HENRY: Our planet is poisoned, the oceans, the air,
around, beneath and above you.
NATALIE: Um, Henry, that’s true, and I totally care.
HENRY: I’m trying to tell you, I love you.
Clunky, in a Broadway sort of way (later, there’s funny line, “you’ve got some nerve, Henry, and I’m just all nerves”), but also emblematic of the daily news we hear about the environment. We rarely hear good news about our planet. So here are a three positive news items I’ve encountered this week:
Closer to home, BC’s the House of Commons adopted an opposition motion calling for a ban on crude-oil tanker traffic off British Columbia’s north coast. It’s non-binding, but it puts pressure on the federal government to do the right thing. It’s on a rare day that I agree with Pamela Anderson.
I have a confession to make. Until a few days ago, when I was invited to this Facebook group protesting the Harmonized Sales Tax (HST), I had no idea what it was. In case you’re unclear as I was, the HST combines the Provincial Sales Tax (PST, at 7%) and Goods and Services Tax (GST, at 5%) into one 12% tax. Our province plans to implement the tax on July 1, 2010.
According to Wikipedia, three other provinces have a harmonized tax: New Brunswick, Newfoundland and Labrador, and Nova Scotia. Ontario recently announced that they’d be merging their PST and GST on July 1, 2010 as well.
I thought I’d try to dig up the arguments for and against such a move:
“Eliminating the PST and moving to an HST will remove a significant tax burden on businesses. The PST is an outdated, complex and inefficient tax paid by both consumers and businesses.”
Also from the government site: “A 2007 C.D. Howe Report written by Professor Michael Smart of the University of Toronto showed that, in the three Atlantic provinces who adopted HST, per capita investment rose by more than 11 per cent, total investment in machinery and equipment increased by over 12 per cent annually and consumer prices fell after the 1997 reforms.”
“With one tax rate, one substantially harmonized tax base, and one set of administrative rules instead of the duplication that currently exists, compliance costs for British Columbia businesses is expected to be reduced by about $150 million annually.”
“Thanks to sales tax reform, British Columbia’s overall marginal effective tax rate (METR) on new business investment will be reduced by almost 11 percentage points, a decrease of roughly 40 per cent, which will encourage new investment.”
From other sources:
From a Globe and Mail article, citing Premier Campbell: “the shift [is a] major cost savings for business, which will be able to claim HST rebates in virtually all cases”.
Again from the Globe: “The federal government will pay $1.6-billion to B.C. for transition costs, an amount that far outstrips the actual expenses of adopting the harmonized tax.”
From CTV.ca: “TD Bank economist Pascal Gauthier said studies show a harmonized tax does create lower prices for consumers down the road.”
Arguments Against the HST
From the aforementioned Globe and Mail article:
“But the savings for business will become new costs for consumers…A slew of goods and services formerly not subject to the PST will fall under the umbrella of the new combined tax, including hair cuts, restaurant meals – and far larger expenditures such as new homes.”
“In the Lower Mainland, where prices can easily top seven digits, buyers could end up paying significantly larger tax bills; a new $700,000 home would incur an extra $18,000 in sales tax, according to the B.C. finance ministry. “
“B.C. finance ministry officials pointed to a 2007 study from the University of Toronto. That study found that overall consumer prices fell after harmonization, but that prices rose for shelter, clothing and footwear, making the changeover “slightly regressive.†In other words, lower income consumers were affected more than those with higher incomes.”
NDP finance critic Bruce Ralston quoted on CTV.ca: “The biggest concern I have is that, just at a time when we are trying to come out of a recession, is this the right time to make people pay more tax for ordinary services people buy as part of their daily lives?”
From other sources:
From the Vancouver Sun: “‘The news is especially grim for the restaurant industry, which is already seeing business down because of the drop in tourism’, said Mark von Schellwitz, regional vice-president for the Canadian Restaurant and Foodservices Association…’That’s going to cost our industry in B.C. annually $750 million.’”
From a Bill Tieleman editorial in The Tyee: “So who benefits? Big business. That’s why the B.C. Business Council, the Canadian Manufacturers and Exporters and a host of other business groups are supporting the tax. The HST will transfer $1.9 billion from individuals and give that money to big business.”
Also from The Tyee: “The HST is a highly regressive tax. That is, it disproportionately impacts lower income earners because far more of their limited income will be spent paying the tax than higher income earners.”
Conclusions
I’m no economist. The few economists’ opinions I could find on harmonized taxes seemed to be “short term pain, long term gain”. While the HST will be tax deductible (where the PST was not), businesses are likely to pass on costs to consumers. That will, of course, have the greatest impact on those earning the least.
There seems to be no question that it’s a business-friendly tax. I did want to question Mr. Tieleman’s assertion that it strictly benefited big business. The Sun quotes Brian Bonney, the director of provincial affairs in B.C for the Canadian Federation of Independent Business:
On the plus side will be the reduction of paperwork and the ability to deduct input credits, which will both have a “massive†impact on small businesses, he said. “Overall, this is a positive thing,†Bonney said. “But I think there are definitely some sectors in the economy that are not going to be happy with this announcement.â€Â
That suggests that small businesses aren’t unilaterally opposed to the tax.
So, what do you think? Through the history of the modern world, taxes have gone up. Assuming that taxes will continue to go up, is this the sort of tax you’d prefer?
Last Sunday, James, Monique, Julie and I visited Sooke Potholes. It’s a regional park (there’s also a provincial park–I need to work out their relationship, geographic and otherwise) along the picturesque Sooke River, which drains into Sooke Basin just east of the little town of the same name.
Glacial action during the last ice age 15,000 years ago is responsible for the formations, as the moving, melting ice packs stripped the surface area and carved a path deep into the natural bedrock. Huge boulders carried along by the rushing river became lodged, were swirled against the canyon walls and consequently carved out the potholes that can be seen today.
It’s an extremely popular park for swimming, as well as the moderately-dangerous activity of cliff diving. Some young person occasionally kills themselves when they misjudge a jump into one of the many pools.
The park has one other unusual feature–a kind of modern ruin. It’s the remains of a lodge that Albert Yuen started developing after buying the land in 1981:
The heavily timbered lodge, the first step of Yuen’s resort, still sits unfinished overlooking the Sooke River, just beyond Sooke Potholes Provincial Park. The 20-year-old structure will likely be removed because it’s in bad shape, Turner said.
Here are a couple of photos of the remains:
Whenever I see this site, I’m struck by how it looks, on a superficial level, much like the ruins of a 500-year-old keep.
Over the past year or so, we’ve been running a lot of one-day training sessions on all this social media marketing stuff. Combine that with the fact that our social media marketing course at UBC was full and had a sizable wait list, and we’re seeing a lot of demand for this kind of training. Seeing as we already have the curriculum prepared, we thought we’d run a couple of day-long workshops in Victoria and Vancouver. Here’s the blurb:
Adding social media into the marketing mix is increasingly important for marketers who want to establish an online presence for their businesses. We're running one-day workshops to teach communicators and marketers, as well as small business owners, how to:
Bring more visitors to your website
Increase your company’s visibility online
Approach bloggers and other online influencers about your products and services
Get your website social media ready
Craft a potent social media pitch
Incorporate online channels like Facebook, YouTube and Twitter into your marketing programs
Avoid campaign killers and online faux pas
Building on the sold-out course we taught for UBC Continuing Education this winter, we discuss the dos and don'ts of social media marketing; look at successful marketing campaigns; introduce the social media tools every marketer should know about; and cover online communications etiquette.
Students will leave with:
A copy of our social media marketing ebook, Getting to First Base: A Social Media Marketing Playbook
Templates for creating a social media marketing plan
The workshop is $299, all in after taxes and fees. There’s a way you can get a discount, though, and another way that you can attend for free:
You can save $50 off that price by blogging about the workshop on your own established (meaning not brand new) site. Don’t have a blog? Ask a friend or a local blogger if you can write a guest post for their site.
We’re giving away one seat for free for each event. All you have to do is tweet a link to the page on Capulet’s site (here’s a shortened one: http://capulet.com/smm) and include the hash tag #smmvic or #smmvan, depending on the session you want to attend. So, a sample tweet might look like:
OMG, I really want to attend this event: http://capulet.com/smm. It looks awesomesauce! #smmvan
Or, you know, something along those lines. We’ll randomly choose a winner for each event about two weeks before they occur.
Last Saturday night we saw alternative country singer-songwriter Kathleen Edwards at the Alix Goolden Hall (needs a Wikipedia page) here in Victoria. It was an all-around excellent concert experience. Edwards is a great songwriter blessed with a distinctive voice. I read one critic recently who described her as a “persuasive live performer”. That’s very apt–she demands that you listen to her.
She has three albums of really strong material, and any fan would have gone home happy with her well-chosen set list. In fact, the only song that I could name (without consulting my MP3 collection) that she didn’t play was “One More Song the Radio Won’t Like”. For the encore, she played a delightful version of “Mercury”, and then she and her husband-bandmate stepped in front of the mics to play a lovely, quiet version of the Everly Brothers “When Will I Be Loved”. Finally, they finished with a terrific, tumbling cover of Neil Young’s “Only Love Can Break Your Heart”. It’s a confident singer who ends her show with two covers.
It was, all in all, an excellent concert going experience, enriched by my first visit to the Alix Goolden Hall. It’s a converted 800-seat, 19th century church, and now belongs to the Victoria Conservatory of Music. I tried to determine what denomination the church had been, but couldn’t find anything on the web. It’s quite an austere space, with white walls, a sloped, curving balcony and ornate stained glass windows, so we guessed Greek Orthodox. It also had lovely acoustics–aside from the Chan Centre, probably the best my in-expert ears have heard on the West Coast.
Edwards’ opening act made me feel old. It was Dustin Bentall. Yes, that’s Barney Bentall’s son. Barney Bentall, for the unintroduced, was kind of a regionally-famous singer in the eighties and nineties. He played with a band called “The Legendary Hearts”, and they had hits like “Something To Live For”.
For at least a year, Barracuda Networks has been running large ads in Vancouver’s airport. I think I’ve seen their ads in other airports, but can’t confirm that (anybody?). I snapped a bad photo of one of several large display ads in the baggage collection area:
I’m always puzzled when I see these ads. Barracuda makes humming boxes that companies install in their networks to protect against email spam, viruses, phishing and so forth. This one costs about CAN $650:
The Barracuda Spam Firewall is compatible with all email servers and can fit into nearly any corporate or small business environment. It is used by small organizations with as few as 10 employees and large organizations with as many as 200,000 employees. A single Barracuda Spam Firewall handles up to 100,000 active email users. Multiple units can be clustered together for even greater capacity and high availability.
According to YVR, about 4.1 million international passengers passed through their gates in 2007. What tiny fraction of those passengers are potential buyers of Barracuda’s products?
The math gets murky, but according to BC Stats, there are about 81,000 technology workers in BC. Of course, not all of those are potential Barracuda customers. Plenty of those have no interest in the IT concerns of their companies. Others work for companies that have fewer than 10 employees. Let’s be generous and imagine that one third of these tech workers might possibly be or know somebody who could become a Barracuda customer.
That works out to 6 out of 1000 British Columbians who might be the target market for these ads. That fraction is certainly lower for foreign visitors. So–best case scenario–that ad might be relevant to one out of every 200 passengers. In truth, I suspect the number is closer to one in 1000.
And yet this is a sadly commonplace scenario. Most offline ads are incredibly dumb–they’re irrelevant to 99.9% of people who see them. Barracuda runs these ads as an act of faith. That one or two out of the madding crowd of visitors grabbing their bags might take an interest, and start on the long, treacherous path towards an IT purchase. And do the folks at Barracuda Networks have an accurate sense of the return on investment of these airport ads? What do you think?
On a vaguely related note, I saw an enormous barracuda in shallow water in Panama a couple of weeks ago. It was at least three feet long, and just cruising gently by in about three feet of water.
This qualifies as a client plug, I suppose, but it’s a cause that’s really close to my heart.
We’re doing some work with Greenpeace Canada, Sierra Club of BC and ForestEthics on the continuing campaign to save BC’s Great Bear rainforest.
The Great Bear Rainforest is a huge swath of the land–the size of Austria–on BC’s central coast. It’s home to three kinds of bears, six million migratory birds, 3000 genetically distinct salmon stocks and many species of plants unique to the region. Most importantly, it’s the largest tract of intact coastal temperate rainforest left on Earth.
As you may recall, there was a landmark agreement in 2006 among various stakeholders–the provincial government, logging companies, First Nations and environmentalists. They agreed to a new approach to resource planning developed by an independent team of scientists, and committed to its implementation by March 31, 2009. But we’re not (ahem) out of the woods yet. From the petition:
A couple of years ago, Premier Campbell made a very specific commitment to preserve this precious rainforest. The final countdown is on for the BC government to make their promise a reality by the March 31, 2009 deadline. Premier Campbell needs to hear from you.
We are down to the wire. Unless all elements of the promise are kept, the ecological health of the rainforest will be in jeopardy once again. We’ve come so far towards the rare success of having a vast unspoiled forest safeguarded, let’s not undermine all this good work by not reaching the finish line.
Give Me an Early Christmas Present: Sign This Petition
If you can spare 37 seconds, I’d really appreciate it if you would sign the petition urging the government of BC to keep their promises regarding this precious region. You don’t have to be from BC, either–support from other parts of the globe really helps.
If you’re keen to help beyond signing the petition, consider any of the following:
Blog, tweet, bookmark or otherwise spread the word on the campaign.
Watch, favourite and share this two-minute YouTube video about the project:
Thanks to Emily, Raul, Monique, Rebecca and everybody else who has written about the campaign thus far. We’re making good progress, but we’ve got a ways to go.
