution of improvement and take every regarding the use of assessments call, Ž Serious correction is needed opportunity to engage in learning email or check the website.

Business AND INDUSTRY saskatchewan 11 Here’s a pop quiz: The Sustainable 1. Ever tried to find a downtown landmark in a major city without a map? 2. Ever tried to move a couch downstairs and around a corner without considering your turns first? STRATEGIC 3. Ever entertained 30 people at a dinner party without considering a menu or getting groceries? 4. Ever tried to guide a team of employees BY BLYTHE MARTIN and turn a profit year after year without a PLAN PHOTOS CAL FEHR strategic plan?

12 Business AND INDUSTRY saskatchewan Without the right goals and targets, your team can end up overwhelmed and demoralized. But let them tell you where you should be headed and the best way to get there, and not only will you steer toward success, but you will watch productivity increase and morale skyrocket along the way.

“Goals need to be easily achievable,” advises Beattie. “A good plan will build momentum as short-term targets are reached.” The consulting team suggests that by creating a plan with a good blend of short-term targets, which contribute to some longer-term organizational goals, a business can see results almost right away, giving credibility to the process. “Most teams are ready, willing and able to step it up a notch if they feel like they are part of a bigger plan,” says McKee.

A final element of a sustainable plan has to be a willingness to see it as a living, breathing strategy. “Parts of your strategy will need tweaking, no matter how much expert advice and research you put in to creating it,” McKee maintains. This, too, can be a morale builder with staff as they may be the first to recognize a flaw or fault with a target. “Part of building a team that is engaged is allowing them the opportunity to give you invaluable, honest feedback and perspective.”

According to Beattie, it takes five to 10 years for a system process to become embedded throughout an organization. “There is no shortcut to achieving the kind of success you see long-term for your business,” she states, “which is all the more reason to take a good look at your options for a strategic plan. Once it’s laid out, it’s tangible and real — not a faraway ideal.”

Beattie and McKee are inspired each time majority of people would Kelly Beattie, co-founder of Beyond they see an organization look at its future answer no to questions one, Connections Consulting. “Most managers and spell out how they want to define two or three above; for most, and owners are floundering without success. “The energy and focus in a room it’s just good common sense a plan, bewildered by trying to find during the process is amazing. It really knits toA have a plan, and for others, experience some direction.” a team together. We always feel like we’ve has taught them to know better than to been handed an amazing opportunity when What are the critical elements of a Pantone Red - 485C Pantone Gray - Cool Gray 4 Font - Century Gothic act without one. Sadly, however, the same we get to work on these kindsc-5 m-98 y-100of k-0 c-26 m-22 y-22projects.” k-0 R-226 G-35 B-26 R-188 G-187 B-186 cannot be said of question four. Too sustainable strategic plan? Beattie’s many businesses are answering yes, and partner Chris McKee suggests having pay the price with employee turnover, a plan that is driven from within increased customer complaints and your organization. “Your front line Beyond Connections Consulting decreased profitability. employees’ firsthand knowledge of 1030 Bogue Avenue, Moose Jaw the customer is your secret weapon 306.631.3028 306.209.0021 www.beyondconnections.ca “A strategic plan is too often left out when delving into the strategic @connectbeyond of a successful business strategy,” says planning process.” Beyond Connections Consulting

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INFRASTRUCTURE Critical Ingredient in the Economic Recipe

BY BUSINESS & INDUSTRY STAFF

Do you ever fi nd yourself wondering about the underpass or bridge you go through or over every day on the way to work? To most of us, the idea it isn’t up to standards is pretty much unthinkable.

Business AND INDUSTRY saskatchewan 15 SK DOCTORS OF OPTOMETRY

he condition of our most- infrastructure deficit has recently been travelled streets is pretty estimated to be between $350 and obvious, and there are $400 billion dollars.2 Last year, the Occupational Vision Care Program many more buried deep in Government of Canada announced a suburbanT neighborhoods that haven’t new $5.8 billion dollar per year program LET US PROTECT YOUR SIGHT been touched in decades. In some (for 10 years), but the gap between need neighbourhoods, there is always a flood and provision seems insurmountable. Each year the Saskatchewan concern; sewer and runoff backups are The problem remains that any estimate of Workers’ Compensation Board nightmares for homeowners. Upgrades the deficit is a snapshot and deterioration receives more than 3,500 reports to sewer and water systems are part is ongoing. of eye injuries. The Saskatchewan of every town and city’s yearly budget deliberations. Infrastructure failures are infrequent, Association of Optometrists’ but when they do occur, they can have Occupational Vision Care program The condition of our highway system tragic consequences. For example, the goal is to eliminate these injuries. becomes problematic only when we Place de la Concorde overpass collapsed want to travel, as runways do for airlines. in Montréal in 2006, killing five people People who don’t travel don’t care about and injuring several others. The bridge The Occupational Vision Care the condition of highways, but travel is was built in 1970, inspected regularly program ensures: an important part of the economy and it and had an expected lifespan of 70 years. must be facilitated. An inquiry found the overpass had faulty • quality safety eyewear for design and weakened through the years. every employee The power grid and communications networks are also important. Many The 2007 failure of a bridge over the • Industry Safety Standard of us recall the large blackout that Mississippi River in Minnesota was approved products occurred in the northeastern United another deadly accident. The bridge • cost effectiveness for States and Ontario in August 2003. had been given a “structurally deficient” companies and employees Fifty million people were affected by the rating in 1990, along with more than • experienced eye health cascading power outages and enforced 1,000 other bridges in Minnesota and professionals blackouts caused by power lines almost 20,000 more in the United States. brushing overgrown trees in Ohio and Inspections showed rust, cracks and • ease of administration exacerbated by a failed alarm system.1 metal fatigue, yet nothing was done. The interconnectivity of power systems became clear at that point. Closer to home, Saskatchewan suffers [email protected] from a huge infrastructure deficit. In www.optometrists.sk.ca Infrastructure has been top of mind the health area alone, the deficit exceeds in recent municipal elections across $2 billion. In 2013, Vanderwiel Facility the country for good reason. Canada’s Assessors (VFA) spent four months

1 Scientific American, August 13, 2008. 2 Swedlove, Frank, “Government alone can’t fix infrastructure deficit”, Dec 5/14 Globe and Mail.

16 Business AND INDUSTRY saskatchewan SK DOCTORS OF OPTOMETRY

assessing the $6.5 billion health facility Across the Canadian political spectrum, portfolio.3 Many facilities need to be everyone agrees infrastructure programs replaced and some will cost hundreds of are a good thing. The Liberals, New Democrats and governing Conservatives millions of dollars. Our problem is we Occupational Vision Care Program build facilities to last 40 years, but then all promote these programs, with the use them longer. Liberals calling in 2014 for a program that would dedicate $18 billion per year In the United States, a Senate committee for infrastructure, and the NDP speaking Healthy Eyes. approved a plan to spend $275 billion more generally of the need for investment Doctor Delivered.™ 6 over the next six years without knowing in public transit and VIA Rail. www.optometrists.sk.ca how the plan will be paid for. With 61,000 structurally deficient bridges and Groups across Canada, including the more than half the highways in “less Federation of Canadian Municipalities More than one hundred than good” shape,4 members of both (FCM), are arguing for a large parties in the U.S. agree infrastructure is infrastructure program to bring Canada Saskatchewan companies up to standards in many areas to ensure important. However, they must agree on participate in the Occupational public safety and stimulate the economy. how to pay for the program besides the Vision Care program, protecting In its pre-budget submission this year, funding provided by the gas tax. the eyes of thousands of the FCM suggests instead of funding employees. Take responsibility for There is a connection between infrastructure on a project-by-project your employee’s eye safety by infrastructure renewal and the basis, a more stable and predictable tailoring the program to meet your economy. We know governments can model should be used. The FCM also borrow money cheaply to finance points to the fact the federal government company’s safety eyewear needs. has brought in new standards for large national programs. We also wastewater for the country’s 3,500 LET US HELP YOU KEEP YOUR know infrastructure projects drive wastewater facilities; these standards will economic upturns. “Energy, water, EMPLOYEES SAFE. cost $18 billion to meet.7 transport, digital communications, waste disposal networks and facilities Canada has a large trade balance and are essential ingredients for the success unemployment is edging up in a number of a competitive modern economy. Saskatchewan Association of provinces, including Saskatchewan. of Optometrists Research has shown that well-designed Politics is about making choices, and it 306.652.2069 infrastructure investments have long- seems for reasons of safety, efficiency [email protected] term economic benefits; they can raise and economic development, a larger www.optometrists.sk.ca economic growth, productivity and infrastructure program would be land values, while providing significant appropriate for whichever government positive spillovers.”5 is in place after the fall 2015 election. 3 This information is available in detail at: http://www.saskatchewan.ca/government/government-structure/ministries/health/other-reports/other-ministry-plans-and-reports/ health-facility-assessments. 4 Report from http://thehill.com/policy/transportation/245971-senate-panel-approves-275b-transportation-plan. 5 London School of Economics Growth Commission, “Infrastructure and Growth”, Launch edition, Bottini, Coelho and Kao 6 Globe and Mail, March 10, 2014, “If Canada wants to build roads and bridges, it needs infrastructure banks”, by Brian Flemming. 7 FCM Pre-Budget News Release, March 31/15. The task assigned was to produce a simple explanation of oil and gas royalties A Primer on that would assist in understanding the factors involved in setting royalties and, in general, how they work. It’s a simple Understanding enough request, but a very difficult task. However, in the following few paragraphs the basics of oil and gas royalties have been set out. There has been no attempt to quantify the dollars collected by the Oil & Gas Government of Saskatchewan from the various categories of royalties, but that information is readily available from Saskatchewan government sources. ROyalties So, what is a royalty? A royalty is a share By F. R. Finlay of the product or profit that the owner of the resource is owed when that resource is produced. In Saskatchewan, more he publisher of this magazine indicated a lot of people talk about oil than 80 per cent of oil and gas is owned and gas royalties and express opinions as to whether royalties are by the government. They will grant a at reasonable levels. However, when people are questioned about license to a company to produce oil or specifics, very few know how royalties are set, how much money gas and in return, demand they receive theT government of Saskatchewan receives annually from oil and gas royalties a share of the product produced or a and whether royalties are fair to all stakeholders — the main ones being the share in the profit or revenue that the people of Saskatchewan and the companies who are producing oil and gas in producer makes from the extraction of the province. the oil or gas. While Saskatchewan has the right to take any amount they are owed in product, they have opted to take their share as a percentage of the financial returns from the production. In comparison, Alberta generally takes a financial interest in the produced products, but at times they take their share in actual product and market it directly to consumers.

To put it in a different perspective, if a royalty rate was set on a certain type of oil production in the province at 20 per cent of total revenue and the company produced $1,000 worth of oil, the government would receive $200. Very simple in concept and at first glance shouldn’t be difficult to understand how royalties work. Unfortunately, that is not the case!

it gets complicated It would be great if things could be kept as simple as having a single royalty rate for oil and one for natural gas. But that does not work due to three main factors:

• Not all oil is the same and based on whether it is “light oil” or “heavy oil” and the degree of impurities, especially the sulphur content, the selling price of a barrel of oil varies significantly. For example, today when

18 Business AND INDUSTRY saskatchewan setting rates The two basic royalties most often mentioned in the media are royalties based on “gross” revenues and royalties based on “net” revenue. Gross revenue would be the total value received for the oil and gas produced without any deduction for capital costs such as drilling expenses, production equipment or operating costs; that’s very easy to calculate. Net revenue is the amount left after deducting the operating costs and often some allowance for the capital costs involved. The royalty in this case would be a percentage of the “profit” of the oil or natural gas produced before income or other taxes.

Gross royalties are usually a much lower percentage than a net royalty that is applied after a producer’s expenses are recovered. In Saskatchewan, net royalty structures are the most common.

Another factor used in setting royalties is to increase the level of royalty based on the price of the product being produced. The concept here is that after a producing company has covered their expenses, the government should receive a larger share of the profits because those profits we hear a barrel of oil is selling for the reservoirs are not very prolific increase due to higher selling prices. For $60, that price is for a barrel of light and contaminants such as water or example, whether oil is selling for $60 a oil with very low sulphur content. A nitrogen cause production problems barrel or $100 a barrel, the expense to barrel of heavy oil today sells for $40 and lower the value of the natural gas. produce that barrel of oil is the same, so or even less. the $40 increase in the selling price of a • The costs involved in producing There are other considerations, but barrel of oil is essentially all profit to the different types of oil or natural gas vary generally, as you can see from the producer. It appears to be a windfall to the significantly. Some lower quality oils above examples, the two principal producer and the government wants to are in formations closer to the surface considerations are initial capital costs get a larger royalty when the price of the in Saskatchewan and therefore the and the ongoing costs of production. commodity is higher. In Saskatchewan, costs to drill for that resource are lower. virtually all products produced have However, heavy oil often needs some Why so many rates? royalty schedules that increase based on form of stimulus to get the maximum It is in the Government of Saskatchewan’s selling prices of the products. amount of oil out of the reserve, such best interest to set royalty levels that as water flooding or a form of thermal both encourage an oil and gas company Insight and understanding of this process is injection such as steam. This involves to spend the capital and invest ongoing very important, not only for those within the costly processes. On the other hand, costs to produce the oil and natural respective sectors, but for the population at some light oils are easier to produce, gas while also providing a reasonable large. It is important to understand what is but are usually located in much deeper share of the produced resource back to happening with government finances. Too formations that increase drilling costs the province, which is the owner of the often the media throws around the subject dramatically. Some light oil reservoirs, resource. In setting the royalty rates, the of royalties with ambiguous direction and such as Saskatchewan’s Bakken, are government takes into consideration purpose. Politicians also love to leverage both expensive to drill and produce the capital and operating costs, the the weight of the subject for their own because these reservoirs require the value of the product being produced ambitious purposes. However, the reality operator to use the more technical and and the royalty being charged in is most people do not understand how costly process of “fracking” to extract adjacent provinces or the United States. the royalties system works. Considering oil from the well. If Saskatchewan royalty rates were set at the incredible impact these funds exact on • In the case of natural gas in levels higher than other jurisdictions, provincial government spending, we owe it Saskatchewan, the costs of drilling the oil and gas companies will invest to ourselves to become better educated on wells is usually very reasonable, but where they can make the most money. the subject.

Business AND INDUSTRY saskatchewan 19 Your safety is our priority.

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With your support, SaskEnergy and TransGas are…

INVESTING IN SAFETY WE ARE THERE WHEN YOU NEED US

We want to keep you informed of our efforts and the actions SaskEnergy and TransGas have more employees dedicated you can take to assist with keeping communities safe. to safety-related jobs than any other task in our company. Over 600 technicians and tradespeople, construction SaskEnergy will be in communities around the province workers, engineers, technologists and customer service continuing with preventative maintenance programs and employees working in communities across the province upgrades to its 83,000 km pipeline system. to deliver safe and reliable natural gas service. We will continue to work with Sask 1st Call and industry Each year, our highly-trained people manage over 100,000 partners to promote safe digging practices for contractors, work orders of proactive safety-related activities, while landowners and homeowners, including the expansion of also responding 24/7 – at no charge – to 24,000 calls from Sask 1st Call’s Safety Patrol program – the first of its kind homes and businesses to provide safety checks and peace in Canada. of mind to our customers. As new challenges arise, SaskEnergy and TransGas will Saskatchewan is a safer place when we work together! look for opportunities to improve procedures while working to adopt industry best practices. This includes service Make sure you know where underground lines are initiatives such as joint line locating and our extensive before you dig by contacting Sask 1st Call online natural gas leak survey program. at sask1stcall.com or calling 1-866-828-4888.

WORKING WITH YOU, FOR YOU Follow safe digging practices when excavating around marked lines. When buildings are being constructed, renovated or taken If you smell natural gas, are planning a demolition project, down, or you are planning to excavate, our team can or if you have any safety-related concerns, contact help make job sites safer. With your support, we will be SaskEnergy at 1-888-7000-GAS(427). overseeing excavation projects near major natural gas pipelines. In addition, we will work with stakeholders to ensure the safe removal of natural gas service lines before buildings are taken down.

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flyexpressair.ca 1.877.392.2582 [ cover feature ]

Fortis: Your Partner in Providing Mining Solutions By Karen Cowan Photos esPrit PhotograPhy

Fortis is building a name for itself by innovating like no specific skill sets needed to complete all aspects of a job under one roof or other mining company in Canada. through its affiliation with its parent company, Northern Strands. hat began as a fabrication Fortis develops procedures to safely and machining business perform hazardous/high risk work, The company’s first milestone project was in as part of its parent designs and builds customized 2009 at the PotashCorp Cory mine, where company, Northern equipment to perform work safely, Fortis employees de-roped and re-roped the W entire mine shaft. Fortis played a significant Strands, Fortis has evolved to become a solves problems, manages budgets and remarkable turn-key operation serving provides project management. Fortis role in upgrading hoisting arrangement and the mining industry. is unique because it has access to the capacity from 35 to 50 tonnes.

22 Business AND INDUSTRY saskatchewan “It was a big job,” owner Garry Clarke says, adding there was urgency to complete the project because the mine was not operating during the upgrade and losing production time. Fortis tackled the specialized work no one else in the country was interested in doing — from developing the equipment that allowed the job to be completed safely, to creating and implementing the procedures.

Fortis is intrinsically involved in one of Saskatchewan’s most prolific resources: potash. The company has mining contracts at nearly every potash mine in the province. Fortis’ next big project is at PotashCorp’s Scissors Creek, which is the new mine shaft location near Rocanville. Working in a mine shaft 3,600 feet deep, employees will install ropes, conveyances and guides starting in August this year.

Fortis has six divisions that operate in conjunction with each other. From a uranium mine at McArthur River, to gold mines in Northern British Columbia and Manitoba, the mining division is made up of crews doing various underground or surface work at site, from construction to site rehabilitation. Fortis has worked to repair mine shafts that were caving in, installed structural steel, poured concrete liners and installed electrical

Business AND INDUSTRY saskatchewan 23 [ cover feature ]

cables through boreholes. The company has also done presinking work, belt conveyors upgrades and hydro-electric dam refurbishment.

The manufacturing division includes a machine shop and a fabrication shop. One of the machine shop’s major activities is producing mine attachments exclusively for Northern Strands. Fortis installs and changes out these mine attachments located at every rope termination. The fabrication shop builds and produces custom steel products, such as grout buckets, standalone reeling machines, shaft brackets, shaft steel, spreader beams, monorails, and man and material baskets in its CWB-certified welding shop.

The manufacturing division is known for its ability to build quick solutions to address a problem. If you can dream it for your mine site, Fortis can build it. If you have a problem, the fabrication division can create a solution. Solutions created by Fortis are apparent in mines today.

For example, over a decade ago, a mining company was having an issue with a cable snapping when it was tightened because the workers didn’t know how much weight was being applied. Fortis created a safe solution that is now so entrenched in everyday mine work, it is overlooked as modern innovation. The solution allows the cable to be properly tensioned without jamming, and includes a weigh scale to indicate when the rope has reached the desired tension. Clarke recently saw the product on site and innocently asked the unknowing workers what they thought of it. The response? The chorus of employees raved about the product. It was a subtle reminder to Clarke of his company’s innovation and relevance in the industry. “We find a problem and make the equipment to fix it. Years later, it’s still there,” Clarke says.

Fortis has dozens of examples of unique products. For example, its mobile reel handler — a machine that can be driven underground in a mine shaft, and has the power to lift the reels of wire rope and move them around in the shaft area — is in constant demand.

Mine sites across the province often experience similar problems. It’s not

24 Business AND INDUSTRY saskatchewan uncommon for Fortis to create a piece of equipment for one site, only for it to have mass appeal with other companies. The concept doesn’t stop at first draft either; Fortis is continually improving its prototypes to accommodate the needs of the industry.

Everything created at Fortis, which sits in the heart of Saskatoon’s industrial area, is stringently tested using massive hydraulic test beds to ensure the equipment meets safety factors and will not fail. As Clarke puts it, workers using rigging such as slings can rest easy knowing every sling used for hoisting equipment is carefully tested to ensure safety standards are met.

Prior to the unique product designs being sent to the manufacturing division, the engineering and drafting department create and refine the plans. The work includes the drafting for equipment used for material and personnel handling and lifting devices. They also provide drafting for plant and shaft layouts as well as developing critical lift plans.

Often, a machinery manufacturer or a mine site does not have the manpower to reassemble a piece of equipment in a mine after it’s taken apart on surface and sent underground. That’s where the mechanical division steps in. Fortis sends highly qualified trades people to the site to disassemble and reassemble equipment for the mining company. In addition, Fortis’ tradespeople will perform overhaul and repair services on surface and underground for customers.

Health and safety is a priority throughout Fortis. The company is continually working to exceed the expectations of the customer and Occupational Health and Safety (OH&S) regulations. Fortis has a reputation for writing detailed job procedures for dangerous work, making safety the No. 1 priority. It places a high priority on training its workers and auditing itself to ensure continuous improvement in safety procedures followed both in the warehouse and at a site.

Several years ago, Fortis undertook the initiative to obtain ISO Certifications in Health & Safety (18001), Quality (9001) and Environmental (14001) management. There were no clear rules for planning

Business AND INDUSTRY saskatchewan 25 [ cover feature ]

bring plenty of experience from previous jobs. Clarke says, “We have the right people in place onsite and in the office.”

Fortis is steadily adding aboriginal employees to its workforce. Aboriginal employees with strong leadership qualities are playing a significant role in recruitment while Fortis’ revered working environment does its job with worker retention. Fortis works to continually build its relationships with the aboriginal community as well, collaborating with aboriginal-owned and run companies.

Fortis has a remarkable commitment to the community. Year-long campaigns at the office focus on raising money to make one child’s wish come true through company barbecues, bottle drives and even selling scrap materials from the shop. Fortis is proud to support Children’s Wish alongside its sister company Certified Mining & Construction Sales and Rentals and its parent company Northern Strands.

In 2015, the Northern Strands Group of Companies employees helped grant the first ever Super Bowl wish in Saskatchewan through Children’s Wish by sending Jared and his family to the most anticipated NFL event of the season. Jared was a talented young football player before he was involved in a car crash that claimed the life of his friend and left Jared quadriplegic. As the recipient of a Wish, Jared chose to make the now difficult trip to Phoenix to see the Super Bowl live — in memory of his friend, lost too soon, and honouring his own dream to go. for safety and quality, and there were no work. Experienced tradespeople are Fortis is privileged to have been involved systems in place. ISO enabled Fortis to choosing to stay in Saskatchewan after with Jared and his family’s journey and is spell out its procedures to audit whether their contract jobs are finished. “It was working to provide future opportunities or not it was meeting the standards it brutal before,” Clarke says, adding it’s to enrich the lives of children with life- had set. This meant not just meeting, but a completely different scenario today. threatening medical conditions. exceeding, minimum standards for health “People like it here and want to stay and safety, quality and environment. working here.” This wealth of skilled As Fortis continues its commitment It is important to Fortis to manage the workers in Saskatchewan gives Fortis the to local causes, it is maintaining company’s environmental impact. Clarke opportunity to hire the best. its reputation on a larger scale. An says, “We are always looking to improve emerging privately-owned company, the site environment and leave it better Fortis employs a plethora of skilled Fortis is leaving its footprint in the than it was before.” workers, ranging from heavy duty mining industry through quality mechanics, mechanical technicians, workmanship, cutting-edge innovation The landscape of trained workers millwrights, machinists, welders, and a commitment to health, safety, has shifted in the last six months. structural and mechanical engineers environment and community. Skilled labourers from other projects, to highly skilled miners, business Fortis Mining Engineering and Manufacturing industries and provinces which have administrators and health and safety 1.844.542.2247 slowed down are here and looking for trained personnel. These employees fortiscorporation.com

26 Business AND INDUSTRY saskatchewan 45 Years and 5 divisions strong For when you need a Lift…

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NS_Bus&Ind_FP_Ad_Final.indd 1 6/22/15 11:31 AM [ Science & Technology ]

Crystallography FaCilities Upgraded at Canadian Light Source

COurtESy CAnAdIAn LIgHt SOurCE PHOtOS CAnAdIAn LIgHt SOurCE

A research facility at the Canadian “ anadian researchers are among the top structural biologists worldwide and rely heavily on the Light Source that has yielded insights tools at the CLS for their experiments,” says into illnesses such as Parkinson’s Miroslaw Cygler, University of Saskatchewan (U ofC S) professor of biochemistry and Canada Research Chair in disease, malaria, heart disease and Molecular Medicine Using Synchrotron Light. cancer will receive a major upgrade The CFI investment represents 40 per cent of the total $8.6 thanks to a $3.3 million investment million upgrade to the national synchrotron, located on the U of by the Canada Foundation for S campus. The balance is to be contributed by federal government and provincial government partners across Canada, as well as Innovation (CFI). the U of S and in-kind contributions from suppliers. The U of

ABOVE CLS Science Associate, Shaun Labiuk, on the CMCF beamline where scientists study everything from heart disease and cancer to malaria and HIV.

28 Business AND INDUSTRY saskatchewan the CFI investment represents 40 per cent of % the total $8.6 million upgrade to the national 40 synchrotron, located on the u of S campus. intensity X-rays which are used to determine the 3-D structures of proteins. Th e upgrade will allow for brighter, more focused X-rays, and add faster, more sensitive detection capabilities.

“Th is beamline must continue evolving and keeping pace with new technologies and new challenges in structural biology,” Cygler says. “Th ese upgrades will allow the CMCF to retain its place among the top facilities in the world.”

Knowing the shapes of proteins allows researchers to design molecules to detect disease and develop new drugs and therapies. Applications range from medicine and biotechnology to green chemistry solutions to reduce impact on the environment.

To date, researchers using the CMCF have determined the 3D structures of nearly 600 proteins, contributing their data to the international Protein Data Bank. Th e work of these Canadian researchers has appeared in some of the world’s top scientifi c journals, including New England Journal of Medicine, Nature, Science, and Cell. About 75 scientists from across Canada, along with their staff and students, regularly use the CMCF. Several international researchers, as well as important commercial clients, also use the facility either in person or remotely.

S is collaborating with eight universities Macromolecular Crystallography from fi ve provinces on the project. Facility (CMCF). Commissioned in 2006, the beamline produces high “Th is major CFI investment will support cutting edge academic and industrial research across Canada, enabling scientists to explore emerging frontiers in cell biology at the atomic level and discover new drugs to fi ght chronic and infectious diseases,” says Karen Chad, U of S vice-president research. “It’s fi tting that this retooling of one of the world’s best X-ray diff raction beamlines, designed a decade ago, is happening during the UN-proclaimed International Year of Light, a celebration of light-based technologies and their impact around the world.”

Specifi cally, the funds will pay for upgrades to the older of two beamlines that make up the Canadian

Business AND INDUSTRY saskatchewan 29 Picture This

Saskatchewan farmer uses microbial inoculants and biostimulants (microorganisms that promoteA plant growth and health) instead of traditional agrochemicals on her crops to give them a strong start and protect them through to harvest. Her farm’s healthy and robust crops of pulses, grains and oilseeds are used in Canada and around the world to feed its growing population.

Our farmer’s strategic use of microbes on her crops is just one example of how commercialized biotechnology is being implemented in Saskatchewan.

The Past Agriculture has been the foundation of Saskatchewan’s economy for more than a century, thanks to wide open spaces, tenacious farmers and a spirit of adaptation. For years, Saskatchewanians used their resourcefulness (and science and technology) to overcome diffi cult climates and geography. Over time, Saskatchewan-based research resulted in new hardy wheat varieties and the creation of canola. Th e science of agricultural biotechnology proved its value and opened the door to possibility.

In the 1980s, the Government of Saskatchewan recognized developments in molecular biology would lead to major changes in the province’s agriculture industry. In response to this opportunity, they enabled the creation of world-class research infrastructure and industrial support organizations to catalyze the growth of an ag-bioscience cluster in Saskatchewan. Partnerships between levels of government, universities, research institutes and THE FUTURE private enterprises played a strong role in advancing the biotechnology agenda.

With this wide support backing the sector and a host of promising technologies IS LIMITLESS being developed by organizations such as the Saskatchewan Research Council (SRC), National Research Council for Biotechnology in Canada, Agriculture and Agri-Food Canada, the University of Saskatchewan and nearly one hundred local companies, Saskatchewan Saskatchewan has become a global leader COURTESY SASKATCHEWAN RESEARCH COUNCIL in agricultural biotechnology.

30 Business AND INDUSTRY saskatchewan materials. In addition, SRC employs microbial enhanced oil recovery technology to assist clients boost both onshore and offshore oil extraction.

Like the Canadian Light Source synchrotron, the Fedoruk Centre cyclotron and the Vaccine and Infectious Disease Organization (VIDO) InterVac facility, SRC’s microbial fermentation plant is one of many world-class facilities in Saskatchewan that offers capabilities to accelerate the commercialization of biotechnologies.

Genome Canada is also getting behind the application of biotech beyond health and agriculture. On June 4, 2015, the not-for-profit agency launched a new funding opportunity — a large-scale applied research project competition for natural resources and the environment. The project’s scope includes areas such as genomics research related to energy, mining, forestry, water stewardship, wildlife management and conservation and bio-products that help conserve natural resources and protect the environment.

Clearly, agriculture will always remain a core focus of our biotechnology efforts in Saskatchewan. With the critical research and development infrastructure to enable the transitions of basic research into applied technologies and true innovation, the province is well Whether it’s increasing crop yield and There are endless opportunities to positioned to deliver value across the full stress resilience (as in our farmer’s apply biotechnology in the mining spectrum of industrial biotechnology. story above), accelerating new variety and energy industries, in animal and development or improving livestock human health, in environmental production and sustainability, management and beyond. All sectors can The Future Saskatchewan has embraced confidently tap into the capabilities and Now picture this: Saskatchewan biotechnology to deliver more value to resources available in Saskatchewan’s scientists meet with a mining client to the agriculture sector and enhance food biotechnology cluster; it is no longer just design wetlands and explore microbial security on a global scale. for agricultural research. capabilities to remediate a mine site. At this same site, uranium has been leached The Present Besides crop DNA testing services, SRC from low-grade ore, waste rock and mine Stakeholders in the bioscience cluster has a suite of biotech capabilities that tailings using economically viable and work together to identify and share are accessed by various industries. For environmentally friendly biotechnology perspectives on emerging opportunities example, SRC has expertise applying discovered by SRC researchers. for biotechnology in Saskatchewan and biofilm reactor technology to treat to explore how to work collaboratively wastewater, using bacterial culture Some of these life science solutions are to drive innovation by leveraging our to consume undesirable organics in already in use today — and we aren’t too respective and mutual core strengths. Now, water streams. SRC also works with far off from having this story become our collective and foundational strengths in clients to commercialize bioprocessing the norm. These technologies are being agricultural biotechnology have given rise technologies, focusing on the developed and commercialized in a to opportunities to apply these leading-edge thermochemical conversion of biomass thriving biotechnology science cluster in capabilities in areas beyond agriculture. to biofuels and other higher value Saskatchewan.

Business AND INDUSTRY saskatchewan 31 [ legal ]

Saskatchewan’s New Environmental Legislation and Brownfi eld Redevelopment

BY CHRISTOPHER J. MASICH

n June 1, 2015, e land on which a substance is discovered, risk and gives rise to potential liability Environmental Management and every person who, while conducting attaching to the owner or occupant. For and Protection Act, 2010 work, discovers a substance that may owners and occupants, consideration of (“EMPA 2010”) came into cause or is causing an adverse e ect, is O such risk is now a necessary prerequisite force and aims to provide increased required to report the discovery to the to undertaking or permitting any certainty around the purchase, sale and Saskatchewan Ministry of Environment environmental due diligence on a development of brown eld sites. However, (the “MOE”).  is signi cantly expands site. For contractors and developers, this reform gives rise to potential pitfalls the scope of persons who are under a duty to report and the report may give understanding reporting obligations that sellers, buyers, developers and rise to unintended results. and business and contractual risk contractors should be alerted to. (timing of deliverables and completion) For purchase/sale transactions and A New Duty to Report a Discovery project development that warrant is a must.  ese issues are particularly environmental due diligence, the relevant in the context of brown eld EMPA 2010 includes a new duty to report potential for discovery of an adverse redevelopment, bare land development a discovery. Every owner or occupier of substance creates increased transactional and industrial land.

32 Business AND INDUSTRY saskatchewan expressly provide that the MOE will not pursue a person who meets the de nition of a “person responsible” simply because a contractual transfer of risk has occurred. Contractual indemnities and other traditional risk mitigation steps are still prudent.

Ultimately, this reform provides needed certainty in the area of brown eld redevelopment. Sellers on the one hand and buyers and developers on the other hand are in a position to ascertain and determine risk prior to a purchase and sale transaction and price such risk accordingly. Finally, following completion of environmental remediation, the MOE will issue a “notice of site condition” which provides a limited release for owners and future owners of such site.

This article presents a summary of information and does not constitute legal advice.

Statutorily Permitted to transfer the responsibility for such an Transfer of Risk environmentally impacted site, subject to the parties meeting the requirements of the Act, most notably providing the New to EMPA 2010, the legislation MOE with nancial assurance. permits the contractual transfer of the responsibilities of a “person In light of this reform, in both responsible” to remediate environmental purchase/sale transactions and project Christopher J. Masich is an associate contamination. Where a site has not yet development, parties should expressly in the McKercher LLP Saskatoon been determined to be an “environmental apportion risk and price the risk office and maintains a corporate and impacted site,” EMPA 2010 allows accordingly. Failure to contractually commercial law practice with particular parties to contractually transfer the agree in clear, express terms leaves all emphasis in the areas of corporate risk underlying the concept of “person parties at risk of being made a “person finance, securities, commercial real responsible.” Where a site has been responsible” whether or not such estate, agriculture and agribusiness. determined to be an “environmental intention was present. It is important to Chris J. Masich impacted site,” EMPA 2010 allow parties note, however, that EMPA 2010 does not Associate, McKercher LLP

Business AND INDUSTRY saskatchewan 33 [ finance ]

Your Top Five Business Questions Answered Managing Taxes, Family Succession and Shareholders' Interests

By Shannon and Byron BrISke As financial planners focused on our family and our businesswe understand the importance of taking time for proper planning to ensure your business and your family remains successful and intact. e’ve put together five questions you should ask 2. Cash is building up in my corporation. What do I need your professional advisors. We hope they will to know? generate discussion and help guide you in the right direction. Excess cash is a good thing, but not in your operating company. W Exposure to creditors is one issue, and so is potentially losing 1. If I sold my business today, what could I have done five the capital gains exemption. Taking out the cash may not be years ago to reduce my tax bill? the answer because your personal tax bill may be very high. A Many tax plans must be in place years before a sale. Some may holding company is one way of removing excess cash from an not work if they are done in contemplation of a sale. You never operating company while maintaining a tax deferral. You can know when that right offer will present itself; so the sooner you draw on it in a year when your taxable income is lower, such as start planning, the better. during retirement.

34 Business AND INDUSTRY saskatchewan Current tax laws create disincentives for earning certain types of investment income inside of a corporation. Yet, avoiding these investments could be detrimental to a retirement portfolio. Corporate class investment structures offer proper asset allocation with the advantage of being more tax efficient. 3. how can I transfer the business to my children? I need the cash, but they can’t afford it. Tax-efficient buy-out strategies exist. The transfer of a business to a child can be completed using after-tax corporate dollars. Structuring the buy-out over time can also create a tax-efficient retirement income stream. 4. If I transfer the business to one child, how do I equalize with the other? There are many options, and the right answer will depend on your particular situation. Can the business be divided? Can the land and building be segregated? If the business sold assets or borrowed funds to buy-out your estate, would it remain viable? Life insurance can be a cost-effective and tax- efficient tool to transfer a business to a child while creating liquidity for equalization. 5. What is a buy/sell, and do I need one? A buy/sell is included in a shareholder’s agreement. It specifies what happens in various situations, such as death, disability or retirement. It’s extremely important when there is more than one shareholder — even in a closely-held family businesses. Including a method to determine fair market value for your business interest will help determine how much insurance coverage you need to maintain.

The advantage of sitting down with us is that we take all the wondering out of your business strategies. As financial advisors we get your business house in order, so you can spend worry-free time on your family and friends.

If you would like to talk more about these strategies, please contact Shannon Briske, Senior Financial Planning Advisor and Byron Briske, Senior Financial Advisor with Assante Financial Management Ltd. by visiting their website, www.thebriskefinancialgroup. com, to discuss your particular circumstances prior to acting on the information above. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

Assante Financial Management Ltd. 301-500 Spadina Crescent E Sasktaoon 306.665.3244 www.thebriskefinancialgroup.com [email protected] [email protected]

Business AND INDUSTRY saskatchewan 35 Infrastructure for Business Growth By Phil Symchych

Can you grow your business to be three times as large? landscape. But if you’re happy with that, Or, are you avoiding dramatic growth because you’re not then stop reading and turn the page. sure how you could handle it? Okay, since you’re still here, let’s get down to business. With the right infrastructure, you can grow your business 25 to 50 any business owners number by five or 10 per cent. That’s per cent and likely do that without focus on incremental incremental growth that’s safe… and significant capital expenditure (Cap-Ex). growth and are happy boring. Ten per cent growth is barely “How do I do that?” you ask. Now, that’s beating last year’s M break even, given the competitive a great question.

36 Business AND INDUSTRY saskatchewan STRATEGY

and this is lagging information, then it will be very difficult to double your performance. You must be measuring MANAGEMENT MARKETING daily production and sharing that information with your managers. With this information, they can improve production. Without daily information, you can’t hold them accountable, can you? How old is the information that your managers use? Slight improvements applied frequently will generate significant results over time. Like football, business is a game of inches.

It’s management’s job to share where your company is going, position your INFORMATION CAPACITY employees for success and then help them to continually increase their performance, learn, grow and have fun. Have you ever seen an unhappy employee create a happy customer? Creating a performance culture is the ultimate infrastructure for growth.

Here are the five steps to dramatically customers that “we help increase your growing your business, increasing your sales” compared to “we’ve helped similar top and bottom lines, boosting valuation companies to grow their revenues 377 and building your business wealth. per cent.” The power comes from being The steps include strategy, marketing, specific in your results and aiming that capacity, information and management. message at your ideal customers.

Strategy is about proactively focusing As you attract more business, you and aligning your resources to provide need to deliver. How can your people maximum value to your customers as increase total capacity by 50 per cent quickly as possible. It’s about speed and without spending tons of money leverage to create results. Do you measure on new equipment? Ask them! One the economic impact you have on your manufacturer doubled its production by clients and customers? Do they know outsourcing a complex subassembly to a how much you help them to increase much larger firm that had the resources revenues and profits, decrease costs and to handle production and could deliver attract customers? Quantifying your it faster and at less cost than they could Phil Symchych, CPA, MBA, is the president results is the foundation of good strategy. do themselves internally. of Symco & Co., an expert in business growth, author of Phil’s Profit Points, and Once you’ve quantified your results, One of the most common weaknesses co-author of The Business Wealth Builders, your marketing just got a lot easier in any midmarket company is not to be published this fall by Business and much more powerful. There’s a measuring the right things. If your only Expert Press. For free information, visit huge difference between telling your information is your accounting system, www.symcoandco.com/resources/.

Business AND INDUSTRY saskatchewan 37

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Interlisted Advantage

properties in the U.S. in 2008 when the that even though it is a U.S. holding, loonie was on par with the greenback. he as a Canadian is still entitled to the He took our advice and moved a large Canadian Dividend Tax Credit for sum of non-registered money from his quali ed Canadian interlisted dividend Canadian portfolio and converted it to paying companies. USD. Mr. Arb has participated in our U.S. equity models and over the last three  e bene t of this strategy is the years has experienced tremendous gains continued U.S. cash ow (Mr. Arb still with the Canadian dollar dropping and has a U.S. property he maintains for his the U.S. stock market recovering. Mr. personal use). He can continue to earn Arb is now at a crossroads. He feels the U.S. dollars and spend them in the US U.S. market is fairly valued but he also e ectively eliminating any currency risk. feels as though the Canadian dollar is He also has the bene t of purchasing not going to move very much (especially undervalued Canadian companies Sheldon Gray, CIM, CFP with oil being down). without the need to repatriate to the Director, Portfolio Manager Canadian loonie and he can continue Mr. Arb may be selling two of his U.S. to take advantage of the Canadian Scotia MacLeod rental properties (he has had great Dividend Tax Credit. 305-3303 Hillsdale Street, Regina cash ow and capital appreciation) and 306.761.6512 Mr. Arb admits this is a strategy he www.thegrayteam.ca will have a signi cant amount of U.S. cash. He is hesitant to convert back would not have thought of on his own to Canadian but feels the U.S. equity — he appreciates the advice focused market has increased too much. Mr. Arb on his investments and cash ow and is looking for advice on where to place also that it took into account the bigger the proceeds of the potential sale of his picture and provided tax minimization U.S. rental properties. opportunities. He is impressed and tells  e Gray Team he will be referring We advised Mr. Arb that he is correct in his colleagues so they can learn more he Canadian dollar has out- his thinking that the U.S. equity market about recommended strategies to grow shined the U.S. greenback is fairly valued and that it is unlikely the their wealth. four times in the last 20 years. loonie will trade at par any time soon. Many investors have taken We suggested Mr. Arb consider buying is article is intended as a general advantageT of this opportunity to convert Canadian banks that are interlisted source of information and should not be loonies to greenbacks one for one (or on the U.S. exchange.  e Canadian considered as personal investment, tax or better) by buying U.S. real estate, U.S. banks have been under pressure since pension advice. We are not tax advisors equities, straight cash transactions, or a last summer and are paying dividend and we recommend that individuals combination of all three. Looking in the consult with their professional tax advisor yields in the area of four to four-and- rear view mirror we o en hear investors before taking any action based upon the a-half per cent. We explain to Mr. Arb lament that they should have “done information found in this publication. more.” Now that the loonie is trading in the area of $0.80 CAD for every $1 USD, we  nd investors are frozen in terms of what their next move should be. Enter Gray Team Portfolio Management.

Let’s take a real life client example. We will use the pseudonym Mr. Arb for our purposes. Mr. Arb is a high net worth, savvy investor and purchased three

38 Business AND INDUSTRY saskatchewan

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Marketing Your Website — SEO or SEM?

parse them for the keywords customers fast and can shoot you to the top of the are seeking. is can be broken into two page results within an a ernoon. It’s pay- tactics: On Page SEO and O Page SEO. per-click, which means you’re paying each time an individual clicks on your On Page SEO refers to optimizing link. at doesn’t mean someone can just your website content so the density of sit there and run up your bill. ere are keywords and phrases is at a high enough safeguards tracking each click to ensure level that search engines see your website the same computer is only registered as a quality resource for their customers. once every 24 hours. When working on a customer’s On Page SEO, we focus on three areas: website ere are many bene ts with SEM. You content, metadata (page descriptions and can set your daily budget, your max keywords in the code the viewer doesn’t pay-per-click, and even your country, see) and how we are going generate province and city of preference. If you fresh content. Generating fresh content want to run ads that only target Regina, through creating articles and blogs is the Saskatchewan, you can see how many No. 1 way to boost your On Page SEO. It times people in that city search for your Jason Orban also educates and builds your customers’ keywords, creating a campaign targeted Think Big Studios trust in your business. directly to them. at’s powerful. 1651 – 11th Avenue O Page SEO refers to creating links to Regina When it comes to SEO and SEM, a your website from other websites. is 306.205.5048 or strategy that combines both avenues is what you’ll run into when you get cold is the best way to bring tra c to your 1.877.505.2835 called for SEO. ey’re selling back link website. A long-term low-cost strategy [email protected] generation and not On Page SEO. White coupled with a short-term pay-per-click www.thinkbigstudios.ca Hat (good) and Black Hat techniques exist campaign will help you generate tra c, for generating O Page SEO, so be careful generate leads and build a customer base who you go with; the wrong person with that will last. the wrong techniques could get your website banned all together. You can build links in many ways; a few free and easy question our clients o en options include online directories, adding ask is: “Now that I have a your website to forum submissions, and website built, what is the creating articles that link to your website best way to get tra c so I through social media. canA start generating leads?” Building quality SEO takes time, and to Two online marketing options — paid get the results you’re seeking may take search results, known as Search Engine up to six months. is is an investment Marketing (SEM), and Organic SEO and the results will last a long time. (Search Engine Optimization) — are two e ective solutions we use for our clients. Paid Search or Sponsored Advertising Organic Search Engine Optimization We like to complement SEO with SEM (Search Engine Marketing) sponsored Organic SEO involves optimizing ads. While SEO is an investment that websites to allow search engines to easily builds you page rank over time, SEM is

Business AND INDUSTRY saskatchewan 39 [ culinary tourism feature ] SASKATCHEWAN Culinary Tourism on the Rise

by brook ThalgoTT PhoTos courTesy Tourism saskaToon & saskaTchewan musTard develoPmenT commission

Over the last decade, a new trend has emerged — food tourism. defined by the world Food Tourism association as “the pursuit and enjoyment of unique and memorable food and drink experiences, both far and near,” food tourism is becoming a major local and international force.

n 2001, the trend was first noted participated in activities such as dining out by Erik Wolf, president of the for a memorable experience, taking cooking International Culinary Tourism classes, or attending food festivals. IAssociation (now the World Food Tourism Association) and nearly 15 years Another study by Brand USA shows Canadians later, culinary experiences are a major are just as interested in food experiences when component of the tourism industry. There travelling as their American counterparts. is now an endless array of food blogs and Thirty-one per cent of Canadians ranked online forums; millions of photos are food and dining as the most important travel uploaded documenting the adventures of experience and 55 per cent said food and dining food tourists; and many destinations are is an important destination characteristic. developing food-related travel experiences, events and promotions. Saskatchewan is cultivating a reputation as a destination for interesting and authentic This trend is showing no signs of abating. The Mandala Research firm, publisher food, beverage and dining experiences. “Many of the 2013 “American Culinary Traveler of the media calls I take ask about the food Report,” found leisure travellers (one who scene here,” says Aviva Zack, media director at has booked at least one vacation in the Tourism Saskatoon. “Soon, I will host a tour of previous 12 months) represent about 170 U.S. media for three days, and the entire tour million Americans. Of those, 77 per cent will be directed toward food and dining in the can be classified as culinary travelers, having Saskatoon area.”

40 Business AND INDUSTRY saskatchewan Business AND INDUSTRY saskatchewan 41 Saskatchewan’s prominence an as the Saskatoon Farmers’ Market, echoes in our restaurants, distilleries and food agricultural powerhouse is fuelling a new Boldt’s sentiments. “It was rare even six producers,” says Zack. “We’re seeing and creative food scene. Adele Buettner, years ago to find chefs working with businesses capitalize on this to create general manager of the Saskatchewan local food producers. Now, it’s the norm unique products and experiences for Mustard Development Commission, to work with farmers to bring more of locals and tourists.” says, “Saskatchewan has more arable what’s grown around us to their menus,” land than anywhere in the country, the Claude explains. “Some chefs base their Good planning is crucial to capitalizing second largest cow herd, and we’re a menus solely on what is in season at that on the food tourism trend, and if well- world leader in lentils, wheat, pulses and time of year.” mustard. “We’re growing the ingredients executed, can be profitable. Boldt has for the amazing culinary experiences Farmers’ markets are also seeing more advice when considering getting into people want.” And it’s not just restaurants tourists checking out their wares. the food and beverage tourist scene. creating new and interesting food “Tourists are interested in what’s grown “Tourism is an opportunity for farmers here and search out the local flavours. A experiences. “Home cooks are just as and restauranteurs,” she says. “But, it is a farmers’ market is a perfect place for them interested in unique foods. The plethora new revenue stream that requires a new of food-related media has sparked to see firsthand and talk to the producer.” business plan, especially for farmers. interest in new recipes and creativity in With this trend for local food, beverage the kitchen,” Buettner points out. Preparing events and experiences and dining, Saskatchewan restaurants and required a new skill set from what This farm-to-fork phenomenon is being producers are seizing the opportunity. most farmers typically possess in their Micro-breweries and distilleries are seen across the province. Melanie Boldt, production-orientated operations.” owner of Osler’s Pine View Farms, reimagining traditional beers and spirits sees it every day in her business. “As to integrate Saskatchewan’s bounty Whether you’re in agriculture, a food and experimenting with new local Saskatchewan grows and becomes more producer or in the hospitality industry, there’s ingredients. Restaurants are doing the diverse, more people are seeking ‘foodie’ plenty of opportunity in the Saskatchewan experiences,” she notes. “We have some same, taking the locally-grown food tourism market. With the trend only growing great chefs doing great things here.” narrative and making it their own. “We’re in a unique position because we for the foreseeable future, now is the time to Debbie Claude, manager of events at produce many of the ingredients used seize the moment.

42 Business AND INDUSTRY saskatchewan A Culinary Experience: Saskatchewan’s Charm, History & Delicious Food

hether you’re a visitor or a local, one thing is certain: Taste-It Food Tours provides an entertaining and delicious opportunity for you to try something new this summer. Join Patti Rodger and her team for a personalized dining tour of your favourite Saskatchewan city. Diners have the opportunity to Wtaste signature dishes and beverages at a selection of restaurants on each tour, while a knowledgeable guide shares the history of the area, information about the restaurants and descriptions of the food to be sampled. MOOSE JAW: The picturesque, historic setting of downtown Moose Jaw entertains and enlightens tourists. Guided walking tours for lunch and dinner available. REGINA: Wind around Wascana, take a Queen City dinner tour, or stroll through the Cathedral district sampling cuisine from the capital city’s best eateries. Patti Rodger (owner) CYPRESS HILLS: Foodies, rejoice! Tour this beautiful destination in southwestern Saskatchewan and sample the menus from featured establishments in the area, including the Cypress Hills Winery for a wine tasting! SASKATOON: Coming soon! A Taste-It Food Tour is the best way to discover your new favourite restaurant! Large groups and corporate team-building welcome. Please discuss dietary restrictions when booking Taste-It Food Tours your tour. Don’t miss out: the Taste-It Food Tours run until September. For more information 306.868.7773 and to book yours today, please visit www.tasteitfoodtours.ca. tasteitfoodtours.ca Saskatoon’s most unique and popular attraction!

The Berry Barn — the PERFECT riverside destination to visit or celebrate a special occasion. We host Christmas parties, weddings, corporate and all functions. Enjoy our country-style eatery. We cater on or off-site.

Open April through December. Check website for hours. 830 Valley Road | 306.978.9797 | berrybarn.ca

[ Sask Life ] Fashion as an industry in Saskatchewan By ToBie HainsTock PHoTos Wes ToLLeFson

46 Business AND INDUSTRY saskatchewan he fashion industry in our lines and Sask Fashion Week allows Saskatchewan is demanding people to look over the clothes after the more attention. With events shows, which is not common,” notes such as Saskatchewan Fashion established designer Dean Renwick. WeekT in Regina (SFW) and the Saskatoon Bewcyk agrees with Renwick that the Fashion and Design Festival, the province’s experience of creating her own line and fashion industry is gaining well deserved showing it for the first time will assist her exposure. Streaming these events live on on her career path. the Internet adds to the momentum. This publicity lines up with the SFW Yet, there are no numbers available mandate. According to Chelsea to measure the industry’s growth. Petterson, spokesperson and co-founder, Why is this? According to Creative SFW is dedicated to creating an inclusive Saskatchewan and the Saskatchewan experience that exposes and celebrates Arts Board, fashion is not considered a Saskatchewan’s artistic, entrepreneurial viable creative industry. This means there and creative talent and innovation. are no measurable numbers available to determine what kind of effect these That mandate has prompted members fashion events have had on the industry’s of SFW and other interested parties to approach Saskatchewan’s Minister of growth in the past two to five years. Parks, Culture and Sport, Mark Docherty, “Of course it’s a viable industry,” chuckles about fashion being recognized as a Heather Brigidear, program coordinator creative industry. “The Minister was of the Academy of Fashion Design in very receptive to our concerns and asked Saskatoon. “We’ve always had a fashion us about our challenges,” comments industry in Saskatchewan. There are a lot Petterson. “He seemed very supportive of designers out there working from their and really seemed to listen and care homes. They are established professionals about what we had to say.” doing their jobs, whether it’s designing and Assistant Deputy Minister, Stewardship making wedding gowns, grad dresses or at Saskatchewan Ministry of Parks, whatever. We have a lot of people working Culture and Sports remarks, Scott in this industry.” Brigidear, who has been Brown, “Fashion is very much a working in fashion for about 40 years, viable industry, offering economic suspects there would be more realistic opportunities for business in ways to measure the number of designers Saskatchewan and employment for and dressmakers in Saskatchewan if it were Saskatchewan residents.” classed as a creative industry. According to Brown, the right steps Another area of concern is the are being taken to reach this goal. For production of the garments. Currently, any creative group to get established, there are no production facilities in there must be meetings with members Canada; everything gets shipped out to to formulate a plan of action. Petterson China and other countries. Emerging adds there will be many followup designer Amy Bewcyk says there are very meetings and they are willing to sit down few opportunities for production people with the minister to work out the details in the fashion industry in Canada. about what needs to be done.

Pegging fashion as a creative industry It’s not certain how long things will take will open the doors for both established before fashion is considered a creative and emerging designers to receive more industry, but in the meantime Renwick, marketing exposure. Consumers buying Bewcyk and Petterson encourage clothing from local designers rather consumers to seek out local designers. than larger retail stores can create many “We have great boutiques and great opportunities for these Saskatchewan- shopping right here in Saskatchewan,” based designers. notes Petterson. “When people buy locally, everyone benefits.” Designers and others in the industry have come to value events such as SFW saskfashionweek.com pcs.gov.sk.ca as a way to gain recognition in their field. aofdesign.com “We appreciate the opportunity to show kamikipiks.ca

PReVioUs PaGe eleganzia couture THis PaGe ToP Hillberg & Berk BoTToM stella & sway, sFW 2015

Business AND INDUSTRY saskatchewan 47 HEALING, LEARNING AND FREEDOM From the Deadly Grip of Addiction

By Melanie Furlong photos alicia leclercq

Addicts and their families should never he beautiful retreat, located in an 88-year-old former convent, provides a warm, welcoming environment give up on the struggle with drug and for addicts in a non-institutional setting. All the staff alcohol addiction. ardyth Wilson, an T at Leipzig Serenity Retreat are either in recovery themselves or have family members who are. Their five-week alcoholic in recovery, knows this from program is based on the 12 step philosophical ideas used by personal experience. she got sober 30 more than 350 organizations. Ms. Wilson states, “Many centres years ago, but lost her brother, Dwight, to only do steps one to three or one to five, but we do all 12 of the steps h e re .” his addictions at a young age. this was one of the catalysts that drove Wilson to Working on her own, it took Wilson almost one year to do the 12 Steps and it was a very painful process. At Leipzig Serenity open the leipzig serenity retreat seven Retreat, they explore all the steps in five weeks. “Years ago, you years ago in Wilkie, sK., making it the could find someone in AA who would help you go through the only privately run addictions centre in steps,” she says. “It appears to be harder for people to give the kind of time you need to get clean and sober nowadays. When the province. they come here and learn the steps, they’re more apt to continue

48 Business AND INDUSTRY saskatchewan with their recovery and build a healthy maximum of 18 clients at one time and hope. “Watching people change is the support network.” has three full-time counsellors on staff as most fulfilling part of our jobs,” she says. well as peer support workers. Also offered is one-on-one counselling, Anyone who requests a tour of the small group counselling, meditation Last year, 127 clients 18 years old and facility is welcome and staff members are sessions and an emotional wellness up took part in their programs. A client happy to answer questions from addicts program designed at Leipzig Serenity named Sam says, “I could not have or their families about the program. If Retreat. The emotional wellness classes asked for a better serenity retreat. The you or anyone you know could benefit explore self-esteem issues, negative grounds are beautiful and huge and the from the services at Leipzig Serenity core beliefs and biased expectations. staff is amazing and very helpful. My five Retreat, give them a call. This special This exploration helps clients redefine weeks went by so fast and the 12 Steps place is changing lives for the better. and examine their own morals, values and 12 Traditions helped me through Leipzig Serenity Retreat and beliefs. it. I appreciate all that you have done Wilkie, SK for me!” 888.519.4445 Ms. Wilson attributes their high rate of 306.658.4767 success to the intimate relaxed setting While it’s heartbreaking to see the leipziginfo@sasktel.net and high counsellor-client ratio. The damage already done to young addicts, leipzigserenityretreat.com retreat can accommodate up to a Wilson is adamant they are not without middle right Singer tom JackSon, 2013 muSic FeStival, bottom right ardyth WilSon, oWner

Business AND INDUSTRY saskatchewan 49 Jacqueline & Gilles Gobin, owners For all your corporate gift giving Catering for small & large groups

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www.worksafesask.ca www.safesask.com I BELIEVE IN MISSION: ZERO

Wayne Morgan, Human Resources and Compliance Manager and Colleen Chartrand, OHS Co-Chair We want all of our people to go home safe after a day of work. We want this to be a safe and respectful workplace, but we also want them to take that safety knowledge home to use there. We have come a long way over the years with the help of our employees, but we are not at zero yet. Let’s get all injuries to zero, at work and in our family life. It’s our mission at Great Western Brewing Company. Mission: Zero. Wayne Morgan Human Resources and Compliance Manager “ Great Western Brewing Company Ltd. Join the Mission: Zero movement by signing the Saskatchewan Health & Safety Leadership Charter. Call 306.352.3810 or email [email protected] for more information. ” CPG_B&I-Ad.pdf 1 2015-06-19 12:18 PM

thanks for not texting.

Photos: Robert Couse-Baker/John Verive Modified and used under CC BY 2.0/CC BY-SA 2.0

Even little distractions can be big trouble on the road. Make it to your next luau by keeping texting out of the car. Be safe out there.