Here comes Olive again grandstanding on "business" something she doesn't know the first thing about... she just wants to "call someone out" at the first sign of a perceived trouble, without the facts... if she could read a balance sheet and the public record it wouldn't take her long to figure out that Homburg REIT, now Canmarc Canada REIT, and owners of Dyne Holdings, the Government’s guarantor, are a sound financial public company with lots of equity and strong market support... she probably could have had this confirmed by any of the local Tory branded accountants but it's my understanding that she's alienated most of them through her persistent questioning of the PNP files, whom a lot of them acted for as agents...
She should have called the Auditor in when her Government built the meat plant in Borden, or when her Government built the Atlantic Tech Centre in Charlottetown, or when her Government purchased Dundarave, or when her Government gave out the crab loans, OH SORRY OLIVE... they were Tory initiatives which you seem to forget about!!!! and the list goes on and on for "all" Governments trying to be business people...
Bottom line here is the hotel is built and open... Olive... “please give them a chance before you try and drive their reputation into the ground”... the receiver has a public responsibility and their report will be a public record, which may or may not see some liability put back on the Province, but I doubt it...
The CP Hotel (now the Delta) got in major trouble back in the days, and guess what... it's still there operating, employing people, paying taxes and doing all the great things that private businesses do and maybe Olive will appreciate this when she looking for something to do on October 4, 2011...
Auditor general should investigate provincial Homburg deals: Crane
Published on September 28, 2011
Teresa Wright
the Guardian
PC Leader Olive Crane says she wants the auditor general to investigate the government’s dealings with the Homburg group and its corporation entities.
She issued a statement Wednesday saying if elected, she will call on auditor general Colin Younker to review all involvement of the provincial government with the numerous Homburg companies in order to get answers on exactly what liability may exist for Island companies and taxpayers.
On Sept. 9, Homburg Invest and several affiliate companies applied for creditor protection in order to avoid bankruptcy.
Homburg Invest's Class A and Class B shares were also delisted by the Toronto Stock Exchange last week.
According to a list of the company’s creditors, Homburg Invest owes the P.E.I. government $13.2 million, and millions more to 29 other companies with addresses on P.E.I., as well as the provincial tax commissioner and the Tourism Industry Association of P.E.I.
Innovation and Advanced Learning Minister Allan Campbell has said the province is protected if a division of Homburg Invest Inc. defaults on its government loans.
But Crane doesn't believe the millions Homburg borrowed from Island taxpayers is as safe as Campbell says.
“We’re getting conflicting information from Allan Campbell about what the risk is to taxpayers,” Crane said in an interview.
“This company has been delisted by the Toronto Stock Exchange and yesterday we found out that one of his companies is now dropping the name ‘Homburg’ all together so there’s a number of red flags that should be brought to the attention of the auditor general.”
On Tuesday, Homburg Real Estate Investment Trust changed its name to Canmarc Canada Real Estate Investment Trust after receiving approval from its board of trustees.
Canmarc owns Dyne Holdings, which has three loan offers from the province worth $30 million.
The Homburg REIT was spun off from Homburg Invest.
Crane said the whole file needs an immediate forensic audit, not only because of the taxpayers' dollars tied up in the Homburg group, but also due to other P.E.I. companies that are also owed money.
"There are a number of Island businesses that are owed a considerable amount of money," Crane said.
"All in all, the file needs an audit."
Wednesday, September 28, 2011
Here's What I'm Thinking...
Someone told me in the past couple of days that Teresa Wright from The Guardian has been calling Robbie Vessey in District 9 and saying that “The Guardian thinks it’s going to be a close one in district 9” and they want to do a story about it, so he obliged… I presume Ms. Wright must have met with Martie in the barn and sniffed a few too many fumes as I’ve been told she’s hinted around that she’s getting a feeling it’s a “tight” race.. In fact Ms. Wright was boasting on her twitter that the story would be in print by Tuesday but my guess is the geniuses at the top of that Rag have finally got the CRA poll in their back pocket and she’s been put on a rewrite…
I can’t even imagine why The Guardian would even spend the gas money to head out to Stanhope (especially near the end of the campaign) when anyone with a pulse knew from the start that this one was “never close”
I don’t know what they’re smokin’ down at the Guardian but after reading the Editor’s column a few days ago on the PNP’s its obviously some very “crazy” stuff… it’s time the boys took some time off and got out in the fresh air and play some golf as this election is history, along with the PNP’s foolishness…
Here's what I'm thinking... you pick any candidate against any Liberal candidate you want on PEI at even odds but you must also bet me Martie Murphy against Rob Vessey and I'll give you a bonus 3 to 1 odds on Vessey to win.... if I’m lucky enough to win, then I'll donate half my winning proceeds to the QEH... $100.00 minimum bets only and you can officially place them at my office at 3 Lower Malpeque Rd. up until this Friday... CRA will be out tomorrow with Liberals down but still in double digits so here's your chance to wack me...
I can’t even imagine why The Guardian would even spend the gas money to head out to Stanhope (especially near the end of the campaign) when anyone with a pulse knew from the start that this one was “never close”
I don’t know what they’re smokin’ down at the Guardian but after reading the Editor’s column a few days ago on the PNP’s its obviously some very “crazy” stuff… it’s time the boys took some time off and got out in the fresh air and play some golf as this election is history, along with the PNP’s foolishness…
Here's what I'm thinking... you pick any candidate against any Liberal candidate you want on PEI at even odds but you must also bet me Martie Murphy against Rob Vessey and I'll give you a bonus 3 to 1 odds on Vessey to win.... if I’m lucky enough to win, then I'll donate half my winning proceeds to the QEH... $100.00 minimum bets only and you can officially place them at my office at 3 Lower Malpeque Rd. up until this Friday... CRA will be out tomorrow with Liberals down but still in double digits so here's your chance to wack me...
Tuesday, September 27, 2011
This Is "Fracking" Funny...
For some strange reason I got a copy of Martie's latest press release today and I couldn't help feel sorry for her as she's obviously "fracking" losing it if she thinks this silliness has any traction in Covehead or Brackley... Vessey could end up with the largest majority of victory on PEI if she continues the PNP and school closure debate as she "beating a dead horse" and you'd think she'd know a little about that...
FOR IMMEDIATE RELEASE
September 26, 2011
MARTIE MURPHY TAKES A STAND
PC Candidate for District 9, Martie Murphy attended the Liberal announcement for the day in her district at the North Shore Community Centre and expressed disappointment in the Liberal promises on the environment. “All the promises they made have already been announced and it means nothing for the Friends of the Covehead and Brackley Watershed Group, which is in my district.”
Murphy went on to indicate that she was extremely disappointed that the Liberals took no stand on fracking. “We have a fragile water system in this Province and unless we prohibit this practice outright as the Progressive Conservative Party will do there is no way that we can maintain the purity of our water.”
The unusual move by Murphy to attend the Liberal announcement was an effort by Murphy to make sure the Liberals knew that she was there to look after the interests of her district. “I wanted to look Robert Ghiz in the eye so that he knew that he was not going to get away with anything when he comes in to the York-Oyster Bed district.”
Murphy continues to campaign door to door in the district and indicated that she is getting a very positive reception. “People are angry with the arrogance of this government.”
- 30 -
FOR MORE INFORMATION PLEASE CONTACT
Martie Murphy, PC Candidate for York-Oyster Bed
(902) 629-5125
FOR IMMEDIATE RELEASE
September 26, 2011
MARTIE MURPHY TAKES A STAND
PC Candidate for District 9, Martie Murphy attended the Liberal announcement for the day in her district at the North Shore Community Centre and expressed disappointment in the Liberal promises on the environment. “All the promises they made have already been announced and it means nothing for the Friends of the Covehead and Brackley Watershed Group, which is in my district.”
Murphy went on to indicate that she was extremely disappointed that the Liberals took no stand on fracking. “We have a fragile water system in this Province and unless we prohibit this practice outright as the Progressive Conservative Party will do there is no way that we can maintain the purity of our water.”
The unusual move by Murphy to attend the Liberal announcement was an effort by Murphy to make sure the Liberals knew that she was there to look after the interests of her district. “I wanted to look Robert Ghiz in the eye so that he knew that he was not going to get away with anything when he comes in to the York-Oyster Bed district.”
Murphy continues to campaign door to door in the district and indicated that she is getting a very positive reception. “People are angry with the arrogance of this government.”
- 30 -
FOR MORE INFORMATION PLEASE CONTACT
Martie Murphy, PC Candidate for York-Oyster Bed
(902) 629-5125
Saturday, September 17, 2011
"Unite or Divide"... Well Said Premier Ghiz
Contrary to popular belief I don't really like kicking someone when they'll already down so I'm not going to say anything about “Olive's desperation” campaign... But I will say that the Premier's approach in sticking with the positive will resonate much better with voters than Olive’s pitting rural Islanders against urban Islanders...
If Olive has achieved anything with her negative campaign then I'd say her success has been in "firing-up" the workers in the Big Red Machine and I smell a huge "backfire" there Olive...
Liberals will rise above Tory slander: Ghiz
The Guardian
Published on September 16, 2011
Ryan Ross
MONTAGUE – The PC party will do anything to win the election, says Premier Robert Ghiz.
Ghiz was referring to reports of an investigation into the provincial nominee program and said the Conservatives will do or say anything to score political points.
“Well let me tell fellow Liberals and fellow Islanders that the Liberal party will rise above the Tory slander and make sure that we offer a better and more prosperous province for each and every one of us,” he said.
Hundreds of Liberal supporters gathered at Montague Regional High School Friday night for the party’s second rally of the 2011 election.
Each candidate marched in to the room with a small group of supporters leading the way and waving signs until the room was packed with people in every available space.
Ghiz was the last to make his entrance and had to wade through the crowd as he walked to the stage, shaking hands along the way.
During his speech, Ghiz said voters are going to send the PC party a message on election day that they’ve had enough of their negativity.
The partisan crowd drowned out the rest of what he was saying and one person yelled “bang on.”
They booed when Ghiz said he has never seen a more negative and divisive campaign.
“They want to drive a wedge between Islanders, to create an atmosphere where one Islander is pitted against another Islander,” he said.
Ghiz didn’t spend his whole speech attacking the Conservatives and turned his focus to the Liberal government as he listed some of the projects it undertook in Kings County, including a new manor in Souris and the school where the Liberals held their rally.
After listing some of the party’s recent campaign announcements, Ghiz turned his attention back to the Conservatives and said his party believes Islanders share common values.
He finished his speech by saying there is going to be a clear choice for voters on Oct. 3.
“The choice is gonna be do you want the Liberal party that unites or the Conservative party that divides?”
If Olive has achieved anything with her negative campaign then I'd say her success has been in "firing-up" the workers in the Big Red Machine and I smell a huge "backfire" there Olive...
Liberals will rise above Tory slander: Ghiz
The Guardian
Published on September 16, 2011
Ryan Ross
MONTAGUE – The PC party will do anything to win the election, says Premier Robert Ghiz.
Ghiz was referring to reports of an investigation into the provincial nominee program and said the Conservatives will do or say anything to score political points.
“Well let me tell fellow Liberals and fellow Islanders that the Liberal party will rise above the Tory slander and make sure that we offer a better and more prosperous province for each and every one of us,” he said.
Hundreds of Liberal supporters gathered at Montague Regional High School Friday night for the party’s second rally of the 2011 election.
Each candidate marched in to the room with a small group of supporters leading the way and waving signs until the room was packed with people in every available space.
Ghiz was the last to make his entrance and had to wade through the crowd as he walked to the stage, shaking hands along the way.
During his speech, Ghiz said voters are going to send the PC party a message on election day that they’ve had enough of their negativity.
The partisan crowd drowned out the rest of what he was saying and one person yelled “bang on.”
They booed when Ghiz said he has never seen a more negative and divisive campaign.
“They want to drive a wedge between Islanders, to create an atmosphere where one Islander is pitted against another Islander,” he said.
Ghiz didn’t spend his whole speech attacking the Conservatives and turned his focus to the Liberal government as he listed some of the projects it undertook in Kings County, including a new manor in Souris and the school where the Liberals held their rally.
After listing some of the party’s recent campaign announcements, Ghiz turned his attention back to the Conservatives and said his party believes Islanders share common values.
He finished his speech by saying there is going to be a clear choice for voters on Oct. 3.
“The choice is gonna be do you want the Liberal party that unites or the Conservative party that divides?”
Saturday, September 10, 2011
Business Falls Over The Cliff... but not news to CBC
I got quite a few out of province calls on my cell phone earlier today talking about the "Homburg" turn of events and the impacts it may have on our Charlottetown marketplace... so when I arrived home this evening I thought I'd search The Guardian and our local CBC News web to catch up on this breaking story... "Not A Thing" but I did learn that a Puppy was saved after he jumped off a cliff...
These egar Island reporters must be to busy following around all those important power wheedling politicians and little puppies... surely they'll pick up on this story with some local scoope or will they just take the lazy way out and "clip" it from the news wire? My guess is the hell with the local ecomony and the scoial impacts of a business story as it's a nice drive to Borden and puppies don't bite back...
Homburg Invest Inc. to restructure under the Companies' Creditors Arrangement Act
Published: 2011-09-09
MONTREAL, September 9, 2011 - (TSX: HII.A & HII.B and NYSE Euronext Amsterdam: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that it and certain of its subsidiaries applied to the Court for protection under the Companies' Creditors Arrangement Act ("CCAA").
Deloitte & Touche LLP is the proposed Court-appointed monitor that will oversee the proceeding under the CCAA (the "Monitor"). Deloitte & Touche will periodically post the applications to the Court as well as the orders issued by the Court on its website.
HII is hopeful that the appointment of the Monitor will address the primary concerns of the Netherlands Authority for the Financial Markets ("AFM"). In addition to the duties and obligations of the Monitor as prescribed by law, HII has requested that the Monitor be afforded certain additional powers that will facilitate its ability to cooperate fully with the AFM, including the right of the Monitor to communicate directly with the AFM with regard to any matters concerning the HII group of companies.
"The purpose of the application is to allow us to restructure our activities in an orderly fashion in the best long-term interests of the Company and all of its stakeholders," said Hartmut Fromm, Chairman of the Board of HII. "The CCAA application enables the Board of Directors and Management to take measures to enhance the balance sheet of the Company."
The CCAA is a Canadian federal law allowing insolvent companies that owe their creditors in excess of $5 million to restructure their business and financial affairs. CCAA is not bankruptcy. The main purpose of the CCAA is to enable financially distressed companies to avoid bankruptcy or foreclosure or seizure of assets while maximizing returns for their creditors and preserving both jobs and the company's value as a functioning business. CCAA proceedings are carried out under the supervision of the Court.
Additional information, including how bondholders, creditors and shareholders in the Netherlands and in Canada can contact the Company, will be available shortly.
The Company's CCAA filing does not affect Homburg Canada Real Estate Investment Trust, which is an independent entity and distinct from the Company and its subsidiaries.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality commercial real estate including office, retail, industrial and development properties throughout Europe and the United States, as well as an interest in Homburg Canada Real Estate Investment Trust.
These egar Island reporters must be to busy following around all those important power wheedling politicians and little puppies... surely they'll pick up on this story with some local scoope or will they just take the lazy way out and "clip" it from the news wire? My guess is the hell with the local ecomony and the scoial impacts of a business story as it's a nice drive to Borden and puppies don't bite back...
Homburg Invest Inc. to restructure under the Companies' Creditors Arrangement Act
Published: 2011-09-09
MONTREAL, September 9, 2011 - (TSX: HII.A & HII.B and NYSE Euronext Amsterdam: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that it and certain of its subsidiaries applied to the Court for protection under the Companies' Creditors Arrangement Act ("CCAA").
Deloitte & Touche LLP is the proposed Court-appointed monitor that will oversee the proceeding under the CCAA (the "Monitor"). Deloitte & Touche will periodically post the applications to the Court as well as the orders issued by the Court on its website.
HII is hopeful that the appointment of the Monitor will address the primary concerns of the Netherlands Authority for the Financial Markets ("AFM"). In addition to the duties and obligations of the Monitor as prescribed by law, HII has requested that the Monitor be afforded certain additional powers that will facilitate its ability to cooperate fully with the AFM, including the right of the Monitor to communicate directly with the AFM with regard to any matters concerning the HII group of companies.
"The purpose of the application is to allow us to restructure our activities in an orderly fashion in the best long-term interests of the Company and all of its stakeholders," said Hartmut Fromm, Chairman of the Board of HII. "The CCAA application enables the Board of Directors and Management to take measures to enhance the balance sheet of the Company."
The CCAA is a Canadian federal law allowing insolvent companies that owe their creditors in excess of $5 million to restructure their business and financial affairs. CCAA is not bankruptcy. The main purpose of the CCAA is to enable financially distressed companies to avoid bankruptcy or foreclosure or seizure of assets while maximizing returns for their creditors and preserving both jobs and the company's value as a functioning business. CCAA proceedings are carried out under the supervision of the Court.
Additional information, including how bondholders, creditors and shareholders in the Netherlands and in Canada can contact the Company, will be available shortly.
The Company's CCAA filing does not affect Homburg Canada Real Estate Investment Trust, which is an independent entity and distinct from the Company and its subsidiaries.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality commercial real estate including office, retail, industrial and development properties throughout Europe and the United States, as well as an interest in Homburg Canada Real Estate Investment Trust.
Friday, September 2, 2011
"Free Kays" makes "Top Ten Most Endangered Places"
On September 1st the Heritage Canada Foundation designated the Kays Brothers property on Lower Queen Street in Charlottetown as one of the "Top Ten Most Endangered Places In Canada" and you can see their listing at http://t.co/TQqyFH9
Hers's some background for the record.... at our very first meeting (held at Rory Beck’s office) with the Province to discuss our hotel concept it was clearly indicated to APM that both the Province and CADC were only in favour of a development on the Kays property if the development involved “the preservation of this heritage structure”.
At that meeting it was agreed that if our scheme of preserving the façade was acceptable to Heritage Board and the City, then it would be acceptable to all parties. Furthermore, it was explained to us that CADC’s purchase of the Kays property was “predicated” on the fact that CADC could tap into sources like the Infrastructure Program to see that the heritage designation was preserved and that the Province had already earmarked $1,000,000 towards this.
We also have InnovationPEI’s written development offer, which clearly states that “CADC’s intention is to see this building preserved and restored.” The same "presevation story" was represented by CADC to the public at their development “open house” in early 2011. This begs the question why did CADC consent to the demolition application recently present to the City????
This is an important stucture for Downtown Charlottetown and CADC should find a way to see the building preserved as "tearing down" and "delisting" the building is just going to become a "National" issue and a blight on Charlotteown's "historic" reputation... It appears the Campaign "Free Kays" is starting to mobilize now and for good reason...
Why it matters
from Heritage Canada Foundation's website
HCF’s 2011 Top Ten Most Endangered Places List
The Heritage Canada Foundation released its seventh annual Top Ten Most Endangered Places List on September 1, 2011.
The selection—presented here from the West to East Coast—was compiled from the results of HCF’s call for nominations as well as those stories and news items followed throughout the year.
Constructed in 1872 for prominent politicians, merchants and shipbuilders Lemuel Owen and William Welsh, the Italianate Commercial-style building on Queen Street (later known as the Kayes Bros. Building) played an important role in the commercial history of Charlottetown. The large, four-storey structure with decorative brickwork, round-arched windows and row of three storefronts with large plate glass, wooden piers, and signband, it is one of the most impressive along the historic streetscape.
Over the years it was home to prominent newspapers and important local retail and commercial activities, but it is best known for its wholesale grocery businesses (J.T. Peardon’s, R.E. Mutch and Company and later the Kays Brothers). It suffered three fires that have damaged the interior, but left the exterior walls intact.
In 1962, the Kays Brothers purchased the building where they ran their wholesale company until 2009. The opening of Confederation Bridge, which made it easier for customers to shop out of province, was cited as the primary reason for its closure. It was purchased by the Charlottetown Area Development Corporation (CADC) that year for $750,000 and has been vacant ever since.
The building is included as a Designated Heritage Resource as per Appendix A in the City of Charlottetown Zoning and Development Bylaw.
Why it’s endangered
A new owner, island businessman Danny Murphy, wants to develop a $15-million hotel on the site that would require the delisting and demolition of the historic building. His engineering report, that states the building is structurally unsound, contradicts a report by J.M. Griffin Engineering Inc. prepared a year ago for P.E.I. developer Tim Banks. Based on that report, Banks had planned a hotel redevelopment that would incorporate part of the historic building.
Where things stand
Tim Banks is encouraging CADC and the provincial government to provide funding to Murphy to help restore the building as part of a hotel, instead of demolishing it.
The municipal Heritage Board has recommended that City Council not approve the demolition at this point and uphold its designated status. Murphy withdrew his demolition application before the vote in council could take place. The final decision has been delayed until an independent engineer assesses the building’s structural integrity.
Murphy has not made any progress on his proposal since he withdrew it several weeks ago, but in a media interview made it clear he will be moving forward with the project.
In the meantime, questions have arisen about how a listed heritage property was allowed to deteriorate to the extent that it has.
Hers's some background for the record.... at our very first meeting (held at Rory Beck’s office) with the Province to discuss our hotel concept it was clearly indicated to APM that both the Province and CADC were only in favour of a development on the Kays property if the development involved “the preservation of this heritage structure”.
At that meeting it was agreed that if our scheme of preserving the façade was acceptable to Heritage Board and the City, then it would be acceptable to all parties. Furthermore, it was explained to us that CADC’s purchase of the Kays property was “predicated” on the fact that CADC could tap into sources like the Infrastructure Program to see that the heritage designation was preserved and that the Province had already earmarked $1,000,000 towards this.
We also have InnovationPEI’s written development offer, which clearly states that “CADC’s intention is to see this building preserved and restored.” The same "presevation story" was represented by CADC to the public at their development “open house” in early 2011. This begs the question why did CADC consent to the demolition application recently present to the City????
This is an important stucture for Downtown Charlottetown and CADC should find a way to see the building preserved as "tearing down" and "delisting" the building is just going to become a "National" issue and a blight on Charlotteown's "historic" reputation... It appears the Campaign "Free Kays" is starting to mobilize now and for good reason...
Why it matters
from Heritage Canada Foundation's website
HCF’s 2011 Top Ten Most Endangered Places List
The Heritage Canada Foundation released its seventh annual Top Ten Most Endangered Places List on September 1, 2011.
The selection—presented here from the West to East Coast—was compiled from the results of HCF’s call for nominations as well as those stories and news items followed throughout the year.
Constructed in 1872 for prominent politicians, merchants and shipbuilders Lemuel Owen and William Welsh, the Italianate Commercial-style building on Queen Street (later known as the Kayes Bros. Building) played an important role in the commercial history of Charlottetown. The large, four-storey structure with decorative brickwork, round-arched windows and row of three storefronts with large plate glass, wooden piers, and signband, it is one of the most impressive along the historic streetscape.
Over the years it was home to prominent newspapers and important local retail and commercial activities, but it is best known for its wholesale grocery businesses (J.T. Peardon’s, R.E. Mutch and Company and later the Kays Brothers). It suffered three fires that have damaged the interior, but left the exterior walls intact.
In 1962, the Kays Brothers purchased the building where they ran their wholesale company until 2009. The opening of Confederation Bridge, which made it easier for customers to shop out of province, was cited as the primary reason for its closure. It was purchased by the Charlottetown Area Development Corporation (CADC) that year for $750,000 and has been vacant ever since.
The building is included as a Designated Heritage Resource as per Appendix A in the City of Charlottetown Zoning and Development Bylaw.
Why it’s endangered
A new owner, island businessman Danny Murphy, wants to develop a $15-million hotel on the site that would require the delisting and demolition of the historic building. His engineering report, that states the building is structurally unsound, contradicts a report by J.M. Griffin Engineering Inc. prepared a year ago for P.E.I. developer Tim Banks. Based on that report, Banks had planned a hotel redevelopment that would incorporate part of the historic building.
Where things stand
Tim Banks is encouraging CADC and the provincial government to provide funding to Murphy to help restore the building as part of a hotel, instead of demolishing it.
The municipal Heritage Board has recommended that City Council not approve the demolition at this point and uphold its designated status. Murphy withdrew his demolition application before the vote in council could take place. The final decision has been delayed until an independent engineer assesses the building’s structural integrity.
Murphy has not made any progress on his proposal since he withdrew it several weeks ago, but in a media interview made it clear he will be moving forward with the project.
In the meantime, questions have arisen about how a listed heritage property was allowed to deteriorate to the extent that it has.
Thursday, September 1, 2011
Mike Arnold Steps Down From Homburg...
This is a very interesting turn of events in the recent saga of the various Homburg enterprises and I'd suggest in the long term that the Company's continued investment in Charlottetown may slide a bit with Mr. Arnold now taking a smaller role in the business... Richard and Mike had a lot of confidence in Charlottetown and PEI and let’s hope it continues under the new regime...
Homburg Invest provides update on recent developments
§ Published: 2011-09-01
HALIFAX, Nova Scotia. September 1, 2011 - (TSX: HII.A & HII.B and NYSE Euronext Amsterdam: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today two resignations from its Board of Directors and the appointment of a new chairman of the Board.
Michael H. Arnold, C.A. has resigned as a director and as Chairman of the Board. He will continue to provide special advisory services to the Board. Dr. Trevor A. Carmichael has also resigned as a director. Neither Mr. Arnold nor Dr. Carmichael will stand for re-election to the Board at the Annual Meeting of Shareholders.
Mr. Hartmut Fromm, a director of HII, has been appointed by the Board to the position of Chairman. Mr. Fromm is Co-Founder and Senior Partner of Buse Heberer Fromm in Berlin, Germany. He is also Chairman of the Board of IMW Immobilien SE.
As a result of the foregoing, the Board of Directors currently consists of four directors, of which three are independent.
Update on Recent Events
On August 26, 2011, Homburg Canada Inc. ("HCI"), a company controlled by Richard Homburg, issued a news release stating that it would not follow through on its announced intention to make an offer for all outstanding shares of HII not already owned or controlled, directly or indirectly, by HCI.
HII wishes to make it clear that it never received a formal binding offer from HCI or Richard Homburg to purchase the shares not already owned by them in the Company. As disclosed on July 25, 2011, the Board of Directors of HII has only rejected a non-binding proposal made by Richard Homburg to privatize HII (the "Proposal") because the Proposal was not in the best interest of HII and its stakeholders.
To the knowledge of the Board of Directors of HII, the financing required for the implementation of the Proposal was never committed. Furthermore, the Proposal involved the use of HII's most liquid asset, namely the units of Homburg Canada Real Estate Investment Trust that it holds, as a means to finance the privatization, and if implemented would have seriously impaired HII's financial flexibility.
Relationship with Netherlands Authority for Financial Markets (AFM)
The Company strongly believes that it has acted in good faith to fulfill the requirements of the Instructions issued by the AFM previously disclosed on May 26, 2011, and continues to work diligently to resolve the impasse with the AFM and to avoid the loss of its licence as a financial institution in The Netherlands.
The AFM has granted a two-week extension to HII to allow the Company to submit reasons to the AFM as to why the Company's licence as a financial institution in The Netherlands should not be revoked. HII reminds investors that the letter from the AFM conveys an intention to make a decision and is not definitive.
HII to Vigorously Contest Claim for Damages by HCI
On August 30, 2011, HII announced that it had received a claim for damages totalling approximately $27 million from HCI as compensation for the termination by HII of the master property and asset management agreement between the Company and HCI.
HII maintains that it terminated the agreement as a result of breaches by HCI of its obligations under the agreement, and as such holds the position that no compensation is payable to HCI. The Company rejects the claim for compensation and will vigorously contest it, should the matter come before the Courts.
Communications with Stakeholders in the Netherlands
Due to the increasing number of enquiries from shareholders and debt holders in the Netherlands, HII is in the process of setting up a Netherland's based communications channel. Additional information will be announced shortly.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality commercial real estate including office, retail, industrial and development properties throughout Europe and the United States, as well as an interest in Homburg Canada Real Estate Investment Trust. The head office of the Company is located in Halifax, Nova Scotia.
Friday, August 5, 2011
Why Not Save Some Of This Heritage Structure....
I don't understand the issue why the Kay's Buildings has to be totally knocked down. We had no problem finding engineers that felt the exterior walls could be saved. Simply put CADC wanted $798,000 for the building and it was going to cost $1,638,268 to save the building and there was a government grant of $1,000,000 to save the structure... that left the base land cost at $1,436,268 which would have allowed us to develop 53,310 square feet of space over the land base at a cost of $26.94 per square foot, which is slightly less per foot than we paid Kevin Murphy years ago when we bought the Kirkwood Motel site to build the original Superstor.... a similar heritage restoration project is underway in downtown Halifax so why can't it be done here... This is a great project for Charlottetown and it should be done right and I'm hoping it goes ahead...
Here's the engineer's design www.apm.ca/Kays restoration design.pdf
Jason Coady says the wise move is to delay a decision on a proposed downtown hotel in Charlottetown by a few more weeks.
The chair of the city's economic development committee said Wednesday it would be very difficult to reject an application by businessman Danny Murphy to build a 124-room Hilton Garden Inn.
The $15-million project would encompass the property at the corner of Queen and Water streets and the old, vacant Kays Bros. building.
"Personally, I'd like to see a $15-million hotel down there with the convention centre and drive the tax base from an economic development point of view,'' Coady said.
Murphy's application was scheduled to go before city council on Monday.
In fact, no one The Guardian talked to Wednesday was opposed to the project but there is a problem.
Murphy's proposal would involve delisting the Kays building as a designated heritage property, something the heritage board doesn't want to do. The board was expected to recommend council reject the application based on that before Murphy withdrew his application late on Wednesday.
Murphy said he's had two different engineering companies examine the interior and exterior of the Kays building and both said the same thing.
"The engineers are telling us it's not safe and, financially, it would not be feasible,'' Murphy said. "I mean, anything can be done but it would just drive the cost of the project to a place where it wouldn't be feasible to build a hotel.''
Murphy's plan is to demolish the building, including the two exterior brick walls.
Coady said Murphy withdrawing his application before Monday's regular public monthly meeting of council will give the city time to have an independent body look the building over and see if they agree with Murphy's engineers. Murphy can then resubmit for the September meeting, or a special meeting before that.
Coun. Rob Lantz, chair of the heritage board, said it's great news that Murphy wants to redevelop the property but there are other things to consider here.
"It's just a very important piece of heritage and a prominent location in our city so we need to step back and work together to achieve the best possible outcome,'' Lantz said.
"We'd like to co-operate on this project but before we start making decisions we need an independent structural review of the building to determine what is possible and what is not.''
Coady is vice-chair of the heritage board, noting that he appreciates their concerns.
The city did have a report done on the Kays building but that was four years ago. The structure has been vacant since 2007 and there's been no heat on inside.
Murphy made it clear he wants to recreate the historic look of the old building with a new structure.
"Oh, in a huge way, a huge way,'' he said. "You are not going to go into old Charlottetown at the corner of Water and Queen and put up some (building that doesn't fit with the historic streetscape). That is just not our intention.
"We want to recreate a historical looking hotel that is very, very attractive, that fits in there. (The city) can rest assured a commitment on our part to respecting that historical part of the city. That is absolutely paramount in our plans.''
Here's the engineer's design www.apm.ca/Kays restoration design.pdf
City wants to determine whether the Kays Bros. building can be salvaged. Developer says it needs to come down.
Published on August 3, 2011
Dave Stewart
Jason Coady says the wise move is to delay a decision on a proposed downtown hotel in Charlottetown by a few more weeks.
The chair of the city's economic development committee said Wednesday it would be very difficult to reject an application by businessman Danny Murphy to build a 124-room Hilton Garden Inn.
The $15-million project would encompass the property at the corner of Queen and Water streets and the old, vacant Kays Bros. building.
"Personally, I'd like to see a $15-million hotel down there with the convention centre and drive the tax base from an economic development point of view,'' Coady said.
Murphy's application was scheduled to go before city council on Monday.
In fact, no one The Guardian talked to Wednesday was opposed to the project but there is a problem.
Murphy's proposal would involve delisting the Kays building as a designated heritage property, something the heritage board doesn't want to do. The board was expected to recommend council reject the application based on that before Murphy withdrew his application late on Wednesday.
Murphy said he's had two different engineering companies examine the interior and exterior of the Kays building and both said the same thing.
"The engineers are telling us it's not safe and, financially, it would not be feasible,'' Murphy said. "I mean, anything can be done but it would just drive the cost of the project to a place where it wouldn't be feasible to build a hotel.''
Murphy's plan is to demolish the building, including the two exterior brick walls.
Coady said Murphy withdrawing his application before Monday's regular public monthly meeting of council will give the city time to have an independent body look the building over and see if they agree with Murphy's engineers. Murphy can then resubmit for the September meeting, or a special meeting before that.
Coun. Rob Lantz, chair of the heritage board, said it's great news that Murphy wants to redevelop the property but there are other things to consider here.
"It's just a very important piece of heritage and a prominent location in our city so we need to step back and work together to achieve the best possible outcome,'' Lantz said.
"We'd like to co-operate on this project but before we start making decisions we need an independent structural review of the building to determine what is possible and what is not.''
Coady is vice-chair of the heritage board, noting that he appreciates their concerns.
The city did have a report done on the Kays building but that was four years ago. The structure has been vacant since 2007 and there's been no heat on inside.
Murphy made it clear he wants to recreate the historic look of the old building with a new structure.
"Oh, in a huge way, a huge way,'' he said. "You are not going to go into old Charlottetown at the corner of Water and Queen and put up some (building that doesn't fit with the historic streetscape). That is just not our intention.
"We want to recreate a historical looking hotel that is very, very attractive, that fits in there. (The city) can rest assured a commitment on our part to respecting that historical part of the city. That is absolutely paramount in our plans.''
Wednesday, August 3, 2011
PEI's On-Line Support Sold $78.16 Million... "Big Bucks"
On-Line Support Inc. was founded by Jamie Hill of Charlottetown, PEI... a remarkable deal!!!
August 03, 2011
IST Share Hinduja BPO Arm Acquires Canada-Based On-Line Support For $78M
OLS is a leading contact centre provider, servicing customers across verticals like media, telecom, technology and BFSI.
Hinduja Global Solutions (HGS), the BPO arm of the Hinduja Group, has acquired Canada-based customer relationship management company On-Line Support Inc. (OLS) for C$ 74.85 million ($78.16 million or Rs 343 crore) in an all-cash deal. The acquisition has been made through its wholly owned US subsidiary HGS Inc., Hinduja Global Solutions has stated in a filing today to the Bombay Stock Exchange.
Post this acquisition, Hinduja Global Solutions will have 21,300 employees worldwide and its consolidated annual revenues will cross $300 million on a run rate basis, the company has said. However, the CEO and the senior management team of OLS will continue in their current roles after the acquisition.
The acquisition will enable both companies to cross-sell and up-sell to their existing clients while OLS will benefit from the global network of HGS delivery centres. HGS services more than 100 customers through its 42 delivery centres across India, the USA, the UK, Canada, the Philippines and Mauritius, with offerings in more than 25 different languages. The synergy will manifest the most in the telecom space where both have strong capabilities.
Shares of Hinduja Global Solutions were trading at Rs 356.05 per scrip at 3:18 pm on the BSE, up 2.27 per cent from the previous close.
OLS is a leading contact centre provider, servicing customers across multiple verticals such as media, telecom, technology and BFSI. It offers technical support, inbound & outbound sales, customer care and customer retention in English and French languages, and features over 1,650 seats at 10 sites in Canada. In FY11, OLS posted a turnover of C$63.4 million ($66.20 million or Rs 294 crore) and currently employees about 1800 people.
In June last year, it acquired 100 per cent stake in the UK-based customer relationship management company Careline Services for an undisclosed sum. Careline employs over 1,000 people across three locations in the UK.
HGS provides outsourcing solutions including back-office processing, contact centre services and customised IT solutions to several Fortune 500 companies.
Incidentally, Hinduja Group-promoted IndusInd Bank struck a deal in April this year to acquire Deutsche Bank’s loss-making credit card business in India for an undisclosed sum. Under the agreement, IndusInd will get access to nearly two lakh credit card customers of the German bank in India and the entire operating platform of the cards franchise, including talent and technology.
August 03, 2011
IST Share Hinduja BPO Arm Acquires Canada-Based On-Line Support For $78M
OLS is a leading contact centre provider, servicing customers across verticals like media, telecom, technology and BFSI.
Hinduja Global Solutions (HGS), the BPO arm of the Hinduja Group, has acquired Canada-based customer relationship management company On-Line Support Inc. (OLS) for C$ 74.85 million ($78.16 million or Rs 343 crore) in an all-cash deal. The acquisition has been made through its wholly owned US subsidiary HGS Inc., Hinduja Global Solutions has stated in a filing today to the Bombay Stock Exchange.
Post this acquisition, Hinduja Global Solutions will have 21,300 employees worldwide and its consolidated annual revenues will cross $300 million on a run rate basis, the company has said. However, the CEO and the senior management team of OLS will continue in their current roles after the acquisition.
The acquisition will enable both companies to cross-sell and up-sell to their existing clients while OLS will benefit from the global network of HGS delivery centres. HGS services more than 100 customers through its 42 delivery centres across India, the USA, the UK, Canada, the Philippines and Mauritius, with offerings in more than 25 different languages. The synergy will manifest the most in the telecom space where both have strong capabilities.
Shares of Hinduja Global Solutions were trading at Rs 356.05 per scrip at 3:18 pm on the BSE, up 2.27 per cent from the previous close.
OLS is a leading contact centre provider, servicing customers across multiple verticals such as media, telecom, technology and BFSI. It offers technical support, inbound & outbound sales, customer care and customer retention in English and French languages, and features over 1,650 seats at 10 sites in Canada. In FY11, OLS posted a turnover of C$63.4 million ($66.20 million or Rs 294 crore) and currently employees about 1800 people.
In June last year, it acquired 100 per cent stake in the UK-based customer relationship management company Careline Services for an undisclosed sum. Careline employs over 1,000 people across three locations in the UK.
HGS provides outsourcing solutions including back-office processing, contact centre services and customised IT solutions to several Fortune 500 companies.
Incidentally, Hinduja Group-promoted IndusInd Bank struck a deal in April this year to acquire Deutsche Bank’s loss-making credit card business in India for an undisclosed sum. Under the agreement, IndusInd will get access to nearly two lakh credit card customers of the German bank in India and the entire operating platform of the cards franchise, including talent and technology.
Tuesday, July 26, 2011
MARTIE MURPHY TO SEEK THE PROGRESSIVE CONSERVATIVE NOMINATION
July 25, 2011
FOR IMMEDIATE RELEASE
MARTIE MURPHY TO SEEK THE PROGRESSIVE CONSERVATIVE
NOMINATION FOR DISTRICT 9, YORK – OYSTER BED
Charlottetown
– Martie Murphy, business woman and community- minded
advocate has announced her intention to seek the Progressive Conservative Party
nomination in District 9, York – Oyster Bed.
Martie lives in Stanhope with her husband Danny and their six children. Martie,
Danny and their family have had the pleasure of working with so many
organizations and amazing volunteers. “When good people have the opportunity to
come together, good things always happen”, says Martie.
“As a mother and wife, a business leader and a committed community volunteer, I
believe this province is the best place to raise a family, and it’s the best province in
which to live, work and play. Our people are the Island’s greatest resource. We
must work hard to ensure all people are treated with dignity, respect, and fairness.
I believe the residents of District # 9 need and deserve someone who will work
hard to make our district and our Island the very best it can be”, says Murphy.
Martie believes Islanders deserve better. The people of York-Oyster Bed deserve
to have an MLA and government that gives all Islanders a voice, a chance to
participate, and a government that makes decisions that are in the best interest of
all. “In four short years our current government has increased our provincial debt
to a point of bankrupting our future. “We simply cannot afford this irresponsible
spending and lack of fiscal management. Proper fiscal management can only be
achieved if elected officials understand the people, their needs and the needs of the
communities that they represent. This current administration has failed to deliver
on that”, says Murphy.
Martie believes promises are commitments that need to be honoured. “Islanders
deserve a government that is transparent, fair, and can be trusted. I am invigorated
by the generosity and good will of Islanders. As part of the Progressive
Conservative team, I want to work hard to ensure that Islanders are repaid for that
generosity by having access to quality health care, that they may continue to learn,
grow and achieve well in our education system, and that we can work together to
build vibrant communities across our Island. We can do better and we will do
better!”
“Our communities have been the landscape of our economy and we must do more
to support each and every community to create greater success and vibrancy. We
need a government that is implements policies that are sustainable for Islanders.”
Martie knows the struggles rural PEI has and continues to have with uncertainty in
the farming and fishing industries. She has seen PEI’s greatest natural resource,
young Islanders, emigrating to other Canadian provinces to find employment.
Martie will be part of a forward-thinking Progressive Conservative government
that will develop policies ensuring PEI attracts industry to set up and stay, provide
jobs and revitalize rural PEI.
Martie is truly excited to put her name forward as a candidate for the Progressive
Conservative Party. “I am eager to talk with the people of District # 9 York-Oyster
Bed, to hear their concerns and their vision for our Province.”
For additional information contact:
Martie Murphy
Phone: (902) 629-5125
Email: martiemurphy@gmail.com
Wednesday, June 8, 2011
Using seniors as pawns...
The following is my response to a letter which was published in the Guardian over the weekend... normally I wouldn't respond to this kind of garbage but when Ms. Ward is playing on a group of seniors then I think it's time someone called her out... here's my response and you can see Ms. Ward's original letter below that. There soon will be a public opening for the new building after the seniors move in and I'm hoping everyone will come and speak to each of the tenants as I'll be shocked if they don't see a significant improvement in their units...
Letters to the Editor, The Guardian
Saturday, June 4, 2011
Editor:
The Ghiz government should not be too quick to pat themselves on the back for a job well done when it comes to building P3 housing on P.E.I.
In a press release dated June 2, 2011, the government announced the near completion of the Charlotte Court P3 housing project. This new unit replaces the old Charlotte Court building, and contains 48 units, 36 of which are for low-income seniors.
Unfortunately, the government's arrangement with the private contractor building Charlotte's Court will only guarantee affordable rents for seniors for a 10-year period. After 10 years, the private sector landlord can freely jack up rents.
The Ghiz government is refusing to protect our low-income seniors within this type of P3 arrangement. Further, the union has seen the building plans that were provided to the seniors at Charlotte Court. From what we can tell, these plans do not accurately represent what has been built. One of the big items the seniors had asked for was storage units and access to those units. We have been told that there is no elevator to the basement where the storage units are located, which seriously limits seniors' access to them.
Minister Sherry publicly assured these seniors last year that they would be consulted with and that she would ensure that the new facility would be properly equipped to meet their needs. So not only are our low-income seniors being jeopardized by the threat of unaffordable rents in their future, their needs have also been ignored by government regarding the physical requirements of the new building.
As the P.E.I. Union of Public Sector Employees, we know exactly what consultation means to this Liberal government. Consultation means to them - this is the way it is, like it or lump it. And ultimately, this is what happens when governments move away from the ‘affordable public housing' model and enter into P3 agreements where the private contractor builds, designs, controls and profits from the most vulnerable, in this case our senior citizens.
Shelley Ward,
president,
P.E.I. UPSE
Editor,
The Guardian,
Wed, June 8th
I would like to respond to a letter written by Ms. Shelley Ward, President of the Union for Public Sector Employees, published on Saturday, June 4th. This letter was in regard to the Charlotte Court Seniors’ Housing Project, in which she implicitly maligned the credibility of our company APM, the builder of the project.
Whether deliberately or otherwise, Ms. Ward appears to be totally unaware of what is happening in the new Charlotte Court development. Every occupant will have their own storage unit with access by elevator.
The building plans are a matter of public record and have been on our website, apm.ca, since the commencement of the project. Of course, had Ms. Ward had taken the time to review the plans prior to writing her uninformed letter, it would have been far harder for her to represent her fiction as fact.
Rather than being positive and progressive in this climate of change, Ms. Ward has chosen to use our seniors as pawns to promote her message of fear in our Community.
APM is proud to deliver a project “far superior” than what was called for in the public tender process. I believe that once the residents move into this beautiful new facility, the only people paying any heed to Ms. Ward’s rhetoric will be the “Don’t Get Ahead Gang”.
In closing, I invite her to tour the property with me to compare the existing sadly inadequate facilities against what will be the best quality Seniors’ facility on Prince Edward Island for many years to come.
Sincerely,
Tim Banks
CEO of APM
Letters to the Editor, The Guardian
Saturday, June 4, 2011
Editor:
The Ghiz government should not be too quick to pat themselves on the back for a job well done when it comes to building P3 housing on P.E.I.
In a press release dated June 2, 2011, the government announced the near completion of the Charlotte Court P3 housing project. This new unit replaces the old Charlotte Court building, and contains 48 units, 36 of which are for low-income seniors.
Unfortunately, the government's arrangement with the private contractor building Charlotte's Court will only guarantee affordable rents for seniors for a 10-year period. After 10 years, the private sector landlord can freely jack up rents.
The Ghiz government is refusing to protect our low-income seniors within this type of P3 arrangement. Further, the union has seen the building plans that were provided to the seniors at Charlotte Court. From what we can tell, these plans do not accurately represent what has been built. One of the big items the seniors had asked for was storage units and access to those units. We have been told that there is no elevator to the basement where the storage units are located, which seriously limits seniors' access to them.
Minister Sherry publicly assured these seniors last year that they would be consulted with and that she would ensure that the new facility would be properly equipped to meet their needs. So not only are our low-income seniors being jeopardized by the threat of unaffordable rents in their future, their needs have also been ignored by government regarding the physical requirements of the new building.
As the P.E.I. Union of Public Sector Employees, we know exactly what consultation means to this Liberal government. Consultation means to them - this is the way it is, like it or lump it. And ultimately, this is what happens when governments move away from the ‘affordable public housing' model and enter into P3 agreements where the private contractor builds, designs, controls and profits from the most vulnerable, in this case our senior citizens.
Shelley Ward,
president,
P.E.I. UPSE
Saturday, June 4, 2011
"no penalty" here...
Forbie Kennedy once told me that when he first entered the NHL he took a little run at Gordie Howe and later in the same game he was going along the boards when all of a sudden there was an elbow (Howe's) dragging his face across the boards... after he went down, he looked up and there was Howe big as life offering him a hand-up off the ice... Forbie was a bit dazed but he remembers Howe saying "welcome to the NHL kid"... Forbie told me he learned a lot about tangling with some of the old pros after that incident...
Well I'm thinking if CAO Terry Murphy isn't dazed by how Serge Jr "worked him over" here then he soon will be when Serge Sr makes it a "one" market Province and ends any hope of Summerside getting a Major Jr "A" team... It's tough in there trying to work the corners when you're up against an old pro like Serge Sr and you can appeal to all the referees you want but there's "no penalty" here!
City cries foul in failed QMJHL bid
Published on June 3, 2011
Mike Carson
Journal Pioneer
SUMMERSIDE - City management is complaining the owner of the P.E.I. Rocket hockey club is determining what businesses the City of Summerside can attract - and it's doing it with provincial money.
Summerside Chief Administrative Officer Terry Murphy said the city's recent failure to land the now defunct Lewiston Maineiacs is directly attributable to the P.E.I. Rocket and its president and governor, Serge Savard Jr.
"The issue is with Savard manipulating the situation to prevent a second team from coming to Summerside," Murphy said. "That is wrong. I'm saying that Savard should not be allowed to use taxpayers' dollars to determine what business comes to Summerside especially when some of those are Summerside taxpayers' dollars. That's the principle of where we're at."
The province contributes $100,000 to the Rocket. Finance Minister Wes Sheridan said $50,000 comes from Tourism and $50,000 comes from Innovation and Advanced Learning.
The CAO said in talks with league Commissioner Gilles Courteau he learned Savard had spoken to Premier Robert Ghiz and that the premier informed him this money would have to be shared if two QMJHL teams were allowed on P.E.I.
"We learned later that the premier did not speak to Mr. Savard and thus the information he provided the league owners was incorrect," Murphy said.
Savard's reply to Murphy's statement yesterday was "He's in left field."
Savard said he was told there was a deal in the making to bring a Q team to Summerside and it wasn't cheap.
"I would like to know what the taxpayers in Summerside think when they guarantee $1.4 million in revenue to a Q team," Savard said.
He said he was told the gate guarantee was more than $1 million with sponsorship ranging from $300,000 to $350,000.
"A city with 14,000 people guaranteeing $1.4 million in revenue? I don't think it went through the council. My understanding - and I'm pretty well connected on P.E.I. a lot of my close friends know some of the people on the board (council) in Summerside and I was told that this was just going 'under the blanket' - it was a deal done under the blanket to guarantee those revenues and even at the (league) table the people couldn't understand the city would do that. I don't know another city that can do something like this, promise something to a Q team or a company or a franchise at the league without having it approved by their city board (council)."
Savard said the city management put the league in a situation to vote when there was no consensus from city council to do so.
"I am not responsible for not having a team in Summerside. In the Q, I am a member, I am a governor. I represent one-seventeenth of the league now that Lewiston is out. When we had a governors meeting, which Mr. Murphy did not attend, the number 1 purpose of every owner is to protect the existing markets. I made it clear from Day 1 that I knew if it would go to a vote it would be unanimous (against it). I know Summerside worked hard to get a franchise, but as long as the P.E.I. Rocket is on the Island there will never ever be two teams on P.E.I."
Technically the two cities are far enough apart by league rules to have two teams, but the market is the question.
"They had the right to ask for it, but the governors all looked at the logic. Logic came into play," Savard said. "I'm probably going to ask the league to rectify this and make it official that this is just a one-market province so that this situation never occurs again."
Well I'm thinking if CAO Terry Murphy isn't dazed by how Serge Jr "worked him over" here then he soon will be when Serge Sr makes it a "one" market Province and ends any hope of Summerside getting a Major Jr "A" team... It's tough in there trying to work the corners when you're up against an old pro like Serge Sr and you can appeal to all the referees you want but there's "no penalty" here!
City cries foul in failed QMJHL bid
Published on June 3, 2011
Mike Carson
Journal Pioneer
SUMMERSIDE - City management is complaining the owner of the P.E.I. Rocket hockey club is determining what businesses the City of Summerside can attract - and it's doing it with provincial money.
Summerside Chief Administrative Officer Terry Murphy said the city's recent failure to land the now defunct Lewiston Maineiacs is directly attributable to the P.E.I. Rocket and its president and governor, Serge Savard Jr.
"The issue is with Savard manipulating the situation to prevent a second team from coming to Summerside," Murphy said. "That is wrong. I'm saying that Savard should not be allowed to use taxpayers' dollars to determine what business comes to Summerside especially when some of those are Summerside taxpayers' dollars. That's the principle of where we're at."
The province contributes $100,000 to the Rocket. Finance Minister Wes Sheridan said $50,000 comes from Tourism and $50,000 comes from Innovation and Advanced Learning.
The CAO said in talks with league Commissioner Gilles Courteau he learned Savard had spoken to Premier Robert Ghiz and that the premier informed him this money would have to be shared if two QMJHL teams were allowed on P.E.I.
"We learned later that the premier did not speak to Mr. Savard and thus the information he provided the league owners was incorrect," Murphy said.
Savard's reply to Murphy's statement yesterday was "He's in left field."
Savard said he was told there was a deal in the making to bring a Q team to Summerside and it wasn't cheap.
"I would like to know what the taxpayers in Summerside think when they guarantee $1.4 million in revenue to a Q team," Savard said.
He said he was told the gate guarantee was more than $1 million with sponsorship ranging from $300,000 to $350,000.
"A city with 14,000 people guaranteeing $1.4 million in revenue? I don't think it went through the council. My understanding - and I'm pretty well connected on P.E.I. a lot of my close friends know some of the people on the board (council) in Summerside and I was told that this was just going 'under the blanket' - it was a deal done under the blanket to guarantee those revenues and even at the (league) table the people couldn't understand the city would do that. I don't know another city that can do something like this, promise something to a Q team or a company or a franchise at the league without having it approved by their city board (council)."
Savard said the city management put the league in a situation to vote when there was no consensus from city council to do so.
"I am not responsible for not having a team in Summerside. In the Q, I am a member, I am a governor. I represent one-seventeenth of the league now that Lewiston is out. When we had a governors meeting, which Mr. Murphy did not attend, the number 1 purpose of every owner is to protect the existing markets. I made it clear from Day 1 that I knew if it would go to a vote it would be unanimous (against it). I know Summerside worked hard to get a franchise, but as long as the P.E.I. Rocket is on the Island there will never ever be two teams on P.E.I."
Technically the two cities are far enough apart by league rules to have two teams, but the market is the question.
"They had the right to ask for it, but the governors all looked at the logic. Logic came into play," Savard said. "I'm probably going to ask the league to rectify this and make it official that this is just a one-market province so that this situation never occurs again."
Thursday, June 2, 2011
Summerside "Coyotes"... you heard it here first!!!
Lots of talk in the hockey world these days... Summerside got "outmanoeuvred" by Serge Sevard Sr. and their hopes for Lewiston playing in the "Palace" (Credit Union Place) are all but foiled for now... but I'm thinking a strategic move for Basil and the "boys" would be continuing to always think big and take a run at getting the Phoenix Coyotes to move to the City of Summerside... think about it!!! we just heard the news that the Atlanta Thrashers are moving to Winnipeg and the Manitoba Moose are off to Newfoundland so why not the "Coyotes" to S'Side to help "fill" the Palace...
Phoenix is not that far out of the way from the concert law suit in San Jose, Calf. so the boys could save some air fare while they're doing the negotiations... remember, you heard it here first!
Maineiacs saga comes to end with yes vote
Published on June 2, 2011
The Guardian
A league buyout is a strange way to dismantle a franchise, but the Quebec Major Junior Hockey League voted to purchase the floundering Lewiston Maineiacs on Tuesday.
A new expansion team will be awarded to Sherbrooke, Que., for the 2012-13 season.
Those interests are spearheaded by Jocelyn Thibault, former QMJHL and NHL goalie.
The league will release later this week a 17-team schedule for 2011-12.
A dispersal draft of Lewiston's players goes Friday at noon, a day before the main entry draft on Saturday in Victoriaville, Que.
Financial terms of the deal weren’t disclosed.
The action came after a board of governors vote on Tuesday.
It all was good news for Serge Savard Jr., P.E.I. Rocket president and governor, because it ended months-long speculation and rumour Lewiston planned to relocate to Summerside and the 4,400-seat Credit Union Place arena.
“Obviously, I voted for (the purchase). I think it’s OK. We said all along two teams wouldn’t survive on on the Island. And it was clear the franchise couldn’t keep operating in Lewiston,” said Savard from Victoriaville, Que., where the 2011 QMJHL entry draft is being held on Saturday. “It protected Charlottetown. Owners will always protect their markets. That’s their first mandate.”
The near-unanimous yes vote puts to bed an odd, gossip-filled saga that kept alive talk of Lewiston relocating even after an informal conference call between the governors and league commissioner Gilles Courteau in late May drew little support for the move from the franchises.
The Rocket re-upped with the City of Charlottetown in April for another three years.
That move closed off the odds of a team choosing Summerside at its home base.
But since December 2010, Lewiston, with Summerside native Bill Schurman as a management consultant, and lured by Credit Union Place, and disappointed by its awful gate returns at the Androscoggin Arena in Lewiston, wooed Summerside repeatedly.
The Maineiacs even toured CUP, current home of the Maritime Hockey League’s Summerside Western Capitals, during a two-game road trip to P.E.I. in early March.
But the franchise, which moved to Maine from Sherbrooke in 2003, couldn't survive its poor attendance that flagged even after winning the President’s Cup in 2007.
Last season, Lewiston averaged just over 2,000 spectators per game.
“I am truly sad for Maineiacs fans,” said Mark Just, Lewiston majority owner, in a release. “For those that supported the team over the past few years, I would like to thank you. Nonetheless, mounting financial losses became too much to bear for our ownership group.”
So, Sherbrooke will get a team again, the third time around since 1969.
Next season, it will play at its old home — the 46-year-old, 5,000-seat Palais des Sports Léopold-Drolet - once arrangements are made with the current tenant, the Sherbrooke Saint-Francois of the Ligue Nord-Américaine de Hockey.
“Sherbrooke is not ready to accept a team right away,” said Savard. “We (the board) were on the same page. We would like a franchise in Sherbrooke. It was no-brainer for us.”
A board vote was expected Wednesday to determine in what order the teams will pick in the dispersal draft.
Some of the players available Friday are defenceman Samuel Finn, Columbus Blue Devils prospect Michael Chaput, New York Islanders pick Kirill Kabanov, defenceman Dillon Fournier, the top selection in the 2010 QMJHL draft, and Étienne Brodeur, the league’s only 50-goal scorer this past season.
The Rocket pick ninth overall in Saturday’s entry draft.
creid@theguardian.pe.ca
Phoenix is not that far out of the way from the concert law suit in San Jose, Calf. so the boys could save some air fare while they're doing the negotiations... remember, you heard it here first!
Maineiacs saga comes to end with yes vote
Published on June 2, 2011
The Guardian
A league buyout is a strange way to dismantle a franchise, but the Quebec Major Junior Hockey League voted to purchase the floundering Lewiston Maineiacs on Tuesday.
A new expansion team will be awarded to Sherbrooke, Que., for the 2012-13 season.
Those interests are spearheaded by Jocelyn Thibault, former QMJHL and NHL goalie.
The league will release later this week a 17-team schedule for 2011-12.
A dispersal draft of Lewiston's players goes Friday at noon, a day before the main entry draft on Saturday in Victoriaville, Que.
Financial terms of the deal weren’t disclosed.
The action came after a board of governors vote on Tuesday.
It all was good news for Serge Savard Jr., P.E.I. Rocket president and governor, because it ended months-long speculation and rumour Lewiston planned to relocate to Summerside and the 4,400-seat Credit Union Place arena.
“Obviously, I voted for (the purchase). I think it’s OK. We said all along two teams wouldn’t survive on on the Island. And it was clear the franchise couldn’t keep operating in Lewiston,” said Savard from Victoriaville, Que., where the 2011 QMJHL entry draft is being held on Saturday. “It protected Charlottetown. Owners will always protect their markets. That’s their first mandate.”
The near-unanimous yes vote puts to bed an odd, gossip-filled saga that kept alive talk of Lewiston relocating even after an informal conference call between the governors and league commissioner Gilles Courteau in late May drew little support for the move from the franchises.
The Rocket re-upped with the City of Charlottetown in April for another three years.
That move closed off the odds of a team choosing Summerside at its home base.
But since December 2010, Lewiston, with Summerside native Bill Schurman as a management consultant, and lured by Credit Union Place, and disappointed by its awful gate returns at the Androscoggin Arena in Lewiston, wooed Summerside repeatedly.
The Maineiacs even toured CUP, current home of the Maritime Hockey League’s Summerside Western Capitals, during a two-game road trip to P.E.I. in early March.
But the franchise, which moved to Maine from Sherbrooke in 2003, couldn't survive its poor attendance that flagged even after winning the President’s Cup in 2007.
Last season, Lewiston averaged just over 2,000 spectators per game.
“I am truly sad for Maineiacs fans,” said Mark Just, Lewiston majority owner, in a release. “For those that supported the team over the past few years, I would like to thank you. Nonetheless, mounting financial losses became too much to bear for our ownership group.”
So, Sherbrooke will get a team again, the third time around since 1969.
Next season, it will play at its old home — the 46-year-old, 5,000-seat Palais des Sports Léopold-Drolet - once arrangements are made with the current tenant, the Sherbrooke Saint-Francois of the Ligue Nord-Américaine de Hockey.
“Sherbrooke is not ready to accept a team right away,” said Savard. “We (the board) were on the same page. We would like a franchise in Sherbrooke. It was no-brainer for us.”
A board vote was expected Wednesday to determine in what order the teams will pick in the dispersal draft.
Some of the players available Friday are defenceman Samuel Finn, Columbus Blue Devils prospect Michael Chaput, New York Islanders pick Kirill Kabanov, defenceman Dillon Fournier, the top selection in the 2010 QMJHL draft, and Étienne Brodeur, the league’s only 50-goal scorer this past season.
The Rocket pick ninth overall in Saturday’s entry draft.
creid@theguardian.pe.ca
Tuesday, May 31, 2011
Homburg "vigorously contesting"...
In the May 30th issue of the news website Allnovascotia.com, which does in-depth coverage on business affairs in Atlantic Canada, there were two thorough articles on the struggles of Richard Homburg’s publicly traded company, Homburg Invest Inc.
According to allnovascotia.com’s David Bentley, the Dutch’s Authority for Financial Markets (AFM) are asking Homburg Invest Inc. to remove founder and controlling shareholder Richard Homburg from the company.
In Bentley’s pieces, he sheds light on some of the managerial changes and turmoil that have made headlines for Homburg Invest Inc. in the last few months – most notably that Richard Homburg has stepped down from being chairman and CEO.
Homburg Invest Inc. is traded in Dutch and Canadian markets so they must appease both countries’ set of laws and regulations. Simply removing Mr. Homburg from the board and taking away his shares doesn’t mesh with existing Canadian financial laws. Hence, a dilemma for Homburg Invest Inc.’s board. Bentley says that Homburg Invest Inc. CEO Jan Schoningh is “vigorously contesting” the AFM’s decision, which is based on a dispute between Dutch tax authorities and Mr. Homburg.
Schoningh laments that the AFM didn’t suggest a legal method for removing Mr. Homburg.
“The board cannot itself legally reduce the control Mr. Homburg exercises through his shareholdings, nor can it compel Mr. Homburg to reduce his control… Further, Homburg Invest Inc. cannot restrict, or in any manner vary, the voting rights that attach to those shares. As a consequence, Homburg Invest Inc. is left in the difficult position of being unable to carry out these aspects of the institution.”
The Homburg Invest Inc. board has created a committee of legal counsel and financial advisors to make a strategy that will benefit shareholders while Mr. Homburg’s dispute is resolved.
But questions were raised about how long it’s been since Mr. Homburg knew the AFM was going to take action. Bentley suggests that it would have been sooner, rather than later. And if that is true, then Homburg Invest Inc. did not fulfill their obligation to disclose that information to shareholders in March 22 and May 11 releases.
Bentley points out that Homburg Invest Inc. and the AFM have had a ‘rocky’ relationship, citing an example where the company was fined for failing to disclose certain details about its corporate structure. Homburg Capital BV, another Richard Homburg-founded company, was fined 192,000 Euros by the AFM for providing investment advice to clients without the proper license necessary.
Homburg Invest Inc. shareholders have been suffering since the world financial meltdown. Both classes of shares were consolidated on a 10-for-1 basis in late 2008. At the time, they were trading in the $11 - $13 range. Share values are also dropping because Homburg’s corporate activities are prone to funnel management fees to his private companies.
Richard Homburg immigrated to Nova Scotia in 1972, where he began building a Halifax-based real estate portfolio. Most of his assets were financed by cash raised in Europe via limited partnerships. He returned to Amsterdam twenty years later and opened Uni-Invest NV, a publicly traded real estate company. Homburg Invest Inc. was founded in 2001 and featured a Western-Canada focus, heavily financed by European commercial properties, until it took a hit in the 2008 financial meltdown. Most of his best Canadian assets were hived off to Homburg REIT (which is also seeing lower share prices) but Homburg Invest Inc. itself has a portfolio that is 87% European properties, and it is struggling.
As of March 31, this year, it had total assets of $2.1 billion, but only $100 million in equity once long - term debt and other obligations were factored in.
For more information, please sign up for Allnovascotia at http://www.allnovascotia.com/
The following news release is from Homburg Invest's own website...
HOMBURG INVEST RECEIVES INSTRUCTION FROM NETHERLANDS REGULATORY AUTHORITY
05-26-2011
HALIFAX, May 26, 2011 /CNW Telbec/ - (TSX: HII.A HII.B) (AEX: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that the Company has received an instruction (the "Instruction") from the Authority for Financial Markets ("AFM") in the Netherlands requiring it to appoint two directors or officers who are residents of the Netherlands.
The AFM also instructed HII to remove HII's controlling shareholder Richard Homburg as a decision-maker and person of influence in the Company. The AFM did not specify any process or means by which the Instruction to remove Mr. Homburg as a person of influence should be carried out.
The Board of Directors is taking steps to comply with those elements of the Instruction that it can legally undertake, such as submitting candidates to the AFM for Netherlands-based directors. HII cannot comply with any aspect of the Instruction that is not enforceable under, or would result in a breach of, Canadian or Dutch law. The Board of Directors of HII cannot itself legally reduce the control Mr. Homburg exercises over HII through his shareholdings nor can it compel Mr. Homburg to reduce his control. The Board has no authority under HII's governing law, the Alberta Business Corporations Act, to require Mr. Homburg or any other shareholder to reduce that holder's ownership in HII, or to not vote that holder's shares. Further, HII cannot restrict or in any manner vary the voting rights that attach to those shares. As a consequence, HII is left in the difficult position of being unable to carry out these aspects of the Instruction.
In its Instruction to the Company, the AFM relies on information it apparently received from Dutch authorities and from Mr. Homburg about tax assessments, which have not been resolved and which are being contested by Mr. Homburg, and other personal matters between Mr. Homburg and the Dutch tax authorities.
"HII is vigorously contesting the AFM Instruction, which is based on a dispute between the Dutch tax authorities and a private individual (Mr. Homburg)," said Jan Schöningh, President and Chief Executive Officer of HII. "HII will continue to explore all possible recourses available to it in order to protect HII and its stakeholders. I want to reassure shareholders that there is no material financial impact of this Instruction on the Company and that we continue to focus on building value for shareholders."
About Homburg Invest
Homburg Invest, with its head office in Halifax, Nova Scotia, owns and develops a diversified portfolio of quality real estate including office, retail, industrial and residential apartment and townhouse properties throughout Canada, the United States and Europe.
According to allnovascotia.com’s David Bentley, the Dutch’s Authority for Financial Markets (AFM) are asking Homburg Invest Inc. to remove founder and controlling shareholder Richard Homburg from the company.
In Bentley’s pieces, he sheds light on some of the managerial changes and turmoil that have made headlines for Homburg Invest Inc. in the last few months – most notably that Richard Homburg has stepped down from being chairman and CEO.
Homburg Invest Inc. is traded in Dutch and Canadian markets so they must appease both countries’ set of laws and regulations. Simply removing Mr. Homburg from the board and taking away his shares doesn’t mesh with existing Canadian financial laws. Hence, a dilemma for Homburg Invest Inc.’s board. Bentley says that Homburg Invest Inc. CEO Jan Schoningh is “vigorously contesting” the AFM’s decision, which is based on a dispute between Dutch tax authorities and Mr. Homburg.
Schoningh laments that the AFM didn’t suggest a legal method for removing Mr. Homburg.
“The board cannot itself legally reduce the control Mr. Homburg exercises through his shareholdings, nor can it compel Mr. Homburg to reduce his control… Further, Homburg Invest Inc. cannot restrict, or in any manner vary, the voting rights that attach to those shares. As a consequence, Homburg Invest Inc. is left in the difficult position of being unable to carry out these aspects of the institution.”
The Homburg Invest Inc. board has created a committee of legal counsel and financial advisors to make a strategy that will benefit shareholders while Mr. Homburg’s dispute is resolved.
But questions were raised about how long it’s been since Mr. Homburg knew the AFM was going to take action. Bentley suggests that it would have been sooner, rather than later. And if that is true, then Homburg Invest Inc. did not fulfill their obligation to disclose that information to shareholders in March 22 and May 11 releases.
Bentley points out that Homburg Invest Inc. and the AFM have had a ‘rocky’ relationship, citing an example where the company was fined for failing to disclose certain details about its corporate structure. Homburg Capital BV, another Richard Homburg-founded company, was fined 192,000 Euros by the AFM for providing investment advice to clients without the proper license necessary.
Homburg Invest Inc. shareholders have been suffering since the world financial meltdown. Both classes of shares were consolidated on a 10-for-1 basis in late 2008. At the time, they were trading in the $11 - $13 range. Share values are also dropping because Homburg’s corporate activities are prone to funnel management fees to his private companies.
Richard Homburg immigrated to Nova Scotia in 1972, where he began building a Halifax-based real estate portfolio. Most of his assets were financed by cash raised in Europe via limited partnerships. He returned to Amsterdam twenty years later and opened Uni-Invest NV, a publicly traded real estate company. Homburg Invest Inc. was founded in 2001 and featured a Western-Canada focus, heavily financed by European commercial properties, until it took a hit in the 2008 financial meltdown. Most of his best Canadian assets were hived off to Homburg REIT (which is also seeing lower share prices) but Homburg Invest Inc. itself has a portfolio that is 87% European properties, and it is struggling.
As of March 31, this year, it had total assets of $2.1 billion, but only $100 million in equity once long - term debt and other obligations were factored in.
For more information, please sign up for Allnovascotia at http://www.allnovascotia.com/
The following news release is from Homburg Invest's own website...
HOMBURG INVEST RECEIVES INSTRUCTION FROM NETHERLANDS REGULATORY AUTHORITY
05-26-2011
HALIFAX, May 26, 2011 /CNW Telbec/ - (TSX: HII.A HII.B) (AEX: HII) - Homburg Invest Inc. ("HII" or the "Company") announced today that the Company has received an instruction (the "Instruction") from the Authority for Financial Markets ("AFM") in the Netherlands requiring it to appoint two directors or officers who are residents of the Netherlands.
The AFM also instructed HII to remove HII's controlling shareholder Richard Homburg as a decision-maker and person of influence in the Company. The AFM did not specify any process or means by which the Instruction to remove Mr. Homburg as a person of influence should be carried out.
The Board of Directors is taking steps to comply with those elements of the Instruction that it can legally undertake, such as submitting candidates to the AFM for Netherlands-based directors. HII cannot comply with any aspect of the Instruction that is not enforceable under, or would result in a breach of, Canadian or Dutch law. The Board of Directors of HII cannot itself legally reduce the control Mr. Homburg exercises over HII through his shareholdings nor can it compel Mr. Homburg to reduce his control. The Board has no authority under HII's governing law, the Alberta Business Corporations Act, to require Mr. Homburg or any other shareholder to reduce that holder's ownership in HII, or to not vote that holder's shares. Further, HII cannot restrict or in any manner vary the voting rights that attach to those shares. As a consequence, HII is left in the difficult position of being unable to carry out these aspects of the Instruction.
In its Instruction to the Company, the AFM relies on information it apparently received from Dutch authorities and from Mr. Homburg about tax assessments, which have not been resolved and which are being contested by Mr. Homburg, and other personal matters between Mr. Homburg and the Dutch tax authorities.
"HII is vigorously contesting the AFM Instruction, which is based on a dispute between the Dutch tax authorities and a private individual (Mr. Homburg)," said Jan Schöningh, President and Chief Executive Officer of HII. "HII will continue to explore all possible recourses available to it in order to protect HII and its stakeholders. I want to reassure shareholders that there is no material financial impact of this Instruction on the Company and that we continue to focus on building value for shareholders."
About Homburg Invest
Homburg Invest, with its head office in Halifax, Nova Scotia, owns and develops a diversified portfolio of quality real estate including office, retail, industrial and residential apartment and townhouse properties throughout Canada, the United States and Europe.
Monday, May 2, 2011
Here's My Prediction.... for what it's worth!
OK... I'm back on PEI in time to vote (cold here) and I'm going to call it a “Harper Majority” but I'm saying that all the ridings on PEI will remain "unchanged"... although the Tories have good candidates in Cardigan and Malpeque both Lawrence and Wayne have done great constituency work and I don't think Islanders will toss them out for "no reason"... Sean Casey has the upper hand over Donna Bush as Shawn Murphy left a strong riding organization that is working hard for Sean and Donna is not that well known... the "blue majority tide" will certainly put pressure on the three existing Liberal seats but I'm saying they'll stay "red"... that’s how I see it. The question is have I been away to long and lost touch?
Monday, April 18, 2011
THE TAX SYSTEM EXPLAINED IN BEER...
THE TAX SYSTEM EXPLAINED IN BEER
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59.
So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten men would now cost just $80.
The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? How could they divide the $20 windfall so that everyone would get his fair share? They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.
And so the fifth man, like the first four, now paid nothing (100% saving). The sixth now paid $2 instead of $3 (33% saving). The seventh now paid $5 instead of $7 (28% saving). The eighth now paid $9 instead of $12 (25% saving). The ninth now paid $14 instead of $18 (22% saving). The tenth now paid $49 instead of $59 (16% saving).
Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.
"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man, "but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more benefit than me!"
"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important ? They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59.
So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten men would now cost just $80.
The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? How could they divide the $20 windfall so that everyone would get his fair share? They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.
And so the fifth man, like the first four, now paid nothing (100% saving). The sixth now paid $2 instead of $3 (33% saving). The seventh now paid $5 instead of $7 (28% saving). The eighth now paid $9 instead of $12 (25% saving). The ninth now paid $14 instead of $18 (22% saving). The tenth now paid $49 instead of $59 (16% saving).
Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.
"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man, "but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more benefit than me!"
"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important ? They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
Tuesday, March 8, 2011
Sorry Guys... "what about the little guy?"
I'm having a little difficulty here with this concept... Minigoo originally opens and screws local contractors for millions of dollars and now they "re-open" without offering up something to the small contractors they screwed??? There's something fishy here and I find it hard to believe that they're marching forward without some form of repayment scheme for the people they've caused severe hardship to...
Companies get in trouble for a variety of reasons, some of which are out of their control... in our case our plant, Storemark Fixtures in Pooles Corner, came under server pressure due to the change in the Canadian dollar coupled with a major slowdown in the economy... we lost millions of real dollars and we seen competitors like Levi Fixtures in Moncton and Cabinetmaster in Charlottetown fall like flies, due to the shakeups in that industry... but never once did we ever consider avoiding our responsibilities to our suppliers; we talked to our suppliers, we kept our employees informed, we were upfront with our lenders, we developed a scaled down plan and we pooled our resources... and I'm happy to say we're still operating (at about a quarter of the size we once were) but our bills are paid, people are working and our future seems a lot brighter... All this was achieved by "working with people and suppliers" and I can honestly tell you that the majority of them understood our situation and were quite willing to co-operate, especially the little guys....
"Re-opening" by "ignoring the little guy" through some bankruptcy scheme, and not offering up a future settlement plan is just not acceptable... from what I understand in talking with a few experienced fish processors is that the new company, like the old company, hasn't a Snowball's Chance in Hell of being successful in the first place... but the gesture to try and settle with the little guy would have been a little more palpable... I wonder what we'd hear from Minigoo if the shoe was on the other foot and "they" weren't being paid?
Minigoo processing plant to re-open
CBC News
Mar 7, 2011
There are plans to re-open a lobster processing plant on Lennox Island First Nation, on the north coast of P.E.I.
Alan Baker, the band's economic development officer, confirmed Monday that they're just putting the finishing touches on plans to process again this spring. Baker said it will be "business as usual" come the first of May.
Minigoo Fisheries, the company that ran the plant, went bankrupt last July after only a few months in operation, owing creditors more than $3 million. The only entirely native-owned lobster processing plant in the Maritimes, the operation shut down after the spring lobster fishery.
But, just weeks later, the Lennox Island Band was back in the plant, operating under a slightly different name — Minigoo 2010. They hired an experienced manager to process lobster from August to November of last year, and about 70 people worked there.
Owed money
Creditor Chris Deagle, of Deagle Construction, said Minigoo Fisheries went under owing him $140,000 for general contract work. He said the loss has been extremely hard on his company, and his family.
"If they would have come to the table in good faith and said, 'We'll try, we'll put a package together, we will pay you, it might take some time,' I would have been totally open to that," Deagle said. "But to shut the doors, change the name to Minigoo Fisheries 2010 within a few weeks of shutting the doors…"
Mike McGeoghegan, president of the PEI Fishermen's Association said the plant is a good one, and they hope it will work this time. "The plant's open, they'll have the fish and I think it's good. I think they can get the markets going," he said.
Last year, the band council admitted that pretty much everything that could go wrong with Minigoo Fisheries, did. Now, the Lennox Island Mi'kmaq band and fishermen are pinning their hopes on this new company to run the plant successfully.
Companies get in trouble for a variety of reasons, some of which are out of their control... in our case our plant, Storemark Fixtures in Pooles Corner, came under server pressure due to the change in the Canadian dollar coupled with a major slowdown in the economy... we lost millions of real dollars and we seen competitors like Levi Fixtures in Moncton and Cabinetmaster in Charlottetown fall like flies, due to the shakeups in that industry... but never once did we ever consider avoiding our responsibilities to our suppliers; we talked to our suppliers, we kept our employees informed, we were upfront with our lenders, we developed a scaled down plan and we pooled our resources... and I'm happy to say we're still operating (at about a quarter of the size we once were) but our bills are paid, people are working and our future seems a lot brighter... All this was achieved by "working with people and suppliers" and I can honestly tell you that the majority of them understood our situation and were quite willing to co-operate, especially the little guys....
"Re-opening" by "ignoring the little guy" through some bankruptcy scheme, and not offering up a future settlement plan is just not acceptable... from what I understand in talking with a few experienced fish processors is that the new company, like the old company, hasn't a Snowball's Chance in Hell of being successful in the first place... but the gesture to try and settle with the little guy would have been a little more palpable... I wonder what we'd hear from Minigoo if the shoe was on the other foot and "they" weren't being paid?
Minigoo processing plant to re-open
CBC News
Mar 7, 2011
There are plans to re-open a lobster processing plant on Lennox Island First Nation, on the north coast of P.E.I.
Alan Baker, the band's economic development officer, confirmed Monday that they're just putting the finishing touches on plans to process again this spring. Baker said it will be "business as usual" come the first of May.
Minigoo Fisheries, the company that ran the plant, went bankrupt last July after only a few months in operation, owing creditors more than $3 million. The only entirely native-owned lobster processing plant in the Maritimes, the operation shut down after the spring lobster fishery.
But, just weeks later, the Lennox Island Band was back in the plant, operating under a slightly different name — Minigoo 2010. They hired an experienced manager to process lobster from August to November of last year, and about 70 people worked there.
Owed money
Creditor Chris Deagle, of Deagle Construction, said Minigoo Fisheries went under owing him $140,000 for general contract work. He said the loss has been extremely hard on his company, and his family.
"If they would have come to the table in good faith and said, 'We'll try, we'll put a package together, we will pay you, it might take some time,' I would have been totally open to that," Deagle said. "But to shut the doors, change the name to Minigoo Fisheries 2010 within a few weeks of shutting the doors…"
Mike McGeoghegan, president of the PEI Fishermen's Association said the plant is a good one, and they hope it will work this time. "The plant's open, they'll have the fish and I think it's good. I think they can get the markets going," he said.
Last year, the band council admitted that pretty much everything that could go wrong with Minigoo Fisheries, did. Now, the Lennox Island Mi'kmaq band and fishermen are pinning their hopes on this new company to run the plant successfully.
Wednesday, March 2, 2011
Now here's a good analysis of the City's own review...
Here's what Lilley from Summerside had to say in the Journal's comments form about the City conducting their own investigation... Lilley - City to conduct review of concert file?? Isn't that like one fox asking the other fox, "What happened to the Chickens"?
City to conduct review of concert file
Journal Pioneer
Mike Carson
Published on March 2, 2011
SUMMERSIDE – City council is preparing to conduct an internal review into a concert deal that could cost taxpayers $1.3 million.
It was revealed Monday night that a week ago, following a closed session of city council, a resolution was passed calling for council to “review the process that placed the city in the current situation concerning the major concert scheduled for 2010 from an accountability framework including review of staff and council roles.”
Council met again behind closed doors on Monday night to decide how to handle the internal review.
In a statement released late Monday night Gordon MacFarlane, director of Human Resources and Legal Affairs, wrote “council and staff are working collaboratively to determine terms of reference for an internal review to complete an assessment of the process and how to implement effective safeguards to avoid being defrauded in the future.”
While the city’s official statement offers little insight into the issue, the resolution passed by the new city council last week does. It specifically targets accountability on the part of city management, staff and the former councillors, three of which still sit on council, for their involvement in sending $1.3 million to a San Jose, Calif. concert promoter for a concert that has yet to materialize. The city filed a suit for fraud against the promoter in January. The promoter has refuted any suggestion of wrongdoing.
MacFarlane said Tuesday the terms of reference for the review will cover a wide range of topics not the least of which is who will conduct the internal review.
MacFarlane said the term “internal review” doesn’t necessarily mean the city will be doing the assessment on its own. “The internal part just implies that somebody will be looking at ourselves,” he said. MacFarlane said no timeline has been set for the assessment to be completed.
One of the three remaining councillors who supported the concert deal back in 2009 is Deputy Mayor Bruce MacDougall. “I have no problem with it (review) being done,” MacDougall said. “If we can learn from it, that’s great.” The whole idea of a new city council calling for an internal review of the actions of city management, staff and the former council implies mistakes were made in the whole concert issue – what was done, how it was done. “It’s not that we’re saying something’s wrong,” he said. “We’re saying let’s do a review so we can learn from this and show the people that were are being accountable.”
Mayor Basil Stewart was also part of the 2009 city council involved in the concert decisions. Stewart said the internal assessment will help council find out what exactly happened. “We want to determine where this got off the rails and try and be sure that it doesn’t happen again and what can be learned from it,” the mayor said. “Maybe we’ll get it back on the rails. We’ll see how it unfolds.”
Stewart said this will not be a quick look and that the process will take time. “We’re not pointing fingers we’re just trying to get a layout on how things unfolded the way they did,” he said. “They are still unfolding. We’re not going to be a bull in a china shop.”
Councillor Tina Mundy said accountability is what has to happen. “We have to look at what happened and how it happened and make sure that it doesn’t happen again,” she said. “Obviously, something did go wrong. What, we don’t know. We need to investigate it. We need to have a look at it. We need to show the public we are being accountable. The public wants to know. There’s not a day that goes by that somebody doesn’t ask me what I’m doing. So, we owe it to the citizens of Summerside to look into this and find out what went wrong and to make sure it doesn’t happen again.”
Councillor Jim Steele wants an independent party to conduct the review. Steele said he doesn’t see the internal assessment focusing on the failed concert and the $1.3 million sitting in a San Jose escrow account, but rather using the findings to set a policy to avoid any future misdealings.
“I think what we need to do is find out exactly what we have to do to make things better,” he said. “It’s a situation where it went out of line and we’re going to look at it and get everything in proper order and have everything in line when we do a project. That’s an education part of it. We’re not pointing the fingers at anybody. We’re not going after council.
“What we’re doing is going after a study to make sure that we as a council work together, follow procedures and make sure things are in order so we don’t get into this situation again.”
City to conduct review of concert file
Journal Pioneer
Mike Carson
Published on March 2, 2011
SUMMERSIDE – City council is preparing to conduct an internal review into a concert deal that could cost taxpayers $1.3 million.
It was revealed Monday night that a week ago, following a closed session of city council, a resolution was passed calling for council to “review the process that placed the city in the current situation concerning the major concert scheduled for 2010 from an accountability framework including review of staff and council roles.”
Council met again behind closed doors on Monday night to decide how to handle the internal review.
In a statement released late Monday night Gordon MacFarlane, director of Human Resources and Legal Affairs, wrote “council and staff are working collaboratively to determine terms of reference for an internal review to complete an assessment of the process and how to implement effective safeguards to avoid being defrauded in the future.”
While the city’s official statement offers little insight into the issue, the resolution passed by the new city council last week does. It specifically targets accountability on the part of city management, staff and the former councillors, three of which still sit on council, for their involvement in sending $1.3 million to a San Jose, Calif. concert promoter for a concert that has yet to materialize. The city filed a suit for fraud against the promoter in January. The promoter has refuted any suggestion of wrongdoing.
MacFarlane said Tuesday the terms of reference for the review will cover a wide range of topics not the least of which is who will conduct the internal review.
MacFarlane said the term “internal review” doesn’t necessarily mean the city will be doing the assessment on its own. “The internal part just implies that somebody will be looking at ourselves,” he said. MacFarlane said no timeline has been set for the assessment to be completed.
One of the three remaining councillors who supported the concert deal back in 2009 is Deputy Mayor Bruce MacDougall. “I have no problem with it (review) being done,” MacDougall said. “If we can learn from it, that’s great.” The whole idea of a new city council calling for an internal review of the actions of city management, staff and the former council implies mistakes were made in the whole concert issue – what was done, how it was done. “It’s not that we’re saying something’s wrong,” he said. “We’re saying let’s do a review so we can learn from this and show the people that were are being accountable.”
Mayor Basil Stewart was also part of the 2009 city council involved in the concert decisions. Stewart said the internal assessment will help council find out what exactly happened. “We want to determine where this got off the rails and try and be sure that it doesn’t happen again and what can be learned from it,” the mayor said. “Maybe we’ll get it back on the rails. We’ll see how it unfolds.”
Stewart said this will not be a quick look and that the process will take time. “We’re not pointing fingers we’re just trying to get a layout on how things unfolded the way they did,” he said. “They are still unfolding. We’re not going to be a bull in a china shop.”
Councillor Tina Mundy said accountability is what has to happen. “We have to look at what happened and how it happened and make sure that it doesn’t happen again,” she said. “Obviously, something did go wrong. What, we don’t know. We need to investigate it. We need to have a look at it. We need to show the public we are being accountable. The public wants to know. There’s not a day that goes by that somebody doesn’t ask me what I’m doing. So, we owe it to the citizens of Summerside to look into this and find out what went wrong and to make sure it doesn’t happen again.”
Councillor Jim Steele wants an independent party to conduct the review. Steele said he doesn’t see the internal assessment focusing on the failed concert and the $1.3 million sitting in a San Jose escrow account, but rather using the findings to set a policy to avoid any future misdealings.
“I think what we need to do is find out exactly what we have to do to make things better,” he said. “It’s a situation where it went out of line and we’re going to look at it and get everything in proper order and have everything in line when we do a project. That’s an education part of it. We’re not pointing the fingers at anybody. We’re not going after council.
“What we’re doing is going after a study to make sure that we as a council work together, follow procedures and make sure things are in order so we don’t get into this situation again.”
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