FROM THE SURREY BOARD OF TRADE VOL 4 NO 3 MAY/JUNE, 2011 Cloverdale Rodeo@65, EX@122 Years EVENTS - Point of Pride is Major Business Driver for Surrey MEMO A change in format a few years at the format and asked for advice on LUNCHEON WITH SFU ago, which included eliminating steer how they could implement it. That’s PRESIDENT ANDREW PETTER wrestling and calf roping has paid off what initiated the invitation to come MAY 10, 12:00 – 1:30 with recognition from the (world’s to Houston to take part in their festivi- biggest) Houston Rodeo, stating that ties.” CLOVERDALE RODEO & Cloverdale has something worth Clearly it was a winning formula, COUNTRY FAIR implementing at their event. because in respect to the changes “Cloverdale changed the format brought about by Cloverdale, MAY 20 – 24 to a non-timed format, basically bar- Melenchuk and his Rodeo Manager TOP 25 UNDER 25 rel racing, saddle bronc, bareback and Jamie Rogers were also invited back bull riding” said Dave Melenchuk, next year with the top winners from AWARDS RECEPTION General Manager of the Cloverdale this year’s Cloverdale Rodeo, to be MAY 30, 5:30 – 8:00 PM Rodeo and Exhibition. “Now, entered into the Houston Event as Houston runs a 20 day event so on the “Team Cloverdale”. DEADLINE FOR VOTING last day they implemented this new “We’re looking for great things FOR SBOT DIRECTORS format called a “super shoot out,” and because as Team Cloverdale competes MAY 31, 5:00 pm attracted 70 – 75 thousand people. next year, we’ll get great coverage on Last year they had been in touch with Fox Sport (to all of North America)”, FUTURE MEMBER us to learn more about how we arrived said Melenchuk. ORIENTATION see CLOVERDALE RODEO on page 13 JUNE 8, 4:00 pm ANNUAL SBOT GOLF TOURNAMENT Surrey Focus The HST, Myths and Truths MORGAN CREEK JUNE 16, Shotgun 12:30 pm on India Former Premier Gordon Campbell MYTH #1: The HST will lead to paid a stiff price for the way his higher consumer prices across the The City of Surrey and the Details and registration government implemented the HST. The board; Surrey Board of Trade have reaction and the successful effort to force www.businessinsurrey.com both focused on India to create MYTH #2: Any price reductions a referendum on the tax has been highly realized by business will be pocketed businesses connections, memoranda and emotionally charged. However the of understanding and business as profits, with no benefit to the consequences of reverting to the PST/ economy or to consumers; and opportunities for the business GST system are enormous and not at ON THE community. In February, Mayor all positive as argued in this abbreviated MYTH #3: The HST will only benefit Dianne Watts with councillors, Linda (due to length) article from Richard Rees, big business, and low-income British INSIDE Hepner, Tom Gill and Barinder FCA. There’s an enormous amount at Columbians will be adversely affected. Rasode, lead a delegation of 24 stake and it’s critical that decisions are ENVIRONMENTAL BUSINESS: companies to India and in March, made from information over emotion. It’s In the eight months that have TRENCHLESS SOLUTIONS the Surrey Board of Trade, lead by President Nigel Watkinson, First-Vice time for sober reflection – Ed. passed since the HST was first FRASER SURREY DOCKS p6 President Mary Jane Stenberg and implemented, not one of these CEO Anita Huberman lead a group Addressing three HST myths dire predictions has materialized. SOCIAL MEDIA EXPLAINED p8 of about twenty to New Dehli, Agra, It’s clear that the longer the HST Economists have analysed the data, and Mumbai, to meet with the major remains in effect, the more people and now have a clearer picture of the MONEY LAUNDERING p9 Chambers of Commerce of India and understand its true impact. However, HST’s impact on BC’s economy thus a number of businesses. many British Columbians still believe far. Their research reveals that: MICHAEL LEVY OUTLOOK p10 For overviews of both missions, three myths put forward by those please turn to Pages 10 and 11. seeking to rescind the HST: WRITE OFF COMPUTERS p13 see THE HST! on page 3 SURREY BOARD OF TRADE ANNUAL GENERAL MEETING KEYNOTE: “THE TIM HORTONS STORY” BARJ DHAHAN, SANDHURST GROUP JUNE 23, 2011, 5:30 – 8:30 pm Eaglequest Golf Course at Coyote Creek For more information WWW.BUSINESSINSURREY.COM A Surrey Board of Trade publication in partnership with the Now Newspaper Follow us on Twitter: @SBofT www.businessinsurrey.com and on Facebook BN02 MAY/JUNE2011 Transform you space with Surdel’s Huge Selection of Flooring Solutions LUXURY CARPET PACKAGE QUALITY CARPET PACKAGE Includes: 800 sq ft of elegant, luxury nylon carpet 1/2” SmartCushion premium Includes: 900 sq ft of carpet, 1/2” SmartCushion premium cushion, 13 regular cushion, 13 regular stairs, life-time guaranteed installation, all finishing strips, lift stairs, life-time guaranteed installation, all finishing strips, lift & disposal of & disposal of existing carpet, 5 rooms of furniture removal existing carpet, 5 rooms of furniture removal NO HST NO HST 7995 5895 Offer valid until May 25th 2011 Offer valid until May 25th 2011 1695 1595 Offer valid until May 25th 2011 Offer valid until May 25th 2011 NO HST NO HST KITCHEN PACKAGE Featuring: Tarkett® FiberFloor® DELUXE BACK SPLASH PACKAGE Includes: 200 sq ft of Tarkett FiberFloor, life-time guaranteed installation, Includes: 25 sq ft of field tile, 5 sq ft of glass or accent tile, 1 hour professional remove and replace two appliances, basic prep of existing sub-floor, & all design consultation, life-time guaranteed installation, grout, grout boost and finishing strips. schluter. | M - F 10:00 - 5:30 | Sat - 10:00 - 5:00 | Sun - 11:00 - 5:00 | Y L M D OO EIN R WR O H ET F ET SHOWROOM S PETP FREINDLY 0511BIS MAY/JUNE2011 BN03 continued from page 1 SPECIAL REPORT The HST, The Referendum, The Future! 1. Consumer prices have not risen starting to hear anecdotal evidence of HST less regressive than the PST for What the HST means for the economy: dollar for every $165 dollars spent. across the board. the demonstrated benefits of the HST, this particular demographic. • Going back would be complex and • Under the HST, only 17% of goods Noted economist Jon Kesselman especially for small businesses. confusing for businesses, and it and services are newly taxable was first out of the gate with his For example, Institute representa- What the HST means for business: would also be extremely expensive (increasing from a 5% rate to a 12% recently released report, Consumer tives recently attended the Budget Rescinding the HST would mean for the provincial government, rein- rate); as stated earlier, 83% of goods Impacts of BC’s Harmonized Sales Lock-Up in Victoria, and spoke to a losing input tax credits for the pro- stating the now defunct PST office. and services have seen no increase Tax. Kesselman found that since the small-business owner who said she vincial portion of the sales tax, which • Maintaining the HST would and are still taxed at the 12% rate. HST was introduced in July 2010, the was shocked by the positive impact would increase the cost of doing encourage investment, create jobs, • Lower income British Columbians consumer price index (CPI) grew by the HST had already had on her busi- business in the province and make and lead to lower prices, making have been protected against most only 0.6 of 1%—in others words, con- ness. She told us she is saving signifi- BC businesses less competitive. For BC businesses more competitive. increases, and about 1.1 million are sumers are paying $1 additional dollar cant money on compliance and filing, industries like the film industry, that All of these things are good for receiving the BC HST tax credit. for every $165 dollars they spend. and that these savings, combined with could mean the difference between BC’s economy, and drive economic also the spending of this demo- (Jonathan R. Kesselman, Consumer Impacts of the input tax credits, enabled her to maintaining our status as “Hollywood growth. Ontario has made this graphic is concentrated on items BC’s Harmonized Sales Tax, February 2011). hire two additional full-time employ- North,” or watching business move transition, and if BC reverts back to that have actually seen small price Only 17% of goods and services ees. While this is just one example, it east to Toronto. The HST saves the old PST/GST system, Ontario decreases (Kesselman). spending was newly taxable under indicates how the HST can provide film companies up to $70,000 per would be only too happy to absorb the HST, which means 83% of con- new jobs, foster economic growth, television episode and more than $2 new investment. This article (abbreviated due to length) sumer spending was not subject to and increase efficiency. Similar results million per feature film, and they are • Reverting back to a tax that has few presents highlights and the reader is urged an increase. In addition, Kesselman across thousands of businesses will choosing locations based on the slim- redeeming features would make BC to read the complete article presented on found that many businesses had make a significant impact on our life- mest of margins—especially with the look like a backwater, rather than the Surrey Board of Trade website already passed savings along to their styles and our economy. Canadian and US dollars at par (Peter a thriving economy. And without www.businessinsurrey.com.