GO news is good news

June 29, 2016 | In The News

Niagara is on board with GO.

While the timeline to bring year-round weekday rail service to the region raised some eyebrows in the community, local leaders are celebrating the provincial commitment that was made to get the first train down the tracks by 2021.

It was announced Tuesday that commuter service to the region will begin in Grimsby and will be expanded through to St. Catharines and Niagara Falls by 2023.

“Before the announcement people were asking me what I thought and I said I don’t really care where it goes in the Niagara region as long as it makes it here,” Grimsby Mayor Bob Bentley said with a laugh.

A sense of relief came when it was realized the region will get its wish and Grimsby will get a new station at Casablanca Boulevard.

“We know it’s going to be a game changer not only for our community but the whole Niagara region,” Bentley said.

Niagara’s GO rail extension, subject to a final agreement with CN Rail, will operate on 60 kilometres of track between the future Confederation station in Hamilton — for which construction begins next year and will be completed in 2019 — and Niagara Falls.

In addition to construction of a new station in Grimsby, existing train stations in St. Catharines and Niagara Falls will see upgrades beginning as soon as next summer.

Bentley said his community has seen significant growth over the past 10 years, including substantial construction activity in the Casablanca area.

In preparation for continued growth, and for the GO expansion, the Town of Grimsby has been working on existing land restrictions that are in place under the provincial greenbelt protection plan.

A comprehensive report has since been submitted to the province for initial review, outlining what Bentley called the town’s concerns over a lack of employment lands in the area and limited viable farm land.

He stressed that property with good quality soil and viability for farming should be protected, as well as some water courses and heritage wood lots that are “of interest and sensitive.”

There are lands on “very poor quality soil” that would be available to support the development that’s expected to accompany GO, Bentley said, but they must first be freed up under the legislation.

“We offered up additional lands to trade,” he said, which is in line with the legislation’s mandate that the greenbelt not get smaller but continue to grow.

Response from the province is expected this summer.

Niagara’s business community is also thinking ahead.

GO’s arrival in the region will mean “better labour force flexibility, mobility and also will potentially offer better youth retention and attraction,” said Mishka Balsom, president and CEO of Greater Niagara Chamber of Commerce.

It will likely mean continued growth in the real estate market, not to mention the “huge marketing opportunity” GO presents for the tourism industry, she said.

The key question Balsom wants to see answered as soon as possible is how frequently throughout the day the trains will run to and from Niagara.

That will make a world of difference to the business community, she said, calling it a “critical component” to the service’s success.

She wants to see no fewer than seven trains in and seven trains out.

And with that comes the need for an inter-municipal transit system to get people to the rail service.

Balsom hopes to see a report from the regional working group outlining the plan for the transit model before the end of the year.

For Dolores Fabiano, news of GO’s pending expansion offers a chance to celebrate what Niagara can accomplish as a united front.

“This really was about many voices, including the municipalities, businesses and other organizations all singing the same tune. We certainly can be mighty when we work together,” the executive director of the Niagara Falls, Port Colborne-Wainfleet and Welland-Pelham chambers of commerce said.

Fabiano does have concerns about the timeframe provided by the province, “because a lot of things can happen over the course of five to seven years,” but she chose to focus on the good news the announcement included.

“It is a day of celebration because many were doubtful we would ever even get to this point.”

While she wants to mark the occasion, she also wants to ensure pressure remains on the province to deliver on its promises.

She’s also hoping for more detail on the dollars needed for the GO expansion.

Ontario Transportation Minister Steven Del Duca, who delivered the news Tuesday, declined to comment on the expansion’s overall cost, citing ongoing negotiations with CN.

“It’s a bit of a head-scratcher,” Fabiano said, adding she would like to see those numbers provided to the public.

“I think we have to be demanding for those updates and we have to stay on top of it. We have to be as adamant as we have been all along.”

Contacted for comment, CN Rail spokesman Mark Hallman said the company is collaborating with the province and Metrolinx to “create a safe and efficient transportation system for the movement of commuters and goods in Hamilton-Niagara region.”

“CN has a strong history of partnering with passenger and commuter rail agencies, including with Metrolinx and the Ontario government, to bring expanded commuter service to communities across the Greater Toronto and Hamilton Area, while protecting its customers’ access to an efficient and reliable rail freight network.”

mfirth@postmedia.com

Original article: http://www.stcatharinesstandard.ca/2016/06/29/go-news-is-good-news

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Is a Canada Post Strike or Lockout Imminent?

June 29, 2016 | Blog, Latest News

50,000 Canada Post workers could potentially be locked out by their employer or go on strike, and mail delivery would be interrupted for an indeterminate period. How likely is a job action, why is it on the table, and what happens if it goes ahead? Read on to find out.

Update, August 31st: After two 24-hour extensions, Canada Post and CUPW have “voluntarily” reached a tentative agreement. No details have been given other than that the agreement is for two years (when four-year agreements were the norm). The agreements will now have to be ratified by Canada Post’s directors and by CUPW’s members in the bargaining unit.

Update, August 29th: Last Thursday night, CUPW issued a 72-hour strike notice, meaning they could go on strike if no deal was reached by the end of Sunday, August 28th. A federally appointed mediator was brought in on Friday, and the union agreed to extend its deadline by 24 hours at the mediator’s request. CUPW has stated that services to Canadians would be little affected in the event of a strike, but Canada Post disagrees and warns that there would be a major impact on business.

Update, July 10th: Canada Post has withdrawn its 72-hour lockout notice, which was to take effect on Monday, July 11th. Mail service will continue without interruption while the corporation and the union negotiate.

Update, July 6th: Canada Post has extended its lockout notice to Monday at 12:01am ET. The corporation has made an offer to submit to binding arbitration, which the union has refused, claiming that the corporation has bargained in bad faith.

Update, July 4th: Canada Post has issued 72 hours notice to lock its workers out. Both sides are still negotiating, but this means that mail delivery could cease on Friday at 12:01am ET. Canada Post has announced that Old Age Security, Canada Pension Plan, Working Income Tax Benefit and the Canada Child Benefit cheques are “essential” and will be delivered even in the event of a work disruption, but no other mail will be delivered. Make plans for alternate mail and parcel delivery beginning on Friday. FedEx, UPS, Purolator, CanPar, Dicom, Loomis, and DHL are operating as normal. The Government of Canada has vowed not to intervene with back-to-work legislation.

Update, July 3rd: Both the union and the corporation remain at the bargaining table. The corporation presented new proposals about a week ago, and the union gave a counter-offer on Friday. No strike or lockout can take place without 72 hours notice, which has not yet been given.

Negotiations between the Canadian Union of Postal Workers, or CUPW, and the Crown Corporation have been ongoing since July 2015, and are now at the final stage.

So, how likely is a service disruption?

No strike can legally occur before July 2nd, when the current collective agreement runs out. Strikes that occur within the lifetime of a collective agreement — known as “wildcat strikes” — are illegal, and the union can receive hefty fines. However, just because the collective agreement expires on July 2nd doesn’t mean a strike is inevitable.

The support of the membership is necessary for a job action, and generally unions like to get a very strong mandate before taking the nuclear option of striking. However, a strong mandate is also a signal to the employer that the workforce is serious, and can often spur further bargaining that leads to a resolution. In this case, 94 per cent of urban postal workers and 91 per cent of rural workers voted in favour of a strike, which is a very strong mandate. If CUPW feels that their demands will not be met by July 2nd, a strike is likely.

Another possibility is a lockout, the opposite of a strike, where the employer refuses to allow the employees to work. As a strike aims at forcing an employer to make concessions by denying them their labour force, a lockout aims at forcing the union to make concessions by denying its members their livelihoods. CUPW has said that they have not indicated a strike, but they fear Canada Post is moving to a lockout. The union asked for an extension to contract negotiations on June 28th, but it was turned down.

What happens if there’s a strike?

Canada Post has warned that to ensure delivery by June 30th, at time of writing (June 29th) local mail must be sent by Expedited Parcel or Xpresspost, and national/regional mail must be sent Priority.

Many businesses are already turning to courier firms for important deliveries as a contingency. There are also alternatives such as FedEx, UPS, Purolator, CanPar, Dicom, Loomis, and DHL. Changing to an alternate delivery service will be disruptive to many businesses, but for those whose business depends on timely delivery, there is little choice. This may also result in delivery fee increases both to customers and from suppliers. You can sign up for email updates from Canada Post here.

Many local governments are urging residents and businesses to pay taxes and bills online. For details on services from the Government of Ontario during a postal strike, see their website.

The last Canada Post labour disruption lasted three weeks, in 2011, before the federal government passed back-to-work legislation — an Act ordering employees back to work. However, the Supreme Court of Ontario later found this legislation to be unjust, so the current government may not follow the same route.

What’s the problem?

Canada Post is offering no changes to pensions or job security for all current employees, and an increase in take-home pay. Future hires are to receive a Defined Contribution pension plan instead to address long-term pension challenges. The Corporation is also looking to hire temporary and part-time workers for weekend and evening parcel delivery, which is currently done by paying double-time to delivery workers. Their full position can be read here.

CUPW, on the other hand, complains that Canada Post’s pay increases are no more than the rate of inflation, and that the Corporation is essentially creating a two-tiered workforce where some workers are paid more than others and receive better benefits for the same job, and where large disparities exist between the rural and urban workforce. The union has many other demands that are not being met besides, and their full position can be read here.

Obviously, a strike or a lockout would be disruptive to business and bad for the economy. We hope that CUPW and Canada Post can reach a mutually acceptable agreement before July 2nd, and we ask negotiators on both sides, on behalf of the business community, to make every effort possible.

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Canada to lift Mexican visa requirements

June 28, 2016 | Advocacy, Federal Advocacy

Today, Prime Minister Justin Trudeau announced that Canada would lift the visa requirement for Mexican visitors to Canada on December 1st, 2016, during a two-day visit to Canada by Mexican President Enrique Peña Nieto. The GNCC asked the Government of Canada to lift the visa requirements on visitors from Mexico, and has lobbied federal ministers as well as our local federal representatives on this issue. We outlined the problem that the visa system poses to Niagara tourism in our Investing in Canadian Tourism policy brief, where we also advocated for extending the eTA system and abolishing tourist visas for visitors from emerging markets in China, Brazil, India, and Hong Kong. The lifting of the visa requirement will result in a boost for Niagara tourism, but we intend to continue our advocacy for further reform of Canada’s visa systems to maximize our competitive advantage in the sector.

The Government of Canada has made it a top priority to re-establish and strengthen our relationship with one of our most important partners, Mexico. To this end, Prime Minister Trudeau today announced Canada’s intention to lift the visa requirement for Mexican visitors to Canada beginning December 1, 2016. Lifting the visa requirement will deepen ties between Canada and Mexico and will increase the flow of travellers, ideas, and businesses between both countries.

Closer collaboration between Canada and Mexico on mobility issues will also help encourage travel between the two countries while preventing any increase in asylum claims or other irregular migration. Officials plan to meet regularly to promote these mutual interests.

Canadian officials are working with their Mexican counterparts on final details to ensure a successful visa lift.

Until November 30, 2016, the visa requirement is still in place for Mexico and – until it is lifted – Mexican citizens must continue to apply for a visa to visit, study or work in Canada. Mexicans can apply online for a visitor visa on Immigration, Refugees and Citizenship Canada’s website, or can use the services of one of the Visa Application Centres in Mexico City, Guadalajara and Monterrey.

Visitors are generally allowed a six-month stay from the day they enter Canada. If the Border Services Officer authorizes a stay of less than six months, they will indicate in the visitor’s passport the date by which they must leave Canada.

After the visa requirement is lifted, Mexicans wanting to work or study in Canada will still need to apply for a work or study permit prior to their arrival in Canada. Mexican citizens should also be aware that – once the visa is lifted – they will need an Electronic Travel Authorization (eTA) to fly or transit through Canada. Applying for an eTA is a simple, inexpensive (CAD$7) process that takes just minutes to complete online. The eTA is electronically linked to a traveler’s passport, and is valid for five years or until the passport expires, whichever comes first. All visa-exempt foreign nationals – except for U.S. citizens – need an eTA to fly to or transit through Canada.

Additional information will be provided to Mexican citizens in advance of the visa lift, including details on when Mexicans travellers can begin applying for their eTA.

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Mishka Balsom on The Niagarans with Greg Miller

June 27, 2016 | Latest News

The Niagarans with Greg Miller Podcast – Episode 12, featuring Mishka Balsom, President & CEO of the Greater Niagara Chamber of Commerce

Topic: Business in Niagara, partnering, living wage, business achievement awards

Greg talks with Mishka Balsom, CEO of the Greater Niagara Chamber of Commerce. Greg and Mishka talk about how she came to be CEO of the GNCC, what it’s like replacing Walter Sendzik, being a woman leader in Niagara, if chambers of commerce are still needed, raising the minimum wage and the upcoming Niagara Business Achievement Awards.

Listen now:
http://www.niagarapodcasters.org/podcasts/niagarans-greg-miller/episodes/12

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Taking stock of the Brexit vote

June 24, 2016 | In The News

Take a deep breath, pull it together.

Europe — indeed the world — has changed with a UK vote to leave the European Union.

But there are many variables at play as things unfolds, said Brock political science associate professor Blayne Haggart.

“Hopefully everyone will take the weekend and blow into a paper bag and consider things,” said Haggart. “Certainly, things that we thought would not be in play are now in play. Even the future of the E.U. itself and the United Kingdom.

“Who would have thought … Canada would be a model of stability in pretty much every single way, compared to something like the E.U.,” he said.

Haggart also spoke to the enduring power of nationalism revelealed by the vote.

“It is still the driving force behind human behaviour in the world,” he said. “And appeals to economic self-interest can’t alone carry the day in these kinds of things.”

He also points to the the 1995 referendum in Canada, where voters in Quebec narrowly decided not to seperate.

Haggart suggests a tipping point here was the appeal to a “Canadianess that united everybody”, and not the economic necessity of a union.

Many in the U.K. felt no attachment at all to the E.U., prior to their vote.

This, as the fallout has begun following Thursday’s stunning win by the “leave” forces in the U.K.

The value of the pound plummeted Friday, while stock markets tanked around the world.

The very stability of the U.K. is also in question, given the sharp divides highlighted by the vite. Young voters overwhelmingly wanted to be part of the E.U., older citizens wanted out.

Scotland, London and Northern Ireland wanted in but much of the rest of Great Britain wanted to leave.

Meanwhile, Scotland’s first minister Nicola Sturgeon said it’s “democratically unacceptable” Scotland could leave the EU against its will.

Sturgeon has said the requited legislation to enable a new independence referendum will be prepared, to take place “if and when Parliament so decides.”

Scotland voted in favour of the UK staying in the EU by 62% to 38%.

The UK as a whole has voted to leave, by a margin of 52% to 48%. That prompted UK Prime Minister David Cameron to announce he’d be leaving as PM in October.

But what of the economic blowback to Canada as the dust settles?

According to Bloomberg News, the U.K. was Canada’s fifth-largest trading partner last year, accounting for about $21.2 billion in total trade.

This compared with more than $540 billion in cross-border commerce with the U.S., Canada’s largest partner by far, said the Bloomberg item as reported in the National Post.

Paul Shelestowsky, the Niagara-based senior wealth advisor for Meridian also notes that the U.K. is a bit player in Canadian trade — about 2.5 per cent. In the U.S., that trade accounts for roughly three per cent.

“In North America in general, the consensus is the impact will be minimal,” Shelestowsky said.

Meanwhile, Shelestowsky said he’s also heard from fund managers about cash holdings in sensitive portfoilos being ramped up in anticipation of a leave vote.

“Believe it or not, this is actually going to turn out to be a very good buying opportunity for these fund managers,” he added. “They are buying cheap stocks. When there is a downturn this is how good fund managers separate themselves from average fund managers, they’ve prepared for it.

“There is no doubt the U.K. is going to be in for a very rough ride,” Shelestowsky said. “The majority of economists believe the U.K. is going to be underperforming, possibly going into a recession.

“We’re not immune,” said Shelestowsky. “But a lot of what we’re seeing in North America I believe is short-term knee-jerk reaction, whereas in Europe, it’s going to be more drawn out pain.”

Mishka Balsom, president/CEO of the Greater Niagara Chamber of Commerce, believes the economic impact is unclear.

“But in the short-term, the referendum result is having an impact on currencies, commodities and stocks,” Balsom said. “Uncertainty never bodes well for financial markets — businesses prefer price stability

“Brexit could stall the implementation of Canada’s trade pact with the EU or Canada’s trading with the U.K.,” she added.

“In addition, both Britain’s and Europe’s economies are expected to slow down, which could create a lower demand for Canada’s oil and commodities.”

donfraser@postmedia.com

Original article: http://www.stcatharinesstandard.ca/2016/06/24/takings-stock-of-brexit-pain

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Awards give tribute to community leaders

June 24, 2016 | In The News

A lawyer and community leader was officially handed one of the top honours bestowed by Niagara’s regional chamber.

On Thursday, the Greater Niagara Chamber of Commerce announced the winners of the 13th Annual Niagara Business Achievement Awards.

As part of the ceremony, four special presentations of bestowed awards recognized longtime accomplishments.

Robert Welch was handed the “Lifetime Achievement Award” at a Holiday Inn banquet in St. Catharines that drew 400 people.

“I am somewhat overwhelmed by all this,” said Welch, 62, a senior partner at Niagara’s Lancaster, Brooks and Welch law firm. When earlier told he’d be handed and award, “I was very surprised and knew nothing about being nominated … it was a real stunner.”

“I am gratified but surprised,” the St. Catharines resident said ,in an interview after the awards.

Welch has a long history of community involvement, including acting as chancellor of the Anglican Diocese of Niagara and a long stint as a former director of the United Way of St. Catharines and District.

He’s also had top-level involvement with the YMCA of Niagara, Niagara Community Foundation and other organizations.

Welch was also a former Niagara Region Councillor from 1985-1994.

Being locally involved “is always something that I’ve done,” he said. “I have just felt it’s something you do and you have a responsibility … in public service or volunteer service, it’s something, for me anyway, you consider to be of value.

“And I have been happy to do it.”

Mishka Balsom, president and CEO of the Chamber, said each of the people and companies honoured “are larger than life heroes to Niagara. “Their contributions go far beyond their actual accomplishments,” said Balsom in an e-mail.

“Their contributions were in no doubt made possible, in part, by their common passion for Niagara,” Balsom said. “Their commitment has created a legacy that does great honour to our region.

“These organizations are the heart of our economy, prosperity and growth.”

Other awards were as follows:

  • Business of the Year – White Oaks Conference Resort and Spa
  • Excellence in Business: up to 10 employees – Big Country Raw Food; 11 to 50 employees- Future Access Inc.; 51 or more employees Kraun Electric
  • Outstanding New Business – ProActive Chiropractic and Training Centre
  • Excellence in Technology and Innovation – Niagara Peninsula Energy Inc.
  • Excellence in Environmental Leadership – Pinchin Ltd.
  • Excellence in Manufacturing – Ladson Creative Millworks
  • Excellence in Tourism – Niagara Sport Commission
  • Excellence in International Business – WP Warehousing Inc.
  • Young Professional of the Year – Mary Jane Johnson (Hotel Dieu Shaver Health and Rehabilitation Centre and Foundation)
  • Builder of the Year Award – to Phil Ritchie of Keefer Developments.
  • The Volunteer Business Person of the Year Award – Doug Smith of C.R. Smith Financial and Wise Guys.
  • The Community Leadership Award – Dr. Suzanne Johnston of the Niagara Health System.

Ed Learn Ford Lincoln in St. Catharines hosted a Friday celebration to mark a grand reopening of its new state-of-the-art facility after more than two years of extensive renovations.

The Ontario Street dealership has new Ford and Lincoln showrooms, six new Quick Lane bays,a Quick Lane reception area, a re-designed parts department and a new customer lounge.

A newly-paved and landscaped facility also features a new technician lunch room, locker area and new fleet service bays. The renovation began in October of 2013, ending in March 2016.

The Bizzline column appears weekly. Send your north Niagara business story/information tips to donfraser@postmedia.com or tweet to @don_standard.

Original article: http://www.stcatharinesstandard.ca/2016/06/24/bizzline-awards-give-tribute-to-community-leaders

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GNCC Supports Single-Event Sports Betting Bill C-221

June 17, 2016 | Advocacy, Federal Advocacy, Latest News

The Greater Niagara Chamber of Commerce supports Bill C-221, currently in the House of Commons, which would legalize single-event sports betting. Currently, $14 billion is wagered on single events, most of it illegally, the rest through offshore gambling websites. Legalizing this economic activity would be a huge boost for the economy, resulting in jobs and growth, particularly in Niagara. Read our letter below to Members of Parliament asking them to support the Bill.

 

June 17th, 2016

Dear Sir,

The Greater Niagara Chamber of Commerce, on behalf of almost 1,600 members and 50,000 employees would like to express its support for Bill C-221, the Safe and Regulated Sports Betting Act, which is currently before you in the House of Commons. In this, we are joined by many other business organizations, including the Ontario and Canadian Chambers of Commerce.

Sports wagers have been legal in Canada for many years, but Canadians prefer single-event betting, as evidenced by the $10 billion spent annually through illegal bookmaking operations in Canada and an additional $4 billion wagered through offshore online betting websites. Rendering these wagers legal would repatriate criminal activity back into productive and taxable economic activity, from a cost to the government into revenue. The current situation only supports crime, including organized crime.

Many provinces currently support this bill. Ontario has requested the amendment, as has British Columbia, Saskatchewan, Manitoba, and Alberta, while Quebec, New Brunswick, and Prince Edward Island support it.

The bill is functionally identical to Bill C-290, which was passed by the House of Commons with support from all parties, including your own, but died in the Senate after languishing for years. When C-290 was before the Senate, the GNCC supported it, as it supports its successor. We noted then that nearly 40 per cent of Niagara’s economy and over 55,000 jobs were supported by tourism, and that the tourist industry would benefit immensely from the passage of the bill. Little has changed since. Across Canada, the gaming industry alone supports 125,000 direct jobs and generates $12.5 billion in direct labour income. Bringing the current $14 billion in illegal single-wager betting into the legal economy could add far more to this.

We understand the government’s caution over this bill, but we feel that the benefits far outweigh the potential pitfalls, especially as single-wager betting is already here – illegally. We hope that you will consider supporting this bill and the jobs, revenue, and economic activity that this legislation would generate for your constituents.

Yours sincerely,

Mishka Signature

Mishka Balsom
President & CEO, Greater Niagara Chamber of Commerce

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Finalists announced for business awards

June 8, 2016 | In The News

The shining stars of the business community are getting closer to their moment in the spotlight.

The Greater Niagara Chamber of Commerce has announced the finalists for the 13th annual Niagara Business Achievement Awards.

A gala evening honouring the winners will be held Thursday, June 23, at the Holiday Inn and Suites Parkway Conference Centre in St. Catharines.

“This year’s finalists represent the great depth and variety of businesses that are proud to call Niagara their home,” chamber president and CEO Mishka Balsom said in a news release. “It is a pleasure to be able to recognize these incredible businesses through this annual awards ceremony, and it is important that we celebrate the many contributions that they make in our community.”

For more information on the awards banquet, visit http://bit.ly/1WGILCP.

And the finalists are:

Young Professional Award

  • Mario DeDivitiis, of Leadership Niagara
  • Jessica Kemp, of Kemp Financial Group Inc.
  • Mary Jane Johnson, of Hotel Dieu Shaver Foundation

Technology and Innovation

  • 360 Growers Inc.
  • Commercial Digital Print
  • Niagara Peninsula Energy Inc.

Environmental Leadership

  • Hydro Metal Recycling
  • GFL Environmental
  • Pinchin Ltd.

Tourism Award

  • Niagara Outlet Collection
  • Safari Niagara
  • Niagara Sport Commission

Excellence in Business (10 or less employees)

  • Big Country Raw
  • Provisions Food Co.
  • National Records Management
  • Cairnwood Homes

Excellence in Business (11 to 50 employees)

  • Associated Engineering (Ont.) Ltd.
  • Enviro-Niagara Plumbing, Heating & Air Conditioning
  • Future Access

Excellence in Business (51 or more employees)

  • Enbridge
  • Kraun Electric
  • Sitel

Excellence in Manufacturing

  • Metal Supermarkets
  • Ladson Creative Mill Works
  • Niagara Granite and Marble

International Business

  • Alexandria Professional
  • WP Warehousing
  • Hornblower Niagara Cruises

Outstanding New Business Award

  • ProActive Chiropractic & Training
  • Niagara Region Money Coaches
  • Futbol Niagara

Business of the Year

  • Homes by Hendriks
  • Book Outlet
  • White Oaks Conference Resort & Spa

Original article: http://www.stcatharinesstandard.ca/2016/06/08/finalists-announced-for-business-awards

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Shhhhh! Why Privacy Regulation Could Stifle Innovation

May 24, 2016 | Network News

5 Minutes for Business :Shhhhh! Why Privacy Regulation Could Stifle Innovation

When we think about innovation, we almost always imagine a cool new gadget. But more and more, innovation is data driven—and it is creating the most amazing products, some of which could be threatened by new privacy rules.

Think of Facebook with its 1.65 billion users accumulating 600 terabytes of data per day. And all of it seemingly for free. Or not? Facebook has access to reams of data on people’s likes, interests and locations. Just based on our “likes,” Facebook can tell our political views, ethnicity, income, intelligence, age, gender, personality and preferences with astonishing accuracy. This is a treasure trove of information for businesses to better understand their customers and target ads.

Or think of Shazam: whenever you hear a song you like, this app can instantly identify the artist and song title. It’s free and it has become the world’s best source of data on the hot new music people are listening to. Shazam can see our music preferences geographically and build profiles of songs we might like.

In the old days, retailers might have tracked a customer through a store to watch for patterns—what products does she pick up, in what aisles does she linger? On the web, it’s as though companies can track our eye movements to see which individual items we look at and for how long, whether we read the label or what things we like best. Technology is transforming the way we shop and communicate, and this has big consequences for our approach to privacy.

Canada’s Privacy Commissioner has just launched a consultation on how to improve individual control over personal information in the commercial environment. At the Canadian Chamber, we’re concerned the government will bring about sweeping new consent requirements or impose rules that make people opt out of data services by default.

As we’ve seen with Canada’s Anti-Spam Legislation, burdensome consent requirements can hamper innovation and impose significant costs on business. Often unnecessarily because there is a spectrum of people from the “privacy unconcerned” who have every aspect of their lives publicly available online to the “privacy paranoid” who reveal nothing and always cover their tracks.

Most people fall somewhere in between and make their own decisions. Many of us are happy to get PC points and Air Miles or a free service like Google or Gmail in exchange for information about our purchases and preferences. Others are not.

Some of the most exciting new applications of big data are in sensitive areas. Imagine a system that could aggregate medical information of millions of people with thousands of illnesses to compare symptoms with medicines. Big data could find the best treatments and improve diagnosis to make us healthier.

Back in 2000, Canada enacted the Personal Information Protection and Electronic Documents Act (PIPEDA), based on the principles of sensitivity and harm, openness and transparency, and knowledge and consent. Canada must continue to balance the privacy rights of consumers and the use of personal information for commercial purposes. Canadians can make choices based on the value they receive without strangling innovation and new business models. Go here to participate in the consultation.

For more information, please contact :

Hendrik Brakel
Senior Director, Economic, Financial & Tax Policy
613.238.4000 (284) | hbrakel@chamber.ca

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