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HomeMy WebLinkAbout2008-03-17 Workshop - Agenda and Reports.pdfDistrict of Maple Ridge COUNCIL WORKSHOP AGENDA March 17, 2008 10:30 am. Blaney Room, 1st Floor, Municipal Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. TOMITIMMOT ".0 March 17 Closed Council Audit & Finance Committee Committee of the Whole March 18 Public Hearing following Workshop following Closed Council 1:00 P.M. 7:00 p.m. ADOPTION OF THE AGENDA MINUTES - March 10, 2008 PRESENTATIONS AT THE REQUEST OF COUNCIL UNFINISHED AND NEW BUSINESS 4.1 Metro Vancouver Waste Management - Fred Nenninger, Division Manager - Regional Utility Planning 4.2 Earth Hour 2008 Staff report dated March 11, 2008 providing information on Earth Day 2008 and recommending that the District of Maple Ridge register as a participant and that individual staff, citizens, schools and businesses be encouraged to register and participate. 4.3 Asia Pacific Grant Application Staff report dated March 12, 2008 recommending that staff be authorized to apply for the grant associated with the Asia Pacific Twinning initiative and that the Mayor and the Corporate Officer sign the appropriate Memorandum of Agreement. Council Workshop March 17, 2008 Page 2 of 3 4.4 Discussion of Possible Resolution Submission to LMLGA - Gravel Surcharge Issue Draft resolution to be circulated separately 5. CORRESPONDENCE The following correspondence has been received and requires a response. Staff is seeking direction from Council on each item. Options that Council may consider include: Acknowledge receipt of correspondence and advise that no further action will be taken. Direct staff to prepare a report and recommendation regarding the subject matter. Forward the correspondence to a regular Council meeting for further discussion. Other. Once direction is given the appropriate response will be sent. 5.1 Fraser Health - District of Maple Ridge Smoking Regulations Letter dated February 27, 2008 from Larry Gustafson, Medical Health Officer, Fraser Health providing recommendations for amendments to District of Maple Ridge smoking regulation bylaws. 5.2 Ministry of Health - Global Age-friendly Cities: A Guide Letter dated March 6, 2008 from Tessa Graham, Executive Director, Health Children, Women and Seniors, Ministry of Health providing information pertaining to age-friendly cities and asking for an indication of interest from the District of Maple Ridge in accessing the services of the Age-Friendly Communities Implementation Team. 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7. MATTERS DEEMED EXPEDIENT 8. ADJOURNMENT Checked Date: Council Workshop March 17, 2008 Page 3 of 3 Rules for Holding a Closed Meeting A part of a council meeting may be closed to the public if the subject matter being considered relates to one or more of the following: personal information about an identifiable individual whoholds or is being considered for a position as an officer, employee or agent of the municipality or another position appointed by the municipality; personal information about an identifiable individual who is being considered for a municipal award or honour, or who has offered to provide a gift to the municipality on condition of anonymity; labour relations or employee negotiations; the security of property of the municipality; the acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality; law enforcement, if the council considers that disclosure might reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; litigation or potential litigation affecting the municipality; an administrative tribunal hearing or potential administrative tribunal hearing affecting the municipality, other than a hearing to be conducted by the council or a delegate of council the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose; U) information that is prohibited or information that if it were presented in a document would be prohibited from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; (k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; (I) discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] a matter that, under another enactment, is such that the public may be excluded from the meeting; the consideration of whether a council meeting should be closed under a provision of this subsection of subsection (2) (0) the consideration of whether the authority under section 91 (other persons attending closed meetings) should be exercised in relation to a council meeting. (p) information relating to local government participation in provincial negotiations with First Nations, where an agreement provides that the information is to be kept confidential. P W0 T ;'Ugla District of Maple Ridge GreaT-f- Heignts TO: His Worship Mayor Gordon Robson DATE: March 11, 2008 and Members of Council FROM Chief Administrative Officer ATTN: Council Workshop SUBJECT Earth Hour 2008 EXECUTIVE SUMMARY: On March 29, 2008, cities across Canada, and around the world will turn off their lights for Earth Hour, a global event to raise awareness about climate change. The City of Vancouver is an International Flagship City. BC Hydro is supporting the initiative as a province-wide initiative and is encouraging all local governments in BC to participate. Citizens, business and their employees, and schools and students can register as groups or individuals to signify their awareness of climate change and participate by turning of their lights for one hour at 8:00 pm on March 29, 2008. The event website at www.earthhour.org has a registration form, and tips and tools for making this event a successful global initiative. RECOMMENDATION(S): That the Corporate Officer be authorized to register the District of Maple Ridge as a participant in Earth Hour 2008; That individual staff, citizens, schools and businesses be encouraged to register for Earth Hour 2008 at www.earthhour.org, and participate by turning off unnecessary lights for one hour beginning March 29, 2008 at 8:00 pm. Prepared b---t Benson, CMA Manager of Sustainability and Corporate Planning C Concurrence: J.L. (Jim) Rule Chief Administrative Officer / 4.2 MAPLE RIDGE British Columbia Deep Roots TO: FROM: SUBJECT: District of Maple Ridge His Worship Mayor Gordon Robson DATE: March 12, 2008 and Members of Council FILE NO: Chief Administrative Officer ATTN: Workshop Asia Pacific Grant Application EXECUTIVE SUMMARY: This report to Council is a follow-up to an agenda item at the March 10, 2008 Council Workshop, detailing an offer of technical and financial assistance from the Ministry of Community Services on Local Government Twinning Relationships. $50,000 in the form of a one-time grant is being made available to support local government leadership and to encourage twinning as a fundamental cornerstone of future economic development initiatives. The deadline for applications is March 12, 2008 however the Ministry is aware that Maple Ridge Council may be submitting a formal application following the March 17 meeting. Should we decide at later time not to proceed, any remaining funds could simply be returned. RECOMMENDATION(S): THAT staff be authorized to proceed to apply for the grant associated with the Asia Pacific Twinning initiative and that the appropriate MOA be signed by the Mayor and the Corporate Officer. DISCUSSION: a) Background Context: In the past Maple Ridge has entered into twinning relationships that have focused primarily on the social and / or cultural aspects of twinning. This grant, however, is specifically focused on generating economic benefit and would allow us to build on work already underway between the Province of BC and the Government of India. During a recent trade mission to India to promote a direct air route between Abbotsford International Airport and the Amritsar International Airport in the Punjab I had the opportunity to see firsthand the amazing work that is being done in India particularly in the areas of high tech, medical and advanced manufacturing. There are significant opportunities with India, specifically the capital city of Chandigarh, which is fast becoming a world leader in Information Technology and applications. The Economic Development Department would focus on the following activities permissible under the terms of the grant to establish or enhance economically robust twining relationships / alliances with an Asian counterpart including India. These activities include planning - establishing vision, goals, objectives and activities; identifying potential collaborative partners; Research - researching which Asian countries and cities of interest are potential options for twinning to achieve mutual economic benefits; and Development 4.3 of Communication Materials - design and printing materials and websites to assist related to local economic development Desired Outcome(s): Building on those relationships Economic Development would work to identify a range of focused initiatives with the Government of India, the Canadian Consul General in Chandigarh, Premier Campbell's special advisor on India, and Government House Leader Mike de Jong. Strategic Alignment: This initiative aligns well with key elements of our Corporate and Economic Development strategies and associated 2008 workplans - specifically, enhancing relationships with provincial and federal employees and politicians to further the legitimate interests of the District; exploring the introduction of innovative new infrastructure and technology; continuing to promote Maple Ridge through sales and marketing strategies to local, regional and global investment industry; and supporting the technology sector and Advanced Manufacturing. This also ties nicely with the strategic priorities of the Economic Advisory Commission, in particular an initiative to develop a High Tech attraction Strategy. Citizen/Customer Implications: India is the largest democracy in the world, and an English speaking country that is fast becoming the world leader in Technology, Education and Health. In 2005 India was one of the fastest growing markets for Canadian commercial services exports to the world; and in 2002 Canadian firms sold $336 million in commercial services in the Indian market. 1'ln the consulting area, there are a wide variety of firms engaged in providing services including legal services, engineering consulting services, travel and immigration services and trade market consulting. An anticipated announcement on a direct air link between Abbotsford and Amritsar would reduce travel time by up to twenty hours, while facilitating trade, commerce and educational opportunities in both countries. The Governments of India and BC are committed to achieving direct air routes to promote economic development and strengthen ties between our countries. CONCLUSIONS: Maple Ridge would be the first municipality in BC to partner with a city in India on a twinning initiative and the potential benefits would flow to the first in". Taking advantage of this grant funding would allow us to investigate these opportunities and develop plans accordingly. Prepared by: Sandy Blue, Manager Economic Development Concurrence: J.L. (Jim) Rule / Chief Administrative Officer Asia Pacific Foundation of Canada L 1. MARKET OVERVIEW The market potential of India over the medium- to long-term is second only to China's. Since 1991, the Indian economy has been transformed from its protectionist "Licence Raj" system into a competitive, open economy with leadership in a wide variety of sectors. When one thinks of India today, one thinks of Information Technology (IT). Indian IT and IT Enabled Services (ITES) firms such as Infosys, Wipro and Tata Consultancy Services (TCS) are in the vanguard of global innovators that are revolutionizing how information is used and processed to create value for their clients around the world. the Bharatiya Janata Party (BJP)-led and Congress-led coalitions accelerate economic reforms that have seen a progressive liberalization of India's trade and investment regimes. As India continues to liberalize its economy, foreign direct investment (FDI) and domestic investment (especially in infrastructure sectors) alone will likely drive up India's potential growth rates to the 7-8% level in the medium term. India is also becoming an important player in global trade. During the 1994-2003 period, Indian exports grew on average by 12.8% annually (in nominal terms). This compares TABLE1 INDIA IN2004 Population 1,070 million GDP (US$ billion) US$61724 GDP per capita US$577 GDP Growth, 1993-2004 6.2% BC Export Growth, 2000-2004 6.1% Source: International Monetary Fund, Ministry of Commerce (India) and Statistics Canada. With a GDP growth rate averaging 6.2% in the last 10 years, many economists have argued that India's potential rate of GDP growth is in the 6-7% range. We expect India to maintain this potential rate of GDP growth in the medium term with some slowdown expected in the next two years due primarily to a global slowdown. One of the most important features of Indian policy-making is a commitment on all sides of the political spectrum on the need to continue India's economic reforms begun in 1991 . We have seen both favourably with export growth rates of 10.2% and 6.9% respectively experienced by exporting powerhouses like South Korea and Malaysia. In its New Foreign Trade Policy (NFTP), the Indian government has set a target of more than doubling India's share in world trade to about 2% by 2010. Instrumental in this will be the IT/ITES sector. According to the National Association of Software and Service Companies (NASSCOM), India's IT- lIES sector has experienced an explosive 28% growth since 1998, with revenues expected to reach US$28 billion in 2005. India's stock of inward FDI was US$30.8 billion in 2003 a sharp increase of 21.3% from the previous year but still far below mainland China's inward FDI stock of US$501 .5 billion. While India has not been a major destination of FDI in Asia in the past, recent global surveys have suggested that it is increasingly becoming one of the most attractive investment destinations in the world. For example, A.T. Kearney's 2004 FDI confidence index put India as the third most attractive FDI destination (after China and the United States). On some factors such as India's highly educated workforce, management talent, rule of law, transparency and regulatory environment, India was ranked more favourably than China. Despite India's sometimes difficult- to-understand political landscape, we view India's internal political outlook as being stable over the medium-term, one factor in the rising level of inward FDI. The one issue that may arise from time to time to disturb investor confidence is India's foreign relations with neighbouring Pakistan and the two countries' dispute over Kashmir. While the two countries have made significant progress in furthering peace talks in the recent past, it is not clear what the end game in this dispute could be. Positions of both sides are deeply entrenched and as frustrations in Pakistan grow with the time that it is taking to resolve the Kashmir dispute, we will likely see a ramping up of tensions that will affect overall investor confidence in India, as happened in 1998 after tit-for-tat nuclear explosions on the South Asian subcontinent in 1998. At US$913 million in 2003, India's stock of outward FDI is lower than that of many other Asian economies. However, recent announcements in the oil and gas, pharmaceuticals, biotechnology and IT sectors are likely the beginning of a trend that will see Indian conglomerates make acquisitions, greenfield investments, or sign partnership agreements in markets like Canada's to take advantage of the unique value propositions offered by Canadian and British Columbia firms and assets. 2. BRITISI-ICOWMB1A'S RELATIONSHIP WITH INDIA British Columbia firms have benefited from India's IT advantage with firms like Pivotal Corporation and Momentum Technologies establishing software development centres in India. While BC firms are engaged in India's IT/lIES sector, there are other sectors in which British Columbia firms are playing an increasingly prominent role. BC's largest exports to India have been in the forest products sector with all of the large BC forest companies Abitibi- Consolidated, Canfor Corporation, Howe Sound Pulp & Paper, West Fraser Timber Co. Ltd., and Weyerhauser Canada engaged in the India market through agency relationships. Other sectors in which BC companies are increasingly involved in the India market include education services (e.g., University College of the Fraser Valley, Malaspina University College), construction and real estate (e.g., The Kryton Group, Minaean International Corporation, Royal Indian Raj International Corporation), and Oil & Gas (e.g., Terasen Inc. and Westcoast Drilling Supplies, Inc.). Further, small and large BC-based consulting firms are also involved in the Indian market with services ranging from export market consulting (IPCS Project Coordination Services) to consulting engineering services (e.g., Lea International Ltd.). MERCHANDISE TRADE' Raw material exports have traditionally formed the vast majority of BC exports to India. In 2004, the top-five exports from BC to India accounted for 89% of all BC exports to India (see Table 2). BC exports represented 15.9% of Canadian exports to India in 2004. There are no significant structural differences in BC exports to India compared to other provinces. Like BC, Canadian merchandise exports to India also tend to be concentrated in raw material exports. However, it is significant that BC is the primary Canadian source to India for three of its top-five Canadian-sourced products 99.6% of ore, slag, and ash exports; 97.1% of mineral fuel, oils, and wax exports and 43.6% of wood pulp. BC's top-five exports to India are sectors of opportunity for BC, given that they represent BC's comparative advantage in the Indian market. As we outline below, India's demand for forest products, ores, mineral fuels, and infrastructure (more broadly) will increase substantially as the country continues to grow. In 2 each of these sectors and in a wide range of associated services sectors, there will continue to be significant opportunities for BC-based companies to provide value-added services to BC's portfolio of exports to India. Forest Products Forest products, including rolled and sheeted newsprint and wood pulp of various types have traditionally been the largest export from BC to India. In 2004, products in these two categories accounted for 63.3% of BC shipments to India. Rolled and/or sheeted newsprint (HS 4801 00) was the largest export from BC to India in 2004 at $46.3 million (36.2% of BC exports to India). All of the major BC forest products Canfor brand panel woods in the Indian market. Howe Sound Pulp & Paper Ltd. is represented by J.N. Ravanuss (India) Pvt. Ltd. based out of Gurgaon, Haryana where it has sold bleached kraft pulp. West Fraser Timber Co. Ltd. also has a liaison office in India with Stora Enso India out of Gurgaon near New Delhi. Weyerhaeuser Canada has also been engaged in the Indian market over the years with contracts announced for the sale of hemlock, Douglas-fir, alder, western maple, western red cedar, and white birch in the last two years through its Agent in India, LS Sund her Ltd. Mining, Minerals and Fuels Copper ore and concentrate has traditionally been the second most is today the single largest private sector manufacturer of high grade, special high grade and super special high grade zinc in India, was actually formed as a joint venture between Cominco Ltd. and Binani Metals in 1962, with a capacity to produce 14,000 tonnes of electrolytic zinc per annum. Cominco withdrew as financial collaborators of the company in 1991 as part of its global strategy. Mineral fuels and oils have not traditionally been major exports from BC to India. In 2004, however, they formed the third-largest category of exports from BC to India with shipments of bituminous coal accounting for $6.4 million (5.0% of total BC exports to India) I TABLE 2 BUS MERCHANDISE TRADE WITH INDIA, 2004 BC IMPORTS FROM INDIA BC-ORIGIN EXPORTS TO INDIA Rank Merchandise Classification (SM) % Rank Merchandise Classification (SM) % 1 Knitted or crocheted apparel 26.0 15 1 Paper and paperboard 46.4 36 2 Woven clothing and apparel 17.3 10 2 Wood pulp and other pulp 34.7 27 3 Other textile articles 13.1 7 3 Ores, slag and ash 14.6 11 4 Fish, crustaceans, molluscs 12.1 7 4 Mineral fuels, oils and waxes 12.4 10 5 Pearls, precious stones/metals, etc. 11.6 7 5 Electrical machinery and parts 5.6 4 Total tc Imports from India 177.2 100 Total BC Exports to India 128.1 100 Indian Imports as % of Bc's Total: 0.5 Indian Exports as % of Bc's Total: 0.4 Note. Canadian import statistics are collected in terms of the province of clearance, not province of final destination. Source: Trade Data Online. Industry Canada. 24 August 2005 <http://strategis.ic.gc.ca/sc mrkti/tdst/engdoc/tr homep.html> companies have ongoing relationships with partners in the India market. Abitibi-Consolidated Inc. is a major BC exporter of newsprint to India with the Times of India (India's largest-selling English language daily) printed on Abitibi paper. Canfor Corporation has also been engaged in the India market with its Mumbai-based distributor, Pratik Panels Ltd., which supplies important export from BC to India. In 2004, BC exported $14.2 million of copper ore and concentrates to India, making up 11.1% of BC exports to that market. Most of this ore and concentrate is sourced from Teck- Cominco's copper and molybdenum operations at Highland Valley. Teck-Cominco has an interesting history in India. Binani Zinc, which with a further $6 million in calcined petroleum coke (4.7% of BC exports to India). Three BC coal mining companies Teck-Cominco, Fording Coal, and Luscar visited India and presented technical results to the Steel Authority of India Ltd. (SAIL) in 2002-03. As a result of those visits, the pilot shipments of low ash content coal took place in 2004 (although it has not 3 been revealed which of these energy management system from each represented about 30% of companies exported coal to India Power Measurement. Canadian services exports to India in 2004). over the last decade (see Charti). Advanced Manufacturing Technologies Advanced manufacturing technologies encompass a wide variety of goods (and services) with several BC-based firms already engaged in the India market. While most activity may not register in the official trade data, there is significant evidence to indicate that BC-based firms are providing a wide array of goods and services in the Indian market. In October 2004, Vancouver- based Cummins Westport Inc. and Cummins India Limited (CIL) completed their licence and supply agreement that grants CIL an exclusive licence to manufacture, sell and service Cummins Westport's natural gas engines. Manufacture of these engines began in mid-2005. Applied Microsystems Ltd., a Sidney-based manufacturer of oceanographic instruments, recently sold one of its Argus II Geothermal heat probes to India's National Geophysical Research Institute based out of Bangalore. Saanichton- based Power Measurement Ltd. is a leading provider of enterprise energy management systems for energy suppliers and consumers. Through its agents in Mumbai, CMS Computers Ltd., Power Measurement provides web-ready software, metering and control devices that help manage complex energy contracts, improve power quality, reduce energy costs and keep operations running enterprise-wide. In 2003, Tata Power Company Limited (TPCL), India's oldest and largest private generating and distributing company, upgraded its Jojobera Power Plant located in Jamshedpur with an ION(R) enterprise Other firms producing advanced manufactured goods (and services) and engaged in the India market include: Langley-based Knelson Concentrators (precious metals processing technology); Mission-based Interwrap Industries Corp. (packaging solutions); Richmond-based ComNav Marine Ltd. (marine navigation and automation systems); Ebco Industries Ltd. (metal fabrication), Minaean International Ltd. (specialty construction and services),- Spectrum Signal Processing, Inc. (wireless equipment and services); the Kryton Group (construction materials); and Syndel Laboratories, Inc. (pharmaceutical and animal health products). SERVICES TRADE It is in services trade that BC's relationship with India is most dynamic and will see the greatest growth in the medium- to long-term. Official statistics for BC's trade in services with India are not available. The overall Canadian data together with work done on services by the Asia Pacific Foundation of Canada (APF Canada) provide an indicator of likely BC services trade activity with India. In 2003, total Canadian services exports to India was $254 million, down from $283 million in 2002 representing a —10.2% annual decline. Commercial services formed the most important component of Canadian services exports to India. For the 10-year period 1994-2003, commercial services exports represented 40% of Canadian services exports to India. In 2003, commercial services exports to India were $116 million. Travel services and government/transportation services The structure of Canadian services exports to India is similar to Canadian services exports to other emerging markets. Analysis by APF Canada has found that over the past decade, the share of commercial services exports to India was no different from its share in other significant emerging markets of importance to Canada like China, Brazil, Mexico and Malaysia. However, when we look at growth rates of commercial services, India stands out. In work done by APF Canada for International Trade Canada', it was found that at 27.6% average annual growth rates, India was one of the fastest growing markets for Canadian commercial services exports to the world with growth exceeding China and Russia and at par with more advanced markets like Singapore, Mexico and Thailand. More significantly, the variability of this growth of commercial services to India was the lowest among the ten emerging markets studied. This finding is significant because it means that growth in commercial services exports to India is certainly more stable than in markets like Brazil, Malaysia, Mexico, Thailand, Singapore, Russia and Indonesia. It could also mean that commercial services exports to India were likely distributed more widely than in other emerging markets. Contrary to our findings on Canadian and BC merchandise exports to India (which tend to be concentrated), this signals that a wide range of commercial services form a solid base of Canadian services exports to India. It is widely recognized that even if official data on BC's services exports TABLE 3 SERVICES SALES BY BC FIRMS IN INDIA, 2002 ($M, imputed) Sector Value Share of total, % Information & communication Technology 11.9 42.8 Consulting Services 11.3 40.6 Mining, Minerals Equipment & Services 0.4 1.4 Housing & Building Products 3.1 11.2 Other 1.1 4.0 Total 27.8 100 Source. Asia Pacific Foundation of Canada PART 1 I CANADA'S SERVICES EXPORTS TO INDIA Transportation and Government Services Commercial Services 933 Travel • 300 - 250 - 200 - (67) 150- 100— (35) (31) 1990 1995 2000 ( (SB) 64) (57) i 1 1 2001 2002 2003 to India were to become available, this data would continue to underestimate both the scope and volume of services transactions. There are two important reasons for this. First, unlike merchandise exports, a BC services firm can deliver its services from anywhere in the world. Second, most service delivery can only occur if there is close and regular contact with customers that in turn often requires some form of physical presence and investment. The implication of this services- investment linkage is that BC services firms may be very active in the Indian market but most of it would not be recorded in Canadian statistics. An example will clarify this point. Pivotal Corporation, a leading customer relationship management (CRM) software firm with a focus on mid-sized enterprises, started operations in Bangalore, India in November 2002 with a development centre. This development centre is fully integrated with Pivotal's global operations and forms the base for Pivotal's sales strategy in not only India but regionally as well. However, internal transactions between Pivotal (Vancouver) and Pivotal (Bangalore) would go unrecorded in official services data because they are internal to a Canadian firm. However, such transactions would be recorded in official trade data had they occurred between Pivotal (Vancouver) and an outsourced service provider in India. Further, transactions between Pivotal (Bangalore) and a third-party in India would go unrecorded in BC services export data even though the actual service is being performed by a company beneficially owned in BC. was contracted by International Trade Canada to provide estimates of total commercial services sales by Canadian firms in India. In that study' we found that in 2002, Canadian firms sold $336 million in commercial services in the Indian market. This was about 21/2 times greater than commercial services exports reported by Statistics Canada. For this report, we have gone back into our database to capture the share of BC-based firms in Canadian commercial services exports. As we can see in Table 3, we estimate that total BC commercial services exports to India were about $27.8 million with about 40% focused in two areas ICT services and consulting services. In the consulting area, there were a wide variety of firms engaged in providing services including legal services, engineering consulting services, travel and immigration services, and trade market consulting. The other important sector was the housing and building products sector with firms engaged in areas ranging from real estate development to specialized construction services. This sector made up a significant 11.2% of total services transactions by BC firms in the Indian market. Source: Adapted from Statistics Canada, Canada's International Trade in Services with In an attempt to capture these types Selected countries, CAN SIM Database Table 376-0036. 19 August 2005. <http.//wwm.dfa it- maeci.gc.ca/eet/pdf/intern trade in services _2005 -en. pdf>, of services transactions, APF Canada <http.//cansim2.statcan.ca>. Information and Communications Technology There are several BC-based ICT firms involved in India-related services activities. On the outsourcing side, Vancouver-based Pivotal Corporation established its development centre in Bangalore in 2002, as noted. Pivotal's first entré into the India market was in partnership with GrapeCity Inc., a Noida-based systems integrator. Vancouver-based Momentum Technologies, Inc. (recently acquired by UK-based Newell & Budge) established its development centre in Noida in 2000. In the wireless sector, Vancouver- based Sierra Wireless, Inc. announced in June 2004 that it had selected Adino Telecom Limited, India's premier broadband solutions company, to distribute the AirCard 750 wide area wireless PC Card and the MP 750 GPS modem, for use on GSM (Global System for Mobile Communication) and GPRS (General Packet Radio Services) networks, and the new AirCard 775 PC Card for EDGE (Enhanced Data rates for Global Evolution) networks, to customers in India. This agreement marked Sierra Wireless' first entry into the Indian market. Subsequently, Sierra Wireless also announced an agreement with Tirumala Seven Hill Pvt Ltd. to distribute its AirCard 555 wide area wireless network card to enterprises in remote areas in India. Richmond- based Empower Technologies, Inc. signed a distribution agreement with India's Experience Wireless Fidelity for distribution of Empower's PowerPlay series of PDAs and upcoming mobile smart communication devices. In 2002, Vancouver-based IntraCoastal System Engineering Corporation signed an agreement with Wireless Nova of Mumbai to install automatic meter reading (AMR) systems in several states in India. Wireless Nova currently manufactures, distributes and supplies a GSM-based AMR solution for industrial utility consumers and now has IntraCoastal's PLC AMR system to address the larger market of residential consumers in India. This followed a piloting of IntraCoastal's offering with the Karnataka Power Transmission Corporation of Bangalore in 2001 Other BC-based ITC firms involved in India-related activities include: Sierra Systems Group (IT consulting), and MidNet (Canada), Inc. (communications). Several BC-based software developers have been successful at placing orders in the Indian market. Vancouver-based S.C.S. Solars Computing Systems Inc., a provider of reservation systems for the travel industry, established its operations in India in 2001. Vancouver-based Datawest Solutions Inc., a provider of banking and payment technology solutions, sold its ConCentre software system to India Switch Company (ISC) and HMA STARware Ltd. ConCentre is a value-added product that is designed to monitor applications running on various platforms in a transaction processing network. Under the contract, Datawest provided installation, project management and training of personnel during the on-site implementation of ConCentre in Mumbai and also monitors the 150 ATMs and the connections of ISC's 10 member banks. Datawest Solutions Inc. has also sold its proprietary ATM network monitoring system to IDBl Bank Ltd. in India. In 2002, Surrey-based Serebra Learning Corporation, a provider of e-learning software, signed a franchise agreement with India-based Indata Com Pvt Ltd. through which Serebra will provide key e-learning solutions to the Indian education sector. Indata will use Serebra's courses as well as its Serebra.Net Hosted Learning Management Solution in order to produce teaching packages on IT skills and improve training offered to students in India. Engineering Consulting Services Engineering consulting services are also an important element of services activity by BC-based firms in India. Surrey-based Aplin & Martin Consultants Ltd. was contracted to provide a master plan schematic design and design development for a new upscale, state-of-the-art 10,000 population township in Haryana state. The firm was also contracted to provide project management and engineering services for the town's wastewater treatment facility. In 2003, Vancouver-based AldrichPears Associates, along with its consortium partners, received funding from the Canadian International Development Agency's Industrial Cooperation Program to undertake a feasibility study to provide professional services to Pushpa Gujral Science City project in Punjab. Vancouver-based IPCS International, a project management and marketing company, led the Canadian consortium for an initial concept-planning workshop in Chandigarh to support the Punjab government's initiative to develop a world-class Science Centre. AldrichPears provides planning and creative services for museums, science centres and interpretive centres. Vancouver-based CIVIC Engineering and Management Ltd. has extensive 11 experience in India dealing with foodgrains production, storage, handling, transport, distribution and value-added processing. In 2003, the company signed a Memorandum of Understanding with India's Central Ware Housing Corporation (CWC) under the Ministry of Consumer Affairs, Food and Public Distribution for the construction of modern cold storages for various agricultural and poultry products and studies and design adaptations in technology for the construction of a cold corridor from Jammu and Kashmir and Himachal Pradesh to Mumbai The cold corridor is part of the Indian government's plan to preserve horticultural and agricultural products for export. Toronto-based Lea Consulting Ltd specializes in transportation and urban infrastructure projects with an emphasis on transportation planning, traffic operations, and highway, bridge and municipal design. With a major office in Vancouver, Lea Consulting Ltd. established Lea Associates South Asia Ltd. (LASA) in 1993, LASA has won over 100 projects in various disciplines across India and now has 15 branch offices covering almost every major city in India and a total staff strength of 520 employees in India. Another Vancouver-based firm that has undertaken considerable engineering consulting work in India CASE STUDY 1 DELIVERING ENGINEERING SERVICES IN THE INDIAN MARKET: EXPERIENCES OF LEA INTERNATIONAL, LTD. Established in 1993, Lea Associates South Asia Pvt. Ltd. (LASA), part of the Canada-based LEA Group of Companies, is an infrastructure development and management consultancy firm. LASA provides specialized services in highway planning, engineering, design and supervision; traffic engineering and transportation planning; bridge and structural engineering, design and supervision; environmental and social planning and engineering; urban, regional and tourism development and planning; irrigation and water resource management; and training and technology transfer. LASA is headquartered in New Delhi and has branch offices in almost every major city in India. An example of services delivered by LASA includes its recently completed Strategic Options Study (SOS) for the state of Gujarat. As the result of the massive earthquake in Gujarat on January 6, 2001, LASA was awarded a contract, funded by the World Bank, to carry out services such as assessment of existing bridges, ranking of bridges, detailed topographical survey and sub-soil investigation, preparation of detail design/drawings, finalization of repair and rehabilitation strategy, preparation of BOO, specifications, cost estimation and bid documents. LASA has also been actively involved in a complex tourism project in the state of Kerala, which required the balancing of the development of tourism along with ecology, fishing and the environment. LASA considers its entry into India in 1993 and its continued commitment to quality as its biggest strengths in the market. Since India is a vast market and its infrastructure resources have been stretched to the limit, there is considerable need for improvement. LASA foresees huge opportunities for itself in road infrastructure development and it also expects opportunities in the railway and general infrastructure development sectors. LASA considers its commitment to quality as its primary strategy for its future and current success. LASA invests substantial time in evaluating a project to determine its feasibility and quality commitment from the client before agreeing to work on a project. The firm's project offices in India are the most important and critical avenue of service delivery. LASA also undertakes numerous programs to train its customers by bringing them to Canada. 7 is ND Lea Consulting Ltd. With offices in Kamloops and Williams Lake, ND Lea specializes in management, planning and design of transportation infrastructure, urban development and environmental assessments. In India, the firm has undertaken several projects in the roads sector including work for the Asian Development Bank, the states of Gujarat and Madhya Pradesh and a wide variety of feasibility studies, particularly for the key Faizabad-Noida-Ghaziabad expressway. Environmental Goods and Services An important sector for BC-based SMEs in the India market will continue to be environmental services with several BC firms engaged on a variety of projects in India. Victoria-based Hydroxyl Systems Inc. has provided its offering of full spectrum wastewater services including scientific investigation, in-house treatability testing, design and construction. North Vancouver-based Aqua-Guard Spill Response Inc. and Richmond- based Versatech Products Inc. provide a complete range of oil spill containment and oil spill recovery equipment. These offerings have been sold in the Indian market. There are also several BC-based environmental consulting firms that have engaged in contract work in India. These include: EVS Environment Consultants Ltd. (engaged in environmental policy consulting work with the Confederation of Indian Industries as part of a Canadian International Development Agency project), and PN Enterprises Ltd. (waste management services). There is also significant potential in the India market in the area of clean energy. As noted, Vancouver-based Cummins Westport, Inc. has begun manufacturing its natural gas engines in India. Vancouver-based Palcan Power Systems, a developer and manufacturer of proton exchange membrane fuel cell systems under 5 kilowatts, sold its hydrogen storage systems in 2004 to Bharat Petroleum Corp Ltd. to be tested by Bharat Petroleum Corp. in three-wheel and small vehicle configurations. Questair Technologies, Inc. and Ballard Power Systems are actively looking at entering the Indian market with distribution and joint venture agreements. In 2000, BC Hydro International entered into an alliance with DSCL Energy Services Company of India to work on energy conservation projects. DSCL Energy is a division of DCM Shriram Consolidated. The alliance began with projects in the building sectors, specifically hotel, hospital, and commercial complexes, and now works on projects in the power- intensive paper and sugar industries. INVESTMENT Like services data, there are no official investment data at the provincial level available. On a Canada-wide basis, the total stock of Canadian direct investment in India in 2004 was $251 million while the stock of Indian direct investment in Canada was $62 million. Like statistics on trade in services, these estimates of FDI underestimate the total stock of Canadian (and BC) investment in India. By Indian accounts, total approved FDI in India from Canada from 1991 to 2003 was Rs. 28.8 billion or $834 million. Therefore, the broadest estimates of Canadian FDI in India are likely between $251 million and $834 million. It is important hereto provide some context on FDI definitions used by Statistics Canada and how these might have an impact on recorded BC investments in India. Statistics Canada applies internationally accepted definitions of FDI. There are two significant elements to this definition. First, is the 10% rule if a Canadian firm has ownership of at least 10% of the voting equity in an Indian firm, then the FDI relationship is recorded in Canada's balance of payments statistics. The second element is the book value rule Canadian direct investment abroad is measured from the books of the associated firm and not from the books of the Canadian investing firm. While these definitions are commonly applied internationally, they do create perverse FDI statistics. For example, Canada's FDI stock in Barbados in 2002 was $23.9 billion 2/2 times Canada's FDI stock in Germany and Japan, 11/2 times Canada's FDI stock in the entire continent of Asia, 36 times Canada's FDI stock in China and 166 times Canada's FDI stock in India, probably because of the 10% rule. On the Indian side, proposed FDI approvals from the Sub-Saharan African country of Mauritius were four times larger than approvals from Germany, three times larger than approvals from Japan, and 12 times larger than approvals from Canada. This is likely due to the book value rule. In fact, if we go by Indian approval data, Mauritius was the second-largest source of FDI in India by a wide margin! To get at the current state of play, APF Canada was contracted by H. International Trade Canada to take a closer look at Canadian Investments in India. In that study, we estimated that for a very limited sample of only 43 Canadian firms, total Canadian FDI stock in India was $284 million. It should be noted that our sample of firms did not include some significant Canadian investors, particularly in the oil and gas, telecommunications and health care sectors. Further, we were able to obtain Foreign Investment Promotion Bureau Sector Advanced Manufacturing Technologies Aerospace & Defence Agriculture & Food Products Consulting Services Consumer Products Drugs, Pharmaceuticals & Health care Electric Power Equipment & Services Environmental Goods & Services Housing & Building Products Information & communications Technology Insurance, Banking & Financial Services Mining, Minerals Equipment & Services Oil & Natural Gas Transportation Infrastructure & Services Other Total data on the basis of approvals by company for Canadian (and BC) firms invested in India between 1999 and 2003. As can be seen from Table 4, the total approved Canadian FDI in India between 1999 and 2003 was $216 million. Investments in the ICT sector accounted for the largest chunk at $121 million or 56% of approved investments. It is interesting to note that FDI approvals in the health care and transportation sectors were larger than in financial services. This is likely because Indian FDI # of FDI Share of suppliers (SM) total, % 11 1.96 0.9 1 0.08 0.04 3 0.27 0.1 4 0.72 0.3 4 37.1 17.2 3 0.08 0,04 2 0.06 0.03 16 121 56.0 3 188 87 8 10.2 4.7 2 21.6 10.0 22 4.0 1.8 79 215.9 100.0 approval data does not account for reinvested earnings and short- and long-term claims of foreign investors that tend to be a large component of investments by financial services firms. Also noteworthy is that there were no approvals of FDI in the oil and gas sector which we believe from anecdotal evidence is not accurate. The one important conclusion from this approval data is that Canada's FDI stock in India in the ITC sector is likely much larger than indicated by official Canadian statistics. The stock of FDI in the IT sector was a tiny $4 million by official measures (in 2003). However, the FDI approvals data suggests that the likely figure is at least an order of magnitude larger. Table 5 shows investment approvals in India by Canadian province. BC's share of Canadian investment was 12.9% or $28 million in 2003. The top destination of intended investments by BC firms in India was New Delhi ($21.5 million by the Verus Group in the transportation infrastructure and services sector). This is followed by the mining sector at $4.9 million. We note that important investments by BC firms that we know established operations in India after 1999 are not included in this FDI listing (e.g., Pivotal Corp., Momentum Technologies). TABLE 4 I CANADIAN FDI APPROVALS IN INDIA, 1999-2003 (IN 2003 $)* * Figures are based on approval data only and do not include reinvested earnings, short and long-term claims and exits from the Indian market Data includes FIPB approvals for 1998. Exchange rate: 1 Indian Rupee = $002863 as at December 30, 2003. Source. Asia Pacific Foundation of Canada TABLE 5 INDIAN FDI APPROVALS OF BC-BASED COMPANIES, 1999-2003 (2003 Name of Firm Destination in India Sector Proam Explorations Private Ltd. chennai Mining, Minerals Equipment & Services Can Achieve consultings Ltd New Delhi consulting Services S.C.S. Solar Computing Systems Inc., New Delhi ICT MIS Meridian Peak Resources New Delhi Mining Verus Group, Canada. New Delhi Transportation Pebble Creek Resources Ltd., Canada Pithoragarh (Uttar Pradesh) Mining Kryton Holdings Inc, Canada Rewari (Haryana) Other BHP World Exploration Inc, Canada Mining Source: Foreign Investment Promotion Bureau (FIPB), 1999 - 2003 data $ $42,945 $715,750 $35,215 $2,175,880 $21,544,075 $254,807 $239,919 $2,462,180 IN CHART 2 BC IS HOME TO THE LARGEST PUNJABI COMMUNITY IN CANADA 160,000 - 1 120, - 21,7401 000 (110,545) 80,000 - 40,000 - I (22,540) (9,900) (5415) 0— NNW B C Ontario Alberta Quebec Manitoba Source. Detailed Mother Tongue Ottawa Statistics Canada. 2001 census of canada. Catalogue number 97F0007XCB01001 , 11 December 2002. <http://wwwl2 statcan.ca/english/censusol/pioducts/standard/themes/index.cfm> CHART 3 INDIAN IMMIGRANTS TO BC BY CATEGORY 0-- Other 10 80 Family Class — Business Skilled Workers Hffl!!!Ui 1994 1996 1998 2000 2002 2004 Source, Citizenship and immigration Canada (2005). IMMIGRATION According to the 2001 Census, India was the third largest source of immigrants to British Columbia after the United Kingdom and Mainland China. In 2001, BC was home to 92,430 immigrants from India or about 29% of the 315,000 immigrants who had come to Canada from India. It is significant that 77% of these immigrants to BC from India arrived after 1990. Immigrants from the Punjab state are the main source of Indian immigrants to BC. In fact, British Columbia is home to the largest Punjabi-speaking community in the country (see Chart 2). Punjabi- speakers were the third-largest community after English-speakers and Chinese-speakers in the province. One of the important effects of the high-level of immigrants from India to BC is the significant development of education services in BC catered to the needs of Indo-Canadian students. In the coming years, we expect to see a number of university colleges and other institutions actively establish programs in India and/or recruit Indian students to attend BC institutions. Abbotsford-based University College of the Fraser Valley (UCFV) will be offering its Applied Business Administration degrees at Punjab University in Chandigarh starting in September 2006. Students enrolled in the Business Administration program have the option of completing the entire program at Punjab University or complete the first two years in Chandigarh and finish the program at UCFV or at other Canadian institutions. UCFV also signed an agreement with Punjab University in November 2004 to establish a Canadian Studies Centre where both institutions would collaborate in research and promote faculty exchanges. In addition, Kwantlen University College, the British Columbia Institute of Technology (BCIT), and Malaspina University College all have active recruitment efforts in the India market and undertake coursework for students in India. In 2001, the Vancouver Film School (VFS) announced that it signed a joint venture agreement with India's Modi Enterprises to open a school in Mumbai. According to that announcement, the nine full- time programs and 60 part time programs of VFS focus on industries that use moving images, graphics, sound and text as fundamental components for communicating information and story. The Modi VFS Institute planned to offer courses in new media and 3D animation. It is not clear whether this project is currently underway. It is also noteworthy that for the immigrants from India who arrived in BC in the last decade, more than 80% were in the Family Class (see Chart 3). Skilled workers and business category immigrants to BC made up 15.3% and 0.8% respectively of immigrants from India to BC in the past decade (1994-2004). irui 3. SECTORAL OPPORTUNITIES FOR BC BUSINESS FOREST PRODUCTS India's per capita consumption of paper is around 4.00 kg, which is one of the lowest in the world. With the expected increase in literacy rates and continued growth of the economy, an increase in per capita consumption of paper is expected in the medium- and long-term. The demand for upstream market paper products, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical grade coated paper, etc., is also growing rapidly. Further, the associated services related to the paper industry are likely to see an upswing in India as Indian manufacturers ramp up production. Vancouver-based Sandwell Engineering, Inc. is currently performing a detailed study for the planned expansion and modernization of the Nagaon and Cachar paper mills operated by Hindustan Paper Corporation (HPC). Despite these growing opportunities, due to India's high tariff rates for value-added paper and wood products, we expect that primary wood products will continue to dominate the BC merchandise trading relationship with India in the short- to medium- term. Further, because of the high degree of fragmentation and commoditization in the global paper and pulp industry, the highly cyclical nature of supply and demand, and multiple distribution steps in the supply chain, almost all BC exporters rely on representatives in the region that are responsible for sourcing raw materials and have extensive industry contacts on the demand side. Therefore, while we can expect demand to be cyclical, the relative ranking of BC wood product exporters to India is not likely to change dramatically. Besides newsprint and wood pulp, Canadian secondary forest product firms are increasingly looking at the Indian market for sales of various types of value-added wood products. CASE STUDY 2 SECONDARY WOOD PRODUCTS MARKET IN INDIA: The role of BC Wood Specialty Group BC Wood is a not-for-profit trade association dedicated to growing British Columbia's secondary wood-products manufacturing industry. Established in 1989 as a partnership between industry and government, BC Wood provides marketing programs to over 600 registered value-added manufacturers, which includes cost-shared participation in international tradeshows and events, out-going and incoming trade missions, lead generation through the World Wide Inquiry System (WV/IS) and networking opportunities. BC Wood's India program is focused on three major cities Mumbai, Bangalore and Delhi. BC Wood's business strategy is to focus on making successful introductions of "Made in BC" finished wood products by supporting its members in trade shows and by facilitating inquiries from Indian industry. In 2003, as part of a project contracted to APF Canada, we interviewed Bill Downing CEO at BC Wood on the opportunities and constraints faced by BC forest products firms in the India market. According to Mr Downing, BC firms wanting to engage in the secondary wood products market in India face stiff competition from low-value Chinese producers and high value European manufacturers. On the regulatory side, India's high import tariffs on finished wood products and its multi-layered bureaucracy continue to remain a problem for BC-based firms. As an example of this regulatory issue, the container carrying BC Wood's Lifestyle Showcase, which was shipped to India late 2002 was not released until mid-2003 - a significant delay for BC Wood's marketing campaign in India. In terms of business practices, brand familiarity with BC wood products was rated by Mr Downing as the number one factor restricting BC value-added wood exports into the Indian market. Finding reliable partners was also rated high as a constraint to continued operations in India. IF The BC Wood Specialty Group a public-private partnership is a dedicated resource to provide market information and assistance to BC wood products firms looking to enter the lucrative but competitive Indian wood products sector. Cascadia Forest Products Ltd. (which was established as a result of Brascan Corporation's May 2005 acquisition from Weyerhaeuser of certain assets) and Coast Clear Wood Ltd. (a division of the Probyn Group which has Tom Sund her a principal at LS Sundher Ltd.- as its general manager) are thought to have sold value-added wood products to India in the recent past. Here too, however, interviews revealed a number of constraints facing BC value-added wood exporters in the Indian market. As we show in the Case Study on the previous page, India's high tariff rates for value-added wood products, the emphasis of BC industry on softwood (rather than hardwood which is popular in India), and lack of brand equity are all important constraints for BC value-added wood exporters in the Indian market. MINING, MINERALS AND FUELS A review of recent mineral forecasts by BC-based mining firms point to the expectation that rising demand for minerals from India (and China) together with supply constraints will continue to benefit BC firms engaged in non-ferrous metal and mineral mining in BC. However, the most important positive impact will likely be indirect price effects. More significantly, there are some structural constraints in the Indian mining sector that spell opportunity for BC-based firms. Most Indian mines have very little automation and this restricts the quantity and quality of ore produced. Further, supportive infrastructure for a growing metals industry such as roads, logistics, ports, etc. is sorely lacking. A number of BC-based firms are engaged in the mining sector in India both on the exploration side and in providing mining-related services. On the exploration side, Pebble Creek Resources, Ltd. has been long engaged in the India market through its Indian subsidiary, Adi Gold Mining Private Limited, which holds 100% of mineral rights covering the Askot deposit of copper, gold, silver, zinc and lead in Uttaranchal State in Northern India. North Vancouver- based Proam Explorations Corp. has also invested in India, in Chennal, for mineral exploration rights in Tamil Nadu, Andhra Pradesh, Madhya Pradesh and Kerala states. Other firms involved in mining exploration in India include Meridian Peak Resources Corp. and BHP World Explorations, Inc. (while BHP Billiton is an Australian company, BHP's Indian venture is recorded in Indian approval data as a Canadian investment out of Vancouver). Vancouver-based Golden Patriot Mining Inc. announced the signing of an agreement with Binani Industries Ltd. and RBG Minerals Industries Ltd., for the development of the Ambaji copper-zinc-lead project located in the states of Rajasthan and Gujarat in 2004. Under this agreement, Golden Patriot will have the right to earn a 32.5% interest in the Ambaji project. Its equity contribution will amount to US$3.7 million, and it must identify and arrange US$1 1.6 million in debt financing for the project. In addition to these exploration companies, BC-based firms have also benefited from mining-related goods and services demand from India. Langley-based Knelson Concentrators produces a wide array of precious metals processing equipment that has been sold in the Indian market. Richmond-based Seabulk Systems Inc. installed a self-unloading sea bulk transhipper in Marmagao, Goa, where it is being used to transfer iron ore into cape size ocean-going vessels. Delta-based Westcoast Drilling Supplies Ltd. has also supplied the Indian oil and gas exploration market with drilling fluids, equipment, and accessories. 12 4. CHALLENGES AND PROSPECTS India represents an increasingly important market for BC and this market is bound to grow in the medium- to long-term. While BC merchandise exports to India have been dominated by forest products and mineral ores, our past analyses have shown that official trade data do not effectively capture the dynamic nature of Canadian business activity in India. The same is the case for commercial activity by BC-based firms in India. In Annex 1 we provide a listing of about 80 BC-based firms and institutions that have been involved in India-related trade and investment, including some of BC's largest and most dynamic firms. The implication of our analysis is that BC- based firms are fully aware of India's market potential and have taken steps to ensure that they tap into this opportunity. At the same time, an analysis of current business activity may not reveal future potential areas in which BC-based firms can participate in India's growth. Here, we identify three sectors in which we feel that there may be further potential for BC-based firms to engage in the India market. TELECOMMUNICATIONS By 2010, India's investment requirement in its telecom sector is estimated to be around US$ 70 billion. The stated objective of India's National Telecom Policy is to increase India's tele-density to 15% by 2010 (from the current 7% land-line density and 3.5% mobile density). This translates roughly into infrastructure and service requirements for an additional 90 million land-lines and mobile subscribers in the next five years. Growth in the mobile telephone market and investments by India's business process outsourcing (BPO) industry catered to the telecom industry will be particularly rapid. India will soon be the third-largest mobile phone market in the world. The total mobile subscriber base in India touched 43.3 million in May 2005 according to the Cellular Operators Association of India (COAl) with 1.3-1.5 million new subscribers signed up each month. At present, the Indian market is ranked sixth after US, Britain, Germany, China and Japan. Responding to this large investment and demand requirements, India has increased the EDI limit in the telecom sector to 74% from 49%. Mergers and acquisitions in telecommunications are expected to gather momentum after the government's decision to hike FDI caps and the likely sale of Reliance InfoComm, India's largest GSM operator. In practice, many telecom operators actually have 74% overseas equity since India already allowed 49% direct foreign stake and another 25% through a complex holding- company route. Import duties totaling 15% on mobile switching centres were eliminated in last year's budget and specified items used in the manufacture of mobile handsets have also been exempted from import duties. Pending regulatory changes will further encourage increasing domestic and foreign investment in this sector. On the demand side, the telecom industry lobbied hard for the recommendations of Telecom Regulatory Authority of India (TRAI) last year to reduce charges on domestic leased lines by as much as 62%, in order to boost Internet and broadband usage in India. On the supply side, the telecom industry welcomed the government's move to slash licence fees for national telecom infrastructure providers to 6% of their gross revenues from the previous 15%. The hotly competitive telecom sector is heavily taxed by the government, which collects close to a third of the industry's revenue as various taxes, including permit and spectrum costs. These changes are expected to boost demand for telecom services. As noted, there are several BC-based firms engaged in this sector that will likely see increased demand for their goods and services, including Sierra Wireless, Empower Technologies and IntraCoastal System Engineering Corporation. However, the sheer size of demand and growth in India's telecom space provides significant opportunities for firms ranging from systems integrators to software developers to hardware manufacturers to invest in and supply the Indian telecom market. Simply put, the list of BC-firms engaged in this sector needs to be much longer. ENTERTAINMENT When one thinks of India, Bollywood is as much an icon of India's image overseas as the Taj Mahal or the Bengal tiger. India leads the world in the output of movies, with more than 800 produced annually. These films command a religious following within India and are increasingly becoming popular abroad, particularly in West Asia, Europe and North America. But the entertainment sector in India is much 13 larger than just films and the highest growth potential exists in emerging sectors like television and animation in which BC-based firms are considered to be industry leaders. In 2003, revenue of the Indian entertainment industry grew by 15% to an estimated US$4.3 billion. According to a study by Ernst & Young, revenues in India's entertainment sector are projected to increase by over 120% by 2008 with some of the largest increases occurring in the film (124%) and television (124%) segments. Underlying this growth are some key trends that bode well for BC companies and institutions. The way in which Bollywood films and Indian television is funded has changed significantly since the first Indian movie was filmed in 1896. Long the domain of India's underworld, there is a significant trend toward new and transparent sources of financing. These include equity financing; financing by cable and satellite television networks; venture capital financing; financing by foreign institutional investors (including Canadian); and film insurance. One of the first foreign financing arrangements in the Indian entertainment industry was the Caisse de dépôt et placement du Quebec's (CDPQ) 31% equity stake in UTV two-and-a-half years ago valued at US$ 9.4 million. UTV is considered to be a leader in the Indian entertainment sector and is involved in TV content, movies, and animation. This move toward corporatization of India's film and television segments has led to other important trends that will continue to have an impact on BC suppliers and investors. One of these is the so-called "multiplex phenomenon." Starting with one multiplex in Delhi in 1997, it is estimated that there are now over 115 multiplexes in India today with another 45 planned for the years to come. Feeding into this trend is a Canadian firm, the IMAX Corporation, that expects six IMAX theatres to be open in India by 2006. In April 2003, IMAX signed an agreement for three theatres which represented the largest international multiple theatre deal that IMAX has made in the last three years. Another trend that will have an impact on BC firms is the advent of digital technology for the projection of films in theatres. In 2002, the Indian government reduced the basic duty on certain studio equipment following which it is estimated that roughly 90 cinemas have been converted to digital projection. Digital projection provides distributors faster time to market, a wider release of films, anti-piracy technology and significantly lower costs. A final trend that will have an impact on Canadian firms and educational institutions is in India's high growth animation sector. A recent survey by India's National Association of Software and Service Companies (NASSCOM) suggests that the size of the Indian animation industry is only about US$500 million with an estimated 3,000 trained animators. This can be compared to an estimated 40,000 trained animators in South Korea and the Philippines and about 8,000 trained animators in China. As Indian animation houses begin to evolve from the traditional model of low-value added outsourced animation work to animation co- production, they will be looking for established international partners and trained technicians capable of delivering creative animation services to international standards. Here again, BC is at the leading edge. Not only is Canada's co-production framework viewed as an opportunity by Indian industry analysts; BC's animation educational institutions are highly regarded in India and around the world. Our industry analysis suggests that a number of educational institutions are actively looking at establishing partnerships with Indian institutions to deliver animation training in India. An active and sustained BC government- industry-educational institution collaboration in the animation sector will yield significant dividends for BC's commercial ties in a fast- growing sector of the Indian market. BIOTECHNOLOGY If trade shows, industry reports, and newspaper articles are any indication of growth prospects, India's nascent biotechnology sector is at the cusp of what has been described by many as India's "gene revolution." According to a report published recently by India's Association of Biotechnology Led Enterprises (ABLE), the biotechnology sector in India achieved a 39% growth rate in 2003- 04 with a turnover of US$700 million. This finding is confirmed by Ernst & Young's 2004 Global Biotechnology Report in which analysts expect India's biotechnology sector to register US$5 billion in annual revenues by 2010. The Indian biotech industry is expected to cross the psychological US$1 billion mark in 2004-05. Biopharma continues to be the '4 largest sub-sector within India's biotech industry, with 76% of total sales. Bio-services was the next biggest segment (8%), followed by bio-industrials (8%), bio-agriculture (5,5%) and bio-informatics (2.5%). Industry sources suggest that Indian biotechnology firms have the potential to follow in the footsteps of India's IT firms to become the next growth engine for Indian exports. For example, Indian firms were responsible for submitting nearly 21% (73 of 350) of all abbreviated new drug application to the US Food and Drug Administration (FDA) last year. Indian companies also accounted for 25% of submission to FDA's Drug Master File (DMF) in the fourth quarter of 2003. DIME approval is a prerequisite for exporting a drug to the US, providing details about a company's facilities for manufacturing, processing and storing drugs. India also has 70 FDA-approved plants and 200 manufacturing facilities certified as having good manufacturing practices, more than any other country outside the US. To be sure, there are three important secular trends taking shape in India that point toward an increasing role for the country in the global biotechnology value chain. First, India is gradually building the critical mass in terms of the human capital crucial for this sector. It has a large scientific talent pool of some 15,000 bio-scientists employed in 40 National Research Laboratories. Further, it has 300 college-level institutes offering degrees and diplomas in biotechnology, bio informatics and the biological sciences. Second, India has a relatively low cost base. Salaries of skilled professionals and PhDs are as much important impact on the cost of drug development, which is largely attributable to the expense of conducting clinical trials and research. Here, Indian Clinical Research Organizations (CROs) have been actively developing partnerships with global pharmaceutical firms in anticipation of policy changes that will enable clinical trials to be carried out in India on equivalent lines to those conducted elsewhere. Third, the Indian biotech sector is poised to benefit from some significant regulatory changes currently underway in this sector. The recently announced Foreign Trade Policy provides for the setting up of Biotechnology Parks (BTPs) across the country. Firms located in these parks would have the advantage of being treated as Export-Oriented Units and would be exempt from paying the service tax (which was raised to 10% in the most recent budget). Biotechnology firms in these parks would also be eligible to import capital equipment on a self- certification basis, and biotech exporters with a minimum turnover of about US$1 million and a good track record are exempted from showing bank guarantees. Further, changes in clinical trial regulatory policies are promoting, in one executive's words, a "clinical research culture" in India. These include: regulatory changes to promote Good Clinical Practice training, removal of India's import duties for clinical-trial related equipment, freeing of restriction on simultaneous global clinical trials, and speedy study start- up times. To address lengthy study approval times, India's Drug Controller General, a division of the What this means for BC-based biotech firms is that India offers not only a market for exports of pharmaceutical products but a source to reduce costs involved in drug research and development. Few BC-based biotech firms have yet looked at the Indian market in this manner, and again, focusing on this sector will be an important strategic issue for the province in its efforts to promote BC as a knowledge economy. as 90% lower in India than in the US. Ministry of Health is also streamlining This low cost base has a particularly its trial approval process. 15 COMPANY NAME CORPORATE HQ LOCATION INDUSTRY SECTOR Global Fruits Inc. Davao City, Philippines Agriculture - Fruits Okanagan Similkaroeen Cooperative Growers Oliver Agriculture - Fruits Intrusion Prepakt BC Ltd. Mission AMT Kryton Holdings, Inc. Vancouver AMT Ram-Pac Industries Ltd New Berlin, Wisconsin AMT Power Measurement, Ltd. Saanichton AMT— Energy Management Cummins Westport, Inc. Vancouver AMT— Engines Ebco Industries Ltd. Richmond AMT— Equipment Minaean International Corporation Surrey AMT— Housing/Construction Applied Microsystems Ltd. Sidney AMT— Marine Instrumentation ComNav Marine Ltd. Richmond AMT— Marine Instrumentation Knelson Concentrators Langley AMT— Metal Processing Technology lnterwrap Industries Corp. Mission AMT— Packaging Solutions Spectrum Signal Processing Inc. Burnaby AMT— Wireless Networks Cranberry Construction Services Ltd Powell River Construction Pacific Institute of Holistic Living Vancouver Consulting 77A Technology Training Associates Ltd Vancouver Consulting - Human Resources Campbell AgriBusiness Strategists Vancouver Consulting - Management Maradadi Pacific Powell River Diversified Canadian International College North Vancouver Education Services Kwantlen University College Surrey Education Services Malaspina University College Nanaimo Education Services School District #42 (Maple Ridge - Pitt Medows) Maple Ridge Education Services University College of the Eraser Valley Abbotsford Education Services Vancouver Community College Vancouver Education Services Terasen Inc. Vancouver Energy AldrichPears Associates Vancouver Engineering Consulting Services Aplin & Martin Consultants Ltd Surrey Engineering Consulting Services CMC Engineering Group Vancouver Engineering Consulting Services Lea International, Ltd. Toronto/Vancouver Engineering Consulting Services NO Lea Consulting Ltd. Vancouver Engineering Consulting Services Sandwell Engineering, Inc. Vancouver Engineering Consulting Services Seabulk Systems, Inc. Richmond Engineering Consulting Services Trow Consulting Engineering Ltd Burnaby Engineering Consulting Services Aqua-Guard Spill Response Inc. North Vancouver Environmental Goods & Services EVS Environment Consultants Ltd North Vancouver Environmental Goods & Services Hydroxyl Systems Inc. Victoria Environmental Goods & Services NORAM Engineering & Constructors Ltd. Vancouver Environmental Goods & Services PN Enterprises Ltd. Surrey Environmental Goods & Services Versatech Products Inc. Richmond Environmental Goods & Services Rogers Foods Ltd. Armstrong Food - Consumer Goods Abitibi-Consolidated Inc. Montreal Forest Products Cantor Corporation Vancouver Forest Products Cascadia Forest Products Ltd. Vancouver Forest Products Coast Clear Wood Ltd. New Westminster Forest Products Howe Sound Pulp & Paper Ltd, Port Mellon Forest Products 10 Norske Skog West Fraser Timber Co. Ltd. Weyerhaeuser Company Ansatel Communications Inc. Sierra Systems Group, Inc. Momentum Technologies Pivotal Corporation Data west Solutions Inc S.C.S. Solars Computing Systems Inc. Midnet (Canada), Inc. Empower Technologies, Inc. Sierra Wireless, Inc. Can Achieve Consultants Ltd. Royal Indian Raj International Corp Borden Ladner Gervais BHP World Exploration Inc. Golden Patriot Mining, Inc. Meridian Peak Resources Corp. Proam Explorations Corporation Teck-Cominco Pebble Creek Resources Ltd. Westcoast Drilling Supplies Ltd. International Play Company, Inc. Singh, Abrahams and Joomratty (SAJ) Syndel Laboratories, Inc. IPCS International Inc Quester Tangent Verus Group Uniglobe Travel (International) Inc. LysakeT Norway Forest Products Vancouver Forest Products Federal Way, Washington— USA Forest Products Vancouver ICT— Telecommunications Vancouver ICT— Consulting Vancouver ICT— Outsourcing Vancouver ICT— Outsourcing Vancouver ICT— Software Portland, Oregon— USA! Vancouver ICT— Software Reno, Nevada! Vancouver ICT— Telecommunications Richmond ICT— Wireless Richmond ICT— Wireless Vancouver Immigration Consulting Vancouver Infrastructure Technology Vancouver Legal Services Vancouver Mining Vancouver Mining Vancouver Mining North Vancouver Mining Vancouver Mining— Copper Vancouver Mining— Exploration Delta Oil & Gas Langley Other (Play Structures) Surrey Other Services (Legal) Vancouver Pharmaceuticals and Animal Health Products Surrey Project Management and Marketing Sidney Transportation Infrastructure & Services Vancouver Transportation Infrastructure & Services Vancouver Travel Services ASSOCIATION NAME Canada India Business Council (BC Chapter) Fraser Valley Indo-Canadian Business Association lndo Canada Chamber of Commerce (BC) Indo Canadian Business Chamber Indo-Canadian Business Association North American Association of Asian Professionals - Vancouver Punjabi Market Association Sino-Indo-Canadian Business Association The Indus Entrepreneurs (Vancouver) The Society of Punjabi Engineers And Technologists of British Columbia CONTACT PHONE Valli Chettiar, President 604-661-1006 Andy Sidhu, President 604-852-2288 Ab Berar, President 604-266-8073 VivekA. Savkur Chairman 604-303- 0509 Ken Ohillon, President 604-377-9015 Bernard Seo, President 604-515-5771 Daijit Sidhum, President 604-324-5711 Hardev Bal, Director 604-327-5696 Randy Garg, President 604-878-1843 Ted Singh, President 604-785-5023 '7 NOTES Merchandise trade statistics are adapted from Trade Data Online. Industry Canada. 24 August 2005. <http ://strategis. ic. gc. ca/sc mrkti/tdst/ engdoc/trhomep, html>. Assanie, N. and Woo, YE (2003). Maturing Canada-India Services and Investment Linkages. APF Canada: Vancouver. See Assanie, N. and Woo, YP (2003). What Works, What Doesn't in the Indian Market. APE Canada: Vancouver. 18 M&C GM_ii Other Act; BRITISH COLUMBIA The Best Place on Earth MAYQF Ref: 126344 February 25, 2008 His Worship Mayor Gordon Robson and Members of Council District of Maple Ridge 11995 Haney Place Maple Ridge, BC V2X 6A9 Dear Mayor Robson and Councillors: I am pleased to provide you with another update on activities related to the Asia Pacific Initiative (API) and to make an offer of technical and financial assistance to your community to further twinning initiatives. The Province of British Columbia (Province) has been working very hard since the announcement of the API to provide local governments with support for local twinning initiatives. Both the BC Asia Twinning Toolkit and the BC Asia Twinnings website (www.bcasiatwinnings.gov.bc.ca) have received a great deal of interest from local governments and we continue to update the website to provide you with useful resources to assist with twinning initiatives. The workshop at the UBCM convention last September brought further focus to the importance of Asia as an emerging market and British Columbia as the North American gateway. I am extremely proud of the leadership shown by local governments throughout the province and your progress in creating economically robust twinning arrangements with Asian counterparts. Through discussions with local government elected officials, I have also learned that while the twinning concept is intriguing and many local governments are mobilizing local resources, there are other competing priorities and a general lack of resources. To demonstrate the Province's firm commitment in support of local government twinning initiatives and to back our belief in the significant economic potential of Asia and the need for communities' involvement, in addition to information and technical assistance, grant funding is being made available to support local government leadership and to encourage twinning as a fundamental cornerstone of future economic development initiatives. .12 Ministry of Community Services Office of the Minister Mailing Address: and Minister Responsible for P0 Box 9056 Stn Prov Govt Seniors and Women's Issues Victoria BC V8W 9E2 Phone: 250 387-2283 Fax: 250 387-4312 Location: Room 323 Parliament Buildings Victoria www.gov.bc.ca/csery His Worship Mayor Gordon Robson and Members of Council Page 2 Your community is being invited to enter into a Memorandum of Agreement for Local Government Twinning (MoA) with the Province. This MoA commits the Province to providing information, technical assistance and some financial help to selected local governments that meet one or more of the following criteria: • population over 40,000; and • existing Asia Pacific twin (China, India, Korea or Japan). OR strategically significant for positioning British Columbia as the pre-eminent trade and cultural hub between Asia and North America; or demonstrated recent initiatives to establish economically-robust twinning relationships with local governments in China, Japan, India or South Korea; or expressed interest in pursuing twinning relationships, and have a clear need for financial assistance. I would like to invite you to review and consider the enclosed MoA to support Local Government Twinning. In addition to technical and information support, the Province will provide a grant of $50,000 to use in support of your local twinning initiatives. If you choose to accept this offer, please do so no later than March 12, 2008. To accept, please return a copy of the signed MoA, with an accompanying Council resolution to: Ministry of Community Services P0 Box 9839 Stn Prov Govt Victoria, BC V8W 911 FAX: 250 387-7972 If you have any questions, please do not hesitate to contact Mr. Greg Goodwin, Executive Director, Special Projects and Strategic Initiatives, by telephone at: 250 953-3008, or by email at: Greg.Goodwin(gov.bc.ca. I look forward to hearing from you. Sincerely, Ida Chong, FCGA Minister Enclosure . . .13 His Worship Mayor Gordon Robson and Members of Council Page 3 PC: Honourable Cohn Hansen Minister of Economic Development and Minister Responsible for the Asia Pacific Initiative and the Olympics Ms. Susan Gimse President Union of British Columbia Municipalities Mr. Greg Goodwin Executive Director Special Projects and Strategic Initiatives MEMORANDUM OF AGREEMENT On Local Government Twinning Relationships BRITISH COLUMBIA The Best Place on Earth BETWEEN THE PROVINCE OF BRITISH COLUMBIA represented by the Minister of Community Services and Minister Responsible for Seniors' and Women's Issues (the "Province") AND The District of Maple Ridge (the "Municipality") 1 WHEREAS: The Province is committed to the objectives of the Asia Pacific Initiative (API), and establishing British Columbia as the internationally recognized North America's capital for Asia Pacific commerce and culture. Friendly relationships between local government twins have the potential to "open doors" to successful and long lasting business relationships between companies in local government jurisdictions, which in turn can provide mutual benefits to the local governments and the province as a whole. The Province and Local Governments recognize that all parties must work collaboratively over the longer term to realize benefits from establishing economically robust relationships with Asian local governments. In light of the API priorities, one time funding has been made available on a pilot project basis to selected municipalities in support of their local twinning initiative(s) with Asia city counterparts. The District of Maple Ridge has been selected as one of the municipalities eligible for receiving one time funding for their local twinning initiative. The District of Maple Ridge Council has passed a resolution to sign the Memorandum of Agreement on Local Government Twinning Relationships and committed to meeting the Agreement deliverables. NOW THEREFORE, the parties agree to the following: The Province shall: Provide information resources though the BC Asia Twinning Tool Kit and through the www.bcasiatwinnings.gov.bc.ca website. Provide support including: research on target countries and cities, guidance on establishing economically robust twinnings, statistics, education and training, senior government liaison support, city specific expressions of interest, contact with consular offices, embassies and trade and investment offices. Subject to being authorized under the Local Government Act to distribute conditional grants to local governments in support of provincial priorities, provide the local government with a grant for $ 50,000. The District of Maple Ridge shall: • Use the grant funding to accomplish deliverables that lead towards establishing economically-robust twinning relationships with an Asia Pacific local government, which will result in one or more of the following by March 31, 2009: I Initiation or further enhancement of an economically-robust twinning relationship with a local government in an Asia-Pacific country (China, India, Japan or Korea). 2 v' Conducting a mission to designated twin city (or developing a plan for achieving this). ( Hosting return delegation from designated twin city (or developing a plan to achieve this). • Use the grant to support the results through funding twinning related planning, research, education, promotional materials, human resources or travel activities as specified in Schedule "A." • Use the grant funding to supplement and complement existing efforts and not to replace existing initiatives. • Achieve the expected results (or develop a plan to achieve the results) and report on them by March 31, 2009. Term, Commencement and Extensions: • Notwithstanding the actual date of execution of this Agreement, the term of this Agreement will commence on March 12, 2008 and will end on March 31, 2009. • If a local government is unable to spend the funds to achieve the expected results or develop a plan by March 31, 2009, an extension can be considered if requested. Amendments to this Agreement • This Agreement may be amended from time to time by written agreement of the Parties. Communications • The municipality will provide monthly updates to the Province on the status of its twinning related activities. • The Province will provide the municipality with any information it has that may assist the municipality in its twinning related activities. • The Parties agree to follow the terms of the Communications Protocol set out in Schedule "B" of this Agreement. Notice and transmission • Any notice required to be given under this Agreement must be made in writing to the Province at: Ministry of Community Services Assistant Deputy Minister's Office P0 Box 9839 Stn Prov Govt Victoria, BC V8W 911 Fax: (250) 387-7972 Attention: Executive Director - Special Projects and if to the Municipality: District of Maple Ridge 11995 Haney Place 3 Maple Ridge, BC V2X 6A9 Attention: Chief Administrative Officer SIGNATURES IN WITNESS WHEREOF each of the parties has executed this Agreement as of SIGNED on behalf of Her Majesty The Queen in Right of the Province of British Columbia by a duly authorized representative of the Minister of Community Services and Minister Responsible for Seniors' and Womens' Issues. Authorized Signatory for the Minister of Community Services and Minister Responsible for Seniors' and Womens' Issues SIGNED by the Mayor of the District of Maple Ridge or his or her duly authorized Officer established by bylaw. Mayor or authorized signatory SCHEDULE A - Activities The following activities are permissible subject to the overall achievement of the primary result intended, which is to establish or enhance economically robust twinning relationships/alliances with an Asia counterpart. Eligible Grant Activities Establishing vision, goals, objectives and activities of the Planning local twinning program; identifying potential collaborative partners, community surveys, evaluation of existing twinning program. Researching which Asian countries and cities of interest Research and complementarities are potential options for twinning to achieve mutual economic benefits. Development of communication Design and printing materials and websites to assist with materials twinning related local economic development, translating material into appropriate language Cultural awareness training for staff and council members involved with the local government twinning Training and Education initiative. General awareness seminars and other communications for the public of the emerging importance and interest in Asia. Support contractor costs or staff resources dedicated to Human resources supporting economically robust twinning initiatives including interpreters. Travel e Support twinning related travel of senior municipal officials SCHEDULE B - Communications Protocol This communications protocol establishes the principles and practices that will guide all announcements and events related to this Agreement. Communications activities may include major public events or announcements, communication products such as speeches, press releases, websites, advertising or promotional material. The Parties agree that in addition to joint communications activities, the Parties may include messaging in their own communications products and activities with respect to their commitment to the Agreement. All communications by the Municipality referring to twinning activities will clearly recognize the co-operation of the Province. The Parties agree that they may, jointly or individually, make periodic announcements, through public events, press releases and/or other mechanisms of the following: the signing of this Agreement; twinning activities, including missions; outcomes/results attributable to the activities undertaken to advance twinning and, others as may be agreed to from time to time. The timing of public events shall be sufficient to allow for the Parties to plan their involvement. CoIu\iBIA 111C 110L on ["11111 NEWS RELEASE For Immediate Release Ministry of Economic Development 200 8ECD000S-0002 14 Feb. 15, 2008 BRITISH COLUMBIA TO INCREASE ITS PRESENCE IN INDIA SURREY - The Province of British Columbia is committed to establishing a presence in India to help B.C. companies do business there, Economic Development Minister Cohn Hansen announced today. The strong potential for co-operation in research and development, joint technology development and pharmaceutical research make India an exciting partner," Hansen said. A B.C. presence in the market will facilitate these kinds of collaborations and partnerships, and promote British Columbia as a globally competitive business location." B.C. currently has international representation in the China, Japan, the United States and Europe. We see the Asia-Pacific region as key to British Columbia's long-term prosperity,' Hansen said. "B.C.' s goal to connect with the region is expected to provide as much as $77 billion in increased trade and 255,000 new jobs by 2020.' Hansen said various locations are currently being examined, including Bangalore, known for its advanced technology and research and development, and Mumbai, a major financial and business hub. The India Market Advisory Group of the Asia Pacific Trade Council recommended in its final report last year the B.C. government open an office in India. The government will seek input from universities and businesses before committing to a specific location. "This was one of the key recommendations of our report," said India Market Advisory Group chair Arun Garg. "A B.C. presence in India will definitely enhance trade and investment between the province and India. This is long overdue." The initiative is part of the Province's long-term strategy to increase and diversify its economic and cultural ties with the Asia-Pacific. For more information, please see wv w.asiapacilictradecouncil.corn. -30- Media Joanne Whittier contact: Communications Manager 250 356-9428 For more information on government services or to subscribe to the Province's news feeds using RSS, visit the Province's website at vww.gov.bc.ca. fraserhealth letter h,alih. Best in health care. LA YOR February 27, 2008 Mayor Gordon Robson and Council District of Maple Ridge 11995 Haney Place Maple Ridge, BC V2X 6A9 Dear Mayor and Council: &C_CAOZGM ,4 OtherhLrd Action : Re: District of Maple Ridge Smoking Regulation Bylaw No. 5495-1997 and Smoking Regulation Amendment Bylaw No. 6058-2002 Fraser Health and Vancouver Coastal Health e recommending that all governments provide protection from secondhand tobacco smoke on outdoor patios and in a substantial buffer zone around entrances to buildings. As the Medical Health Officer for the District of Maple Ridge, I urge you to consider amending your smoking bylaw to promote healthier environments. By acting in concert, municipalities will create a level playing field for residents, visitors and businesses. On March 31, 2008, BC will reach another milestone by banning smoking in indoor public places and work places, by banning smoking near public doorways, windows, and air intakes and by limiting the display and sales of tobacco and tobacco products. Opportunities remain for local governments to enhance this protection even further for their residents and visitors. The first relates to outdoor patios of restaurants and bars. While the province did not ban smoking on patios, it noted that municipalities can bring more stringent restrictions into force and that many municipalities are moving to total bans on smoking on patios. The second opportunity lies in expanding the size of the smoke-free buffer zone around doorways, windows and air intakes. While the current legislated buffer zone is 3 metres, Fraser Health recommends 7.5 metres. A 7.5 metre buffer zone is the standard adopted in the Leadership in Energy and Environmental Design (LEED) Building Guidelines as well as in the Fraser Health Smoke Free Policy that will come into effect on March 31, 2008. Although some agencies use other distances, all are greater than 3 metres. For example, the City of Vancouver has adopted a 6 metre buffer zone. Quebec has banned smoking within 9 metres of entrances to hospitals, educational facilities, childcare centres and community or recreational facilities (Tobacco Act, ss. 2(1)(3)(4)(6), 2.2). Ontario has banned smoking within 9 metres of any entrance or exit to hospitals, psychiatric facilities and nursing homes (General Regulation, s.12). .12 Medical Health Officer #400 - 22470 Dewdney Trunk Road Tel: 604-476-7076 Fraser Health Maple Ridge, BC V2X 5Z6 Fax: 604-476-7077 Canada 1'wti.fraseiheafth ..::a 1 Lettei to f/la yor cod CoLir7CI! D;stnct of Maple R;cige Dated Fe.oruaiy 27. 2008 Page 2 In summary, I am recommending that Council consider amending its smoking bylaw to incorporate the following changes that have already been endorsed by the Lower Mainland Local Government Association and the Union of BC Municipalities: Make outdoor patios of restaurants and bars smoke-free; and Create 7.5 metre (25 foot) smoke-free buffer zones around entryways and patios. In closing, I want to thank you for your commitment to continuing to improve the health of our community. Sincerely, Larry Gustafson, LTh, BSc, MD, MHSc Medical Health Officer C:file BRITISH COLUMBIA The Best Place on Earth 712812 March 6, 2008 Councillor Al Hogarth District of Maple Ridge, 11995 Haney Place Maple Ridge BC V2X 6A9 Dear Councillor Hogarth: I am pleased to enclose a copy of the World Health Organization's (WHO) Global Age-friendly Cities. A Guide, which was released on October 1, 2007. The Guide outlines ways that cities may prepare their physical and social environments for an aging population. Global Age-friendly Cities: A Guide was developed through a partnership between the WHO, the British Columbia Ministry of Health (the Ministry) and the Public Health Agency of Canada. The District of Saanich was selected as our province's partner city in this initiative, joining 32 other cities from around the world. A similar guide, Age-Friendly Rural and Remote Communities. A Guide, that complements Global Age-friendly Cities. A Guide was released in December 2007. The Rural and Remote Guide outlines strategies that rural and remote communities may implement to prepare their physical and social environments for an aging population. Since the release of Global Age-friendly Cities. A Guide, the Ministry has recruited an Age-friendly Communities Implementation Team to provide free planning advice and support to local governments, regional districts, and Aboriginal communities to develop and implement Age-friendly Communities over the next three years. In September 2006, District of Maple Ridge expressed an interest in participating in the WHO Age- friendly Cities Project. I have attached a copy of our correspondence for your reference. To recognize District of Maple Ridge call for age-friendly actions, I am following up to see if your community would be interested in accessing the services of the Age-friendly Communities Implementation Team. .2/ Ministry of Health Population Health and Wellness 4-2 1515 Blanshard Street Healthy Children, Women and Seniors Branch Victoria BC V8W 3C8 Telephone: (250) 952-1111 Facsimile: (250) 952-1570 52 -2- The Age-friendly Communities Implementation Team offers a wide spectrum of services ranging from information sharing to full on-site support depending on the needs of the community. A member from the Age-friendly Communities Implementation Team will be contacting you within the next two weeks to discuss Age-friendly Communities in more detail and to confirm District of Maple Ridge's interest in being one of the first sites for age-friendly actions in British Columbia. I look forward to the opportunity of working with you in the near future. Yours sincerely, Tessa Graham Executive Director Healthy Children, Women and Seniors Population Health and Wellness Ministry of Health Enclosure cc: Mayor Gordon Robson Checklist of Essential Features of Age-friendly Cities This checklist of essential age-friendly city features is based on the results of the WHO Global Age-Friendly Cities project consultation in 33 cities in 22 countries. The checklist is a tool for a city's self-assessment and a map for charting progress. More detailed checklists of age-friendly city features are to be found in the WHO Global Age-Friendly Cities Guide. This checklist is intended to be used by individuals and groups interested in making their city more age-friendly. For the checklist to be effective, older people must be involved as full partners. In assessing a city's strengths and deficiencies, older people will describe how the checklist of features matches their own experience of the city's positive characteristics and barriers. They should play a role in suggesting changes and in implementing and monitoring improvements. Outdoor spaces and buildings Public areas are clean and pleasant. El Green spaces and outdoor seating are sufficient in number, well-maintained and safe. EJ Pavements are well-maintained, free of obstructions and reserved for pedestrians. Pavements are non-slip, are wide enough for wheelchairs and have dropped curbs to road level. El Pedestrian crossings are sufficient in number and safe for people with different levels and types of disability, with non- slip markings, visual and audio cues and adequate crossing times. El Drivers give way to pedestrians at intersec- tions and pedestrian crossings. El Cycle paths are separate from pavements and other pedestrian walkways. Outdoor safety is promoted by good street lighting, police patrols and community education. El Services are situated together and are accessible. Special customer service arrangements are provided, such as separate queues or service counters for older people. El Buildings are well-signed outside and inside, with sufficient seating and toilets, accessible elevators, ramps, railings and stairs, and non-slip floors. El Public toilets outdoors and indoors are sufficient in number, clean, well-main- tamed and accessible. Transportation Ll Public transportation costs are consistent, clearly displayed and affordable. El Public transportation is reliable and fre- quent, including at night and on weekends and holidays. LII All city areas and services are accessible by public transport, with good connections and well-marked routes and vehicles. PACE 1 11 Vehicles are clean, well-maintained, acces- sible, not overcrowded and have priority seating that is respected. 171 Specialized transportation is available for disabled people. LI Drivers stop at designated stops and beside the curb to facilitate boarding and wait for passengers to be seated before driving off. LI Transport stops and stations are conve- niently located, accessible, safe, clean, well- lit and well-marked, with adequate seating and shelter. LI Complete and accessible information is provided to users about routes, schedules and special needs facilities. LI A voluntary transport service is available where public transportation is too limited. LI Taxis are accessible and affordable, and drivers are courteous and helpful. LI Roads are well-maintained, with covered drains and good lighting. LI Traffic flow is well-regulated. LI Roadways are free of obstructions that block drivers' vision. LI Traffic signs and intersections are visible and well-placed. LI Driver education and refresher courses are promoted for all drivers. LI Parking and drop-off areas are safe, suffi- cient in number and conveniently located. LI Priority parking and drop-off spots for people with special needs are available and respected. Housing LI Sufficient, affordable housing is available in areas that are safe and close to services and the rest of the community. LI Sufficient and affordable home mainte- nance and support services are available. LII Housing is well-constructed and provides safe and comfortable shelter from the weather. LI Interior spaces and level surfaces allow freedom of movement in all rooms and passageways. LI Home modification options and supplies are available and affordable, and providers understand the needs of older people. LII Public and commercial rental housing is clean, well-maintained and safe. LI Sufficient and affordable housing for frail and disabled older people, with appropri- ate services, is provided locally. Social participation LI Venues for events and activities are con- veniently located, accessible, well-lit and easily reached by public transport. LI Events are held at times convenient for older people. LI Activities and events can be attended alone or with a companion. LI Activities and attractions are affordable, with no hidden or additional participa- tion costs. PAGE 2 Good information about activities and events is provided, including details about accessibility of facilities and transportation options for older people. A wide variety of activities is offered to appeal to a diverse population of older people. El Gatherings including older people are held in various local community spots, such as recreation centres, schools, libraries, com- munity centres and parks. El There is consistent outreach to include people at risk of social isolation. Respect and social inclusion El Older people are regularly consulted by public, voluntary and commercial services on how to serve them better. D Services and products to suit varying needs and preferences are provided by public and commercial services. LI Service staff are courteous and helpful. LI Older people are visible in the media, and are depicted positively and without stereo- typing. LI Community-wide settings, activities and events attract all generations by accommo- dating age-specific needs and preferences. LII Older people are specifically included in community activities for "families". LI Older people are recognized by the com- munity for their past as well as their pres- ent contributions. LII Older people who are less well-off have good access to public, voluntary and pri- vate services. Civic participation and employment LI A range of flexible options for older vol- unteers is available, with training, recog- nition, guidance and compensation for personal costs. LI The qualities of older employees are well- promoted. LI A range of flexible and appropriately paid opportunities for older people to work is promoted. LI Discrimination on the basis of age alone is forbidden in the hiring, retention, promo- tion and training of employees. LI Workplaces are adapted to meet the needs of disabled people. LI Self-employment options for older people are promoted and supported. LI Training in post-retirement options is provided for older workers. LI Decision-making bodies in public, pri- vate and voluntary sectors encourage and facilitate membership of older people. Communication and information LI Schools provide opportunities to learn LI A basic, effective communication system about ageing and older people, and involve reaches community residents of all ages. older people in school activities. LI Regular and widespread distribution of information is assured and a coordinated, centralized access is provided. PAGE 3 E Regular information and broadcasts of interest to older people are offered. E Oral communication accessible to older people is promoted. E People at risk of social isolation get one-to- one information from trusted individuals. D Public and commercial services provide friendly, person-to-person service on request. D Printed information - including official forms, television captions and text on visual displays - has large lettering and the main ideas are shown by clear headings and bold-face type. E Print and spoken communication uses simple, familiar words in short, straight- forward sentences. El Telephone answering services give in- structions slowly and clearly and tell call- ers how to repeat the message at any time. El Electronic equipment, such as mobile telephones, radios, televisions, and bank and ticket machines, has large buttons and big lettering. There is wide public access to computers and the Internet, at no or minimal charge, in public places such as government of- fices, community centres and libraries. Community and health services D An adequate range of health and commu- nity support services is offered for promot- ing, maintaining and restoring health. D Home care services include health and personal care and housekeeping. D Health and social services are conveniently located and accessible by all means of transport. D Residential care facilities and designated older people's housing are located close to services and the rest of the community. I1 Health and community service facilities are safely constructed and fully accessible. D Clear and accessible information is pro- vided about health and social services for older people. D Delivery of services is coordinated and administratively simple. E All staff are respectful, helpful and trained to serve older people. D Economic barriers impeding access to health and community support services are minimized. Voluntary services by people of all ages are encouraged and supported. D There are sufficient and accessible burial sites. O Community emergency planning takes into account the vulnerabilities and ca- pacities of older people. PAGE 4 District of Maple Ridge Municipal Soil Removal Bylaws WHEREAS Municipal Soil Removal Bylaws approved by the Province of British Columbia have set fees that have remained largely unchanged over the past two decades; AND WHEREAS the costs associated with addressing the impacts of aggregate related truck traffic has increased over that period of time; THEREFORE BE IT RESOLVED that the provincial government consider approving an increase to soil removal fees to reflect the true cost of the impacts of aggregate removal on municipalities. 4.4 DISTRICT OF Agenda Item: 2.0 MAPLE RIDGE Council Workshop Meeting of: March 17, 2008 That the minutes of the Council Workshop Meeting of March 10, 2008 be adopted as circulated. Gordon Robson" CKRIED DEFEATED DEFERRED MAYOR ACTION NOTICE TO: Chief Administrative Officer Executive Director - Mgr - Economic Development - Gen Mgr - Corporate & Financial ROMP Fire Chief - Dir - Finance - Chief Information Officer - Gen Mgr - Public Works & Development___________________________________________________ - Dir - Planning - Dir - Licenses, Permits & By-laws - Municipal Engineer - Mgr - Corporate and Development Eng___________________________________________________ - Dir - Engineering Operations - Dir - Project Engineering - Gen Mgr - Com. Dev. & Rec. Services - Dir - Parks & Facilities - Dir - Recreation - Dir - Community Services Clerk's Section - Corporate Officer - Property & Risk Manager - Tracy Camire - Diana Dalton - Amanda Allen - Amanda Gaunt - Karen Kaake The above decision was made at a meeting of the Municipal Council held on the date noted above and is sent to you for notation and/or such action as may be required by your Department. March 17, 2008 / (L Date Corporate Officer DISTRICT OF Agenda Item: 4.2 MAPLE RIDGE Council Workshop Meeting of: March 17, 2008 That the Corporate Officer be authorized to register the District of Maple Ridge as a participant in Earth Hour 2008; and further That individual staff, citizens, schools and businesses be encouraged to register for Earth Hour 2008 at www.earthhour.org, and participate by turning off unnecessary lights for one hour beginning March 29, 2008 at 8:00 p.m. Gordon Robson" CAR DEFEATED DEFERRED MAYOR ACTION NOTICE - - TO: Chief Administrative Officer - Executive Director 'I Mgr - Economic Development Gen Mgr - Corporate & Financial RCMP Fire Chief Dir - Finance - Chief Information Officer - Gen Mgr - Public Works & Development___________________________________________________ - Dir - Planning - Dir - Licenses, Permits & By-laws - Municipal Engineer - Mgr - Corporate and Development Eng___________________________________________________ - Dir- Engineering Operations - Dir - Project Engineering - Gen Mgr - Com. Dev. & Rec. Services - Dir - Parks & Facilities - Dir - Recreation - Dir - Community Services Clerk's Section - Corporate Officer - Property & Risk Manager - Tracy Camire - Diana Dalton - Amanda Allen - Amanda Gaunt Karen Kaake The above decision was made at a meeting of the Municipal Council held on the date noted above and is sent to you for notation and/or such action as may be required by your Department. Ii I March 17, 2008 . / Date Corporate Officer DISTRICT OF Agenda Item: 4.3 MAPLE RIDGE Council Workshop Meeting of: March 17, 2008 That staff be authorized to proceed to apply for the grant associated with the Asia Pacific Twinning Initiative and that the appropriate Memorandum of Agreement be signed by the Mayor and the Corporate Officer. / Gordon Robson' CARlED DEFEATED DEFERRED MAYOR ACTION NOTICE TO: - Chief Administrative Officer Executive Director - Mgr- Economic Development c uLi: /LLI Gen Mgr - Corporate & Financial ,) / ROMP Fire Chief Dir - Finance - Chief Information Officer Gen Mgr - Public Works & Development___________________________________________________ - Dir - Planning - Dir - Licenses, Permits & By-laws - Municipal Engineer - Mgr - Corporate and Development Eng - Dir - Engineering Operations - Dir - Project Engineering - Gen Mgr - Com. Dev. & Rec. Services - Dir - Parks & Facilities - Dir - Recreation - Dir - Community Services Clerk's Section - Corporate Officer - Property & Risk Manager - Tracy Camire - Diana Dalton Amanda Allen - Amanda Gaunt - Karen Kaake The above decision was made at a meeting of the Municipal Council held on the date noted above and is sent to you for notation and/or such action as may be required by your Department. 7 / March 17, 2008 C I Date Corporate Officer DISTRICT OF Agenda Item: 4.4 MAPLE RIDGE Council Workshop Meeting of: March 17, 2008 That the following resolution be forwarded to the Lower Mainland Local Government Association: WHEREAS Municipal Soil Removal Bylaws approved by the Province of British Columbia have set fees that have remained largely unchanged over the past two decades; AND WHEREAS the costs associated with addressing the impacts of aggregate related truck traffic has increased over that period of time; THEREFORE BE IT RESOLVED that the provincial government consider approving an increase to soil removal fees to reflect the true cost of the impacts of aggregate removal on municipalities. Gordon Robson" CARRIED DEFEATED DEFERRED MAYOR ACTION NOTICE TO: - Chief Administrative Officer - Executive Director - Mgr - Economic Development - Gen Mgr - Corporate & Financial RCMP Fire Chief - Dir - Finance - Chief Information Officer - Gen Mgr - Public Works & Development___________________________________________________ - Dir - Planning - Dir - Licenses, Permits & By-laws - Municipal Engineer - Mgr - Corporate and Development Eng - Dir - Engineering Operations - Dir - Project Engineering - Gen Mgr - Corn. Dev. & Rec. Services - Dir- Parks & Facilities - Dir - Recreation - Dir - Community Services Clerk's Section - Corporate Officer - Property & Risk Manager - Tracy Carnire - Diana Dalton - Amanda Allen . Amanda Gaunt ..I I -LLLL(Lt.- Karen Kaake The above decision was made at a meeting of the Municipal Council held on the date noted above and is sent to you for notation and/or such action as may be required by your Department. March 17, 2008 L.L iL~a Date Corporate Officer DISTRICT OF Agenda Item: 5.1 MAPLE RIDGE Council Workshop Meeting of: March 17, 2008 That the letter dated February 27, 2008 from Larry Gustafson, Medical Health Officer, Fraser Health be received and referred to staff. "Gordon Robson" CARRIED DEFEATED DEFERRED MAYOR / ACTION NOTICE TO: - Chief Administrative Officer - Executive Director - Mgr - Economic Development - Gen Mgr - Corporate & Financial RCMP Fire Chief - Dir - Finance - Chief Information Officer - GenMgr - Public Works & Development___________________________________________________ - Dir - Planning Dir- Licenses, Permits & By-laws -C U - Municipal Engineer - Mgr - Corporate and Development Eng - Dir - Engineering Operations - Dir - Project Engineering - Gen Mgr - Corn. Dev. & Rec. Services - Dir - Parks & Facilities - Dir - Recreation - Dir - Community Services Clerk's Section - Corporate Officer - Property & Risk Manager - Tracy Camire - Diana Dalton - Amanda Allen - Amanda Gaunt - Karen Kaake The above decision was made at a meeting of the Municipal Council held on the date noted above and is sent to you for notation and/or such action as may be required by your Department. J/ March 17, 2008 Date Coporate officer DISTRICT OF Agenda Item: 5.2 MAPLE RIDGE Council Workshop Meeting of: March 17, 2008 That the letter dated March 6, 2008 from the Ministry of Health pertaining to age-friendly cities be received and referred to staff. / "Gordon Robson" CAR7tD DEFEATED DEFERRED MAYOR ACTION NOTICE TO: Chief Administrative Officer - Executive Director Mgr - Economic Development - Gen Mgr - corporate & Financial RCMP Fire Chief - Dir - Finance - chief Information Officer - Gen Mgr - Public Works & Development___________________________________________________ - Dir - Planning - Dir - Licenses, Permits & By-laws - Municipal Engineer - Mgr - corporate and Development Eng___________________________________________________ - Dir - Engineering Operations - /bir - Project Engineering VGen Mgr - com. Dev. & Rec. Services / 7c, Src - - Dir - Parks & Facilities - Dir - Recreation - Dir - Community Services Clerk's Section - corporate Officer - Property & Risk Manager - Tracy Camire - Diana Dalton - Amanda Allen - Amanda Gaunt - Karen Kaake The above decision was made at a meeting of the Municipal council held on the date noted above and is sent to you for notation and/or such action as may be required by your Department. March 17, 2008 Date Corporate Officer District of Maple Ridge Municipal Soil Removal Bylaws WHEREAS Municipal Soil Removal Bylaws approved by the Province of British Columbia have set fees that have remained largely unchanged over the past two decades; AND WHEREAS the costs associated with addressing the impacts of aggregate related truck traffic has increased over that period of time; THEREFORE BE IT RESOLVED that the provincial government consider approving an increase to soil removal fees to reflect the true cost of the impacts of aggregate removal on municipalities. 4.4 Strategy for Updating the Solid Waste Management Plan 4604967 1. The 5 R Hierarchy • Reduce • Reuse Reduce / Vid • Recycle • Recovery of Materials and Ener • Residuals Management rn Waste Quantities trends in waste management 4000.000 3500030 :::: : 2.000000 Population Waste Disposed 1,500.000 1.000 000 S - -5'- 320,023 Waste Recycled 1994 1995 1996 1900 1995 1996 2600 0001 2002 2003 2004 2205 2006 Waste Quantities recycling and disposal rates by sector 1.400,099 1.200.000 0 Recycd - - o.000 L•° 800,099 71% 600.000 400,000 200000 L= Soogle Fao1y 0015-Farosly Coorero )O) Co0slr9ote9 (05) -, metro Zero Waste Challenge Goal # 1: Minimize waste generation Goal # 2: Maximize reuse, recycling and material / energy recovery FFJ Waste Quantities composition of waste generated 3. The First 3 Rs Table 1: Materials Disposed, Diversion Programs and Diversion Potential 002itiI0D42d1l000 001101114 120 000 4% 00 000 0% 20000 0110 10444 04004410204 00.000 2% C040004009 0444420440 168,000 0020001100 20000 0% 211444* W4$r& 180,000 [402041100 04 21140404 00040109 20000 11% 00,2 MOst, 00,000 0020,31040, 52000 2% e-w,sos 4,2 S04411 40p11.0044 50000 EON' .E.W20, 00000 11% [20'' S0411 3P01141004 20005 1% ONetro NW Langley Composting Trial 3 Composting Systems Nam 4. The 4th R Materials and Energy Recovery Options for Remaining Waste Further Invest Upstream in 3Rs Materials Recovery energy Recovery -Diminishing -High capital -Need for returns and operating energy in Metro -Limits to expense Vancouver diversion -Low quality -Fits with the (European materials Provincial experience) recovery Energy -Continue to .Requires Strategy seek significant .2/3 biomass opportunities energy inputs metro The 4th R provincial GI-IG and energy strategy • Reduce B.C's greenhouse gases by 33% by 2020 - Reduce methane from landfills • Require self-sufficient electricity by 2016 - Need electricity in Lower Mainland metro The 4th R • Long-term goal to eliminate landfilling of unprocessed waste • Use best available waste-to-energy technologies • Minimize waste residual volume that needs landfillng metro 5 S. The 5th R Residuals Management The 5th R • Interim solutions required until new composting and waste-to-energy facilities are in place The 5 R Hierarchy Today Proposed Strategy Reduce / 52% \ / 70% _Reuse Recycle 8% ecove 25% 40% metro R id als Tipping Fee Bylaw Development • Draft bylaw prepared • Proposing fee adjustments, including higher fees for small loads • Review with municipalities • Review with regional engineers • Adoption as part of Solid Waste Management Plan update metro Consultation Sessions • April 191h Council of Councils meeting • April 30" afternoon, Municipal session: Maple Ridge and Pitt Meadows at Arts Centre and Theatre • April 3QtF evening, Public session: Maple Ridge and Pitt Meadows at Arts Centre and Theatre rnero 7 The 5th R proposed future waste management scenario Cache Creek Landfill :::::: Interim Capacity crc ron 70% OtvrSfl 110!! 1)110 lOw WOE Ia kieeoxp;naingc,pecfty time , ig