Archive for the ‘Other News Articles’ Category

Housing threatens ports

Saturday, September 9th, 2006

official: TRANSPORTATION I Residential development said to squeeze ports’ ability to expand

Fiona Anderson
Sun

Prime industrial waterfront is being snapped up for residential development, threatening the ability of local ports to expand to meet growing demand.

The Fraser River Port Authority has almost exhausted its land supply, and if it is going to grow, it needs to find more, the authority’s vice-president of property development, Tom Corsie, said in an interview.

But to do that, the port has to compete with developers for the increasingly scarce land.

And so far, the developers are winning.

Developers can offer municipalities higher tax revenues and amenities like waterfront parks, Corsie said. At the same time, the port is limited in how much it can pay for land by how much it can earn from it, which is a lot less than developers can earn.

Without more land, the port will be unable to expand, something it needs to do to remain competitive, Corsie said. For example, Fraser River is the second-largest auto-import port in North America, but it’s already operating at full capacity. If companies want to increase the number of cars being shipped, they may choose to go through the United States, where there is room for expansion.

Also, in a 2005 report, the Greater Vancouver Gateway Council identified 14 locations that could be used for short-sea container shipping, Corsie said.

“Two or three of them are already gone, and all of them are under threat by gentrification of waterfront development,” he said.

“When we see land surrounded by water like Queensborough in New Westminster — great tidewater, flat, traditional industrial land served by great railways — finding those attributes in the Lower Mainland where water-dependent industry can locate is a really difficult thing to do,” Corsie added.

“And when we see those traditional industrial lands being converted into residential, when in our view residential can go anywhere, we sometimes question the strategic decisions around that.”

The port is urging the provincial government to protect industrial lands, perhaps by creating a reserve the way it has with agricultural lands. It is also lobbying the federal government to change the rules that affect its ability to buy lands.

Christina DeMarco, division manager for regional development with the Greater Vancouver Regional District, has made an inventory of all industrial lands in the GVRD, not just waterfront lands. Since 1996, the amount of industrial land has actually decreased from 29,000 acres to 26,000 acres, at a time when the need for it has increased because of a growing population, DeMarco said.

Public policy consultant Tex Enemark has been studying port and rail transportation lands in the Lower Mainland for Transport Canada, and he submitted his report Friday.

Although the report has not yet been made public, Enemark said industrial land is “disappearing quickly.”

“Part of the problem is that municipalities have all fallen in love with the idea of turning all of the waterfront in the Lower Mainland into pedestrian walkways and parks,” Enemark said.

Yet municipalities don’t make money from residential developments once the costs of services, such as transit, schools and police, are figured into the picture, he said.

© The Vancouver Sun 2006

Vancouver Convention Centre to be completed next summer

Friday, September 8th, 2006

Costs constantly under review to keep project on time and on budget

Ashley Ford
Province

Vancouver’s Convention Centre building platform, supported by thousands of piles, is scheduled for completion next summer. SAM LEUNG — THE PROVINCE

Vancouver’s ambitious, $615-million convention centre is on time and budget.

But Russ Anthony, president and project director of the Vancouver Convention Centre Expansion Project, readily acknowledges he is walking a financial tightrope and rapidly escalating construction, material and labour costs might force some changes during the final stages.

“It is worrying,” he said. “Everything is a real challenge from getting labour, to site preparation, to material costs.

“We are constantly reviewing our budgets, but I am still confident we will get there on time and on budget.”

He vows that the project, which will serve as the media centre for the 2010 Winter Olympics, will be ready by its 2008 target date.

If changes are to be made, he said, it won’t be with the building design, which is “set.”

But there may be some “wriggle room, with perhaps mechanical systems and lighting.”

It is a very big, complex project and “we are being very prudent with our costs. It is not like other buildings where you can simply make cuts, as this is a revenue-generating facility that must meet the demands of its future clients.

“I will be the happiest camper when the building platform, supported by thousands of piles, is finally completed next summer,” he said.

Anthony said site preparation has thrown up some challenges but everything is under control.

For instance, he said, who would have thought hurricane Katrina would have had an impact on the project?

“In its aftermath, every crane in the U.S. was sucked up and we were forced to go to Europe to find one.”

A massive crane, one of six that will eventually festoon the site, had to be brought in to lift the steel beams for the walls.

Time is a factor, he said, because steel work on the eastern side must be completed by the time the cruise ships start calling again next May as the crane’s boom would come too close to the ships.

The steel can only be moved at night and new construction at the Fairmont Hotel just across the street has made for a very tight working area, he said.

The “1,700 supervisors” who log on to the project’s website daily will start to see massive steel beam walls rising on the eastern section of the site in November, Anthony said.

And the first glazing, with floor-to-ceiling glass throughout the

1.1-million-square-foot building, will start next summer.

Part of the strategy to contain costs is to lock in fixed prices as early as possible, Anthony said.

“For instance, we have not let the contract for the between-the-floor concrete yet, but we have a fixed cost for the concrete in place,” he said. “We also did an early price lock-in with the glazing as well.”

Getting skilled labour, especially steel workers, is a constant headache. Consequently, there is plenty of overtime and extended working hours to keep up with the timetable. There are currently about 196 workers on site.

“We are also finding there is a great deal of worker pride on this project and that helps,” he said.

When complete, the centre will have 335,000 square feet of function space that will complement the existing convention centre space of 133,000 square feet for a total of 468,000 square feet of meeting, exhibition, ballroom and plenary theatre space.

DEALING IN DOLLARS

Some relevant numbers:

– The expansion will cost $615 million.

– The B.C. government’s contribution is $272.5 million.

– The federal government contribution is $222 million.

– Tourism Vancouver’s contribution is $90 million.

– Annual revenue generation is estimated at $30 million.

– Completion date is 2008.

– The project size is 1.1 million square feet.

– It’s estimated it will generate an additional $107 million in delegate spending annually.

– It will increase delegate days to 370,000 from the current 150,000.

– The average delegate spending while in Vancouver is $350 a day.

© The Vancouver Province 2006

 

What’s behind our rental crisis

Friday, September 8th, 2006

There will always be the working poor in low-paying jobs; they shouldn’t be shut out of the rental market because investors are paying too much for apartment buildings

Sun

Sometimes putting two articles together, from different sections of The Vancouver Sun, can open our eyes to the full dimension of a growing societal problem.

I am referring to Tuesday’s front- page article, “B.C. has largest share of working poor,” and an article in the Business BC section, “Demand still high for Vancouver rentals.”

The first article stated: “More than 72,000 workers — almost one in 10 — live in poverty in Greater Vancouver, leaving the Lower Mainland with the greatest incidence of working poor of any major city in Canada, according to a federal government study.”

Notice that this is not a story about the problems of the homeless, or the disabled, or the unemployable, all of whom urgently deserve more help than we are giving them, based on what activists in the field are telling us.

No, this is a problem for people who are working, but whose income still falls below the poverty line. Greater Vancouver’s figure for working poor is almost twice the figure for second-place Toronto — 9.6 per cent compared to 5.3 per cent.

What is truly shocking in a city where signs of significant wealth — in upscale homes, cars and boats — are so apparent, is that in B.C. more than 10 per cent of the total workforce is made up of those classified as “working poor.”

An economist is quoted as saying, “It’s kind of an affront to our notion that people can do OK, or even well, simply by working hard.”

The article concludes with the question of how best to help the working poor, and surveys such answers as raising the minimum wage and giving additional tax credits and better job training programs.

But the sad fact is that there will always be the need for lower-paid jobs, and I believe that society has an obligation to treat better those who step forward to fill those jobs.

So how bizarre is it to read in the same day’s Business BC an article about how a local commercial realtor is commenting positively on a “new breed of investors … buying up older rental buildings to give them major upgrades and charge higher rents for the next tenants”?

The realtor claims that many tenants have high-paying jobs and can well afford higher rents. He points out that, with substantial upgrades, a one-bedroom apartment in Kitsilano or South Granville can rent for $1,200 after previously renting for $800.

The article quotes the realtor’s newsletter as arguing that this helps landlords to justify paying prices for rental buildings that increase anywhere from six per cent to 23 per cent in one year! The realtor points out in the article that multi-suite buildings are being snapped up by investors within 24 hours of being listed for sale.

I checked out the realtor’s newsletter, and I began to understand what is going on. Buyers of apartment buildings are being urged to pay high prices and accept “capitalization rates” (the percentage of net income to the purchase price) of only 3.5 per cent to four per cent, because the rental rates have “significant upside potential,” as one advertisement puts it.

Putting these two articles together, we begin to see the problem differently: The city in Canada that has the largest share of “working poor” has the quickest sales of rental buildings at prices that only make sense if the buyers charge significantly more for their “upgrades” than what would be justified by the renovation costs alone.

Why? Because they have to make up for buying the buildings at too high a price, at too low a capitalization rate.

Who suffers? The working poor, of course.

I contend that it is bad enough to have a city where hordes of people panhandle or pick through garbage for anything that can be resold. It is even worse when a person willing to do “honest” work falls below the poverty line. It is tragically worse when that person’s ability to obtain decent rental housing for himself or his/her family is decreasing every year.

Vancouver and British Columbia urgently need programs that create inducements for the private sector to channel its wealth and creativity — not into taking units out of the affordable rental range — but to create affordable rental units. These programs are in place in a wide variety of American states, and in Canadian provinces such as Ontario.

Programs that give inducements, such as per-unit forgivable loans to developers who obligate themselves to build and rent units below a certain rent and to rent them to working people who make below a certain income, are working elsewhere. I know, because my company is creating such units in Ontario.

I hope that thinking about these two newspaper articles, and what it means for our future here in Vancouver, will spur some demand that our local and provincial politicians will help to remedy this problem.

Howard Rotberg, president of the Rotberg Development Group, resides part of each month in Vancouver, and part in southern Ontario, where he develops rental buildings for working people with low incomes.

© The Vancouver Sun 2006

Vegas firm bets on Vancouver casino

Wednesday, September 6th, 2006

Bruce Constantineau
Sun

Las Vegas-based casino operator Paragon Gaming — the new owners of the Edgewater Casino in downtown Vancouver — will endeavour to reverse the financially troubled casino’s fortunes by taking several steps over the next few months to boost attendance at the 18-month-old facility, Paragon vice-president Yale Rowe said Tuesday.

Paragon paid $42 million to buy the casino last week from original owners Gary Jackson and Len Libin and become the first foreign owners of a B.C. casino. The Edgewater operation, located in the Plaza of Nations, was about $30 million in debt when it filed for court protection from its creditors four months ago, and the sale means creditors will be paid in full.

Rowe said Paragon plans to increase business at the casino by:

– Enhancing exterior signage.

– Upgrading food and beverage operations.

– Ensuring casino facilities reflect the city’s multicultural makeup.

– Improving the mix of gambling options.

– Increasing parking facilities.

– Increasing casino entertainment. options by adding comedy festivals, concerts, and community and cultural events.

Rowe said Paragon is already working with city officials to find a way to improve signage at the casino without being gaudy or overbearing.

“They really don’t want to see some casino come in and start blasting these big Vegas signs all over the place,” he said in an interview. “But they understand the need to hang your shingle out front so folks will know you’re in business. Right now, there’s very low curb appeal.”

Rowe said the new owners plan to change the casino kitchen so they can improve food offerings and create more of a destination food environment than the “quasi snack bar” that exists now.

They also plan to increase the number of table games at the casino, and increase the number of poker tables from four to 10.

Paragon has a lease to operate the casino at its current location until 2013, but it could relocate sooner than that if it decides to expand into more of a destination-resort complex, with a hotel and other facilities.

“We haven’t mapped out our long-term plan yet, but we’d certainly like to expand on what’s there,” Rowe said.

Paragon chief executive officer Diana Bennett, daughter of the late legendary Las Vegas casino operator and Circus Circus co-founder William Bennett, said she wants to make Edgewater the “premier destination casino” in the Vancouver market.

Paragon operates casinos in the western U.S., and is currently developing two projects on First Nations properties in Alberta — the River Cree Resort & Casino in Edmonton, and the Alexis Casino and Travel Plaza in Woodlands County.

© The Vancouver Sun 2006

 

Business cards tell more than you think

Sunday, September 3rd, 2006

FIRST IMPRESSIONS: Design vital in getting right message across

STEPHANIE WHITTAKER
Province

They might be small, but business cards can say a lot about you and your business.

MONTREAL What does your business card say about you?
   Does it tell the world that you’re a swashbuckling entrepreneur with a cutting-edge company?
   Does it say you’re a solid, reliable professional known for your integrity?
   Or does it convey how creative and hip you are?
   They might be small, but business cards can communicate all of the above through their design.
   “A business card tells a story,” said Eva Kutyla, a graphic designer and the art director of E.A.C.H. New Design in St. Laurent, Que.
   “The business card is the branding of a company and your first visual impression of it. It creates a character for you and your company.”
   And like every other communications tool, business cards change according to trends in design.
   “Right now, we’re seeing a lot of simple, refined cards,” Kutyla said. “Many are grey and charcoal, colours that have taken over black because it’s a more sophisticated look. This is the Japanese influence on the whole design industry. The look is now Zen, minimalist. When you see that clean, minimalist look on a business card, the impression it conveys is that the company is following design trends. It’s a leader and it’s mainstream.”
   One of the challenges of creating a business card these days is the volume of information that should be included. In addition to listing a land-line phone number, contemporary business cards are also likely to include a cellphone number, a fax number, an e-mail address and a website address.
   Instances in which a double-sided card is useful, Kutyla said, is for businesses that have several locations. The back side of the card is the best spot to list them.
   One piece of advice is to design business cards that are a component of their overall business communication tools.
   Another trend is a conservative approach to sharing personal information on the card among women who run home-based businesses.
   Kutyla says it’s a challenge not to clutter a card with words. “It needs to be cohesive and understandable,” she said. “The logo should be predominant and not diminished by the words. The logo needs its breathing space because it’s part of the identity of a company.”
   One trend she’s observed is information wrapped around the perimeter of a business card, forcing the viewer to rotate it while reading. Kutyla advises her clients not to rotate phone numbers and e-mail addresses, which are key pieces of information.
   “And keep in mind that e-mail addresses are top priorities right now, even more important than phone numbers.”
   Counsellors advise their clients to list e-mail addresses that they’ll have in the long term.
   “For instance, you shouldn’t use your school address and you should never use a cutesy e-mail address,” Kutyla said.

Las Vegas company buys Edgewater Casino

Saturday, September 2nd, 2006

Sun

ACQUISITIONS I Las Vegas casino operator Paragon Gaming has purchased Vancouver’s financially troubled Edgewater Casino for $42 million, making it the first foreign-owned casino in the province.

Vancouver lawyer John Sandrelli — acting for casino owners Gary Jackson and Len Libin — confirmed the transaction, saying the sale closed late Thursday and ownership transferred on Friday. The sale required the approval of provincial regulators and the B.C. Lottery Corp., which happened earlier this week.

It’s business as usual at the casino,” Sandrelli said. “The company now has a clean balance sheet and is better capitalized, and that’s promising for the casino going forward.”

The purchase price more than covers an estimated $30 million owed to Edgewater creditors, including more than $17 million owed to Vancouver Whitecaps owner Greg Kerfoot, who considered buying the casino earlier this year.

Jackson and Libin opened Edgewater Casino in the Plaza of Nations in February 2005, but the facility never generated the revenues that were expected and the owners filed for court protection from creditors in May.

Several reasons were cited for the casino’s poor financial performance — including parking limitations, the absence of a liquor licence for the gambling floor, and city bylaws that restrict sign advertising.

© The Vancouver Sun 2006

 

Granville Island driving the locals away

Monday, August 28th, 2006

Robert Forbes
Sun

Granville Island is a unique component of the Vancouver landscape.

Its success is due to the foresight of the governments and Vancouver citizens of the 1970s and a perfect location at the centre of a thriving community on the north and south sides of False Creek.

Granville Island’s continued success depends on its local customers. So it is imperative that the elements that drive customer allegiance be retained.

We are, however, dealing with a government bureaucracy. Canada Mortgage and Housing Corp., the Island landlord, used to have an open office where anyone could walk in to talk to the Island manager. CMHC people were freely available and enthusiastically participated in the operation.

Today there are layers of CMHC personnel running interference for the top brass. Ottawa is directing the marketing and promotion plans for the Island from afar.

Key long-time Island CMHC personnel are leaving because they are fed up with the new structure and increased influence from Ottawa.

We are seeing key long-time Island tenants leave out of frustration. They are being replaced by businesses catering to tourists rather than local customers.

The market’s prices used to be competitive. They are now so far out of line that those of us who used to shop daily at the Island market now drop by just once a week. This applies especially to vegetable and dairy products.

There is not-so-subtle pressure on all Island retail tenants to present a slicker image for the tourists, especially evident at lease renewal times.

Note that it is the local customer who keeps the market profitable. The tourists buy very little there.

The more it caters to the tourists the less likely we as customers will want to face the crush to buy our daily groceries.

Robert Forbes lives in Vancouver.

© The Vancouver Sun 2006

 

‘Second genetic code’ shakes heredity theory

Saturday, August 26th, 2006

Daniel Tencer
Sun

OTTAWA — Arturas Petronis and Moshe Szyf know a little something about the fads of science. As pioneers in the budding field of study known as epigenetics, they took their share of abuse for supporting scientific theories that, for many years, were considered heresy by most scientists.

Petronis, head of epigenetics at the University of Toronto’s Centre for Addiction and Mental Health, once applied for a research grant and received the following anonymous, written comment: “This is shit.”

Szyf, a professor of pharmacology at McGill University in Montreal, had a proposed research article of his described as “a misguided attempt at scientific humour.”

“What they do is crush any opinion that doesn’t fit theirs,” Szyf says. “I was told not to work on [epigenetics] if I ever wanted a career.”

FROM HERETICS TO PIONEERS

What a difference a few years makes.

Petronis and Szyf are now both mini-celebrities in the increasingly accepted field of epigenetics, which postulates that there is a “second code” of programming on top of our DNA, a code that — unlike DNA — can change during our lifetime. In the past half decade, epigenetics researchers have theorized that our diet, the chemicals we are exposed to and even our behaviour towards one another can cause changes in the way that our genes are expressed and some of those changes may even be passed on to future generations.

That, in turn, has caused many scientists to rethink almost everything we know about how genetic information is passed on from parent to child. The traditional view of genetics has been almost deterministic: We are born with a code that dictates everything we are, physiologically. Our genes work the same way from the day we are born to the day we die. Our destiny, geneticists said, was written in our DNA. But now, scientists are beginning to think that people aren’t just shells to carry on DNA, but rather the “caretakers” of our genetic code. How we live, epigenetics researchers say, changes the way our genes function, and some of those changes can be passed on to future generations.

This is a seismic shift in our view of heredity, but to understand how we got to epigenetics, first we have to look at genetics.

Remember the Human Genome Project? A decade ago, it was the darling of molecular biologists everywhere.

Once completed, proponents said, it would clue us in to almost everything that happens with humans.

But as genetics-mania swept the world through the 1990s and the Human Genome Project came to fruition, it slowly became clear DNA wouldn’t answer all the questions scientists had believed it would.

Enter epigenetics. The basic science behind it had been theorized for some time. As recently as 30 years ago, researchers proposed that there are chemicals attaching themselves to our DNA and changing the way genes function.

The idea of epigenetics was meant to answer some fundamental questions that genetics could not.

One of those was the problem of identical twins. Even though twins carry the exact same DNA, it has been known for decades that one twin can develop hereditary diseases the other one does not.

This was the problem Petronis set off to explore about eight years ago. He noticed that in about half of the cases of schizophrenia found in twins, only one twin developed the condition, even though schizophrenia is widely considered to be genetic.

“After 50 or 60 years of study, there was no specific explanation of twin discordance,” Petronis says.

“Ninety-nine per cent of geneticists still believe environmental factors play a role, but when you ask for specifics, they can offer nothing.”

TWIN ANOMALIES

By studying sets of twins where one twin had a psychiatric disorder and the other didn’t, Petronis found the psychiatric patients had more in common with each other, epigenetically, than they did with their own twins.

“Any two random people share 99.7 per cent of their DNA, but at the epigenetic level, people are very, very different,” Petronis says.

But the more eyebrow-raising aspect of epigenetics has to do with heredity. Evidence is beginning to mount that the epigenetic code, or at least parts of it, can be passed down from parents to their children.

One of the most prominent backers of this idea is Marcus Pembrey, a geneticist at University College London in the U.K., who studied the unusually detailed historical medical records of the isolated northern Swedish city of Overkalix.

What Pembrey and his colleagues found was astonishing: The grandsons of men who experienced famine during mid-childhood went through puberty earlier and had longer lifespans, while the grandsons of men who were well fed in early childhood had an increased likelihood of diabetes.

For females, the effect was similar but it was tied to the grandmother, rather than the grandfather.

“This is not a ‘trickle-through’ [of genetic material], this is clearly an evolved response,” Pembrey says. He speculates the purpose of such a response “would be to adjust early growth and reproduction to accommodate unpredictable or adverse environments.”

In a contemporary study of two generations, Pembrey found fathers who had started smoking before age 11 had sons who were significantly fatter than average. There was no similar effect on daughters.

For the first time, it seemed there was a scientific basis for that old adage that the sins of the father are visited upon the son.

Yet, the idea that what we are exposed to can be recorded in our genes and passed on to our descendants is still controversial, even within the field of epigenetics itself.

“You ask five people to interpret these findings, you get five different answers,” Petronis says, adding the interpretation of cross-generational data is “very speculative.”

“There could be lots of compounding factors.”

MAPPING A MOVING TARGET

The major problem with epigenetics is that researchers still know so little about it. According to Szyf, we have yet to learn 90 per cent of what there is to know about how these processes work, and figuring it all out will be “much more complicated than reading genes.”

“Epigenetic codes are moving targets. They could change at any time. And the same gene, one gene, could have 700 epigenetic programs. So that complicates things.”

If serious progress is to be made in understanding epigenetics, it will require a thorough map of how the epigenetic code works. In 2003, a consortium of public and private firms in Europe began the first Human Epigenome Project, which aims to have 10 per cent of the human epigenetic structure mapped by this fall.

Just last month, the group released its first major findings, comprehensively mapping the epigenetics of three human chromosomes. The researchers found that about one-fifth of the genes in those chromosomes can have their behaviour changed.

So what can we glean from all this?

We have reason to believe that the food we eat, the chemicals we ingest and even our parents’ behaviour toward us can all change the way our genes function. But what can and should we be doing to protect ourselves — and our descendants — from harm? Few are willing to say just yet. But Pembrey doesn’t beat around the bush.

“Child care has a whole new meaning,” he says.

© The Vancouver Sun 2006

US close to edge on recession – can have ripple effects in Canada

Saturday, August 26th, 2006

ECONOMY I Canada would need lower taxes and interest rates, bank economist says

Eric Beauchesne
Sun

OTTAWA — The odds of a U.S. recession have increased dramatically, a Canadian bank economist is warning.

And if the U.S. does see a prolonged period of negative growth, it would require a shift in policies by governments and the Bank of Canada to keep the Canadian economy from slipping into a recession, too, the National Bank of Canada’s chief economist said Friday.

That would require income tax cuts by the federal and other levels of government and interest rate cuts by the Bank of Canada, Clement Gignac said in an interview after the bank announced the odds of a U.S. recession have nearly doubled to 40 per cent from the 25 per cent it estimated in the spring.

Its announcement came in the wake of further evidence this past week the U.S. housing market is going from boom to bust, including a much steeper-than-expected drop in home sales and a surge in the inventory of unsold homes on the market.

“We have long held the view that a bursting of the U.S. housing bubble would be bearish for the U.S. economy,” the bank said in a statement issued at week’s end.

It’s only a matter of time before the surge in inventories leads to a nationwide decline in home prices that will erode personal wealth at a time when energy bills and debt obligations have hit record highs and that in turn will force consumers to cut spending and rebuild their savings, it said.

“Against this backdrop, we have decided to raise the odds of a U.S. hard landing,” it said.

That means a recession of two straight quarters “or worse” of shrinking economic activity, Gignac noted. The odds are still a bit greater the U.S. will avoid a recession, but “we are close to the edge.”

Patricia Croft, chief economist with Phillips, Hager and North Investment Management Ltd., agreed the slump in the U.S. housing market is increasing the risks of a U.S. recession, which would sink Canada’s economy as well.

“It’s the single biggest risk to the U.S. economy and . . . we haven’t seen the bottom yet,” she said. “There may be a bit of a lag but if the U.S. goes down we’re going down with them.”

Gignac agreed that normally a U.S. recession would drag Canada’s economy down with it, noting one-third of Canadian economic activity is from trade, more than 80 per cent of which is with the U.S.

But Canada might be able to escape with merely a slowdown rather than an outright recession, he added.

Despite some hot spots, Canada’s housing market never really overheated, so there is no Canadian housing bubble to burst, Gignac said. And the Western provinces, especially, are booming, which will also help buoy the national economy.

But to limit the damage of a U.S. recession to the Canadian economy, he said the federal governments and the Bank of Canada will have to shift to a “much more aggressive expansionist policy.”

And they are in a position to do that, he said, noting that unlike other industrial countries, governments here are in a budget surplus position and can afford to cut income taxes.

“We are in the best position in five decades to deal with a U.S. recession . . . if the monetary and fiscal authorities react promptly,” Gignac said.

In fact, Canada avoided being dragged down by the last U.S. recession at the start of this decade thanks in large part to the economic stimulus from the former Liberal government’s $100-billion five-year tax cut package.

However, in its first budget earlier this year the Conservative government, while cutting the GST, raised income taxes.

Some other economists, meanwhile, remain optimistic about the outlook for both the U.S. and Canadian economies.

“We’re just basically moving from a high gear to a low gear, and then it will be onward and upward again,” said Scotiabank economist Aron Gampel.

© The Vancouver Sun 2006

 

Tourists becoming full-time residents & have sustained Whistler & Kelowna

Saturday, August 26th, 2006

LIFESTYLE I They are changing the makeup of resort towns, study says

Michael Kane
Sun

Tourists who come to play and then go away have sustained B.C. towns like Whistler, Kelowna and Qualicum Beach for decades.

Now some tourists are becoming year-round residents and changing the makeup of resort communities, according to preliminary findings of a two-year study by researchers at Simon Fraser University.

It’s an “amenity-driven tourist migration” that’s just begun but will spread if Canada follows the trail blazed by the money-drenched ski resort of Vail, Colo., said Peter Williams, director of SFU’s centre for tourism policy and research.

It’s not only early retirees but also a lifestyle choice for another group of middle-agers who can work anywhere thanks to technology.

That means greater housing demand and higher prices. It also spawns upscale retail services that may be beyond the reach of average wage earners while straining services like roads, health care and garbage removal.

In some cases, professionals such as teachers and accountants can no longer afford to live in the communities where they work.

“I’ve heard it said that the filthy rich are pushing out the wealthy,” Williams said in an interview Friday.

“It’s a two-sided coin because the migration also provides work for locals. We’re finding that the people who come are more apt to spend money locally than the locals because they are trying to become locals.

“It’s a paradox because on the one side you have them coming in and creating jobs and on the other side you have them displacing people.”

In Whistler, town councillor Tim Wake said he has noticed the trend of tourists becoming year-round residents. The resort’s housing shortage is exacerbated by large numbers of second-home owners as well as young people coming for a year or two and then deciding to stay.

In Kelowna, the high-tech industry is attracting young migrants from places like California, Asia and Ontario, but the Alberta oil executives driving the area’s recreational property boom aren’t likely to become year-round residents until they retire, said Elton Ash, regional executive vice-president for Re/Max Western Canada.

“There is some telecommuting but it is not a huge segment of the market,” Ash said. “If you are in the petrochemical business, it doesn’t work until you retire.”

Williams and his researchers are six months into their study which seeks first to identify the migrants and then figure out how they engage in the community and what that does to the locals.

The ritzy Colorado communities of Steamboat Springs and Vail are included because they have incubated trends like the so-called “trustafarians” who live on trust funds provided by their baby boomer parents and seek safe and enjoyable places to raise their own children.

There is also the phenomenon of affluent middle-agers “playing at work” by establishing retail businesses like art galleries and bistros that allow them to become part of the community while making the community more upscale, said Ottawa-born Williams who describes himself as “the first baby boomer” because he turned 60 in July.

“You get a different retail mix with more on the arts, cultural and health care/wellness side of things. Even the hardware stores begin to change while some of the traditional businesses fall off. If there was a diner it becomes a period art deco diner or has some kind of theme.”

© The Vancouver Sun 2006