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ALLnovascotia.com "All about business in ALL Nova Scotia" 2011-01-19

Copyright 2011, 3030106 NS Ltd.This publication costs $1.00 per issue and is sold only to individual subscribers for their own personal use. It is illegal tomake Allnovascotia.com content available to any other reader, either via password-sharing or the distribution of print-outs. Allnovascotia.com is now actively enforcing this policy and the number to call is 446-4130. David Bentley, Publisher.

Headlines For January 19, 2011

Surgeon Loses Heavy Metals Suit

Scanwood Side-Steps Creditor Protection

How Scanwood Successfully Loan-Shopped The Province

Vic Apartments Has Pre-Leasing Success

Profile Of A 2007 Grad

Precision BioLogic Doubles CEO Quotient

Council Not Ready To Give Up The Ghost On Spirit Place

City Hall Desk: LED Streetlights; Larry Uteck Interchange; E-Tickets

King's Unveils Masters Of Journalism

Brighter Days At Buchans

Government Business: NDP Goads Boards To The Barricades

Marco Building Officially Opens At 14 Wing Greenwood

Non-Residential Building Permits Post Growth In Q4

It's Chisholm Vs. Savage In Next National Election

Innovacorp Picks New CEO From U.S.

Tidal Turbine Sitting In Saint John Harbour

Law Reform Commission Searches For New Director

Ray's Haus Slated For March Opening

Feedback: No Ferry, No Hotel; School Budget Debate

Tender Talk

Biz Bytes: Canaport, Modern Media

Who's Suing Whom

Surgeon Loses

3/22/2011 allNovaScotia.com

www.allnovascotia.com/index.php?ada… 1/24

Heavy Metals Suit

By Kevin Cox

A highly skilled dental surgeon has lost his multi-million dollar claim against the Cape Breton District Health Authority overrenovations that he says left him disabled by heavy metal poisoning.~

R. Duncan MacIntyre also has to pay legal costs for the authority, represented by Nancy Rubin and Shelley Wood, of morethan $300,000.

The Nova Scotia Court of Appeal dismissed the case of McIntyre, a 47-year-old surgeon who has been unable to practise hisprofession since 2003. He blames the health authority, claiming his ongoing illness can be traced back to renovations near hisoffice at the New Waterford Consolidated Hospital in 2001.

But the Court of Appeal panel upheld an earlier ruling by Supreme Court of Nova Scotia Justice Douglas MacLellan thatMacIntyre failed to prove he had high levels of heavy metals in his blood, that the heavy metals caused his illness or that thedust from the 2001 construction disabled him.

MacIntyre, originally claimed as much as $17.5 million for past and future earnings and additional sums for treatments and painand suffering.

During the appeal, his lawyers George W. MacDonald and Michelle Awad tried unsuccessfully to bring in new evidence thatthere was an uncapped sewage pipe behind the wall of the office he used at the hospital. MacIntyre claimed he only found outabout the pipe from a hospital employee after the trial began in 2009.

But in the ruling, written by Justice Linda Oland, the appeal panel noted that the trial judge considered the discovery of theuncapped pipe but said there was no evidence linking it to MacIntyre's condition.

The panel , made up of Justices Oland, Jamie Saunders and Duncan Beveridge, also backed Justice MacLellan's finding thatwhile the authority failed to protect him from the dust in doing the renovations near his office, the doctor was unable to provethe dust contained heavy metals or that he was exposed to unreasonable risk of injury.

MacIntyre has been treated and tested for heavy metal toxicity at clinics in Nova Scotia, Florida, Minnesota, Mexico, Arizonaand New York. He objected to Justice MacLellan favouring the testimony of Minnesota doctor Beth Baker, who concludedthe dental surgeon's symptoms didn't result from heavy metal toxicity.

"The trial judge stated that while his decision did not review all the evidence, he had considered it all in reaching his decision.He identified the factors that led to his conclusion that Dr. McIntyre did not have heavy metal toxicity," Justice Oland wrote.

She also wrote that Justice MacLellan heard a great deal of evidence about MacIntyre's health since 2002 and was entitled toconclude that the doctor should be able to return to work in three years.

Oland acknowledged that no witness used the three year time frame and there is evidence MacIntyre suffers from persistentpain in his head.

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Scanwood Side-StepsCreditor Protection

By Caroline Wood

The co-owner of Scanwood Canada Ltd. says his company will not proceed with creditor protection now the Royal Bank hasgiven the Dartmouth manufacturer more time to arrange alternate financing.~



Bo Thorn says the IKEA furniture manufacturer filed court documents as a negotiating tool.

"We wanted to put in place, and which we now have, a forbearance agreement with our bank," he said, agreeing the courtaction was a shot across the bow.

"The advice we were given was not to let them be in charge of the process."

Scanwood moved to launch Companies Creditors Arrangement Act proceedings late last week after the bank called a $2.1million line of credit.

The matter was scheduled to be heard in court yesterday, but it has been adjourned until early February.

Thorn, speaking from the Burnside factory, does not expect the February date will be necessary.

He says another secured creditor, Business Development Bank of Canada, is ready to step in with a new loan.

Thorn,47, reiterates the Royal Bank debt was never in default, only outside agreed margins in early January for a period of oneweek, something he says was expected.

He and his partner Johan Enocson, 45, took over Scanwood Canada last year at the request of IKEA, the company's solecustomer. The furniture retailer launched the Nova Scotia operation in the late 1980s and sold it in 2003 to ceo Tommy Holmer.

According to Thorn, quality control problems are behind plummeting sales and big losses.

A Swede who resides in the U.S., he says he is confident he can turn the company around because he owns another successfulIKEA factory in Sweden which is larger than the Halifax operation.

The new owners have embarked on an ambitious capital plan to make the plant more efficient. They are injecting equity andborrowing new money from governments and the BDC.

"We have a long relationship with BDC, a very good one," said Thorn.

In 2009, before Thorn became involved, Scanwood's BDC loans were in violation of financial covenants.

Some of those covenants are still in violation because the company is sustaining losses, but the company is able to service itsdebt, said Thorn.

Thorn said he and his partner have a lot at stake in Halifax because they have signed personal guarantees.


How Scanwood SuccessfullyLoan-Shopped The Province

By Caroline Wood

Scanwood Canada Inc. turned to the province's Industrial Expansion Fund for a $4.75-million loan when the company could notagree to terms offered by Nova Scotia Business Inc., the owner says.~

Bo Thorn and his partner began talking to NSBI about financing before they agreed to acquire the Dartmouth furniture factoryin 2009.

The factory needed $6 million in upgrades to improve efficiency and quality control to return to profitability.



"They did (come forward with the money), but on terms that were just not acceptable," said Thorn.

So the pair went to the Economic Development Department and borrowed the money from the Industrial Expansion Fund.

The two-step process caused a six month delay, says Thorn who installed the first new equipment at Scanwood in November.

"NSBI is working slightly differently," said Thorn when asked to explain the need for two applications.

The agency has a different agenda because it draws from industry for board members and investment committees, notgovernment employees.

Without government financing, he suggested Scanwood owners were facing the tough decision about whether to close.

Scanwood employs 250 people in Dartmouth.

Thorn says he does not get government help at another factory he owns in Sweden.

The government doesn't help here either, he argues.

"We have a loan with the government on commercial terms."

The Industrial Expansion Fund handed out $221.7 million in loans, guarantees and incentives in 2009/10, up from $61.6 millionthe year before.


Vic Apartments HasPre-Leasing Success

By Andrew Macdonald

The Lawen Group is meeting with early success as it pre-leases units at the under construction Vic Apartments at 5144 HollisSt. at Morris.~

There are 82 units in the 10-storey structure, where occupancy is set to begin in early summer.

Louie Lawen, a principal with Lawen and its sister firm Dexel Developments, said over 10 units have been signed up byprospective tenants.

Canada Mortgage & Housing Corp. has previously reported that buildings which are less than 10 years old tend to have highoccupancy rates as compared to older stock.

"We're pretty confident the building won't take long to rent," said Lawen, who also owns the nearby eight-storey WaterfordSuites and the eight-storey W building..

The Vic Apartments will be one of the first buildings in Halifax to offer central air-conditioning in each unit.

"There are only a couple of other condo buildings that are air-conditioned in Halifax. On a rental basis there is one - theapartment building attached to the Marriott Courtyard on Hollis Street," Lawen said.

There will be 39 one-bedroom units (rents start at $1,100), six one-bedroom plus den ($1,200), 15 two-bedrooms ($1,380), 16 two-bedroom plus den ($1,665), three three bedroom units ($1,870), and two three-bedroom plus den ($1,995).

The penthouse suits are renting for between $2,900 and $4,400.



Lawen says the corner of Morris and Hollis and immediate neighborhood have seen a lot of recent improvements, including the$60-million headquarters for Nova Scotia Power, which is now under construction.

"The location has become a quite desirable place to live and also because of the proximity to downtown," he said, noting theimprovements at the Halifax Port Authority's South End Seawall and the impending arrival of Discovery Centre has resulted inmajor upgrades to the area.

Renderings and floor plans can be seen at the company's website, www.444rent.com.

Vic Apartments is the second construction building underway, as Southwest Properties began excavating on South BlandStreet, where it plans an apartment building to be called the Grainery Lofts, next door to its Terraces, built in the 1980s.

Click here to see the Vic Apartments from a pedestrian view (new window will open).

Click here to see another perspective of what the Vic Apartments will look like once finished in early summer (new window willopen).

[email protected]; 431-9970


Profile Of A 2007 Grad

By Paul McLeod

Pity the Nova Scotian arts major, for his job prospects are lagging.

The Maritime Provinces Higher Education Commission released its "two years on" survey of the class of 2007 yesterday, atreasure trove of data about how those first degree graduates performed after two years into the real world.~

While satisfaction levels remain high, the data shows students are borrowing more money in exchange for diminishing returns.

For starters, there was a 9% drop in employed graduates from the 2005 class, from 95% to 86%.

The pain was not shared equally.

The average graduate from applied arts and sciences, professional courses, commerce or administration, has a 90% chance ofbeing employed.

Their colleagues on the arts side - humanities, social sciences, as well as math and physical sciences - have employment oddssix points lower and will likely make $12,000 less ($45,000 to about $33,000).

The arts grads still earn close to the average population wage, which is good for their age. But both sides should be annoyedby signs of a deflation in the value of a degree.

The average wage of a 2007 graduate ($37,669) is lower than the average salary for 2003 graduate two years out of school($39,212).

At the same time, borrowing has steadily risen. Seven out of 10 students borrowed to finance their degrees to an average totalof $30,767.One third of graduates had to borrow more than $45,000.

If the graduate is a Maritimer, he's or she's probably already figured out that they owe more than their Upper Canadiancounterparts.

The maritime grad is far more likely to have borrowed from both the government and banks than a non-Maritimer. He or she is



half as almost half as likely to be debt free today and almost twice as likely to still owe more than $45,000.

Despite this, satisfaction numbers remain sky-high. From quality of teaching to class sizes to the skills they developed,students generally reported over 90% satisfaction.

As for the cost, a full 69% of first degree holders said their education was "worth" or "well-worth" the financial investment. Ofcourse, those who borrowed nothing were more than twice as likely to say it was well worth it than those who borrowed over$45,000.

Six in 10 graduates went back to school to re-enroll in a new program. Nova Scotia retained 74% of its first degree graduates.

The study polled 1,702 first degree graduates and has a margin of error of plus or minus 2.3 percentage points, 19 times out of20.



Precision BioLogicDoubles CEO Quotient

By Gillian Cormier

Precision BioLogic, a manufacturer and developer of products used to diagnose blood coagulation disorders, has replaced itsceo with two ceos from inside the company.~

The company announced yesterday that chairman of 15 years Michael Scott would be leaving his role of ceo, and taking on thenew role of executive chair.

It's a step back for Scott, 63, who says the new position is somewhere between chairman and ceo - he will still play an executiverole and be involved in business, but won't be making business decisions.

Stephen Duff, director of product strategy and innovation, and Jennifer Mills, coo, were promoted to co-ceos as of Mondaymorning.

Scott said that he knows selecting two ceos is an unusual choice, but felt that Mills and Duff complemented each other in termsof expertise and personality.

Duff has been involved with the company for 20 years and had led developments of 30 products. He also serves on the boardsof BioNova and Innovacorp.

Mills is a chartered accountant who joined the company in 2006. She worked for eight years with Ocean Nutrition before that.

Duff will focus on new product development, sales and marketing while Mills will take care of internal operations, quality,financial management and development.

The promotions were made internally for cultural continuity, says Scott.

Precision Biologic has been in business for 15 years, growing from a staff of seven to 60.

Currently 85% of the company's sales are exports, 75% of which are to hospitals and labs in the United States. He says thebusiness has been affected by the exchange rate.

"It's not the ideal, but we can make it work and have been profitable for 15 or 16 years," he says.



Scott says he may be involved in other projects, but doesn't have anything specific in mind. However, he doesn't plan to go offto found another company, he says.

The privately held company's board of directors includes Scott, Tom Lynch in Halifax, Dalhousie University professor JuliaSagebien, Sandy Archibald in Bridgetown, Bob Crockett in St. Petersburg, Florida and Gordon Ens in Wichita, Kansas.

All but Sagebien are investors in the company.

In 2009, the company was given some financial help from Nova Scotia Business Inc. (NSBI) to expand by up to 30 staff over thenext five years with a five-year payroll rebate for up to a maximum of $445,029 (see allnovascotia 2009-09-24).

The Great Place to Work Institute of Canada also named Precision BioLogic the 8th best place to work in Canada in 2010.


Council Not Ready To Give UpThe Ghost On Spirit Place

By Amy Pugsley Fraser

A redevelopment project proposed for a central Halifax church was almost sent back to the drawing board Tuesday.

It was an unusual move because the public participation process - key to any development project in HRM - hasn't even takenplace yet.~

But Coun. Sue Uteck (Northwest Arm-South End) said she didn't want to waste any more of staff's time on the project - dubbedSpirit Place - because some planning staffers had already expressed concerns with its seven-storey height.

"You're not replacing a church with a church with a blank wall, you're replacing it with a very large massive piece ofinfrastructure," she said of the Windsor and Willor Street project (see allnovascotia 2010-01-18).

"The local community understand the goals ... but this is another instance wherein HRM is expected to haul the ball forchurches that are not making it anymore."

She said the congregation of St. John's United Church - who are proposing the project to help fund a new sanctuary becausethey can't continue to operate their 100-year-old church - haven't done enough to engage the community for feedback on thedesign.

Uteck pointed to ECL's proposal for St. Joseph's Square on Young Street. The Sobey-owned company has just dropped the11-storey height down by two storeys, citing community concerns with an earlier design (see allnovascotia 2010-12-09).

"They (ECL) have been working actively with the community. But I have not seen it in this instance so I'm not supportingwasting staff's time in going forward."

Coun. Russell Walker (Fairview) said there has been a lot of innuendo about the project "on both sides," but said he wantedto see the project carry through to the public process.

That's the only way fair way to go, agreed Coun. Debbie Hum.

"The only way that we get everything on official record is by proceeding with ... the public hearing."

Like Uteck, Coun. Dawn Sloane (Halifax Downtown) said she wanted the design to go back to the drawing board and come backto better reflect the lower height restrictions under HRM By Design.

"I'm concerned with this project because of the height and I don't think I can go forward until we actually let another design



possibility come forward."

Noticeably absent from the discussion in chambers was Coun. Jennifer Watts (Connaught-Quinpool).

The councillor could have added provided some local feedback for her colleagues' concerns, but she declared a conflict andexcused herself from debate.

Watts is a member of St. John's United Church congregation.

Council agreed 17-4 to send the project through to a public information meeting and hearing, both of which will be held at alater date.



City Hall Desk: LED Roadway Lighting;Larry Uteck Interchange; E-Tickets

By Amy Pugsley Fraser

A new pilot project could save Halifax City Hall more than $1.5 million in street lights.

Councillors gave permission for HRM to partner with main proponent LED Roadway Lighting in a pilot project to replace about2,000 of the city's streetlights.~

If the federal government agrees to the project under its Sustainable Development Technology Canada, it would mean themunicipality would get close to $1.5 million LED lights for free.

The city would be responsible for installation on the existing light polls, a capital and operating cost expected to cost about$300,000 and be carried out by an electrical contractor like Black & MacDonald.

Already, HRM is installing 2,137 fixtures it purchased last year from LED Roadway Lighting for about $1.6 million (seeallnovascotia 2010-09-14).

The LED lights are expected to have an energy reduction in the 50% range over time and last almost 15 years longer than theexisting low pressure sodium.

A few councillors expressed concern with the "narrower" focus of the LED lights already installed in their district.

Coun. Russell Walker (Fairview) said he's had calls about Lacewood Drive. However, Coun. Sue Uteck there have been "ravereviews" for the LED lights along Robie and South streets.

HRM owns about 15,000 street lights - mostly in the former City of Halifax - while Nova Scotia Power owns the remaining 25,000in Dartmouth, Bedford and the old county areas.

The mere mention of NSP put many councillors on the defensive, with Coun. Steve Streatch asking if the municipalitysupported a "two-tier system" of lighting.

"Because that's what we have today ... in several communities in different parts of HRM. We would love nothing more than tohave the street lights come on at night, period," he said of the rural street lights in his Eastern Shore-Musquodoboit Valleydistrict.

He's frustrated with the lack of support from NSP and says it shouldn't be given a "blank cheque with no accountability" tokeep the lights on.



Coun. Jackie Barkhouse said she too is still waiting for the utility to get back to her on two-year-old requests for lightreplacement in Woodside-Eastern Passage.

Doyle said HRM is coming up with a new methodology to service the lights, including district-by-district nighttime surveys.

Larry Uteck Interchange Increase

The construction of the Larry Uteck Interchange was overbudget by $1,616,823, but Halifax City Hall won't have to make upthe difference.

That's because the additional costs reflect an increase in the cost to install water, wastewater, and natural gas utilities underHighway 102 and will be recovered from Halifax Water and Heritage Gas.

The cost-sharing agreement signed with the provincial and federal governments, was based on the lowest tender bid receivedby the Province and was a unit price contract.

E-Tickets

Councillors agreed to help purchase e-ticket issuers for Halifax Regional Police and RCMP vehicles.

Currently, five-part summary offence tickets (SOTs) are completed entirely by hand which can lead to errors and illegibleinformation.

Because the e-tickets require less time than paper ones, HRM expects to increase officer productivity and so the officer willhave more time for law enforcement and less time writing tickets.

The total cost of the project is estimated to be approximately $706,000 with the Justice Department kicking in $350,000.

HRM expects to see offsetting revenue (through more tickets issued), as well as a reduction in overtime/court time, a reductionof part-time SOT data entry clerks, and a reduction in tickets being quashed due to illegibility.

It's estimated the benefits could range between $400,000 and $1,100,000 annually.



King's UnveilsMasters Of Journalism

By Paul McLeod

Seeking to distinguish itself from other schools, the University of King's College unveiled its new Master of Journalismprogram yesterday.~

Jointly offered with Dalhousie, the 10-month program costs $6,900 and allows students to specialize either in newentrepreneurial ventures or investigative reporting.

Unlike other journalism masters programs, the courses will only be open to people with an existing journalism degree, or yearsof experience in the field.

"One of the reasons that we did this is that there are a number of new masters programs across Canada," said King's director ofjournalism Kelly Toughill.



"There's a bit of a concern that that will become the new, de facto entry level degree in five or 10 years for journalism. So wewant to be competitive with Ryerson and Carleton and UBC."

The price point is designed to be competitive. It's significantly less than tuition for a one-year bachelor of journalism ($9,136) oreven the popular first-year Foundation Year Program ($7,232).

The masters program has been in the works for some time (see allnovascotia 2010-07-21) and still must be approved by theMaritime Provinces Higher Education Commission. King's is hoping for a decision next month.

In the meantime the school is able to accept applications. The target market is students who graduated with a journalism degreein the last five years and want to advance their skills.

Toughill says she's fielded enquiries from about a couple of dozen people so far. They're hoping for an enrollment of 15students in the first cohort, starting in June of this year, and then 20 people next year.

The application deadline is February 15.

King's will need to hire new part-time staff to cover teaching duties in the one-year BJ and four-year BJh programs as the seniorprofessors take on the new courses. If the masters program is successful they hope to eventually open up new tenuredpositions.

Other journalism masters degrees are typically offered as an alternative to a full undergrad degree. Kelly said that's had theeffect of cannibalizing the bachelor programs at other schools.

Instead, King's designed its new courses to be over and above what's offered in the four- and one-year programs.

"We don't want to devalue that brand at all. That's one of the reasons that we made this degree that builds on what we alreadydo and doesn't replace it," said Toughill.



Brighter Days At Buchans

By Kevin Cox

Rising metal prices and growing interest in the junior mining stocks are fueling Buchans Minerals Corp's quest for both goldand base metals.~

Buchans, formerly known as Royal Roads, announced yesterday that it has staked 52 claims near Mountain Lake Resources 'project at Glover Island in Central Newfoundland.

The move follows the recent announcement of a promising gold discovery at its nearby Long Range project it shares withBenton Minerals and the decision to move ahead with an independent economic assessment of its lead, zinc and copperdeposit at Newfoundland's historic Buchans mining area.

That's a lot of activity in a small Windsor-based company that attracted little attention in 2009 as its major shareholder AcadianMining struggled for survival and junior exploration company stock prices plummeted.

Last spring Acadian sold its 29% interest in Royal Roads as part of a restructuring under its new controlling Australianshareholder. That cleared the way for a new group headed by ceo Warren MacLeod to move in on a company they had beenwatching for a long time.

"Once we bought the shares from them we were able to take over the management and move things along and we've done it



very, very quickly," he said.

Acadian sold its shares for six cents each and the recent flurry of activity has pushed Buchans shares to the 15 cent range. Itclosed yesterday at 14.5 cents with a 52-week high/low of 17.5 cents/ three cents. Those share prices are boosted by rising basemetal and gold prices and the improving prospects for financing mining exploration companies.

"We're pretty excited about it. We think it (Buchans) is undervalued and you're probably seeing a an awakening in it now,"MacLeod said yesterday.

On the base metal front, Buchans is looking at an independent assessment of the economic feasibility of establishing a copperzinc and lead mine near Buchans. There have been promising grades from drilling in the traditional mining area.

The company is also planning to accelerate exploration at the Newfoundland Long Range project this spring. Grab samplesfrom the previously unexplored area have shown some high grades of gold and silver.

As for the Glover Lake claims, MacLeod said his company will wait and see what Mountain Lake finds on the deposit itacquired from another junior mining operation last year.

"Once they start working on the project and start getting results on the project then we'll start looking at exploration,"MacLeod said.


Government Business: NDP GoadsBoards To The Barricades

By Brian Flinn

Projections school board officials released to parents in north-central Nova Scotia last week were predictably shocking.~

Almost one in five teachers and a similar number of support staffers could be eliminated. Schools could close, almost half theboard's buses could go on blocks, and whole programs such as French immersion, libraries and lunch supervision could die.

The response from the NDP government, which ordered the province's eight boards last fall to study the impact a 22% cutmight have over three years, was predictably dismissive.

Premier Darrell Dexter said school boards were irresponsible for modelling and mobilizing opposition to program cuts that areobviously unacceptable.

It all begs the question: what was the point of the government's budget exercise?

If Dexter and his colleagues were new to politics, it would be conceivable that they did not expect school boards to bring babyseals to the slaughter.

But the premier's office is full of people who were in opposition when a similar melodrama unfolded under the former Torygovernment a decade ago.

What's more, the premier's response to the Chignecto-Central Regional School Board's scenario was more disingenuous thanthe board organizing a letter-writing campaign.

In an email to his party this week, Dexter emphasized that the government is targeting administration.

"I want the boards to take a serious look at all their operations," Dexter wrote.

"We have always said that we want them to focus on cuts to administration - not the classroom - for example: far fewer



consultants, a leaner education department, rolling back the growth in administration and spending when it will help studentsthe most."

What he didn't say is that boards do not spend anything close to 22% on administration. Chignecto-Central's head officeconsumes 5% of budget, and it's prepared to hack that figure by more than a quarter.

Joan Jessome, the head of the Nova Scotia Government and General Employees Union, theorized this week that thegovernment wants to breed fear so Nova Scotians will feel relieved when smaller cuts come down the pipe.

That sounds reasonable. But there is another possibility.

Layton Dorey, a Liberal insider, wonders if the government is intent on eliminating school boards altogether.

By creating a narrative that boards are more interested in self preservation than in serving students, the NDP could bepreparing the public for a new school governance model.

Boards are useful at tailoring education programs with local priorities. They also provide government with a political vapourbarrier during union negotiations and in times of ordinary restraint.

But they are an extra layer of bureaucracy, and they are bound to man the barricades as government tries to match funding withdeclining demographics.

Going after boards would serve the NDP as a useful distraction from other budget cuts, and it would turn unflatteringcomparisons or pre- and post-cut school systems into apples and oranges.

It's unclear how much a takeover by the Education Department might save, but it's bound to be more than the 26%administration cut that Chignecto-Central is contemplating.

The political downside of eliminating these democratic institutions is manageable. Former education minister Karen Caseyproved Nova Scotians have little affection for school boards. There was more praise than criticism when she purged the Halifaxboard in 2006 and the Strait board two years later.

Of course, both of those boards were already discredited when Casey fired them.

Take note that Dexter is now attacking the credibility of all boards as his government prepares to overhaul the system theyadminister.



Marco Building Officially OpensAt 14 Wing Greenwood

By Andrew Macdonald

Nova Scotia's federal minister Peter MacKay yesterday opened a new 30,000 square foot fire hall at 14 Wing Greenwood in theAnnapolis Valley.~

The building was recently completed by the Dartmouth office of Marco Maritimes, of St. John's.

The value of the contract was $6.5 million.

The new building at the Canadian Air Force Base includes an administration area, a gym, locker rooms, classrooms,maintenance rooms, and accommodations space.



The material for the building was both conventional steel and pre-engineered building framework.

The building is located next to the runway.

Last summer it finished a $27 million fire hall, winter maintenance, and emergency responders building for the HalifaxInternational Airport Authority.

Marco, which is owned by ceo Chris Hickman in St. John's and Allan MacIntosh, who is president and based in Burnside, isworking on several contracts.

The public jobs with a value of $7 million to $25 million, include a new town hall and NHL sized arena in Bouctouche, which isbeing called the James K. Irving Centre.

It is also working on a Department of National Defence storage and training building in Gagetown, a four-storey fish scienceslaboratory in St. Andrew's By The Sea, and an expansion project for the New Brunswick Community College in Moncton.

The firm has also been short-listed on a P-3 hospital in Northern New Brunswick, which could be awarded in the spring.Marco teamed up with Graham Construction on that effort.

Marco does in excess of $100 million in volume a year. The firm was founded by Thomas Hickman, father of its 40ish ceo ChrisHickman.



Non-Residential Building PermitsPost Growth In Q4

By Andrew Macdonald

All sectors of the non-residential construction industry pushed up building permits in Nova Scotia in Q4, reports StatsCanada.~

Non-residential was up 23.3% in the quarter over the same period last year, with $205 million in permits being issued across theprovince.

Commercial building permits were up 31% to $112 million, and institutional was up 22.3% to $75 million.

But non-residential building permits issued in the quarter were down 2.8% in HRM, from the same period last year, withconstruction commencing on projects totalling $95 million in Q4.

A number of significant projects in metro started in the quarter.

Work on a new $60 million RCMP H-Division HQ and the $25 million dollar Canadian Blood Services (CBS) collection buildingboth began in the period.

The RCMP bunker is being built at 80 Garland Ave. in Burnside. The five-storey, 240,000 square foot structure will open in2012.

CBS is building a 60,000 sf two-storey building on John Savage Drive, which will also open in 2012.

PCL Constructors has the RCMP building, while Bird Construction is on the CBS project.

Work also recently started on a new 40,000 sf building for the Canadian Coast Guard, at the Bedford Institute of



Oceanography, valued at $17 million. That project is being headed by PCL.

Work is also proceeding on a $28 million submarine maintenance centre and upgrade of a lift at the Navy Dock for theDepartment of National Defence, also being done by PCL.



It's Chisholm Vs. SavageIn Next National Election

By Brian Flinn

Robert Chisholm is trying for a political comeback as a federal candidate in Dartmouth-Cole Harbour.~

The former provincial NDP leader is the only person contesting his party's nomination next Tuesday.

"Dartmouth-Cole Harbour needs a strong representative," Chisholm said.

"I will do what I have to do to win the election."

The New Democrats have tried three different candidates in Dartmouth-Cole Harbour since Wendy Lill retired from politics in2004.

But no one has been able to come within 3,000 votes of Liberal MP Michael Savage.

Chisholm, 53, is far better known than past NDP contenders Brad Pye, Susan MacAlpine-Gillis or even Peter Mancini, a one-time MP from a Cape Breton riding.

He led the NDP to its breakthrough election result in 1998, when it tied the governing Liberals with 19 seats.

Chisholm's party had to content itself with moral victories before he came along.

He became one of only three NDP MLAs in 1991 when he won a byelection in John Buchanan's old seat.

The orange caucus was up to four members in 1996 when he succeeded Alexa McDonough as leader.

But the New Democrats came up short in the 1999 election, when John Hamm's Progressive Conservatives came out of thirdplace to form a majority government. Chisholm stepped down as leader later that year.

He served out his term as MLA, and went on to work for the Canadian Union of Public Employees and serve on the DalhousieUniversity board of governors.

Since 2009, he has worked as a consultant and government lobbyist for a firm he created with wife Paula Simon. They areaffiliated with Colour, one of the largest public relations agencies in the province.

While he brings a lot of experience, skill and profile to the ballot, Chisholm has some drawbacks as a candidate.

He doesn't live in the riding and never represented it in the Legislature.

He used to be MLA for Halifax Atlantic.

Chisholm explained that as a resident of Porters Lake, he shops and uses services in the neighbouring riding almost everyday.



"I feel an affinity to Dartmouth-Cole Harbour," he said.

As a former party leader, he represented every part of the province, he said.

The clincher appears to be that his own riding of Sackville-Eastern Shore is represented by NDP veteran Peter Stoffer, whointends to re-offer when the next federal election is triggered.

"That's where there was a seat available," Chisholm said.

Chisholm is already building a campaign that's less about incumbent Mike Savage and more about differentiating the NDP fromthe Liberal brand.

He blamed Liberal Leader Michael Ignatieff for enabling Prime Minister Stephen Harper to stay in power and implement aConservative agenda.

Chisholm noted that NDP Leader Jack Layton will speak at his nomination meeting next week.



Innovacorp PicksNew CEO From U.S.

By Brian Flinn

If you pick up a power drill, think of the Crown corporation responsible for building knowledge-based businesses in NovaScotia.~

The incoming ceo of Innovacorp, former professor and businessperson Clifford Gross, once ran a consulting business thathelped design ergonomic consumer products.

One of its chief successes in the 1990s was a Black & Decker cordless drill that was shaped to fit the human hand.

Now, Gross is taking over a publicly owned company that's involved in commercializing research & development.

He said it's too early to tell which direction he will take Innovacorp.

"In fairness, I need to get a bit closer to the company and meet the people, and then put in place a strategy," he said.

Gross, 53, played a similar role in a Florida company he founded in the late '90s.

UTEK Corp. was a business built around commercializing university research.

Since he stepped down in 2009 with a $1.1 million US severance, it has been renamed Innovaro and repositioned itself as aconsulting firm.

Gross said it made sense to move away from equity markets in the midst of the deep U.S. recession.

He left his old company because almost 12 years was long enough for any job, he said.

"I thought I did the best I could in that position, and it was time to allow the team to move it to the next level," Gross said.

His new appointment, announced yesterday by Innovacorp chairperson Jacquelyn Thayer Scott, should help the Crown



corporation "leap forward" in assisting early stage companies and researchers, she said.

His background in dealing with universities and U.S. federal institutions should prove helpful.

Nova Scotia spends just 1.5% of GDP on R&D, and two thirds of that happens in universities and federal institutions.

Gross said the goal should not be to change universities, but to scour them for ideas.

"It's really to make the most out of what is being created, not to change the agenda of the institution," he said.

Gross was recruited by headhunters at Wilson Executive Search.

While he's a U.S. citizen, he said he bought a home in the Annapolis Valley village of Ogilvie five years ago.

He said he was attracted to the province through a chance meeting with expatriate Arthur Knight on a flight to China. Theybecame friends and Knight took Gross on a tour of Nova Scotia.

Gross said he intends to live full-time at his residence north of Berwick.

Gross will earn a salary of $165,000. He replaces Dan MacDonald, who quit last year to become marketing vp for Eastlink.

Former interim ceo Stephen Hartlen is meanwhile leaving Innovacorp for Dalhousie University.

Dal announced yesterday that Hartlen is its new assistant vp of industry relations and executive director of the industry liaisonand innovation office.

No doubt, he will cross paths with Gross in his new role.



Tidal Turbine SittingIn Saint John Harbour

By Gillian Cormier

More than a month after it was pulled from the bottom of the Bay of Fundy, the Nova Scotia Power Inc./OpenHydro tidal turbineis still sitting in Saint John Harbour.~

No decision has been made as to when the turbine, which is missing all its rotor blades, will be moved to Cherubini inDartmouth for repair, either.

The Atlantic Towing tugboat the Atlantic Elm, which has stuck close to the OpenHydro barge, was called away from the portlast week to help with another job.

Bad weather over the holidays caused the two to postpone the decision on when to move the turbine until the first week ofJanuary.

NSPI spokesperson David Rodenhiser said in an email that it's a four- to five-day tow in good weather, and the two companyare still considering their options.

"The concern is the potential for ice build-up during the tow. It's always a concern for towing barges in the winter, that's whybarges are towed less often in the winter," he said.



Rodenhiser also says currently the only expense is berthing fees.

The turbine was recovered December 16, and it was expected to make it back to Dartmouth over the holidays (see allnovascotia2011-01-05).

OpenHydro also may have its head in other places than Fundy for the time being.

Last week, OpenHydro announced another Irish company, Bord Gais Energy, would become a shareholder through an initialinvestment of $1.33 million and invest another $1.33 million for meeting project millstones.

The joint venture between the two will focus on developing a utility scale tidal farm off the coast of Ireland, said an OpenHydronew release.

Privately held OpenHydro is footing the bill for the recovery and redesign. The company is 8.2% owned by NSPI parentcompany Emera.

The company also noted it had raised $20.4 million over the past year from existing shareholders and new investors.OpenHydro is also working on projects in the U.S., U.K., France and Scotland.

OpenHydro president James Ives did not return calls yesterday.

Once the turbine is assessed at Cherubini, the companies will decide if it will be repaired or if a new turbine will be deployed -which could cost OpenHydro millions of dollars.


Law Reform CommissionSearches For New Director

By Gillian Cormier

As John Briggs prepares for retirement, the Law Reform Commission of NS seeks a new executive director.~

The commission, an independent adviser to the provincial government, recommends law reform to government.

Briggs says since posting the job Jan. 15, the commission has already received an encouraging response.

Before taking the role of executive director in 2001, Briggs was in private practice and did some work helping the government ofNunavut get established. When he first began his career, he articled with what is now Stewart McKelvey.

Briggs, called to the bar in 1974, says he will take on new professional challenges in retirement.

The salary for the new director will be around $100,000, plus benefits and pension contribution.

Briggs says the salary is not comparable to compensation in the public service.

"The commission has not been able to keep in step with that," he said.

The commission's $350,000 budget comes from the government of Nova Scotia and the Law Foundation of N.S., which gets itsincome from the interest on lawyer's trust accounts - which Briggs says have been very low the last few years.

The executive director will be responsible for day-to-day operations, legal research, external communications, reports, andadministrative staff.

Under the Law Reform Commission Act, there are five and seven commissioners., including one judge selected by the judges



of N.S., two community representatives selected by the justice minister, two representatives from the N.S. Barristers' Society,and one member of faculty from Dalhousie.

The commission publishes papers on topics including enforcement of maintenance obligations, adult guardianship/living wills,the jury system, probate, mental health law, builders' liens, vexatious litigants, grandparent/grandchild access, andcontaminated sites.

The province may request the commission to explore an area of law, but requests can also come from members of the public,judges, lawyers or the bar society.

Commissioners are:

- Anthony Chapman, a partner at the Halifax office of Cox & Palmer;

- Justice Kevin Coady, of the Supreme Court of Nova Scotia;

- Robert Currie, a lawyer and tenured professor at Dalhousie's Schulich School of Law;

- Darlene Jamieson, partner at Merrick Jamieson Sterns Washington & Mahody;

- Dr. Brian Joseph, a professor who taught at Dalhousie, Saint Mary's University, St. FX and Cape Breton University, alsoserved at the Privy Council Office;

- Dr. John McMullan, professor of sociology and criminology at Saint Mary's;

- Ronald MacDonald, retired from the Nova Scotia Teachers' Union and former reporter.

The Law Reform Commission staff also includes Angus Gibbon, legal research counsel, and William Charles, special counsel.


Ray's Haus SlatedFor March Opening

By Amanda Fraser

The haus that Ray Sharpe is building is planning on a March opening in Fenwick Tower.

The Sydney native, who started his first business - a four car taxi outfit - when he was 17, is knee deep in cosmetic renovationsin what will be Ray's Haus, a "European-style cafe."~

Sharpe, who also runs owns and operates the three-employee wholesale business called R. Sharpe Wholesale Inc., travelled toHolland and Germany on a recent vacation and was bit by the cafe bug.

"You go into a cafe there and it's stuffed with desserts and sandwiches and when you order a cappuccino you get a little treaton your plate. It's such a pleasant experience compared to running into a Starbucks, where you get inconsistent coffees andnot much service," he said.

The fact that the previous tenant - Cafe Istanbul - didn't last more than six months at the 40-seat spot isn't lost on him.

"It's going to take a lot of marketing, and it's going to have to be very good service," he said.

Sharpe, who isn't letting go of his 20-year-old wholesale company, says he's intrigued with Templeton Properties ' $125 millionFenwick Tower redevelopment plan (see allnovascotia 2010-12-07).



He hopes to build a cafe brand.

"I'm counting on it. I'm putting everything I have on the line for it," he said, adding he's already three times over his initialbudget.

Sharpe says he's looking for a baker to prepare on site hearty breads, waffles and danishes, as well as soups and sandwiches.He's also considering purchasing rich German-style desserts from the nearby Gingerbread Haus Bakery on Queen Street.

He's enlisted local freelance designer Brittany Peckham for help with the interior, which will have a bistro look with high andlow tables, bar stool seating at the windows, and several chesterfields.

Evan MacEachern, who works for Sharpe's wholesale company which represents Kookie Kutter Bakery in Sackville, N.B., aswell as makers of confectionery products such as popcorn, will manage the cafe.


Feedback: No Ferry, No Hotel;School Budget Debate

Re: "Feedback: No Ferry, No Hotel ", allnovascotia.com 2011-01-18:

John Leefe writes:

The shock wave created by the NDP in pulling the plug on the Gulf of Maine ferry service continues to manifest itself inundermining the tourism sector of the economy, especially in Western Nova Scotia.~

Particularly galling is the continuing fabrication by the NDP government that it was not prepared to continue to subsidizemoney losers. Apparently the Gulf of Maine service is a "one off" as subsequent to the decision, the NDP has providedgenerous subsidies and other forms of assistance to troubled companies in many other parts of the province. In the processaccording to tourism industry watchers, some $20 million in annual revenues were lost. Apparently someone forgot to do themath!

Re: "Feedback: No Ferry, No Hotel ", allnovascotia.com 2011-01-18:

Mary Ann Marriott writes:

What a shame! I am referring to both the loss of the Rodd Colony, another blow for the Yarmouth economy, and the loss ofhope for renewed ferry service, a loss that is felt far beyond the town of Yarmouth.

As a regular patron of the Colony, I can say that the friendly staff and waking to the view of the Yarmouth Harbour will bemissed.

Re: "Feedback: School Budget Debate ", allnovascotia.com 2011-01-18:

Mike Lynch writes:

There's that word again: Disingenuous!

Methinks the governing party hierarchy including its sympathizers and advisers should expand their vocabulary.

Otherwise, preclude the widespread use of this adjective word in everyday parlance, by adopting it into their official partyname.

The New Disingenuous Party has a certain ring to it!

Speaking of her comment on bait and switch tactics, as the experienced leader of one of the largest civil service unions here in



the province, I ruefully acknowledge (Joan Jessome's) expertise in these and other tactics much to the expense of taxpayersthroughout the province.

Face it Nova Scotians, schools will close, hundreds if not thousands of teaching positions will be lost in the immediate,foreseeable future.

That's the cost of living in a province that is severely demographically challenged.

And one that still can't seem to grow its economy sufficient to keep young folks at home.


Biz Bytes: Canaport,Modern Media

The Canaport liquefied- natural-gas terminal in Saint John, N.B. will receive two cargoes of LNG this week, according toBloomberg.~

The tanker Lijmiliya, one of the world's largest Q-Max LNG carriers, was scheduled to arrive at Canaport yesterday carryingcargo from Qatar. The vessel can carry 258,019 cubic meters of LNG, or about 5.56 billion cubic feet (bcf) of natural gas.

Another ship, Golar Maria, is arriving at Saint John port today with cargo from Trinidad and Tobago. The vessel can carry asmuch as 143,012 cubic meters of LNG, or about 3.08 bcf of natural gas.

Repsol YPF, Spain's largest oil producer, owns 75% of Canaport, and has purchased all of the output from Encana's 892 bcfDeep Panuke natural gas project.

Irving Oil Corp owns 25% of 1 bcf Canaport.

Repsol is having a big impact on the Canada's supply of LNG - gas that's cooled to a liquid for transport by ship to markets notconnected by pipelines.

A report from FirstEnergy Capital Corp. and Waterborne Energy Inc. stated that Canada will receive a record 22 bcf of LNG inJanuary, 69% more than the former high of 13 bcf.

The increase in shipments comes via a supply contract Repsol inked with QatarGas Co. last year.

Martin King, an analyst with Calgary-based First Energy, told Bloomberg that the companies are benefiting from cold weather,and a rise in prices in the U.S. Northeast.

Modern Media Joins Forces With Hawk

Digital marketing firm Modern Media has announced it will provide all the digital needs of PR and ad agency Hawk.

Modern Media, owned by Jamie Davison, is based in Halifax. Hawk is based in Moncton.

It means Modern Media will take over the employment of two Hawk staffers, who will remain in Moncton.

The arrangement now allows Hawk to focus on its core business lines, says a news release.

Modern Media also said its revenues grew by 30% in 2010 over the recessionary year of 2009.

Some of Modern Media clients are: Empire Theatres, Mic Mac Mall, Acadian Seaplants, Kameleon Jewellery, Lawtons Drugs,Golf P.E.I., Ascenta Health, N.S. Agriculture & Fisheries Department, N.S. Energy Department and Nova Scotia AgriculturalCollege.



Modern Media was founded in 2005.


Government TendersFor January 19, 2011

By Emily Shute

Tenders awarded for January 19, 2011:

PW-$$HP-530-52279Department of National DefenceScore (Eastern Canada) Ltd., HalifaxValves, nonpoweredValue: $20,646.

PW-$HAL-321-8142Natural Resources of CanadaJD Irving Ltd., DartmouthMobile cranes/associated equipmentValue: $39,550.

PW-$HAL-309-8166Department of National DefenceChristine's Tailor Shop Inc., DartmouthTailoring servicesValue: $974,187.

PW-$HAL-302-8165Natural Resources of CanadaROMOR Atlantic Ltd., DartmouthDeck machineryValue: $49,628.

PW-$MCT-015-4049Correctional Service of CanadaPepsico Canada ULC, BedfordPotato chipsValue: $148,500.

60141182Nova ScotiaXerox Canada Ltd.White copy paper to the Stationery StockroomValue: $464,445Alternate bids: Grand & Toy Ltd., $451,396Unisource Canada Inc., $466,726The Paper House, $468,887.

10-096HRMIBI Group, Ont.Transit corridor, Halifax peninsulaValue not given.



10-061HRMCBCL Ltd., HalifaxConsultant services for Municipal Solid Waste Conversion Technology ProjectValue not given.

Bids Received:

R11-002HRMA tool that will migrate from a Novell E-Directory Platform to a Microsoft Active Directory PlatformXWaveIdentity AutomationValues not given.

Tenders issued:

PW-$PWA-121-4682Department of National DefenceBrush clearingClosing date: 2011-01-03 2 p.m.

PW-$PWA-104-4681Public Works and Government Services CanadaPartial reconstruction of a section of the South breakwater wharf located at Victoria Beach, Annapolis CountyClosing date: 2011-02-03 2 p.m.

PW-$HAL-403-8214Public Works and Government Services CanadaRepair generator, HMCS AthabaskanClosing date: 2011-02-02 2 p.m.

PW-$HAL-219-8213Department of National DefencePortable stell loading dockClosing date: 2011-02-28 2 p.m.

PW-$HAL-217-8211Department of National DefenceSafety trainingClosing date: 2011-01-28 2 p.m.

3390Nova ScotiaGym/office demolition, Dartmouth High SchoolClosing date: 2011-01-31 2 p.m.

3391Nova ScotiaNew gymnasium, Dartmouth High SchoolClosing date: 2011-02-07 2 p.m.

60141337Nova ScotiaRedHat Enterprise Linux and RedHat Satellite Support, Chief Information OfficeClosing date: 2011-02-02 10 a.m.



60141339Nova ScotiaAdobe CLP 5 Government Reseller, Chief Information OfficeClosing date: 2011-02-02 10 a.m.

60141340Nova ScotiaTable top model kits used in Traffic Control TrainingClosing date: 2011-02-04 10 a.m.

60141342Nova ScotiaOffender clothing, JusticeClosing date: 2011-02-01 10 a.m.

60141344Nova ScotiaSix new heavy duty lawn tractors, Department of Natural ResourcesClosing date: 2011-02-01 10 a.m.

COB11-01Nova ScotiaOne new 2011 medium-sized duty cargo van, Cobequid Housing AuthorityClosing date: 2011-02-03 2 p.m.

RFP-LCMPCC2011-001Nova ScotiaIce Rink Refrigeration and Heat Recovery System for the new Lunenburg County Lifestyles CentreClosing date: 2011-02-01 2 p.m.

RFQ10-138ESNova ScotiaEquipment, calculators and Learning Systems TI84, TI-NSpire, TI Navigator, Chignecto-Central Reg. School BoardClosing date: 2011-01-31 2:30 p.m.

WOL11-001Nova ScotiaWolfville Town Hall air conditioningClosing date: 2011-02-03 2 p.m.

Q10M141HRMPreventative Maintenance Program, York Natural Gas Fired Heating A/C and A/C Roof Top Unit, Woodlawn Public LibraryClosing date: 2011-01-19.

Q11A803HRMBus filters to Metro Transit storesClosing date: 2011-01-26.

Q11P207HRMFertilizer for HRMClosing date: 2011-01-25.

Q11P208



HRMSheep manure, corn gluetin meal and soilless growing mediaClosing date: 2011-01-26.

R11-003HRMFibre-Channel Storage Area NetworkClosing date: 2011-01-26.

Allnovascotia.com is not responsible for possible errors or omissions in the tenders report.

Court Actions 19/01/11:

By Anthony Ring

Business-related court actions filed in the Halifax Law Courts.~

Lawyers appear in brackets.

Hfx 342446First National Financial GP Corporation (Richard A Bureau) vs Stephen Blair Dove and Mary Elizabeth DoveForeclosure.

First National Financial is seeking payment of $265,675 on a defaulted mortgage at 102 Kelly's View Drive, Boularderie, VictoriaPID 85095255.

Hfx 342444First National Financial GP Corporation (Richard A. Bureau) vs Baxter Henry Squarey and Leone Ann FurlongForeclosure.

First National Financial is seeking payment of $131,548 on a defaulted mortgage at 129 Atikian Drive, Eastern Passage PID41174525.

Hfx 342440Remor Trust Company (Christy Sandles) vs Chad Patrick SchroderForeclosure.

Remor Trust Company is seeking payment of $79,744 on a defaulted mortgage at 158 Shore Road Mersey Point PID 70041835.

The above statements are allegations made in lawsuits. These allegations have not been tested in court.



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