Sheila Mowat, General Manager of MCPA

 “The province has acknowledged, at our meetings to date, that they recognize the extreme situation many producers find themselves in due to the excess moisture crisis again this year,” said Sheila Mowat, General Manager of MCPA.  “We have met on several occasions to review the much needed programs we have put forth, and discuss not only the financial aid and support desperately needed for many producers to subsist through another year of flooding, but also the program implementation needed to create a measure of stability moving forward.  We are eagerly anticipating that an announcement will be made soon.” 

Producers are anxious to hear something, according to Mowat, as she indicated the dramatic influx of inbound calls at the MCPA office last week. 

“Calls from producers all across the province have been substantive and continue to increase – most asking the same question – when?”, she said.  “Some areas have again seen a deluge of rain fall last week so many are fraught with concern while waiting to hear when aid is coming.”  

Mowat reiterated that the aid required is more than just ‘financial’. 

“It’s about the future of the industry and embracing a common vision for its sustainability moving forward. As shared by our producers, we’ve been disappointed by the delay in receiving aid – we are in a state of emergency – but feel hopeful  that a joint embrace and swift implementation of the programs we have brought forward at this date can still mean that we can move toward stability and rebuilding,” said Mowat. 

“We have been diligent in this process of putting a plan together with programs that really work for all producers – from the cow/calf to the feeder. If we are serious about creating future sustainability for our industry, these programs must be incorporated as an integral part of that vision.   We are therefore hopeful we will hear that our recommendations have been embraced so that we can collaboratively join together and pursue these shared objectives in order to provide the urgent emergency aid our beef producers need to carry on and work toward the implementation of programs in order to ultimately benefit the beef industry of Manitoba for all Manitobans.”  

A delay in aid does not delay the inevitable need, according to Mowat.

“Aid is desperately needed in order to survive yet another year of disaster and that urgent need is not going away and cannot be delayed. The need is desperate and the time is now. If we execute these programs in a swift manner, we can realize dramatic progress toward stability and sustainability for our industry.  The programs we have put together are comprehensive and focus on all the right elements for stability now and future viability.  We greatly look forward to hearing soon from the Province with an announcement that reinforces both a shared vision and objective to achieve that end.” 

The Manitoba Cattle Producers Association is the exclusive voice of the cattle industry in Manitoba through communication, advocacy, research and education within industry and to government, consumers and others, to improve prosperity and ensure a sustainable future. The Association represents 10,000 cattle producers across the province.

For Further Information Contact:

Includes:

• Developing the tools to succeed
• Building a solid foundation
• Biotechnology company rises to the challenge
• Director Profile: Brian Cotton
• Sharing seeds
• CAAP funding update – September 2010

Access the issue here.

About the Manitoba Rural Adaptation Council:

The Manitoba Rural Adaptation Council (MRAC) is a private not-for-profit corporation that administers Agriculture and Agri-Food Canada funds for innovative agricultural projects and acts as a catalyst to stimulate industry and government activity where gaps are identified.

MRAC currently administers Agriculture and Agri-Food Canada’s Canadian Agricultural Adaptation Program (CAAP). This five-year $9.5 million program will help farm families respond and adapt to challenges in their operations and will build on the successes of the previous program, Advancing Canadian Agriculture and Agri-Food (ACAAF). For more information on the Canadian Agricultural Adaptation Program visit www.agr.gc.ca/caap.

MRAC has funded more than 600 innovative ACAAF, CARD, CAIP and AESI projects, contributing just under $23 million towards adaptation and innovation. By working with numerous industry partners, including producers, producer organizations, private and public corporations and government, MRAC has leveraged the investment of more than $70 million in agricultural advancement in Manitoba.

MRAC’s directors have approved funding for a variety of projects ranging from the development of a soil spreader which operates similar to a snow blower for soil, to catalyzing advances in manure management, as well as riparian health initiatives for assisting producers with the sustainable management of waterways and banks.

In addition to these initiatives, MRAC has frequently assumed a role as a facilitator to bring industry and government stakeholders together to seek win-win results for all participants.

Examples of such activities include: hosting a round table regarding the exploration of alternative grain segregation technologies, the development of a Manitoba value chain initiative and a workshop on aquaculture.

This is only a snapshot of MRAC’s overall scope. For more information, see our projects section.

Great Tastes of Manitoba, the longest-running cooking show in Canada, is forging its way into history with the launch of its 21st season promoting the excellence of locally produced foods, Agriculture, Food and Rural Initiatives Minister Stan Struthers announced today. 

The Honourable Stan Struthers

“Learning about our agriculture industry, the fine foods produced locally in our province and the quick, easy and delicious ways to prepare it is what this program is all about,” said Struthers. ”It is the ultimate hands-on promotion of Manitoba’s many quality food products.” 

The minister noted Great Tastes of Manitoba is the top-rated cooking show in this provincial market including all food shows running on the Food Network. 

Recipes from the program are published in partnership with Manitoba Agriculture, Food and Rural Initiatives (MAFRI) and handpicked by the food experts from eight Manitoba producer organizations including the Dairy Farmers of Manitoba, Manitoba Canola Growers Association, Manitoba Cattle Producers Association, Manitoba Chicken Producers, Manitoba Mushroom Growers Association, Manitoba Pork, Manitoba Pulse Growers Association and Manitoba Turkey Producers.  Recipe booklets are available at Manitoba Liquor Control Commission outlets and Sobeys retail stores or online at www.foodmanitoba.ca. 

“In co-operation with MAFRI, these farm groups have been encouraging the use of local, healthy food for over two decades,” said Struthers.  ”We are proud that our province enjoys a co-operative relationship between the producer organizations and government in furthering the common goal of connecting consumers and the local foods produced from the farms and fields of Manitoba.” 

The 21st season of Great Tastes of Manitoba starts with the program scheduled for Saturday, Sept. 11 at 6:30 p.m. on CTV Winnipeg.

[The following is the first third of Viterra’s news release. To read the complete contents, including charts, click here] 

A solid shipping program through Viterra’s (TSX:VT) (ASX:VTA) South Australia grain operations, contributions from its North America pipeline and the addition of pasta manufacturing to its portfolio of assets led to increases in both revenue and gross profit for the third quarter and first nine months of fiscal 2010.

Despite a considerable loss of seeded acreage in Western Canada, Viterra’s consolidated sales and other operating revenues were up $273.0 million to $2.5 billion in the third quarter, bringing year-to-date revenues to $6.3 billion, up $1.1 billion relative to the first nine months of fiscal 2009.

President and Chief Executive Officer, Mayo Schmidt said, “Our results this quarter are in line with our July 8th seeded acreage update. While spring conditions in Western Canada were far from ideal, yields on existing crops are encouraging. It is our view that given current yield projections from field staff, western Canadian production could be in the 44 to 45 million tonne range compared to the 10-year average of approximately 49 to 50 million tonnes. In order to achieve these results, the Canadian Prairies will require frost-free days in September and good harvest conditions well into October. For the Australian business, strengthening commodity prices provided the foundation for growers to price and move their grain through the system and we expect to see that continue over the next several quarters. Clearly our diversification strategy has worked to improve our risk profile and reduce our dependency on one geography.”

The increase in consolidated sales for both the quarter and nine-month periods was primarily due to revenue contributions of $558.5 million in the third quarter and $1.9 billion in the first nine months from Viterra Australia. The results were partially offset by lower third quarter Agri-products sales in North America.

EBITDA (refer to Management’s Discussion and Analysis – Section 10.0 entitled Non-GAAP Measures for the definition) for the quarter was $196.6 million, compared to $204.5 million a year earlier, reflecting higher gross profits for the Corporation, offset by operating general and administrative expenses associated with the Australian business and lower contributions from the North American agri-products operations. For the first nine months of fiscal 2010, Viterra generated EBITDA of $379.6 million compared to $283.5 million, a year earlier. The EBITDA increase of $96.1 million on a year-to-date basis primarily reflects contributions from Viterra Australia, together with new contributions from Viterra’s pasta operation during the quarter.

EBITDA from Viterra’s North American operations was $158.9 million for the third quarter and $247.0 million for the first nine months of the fiscal year. The Company’s Australian operations contributed $37.7 million in the third quarter and $132.6 million in the first nine months of the fiscal year.

Cash flow provided by operations for the quarter was $162.2 million compared to $178.8 million in the prior year’s quarter and $273.2 million for the first nine months of 2010, a 14.5% increase from the $238.6 million generated in the first nine months of 2009.

Viterra’s third quarter net earnings were $63.5 million, which compares to net earnings of $120.7 million in the same three-month period of 2009. For the first nine months of this fiscal year, earnings were $92.6 million, compared to $114.0 million in the same period a year earlier. Results included one-time after-tax re-financing costs of $17.7 million and approximately $9.1 million of additional after-tax amortization costs that were recorded in the third quarter, the latter of which was associated with the purchase price allocation review of the Australian assets during the quarter.

Earnings per share amounts for the quarter were $0.17 per share (2009 – $0.51 per share) and for the first nine months of 2010 were $0.25 per share (2009 – $0.48 per share). The items noted above reduced earnings per share by approximately $0.07 per share. Readers should note that Viterra’s earnings per share information reflect a year-over-year increase in the number of issued and outstanding shares of 134.5 million. The weighted average number of shares outstanding for the quarter and nine months ended July 31, 2010, were 371.6 million, compared to 237.1 million for the three and nine months at July 31, 2009.

President and Chief Executive Officer, Mayo Schmidt added “We look forward to fiscal 2011, as agriculture rebounds and we move beyond the cyclical lows experienced in 2009. Recent weather events around the globe, most notably in Russia and the Black Sea, have led to strengthening prices, placing us in a good position as we prepare for next year,” said Schmidt. “Over the past several weeks, we have seen significant transaction activity within the industry as participants look to take advantage of growing consumer demand. Viterra’s consolidation and expansion initiatives over the past three years allowed us to secure a foothold in leading countries of origin in advance of some of our competitors. Global agriculture has once again taken centre stage, driven by the solid long-term fundamentals that underpin the growth prospects for agricultural production and demand around the world.”

Third Quarter and Year-to-Date Operating Highlights

Viterra’s third quarter North American grain shipments were 4.4 million tonnes compared to 4.7 million tonnes for the same period in 2009 bringing the year-to-date total to 12.0 million tonnes, compared to 13.1 million tonnes shipped in the first nine months of 2009 when the industry experienced record grain production.

Grain shipments for Viterra Australia were 1.7 million tonnes in the quarter, bringing the year-to-date total to 3.5 million tonnes. Viterra purchased approximately 30% of that volume for its own account. Margins in that business were strong in the third quarter reflecting strong movement and merchandising performance.

EBITDA from the Company’s Grain Handling and Marketing Segment was $100.9 million for the third quarter, up $32.1 million from the $68.8 million generated in the third quarter of fiscal 2009. For the first nine months of the fiscal year, the segment contributed EBITDA of $284.1 million, compared to $193.7 million a year earlier.

In Viterra’s Agri-products segment, overall sales for the quarter were $818.9 million compared to $943.3 million for the third quarter last year. The decline primarily reflects the impact of excessive rain on the amount of seeded acreage in Western Canada, offset somewhat by additional revenues from Australia and contributions from new retail operations in Western Canada that were acquired over the last 12 months.

EBITDA from the Company’s Agri-product segment was $105.8 million for the quarter, compared to $147.5 million in 2009. On a year-to-date basis, the segment reported EBITDA of $123.8 million, versus $124.6 million generated in 2009. Last year’s result included a $28.1 million fertilizer write-down.

Sales in Viterra’s Processing segment rose $127.0 million to $330.8 million for the third quarter, a reflection of new contributions from the pasta business, the Australian malt business, Viterra’s canola crush plant purchased in June last year and the addition of the New Zealand feed business. Sales for the first nine months of 2010 were $945.5 million compared to $679.8 million in the same period a year ago.

On an EBITDA basis, the Processing segment generated $21.9 million for the quarter and $67.8 million for the first nine months of 2010, up $12.2 million and $36.8 million respectively. The increases primarily reflect new contributions from the pasta business and the Australian malt operations.

Additional detail on segment results is available in Management’s Discussion and Analysis in Sections 3.0 and 4.0.

Viterra’s balance sheet at July 31, 2010, remained strong with a debt-to-total capital ratio of 22.2%. Subsequent to quarter end, on August 4, 2010, the Company completed a private placement of U.S. Dollars (“USD”) $400.0 million of 5.95% Senior Unsecured Notes. The Notes will pay interest semi-annually on February 1st and August 1st of each year beginning February 1, 2011 and will mature on August 1, 2020. Proceeds from the private placement will be used to reduce borrowings under Viterra’s unsecured revolving credit facility (“Global Credit Facility”) and for general corporate purposes.

For the first nine months of fiscal 2010, free cash flow (refer to Management’s Discussion and Analysis – Section 10.0 entitled Non-GAAP Measures for the definition) increased by $10.0 million to $201.4 million from $191.4 million in fiscal 2009.

Viterra will be hosting a conference call for interested parties on September 8, 2010, at 1:00 p.m. Toronto time, 11:00 a.m. Calgary time to discuss its Third Quarter Financial Report. Details are available on Viterra’s website, under Newsroom at http://www.viterra.com/.

Certain statements in this news release are forward-looking statements and reflect Viterra’s expectations regarding future results of operations, financial condition and achievements. All statements that address activities, events or developments that Viterra or its management expects or anticipates will or may occur in the future, including such things as growth of its business and operations, competitive strengths, strategic initiatives, planned capital expenditures, plans and references to future operations and results, critical accounting estimates and expectations regarding future capital resources and liquidity of the Company and such matters, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievements of Viterra to be materially different from any future results, performance and achievements expressed or implied by those forward-looking statements. A number of factors could cause actual results to differ materially from expectations. These factors and assumptions are further detailed in Viterra’s Third Quarter Financial Report.

About Viterra

Viterra Inc. provides premium quality ingredients to leading global food manufacturers. Headquartered in Canada, the global agribusiness has extensive operations across Western Canada, the United States, Australia, and New Zealand, with Adelaide, Australia as the base for Viterra’s Southeast Asian operations. Our growing international presence also extends to offices in Japan, Singapore, China, Switzerland and Italy. Driven by an entrepreneurial spirit we operate in three interrelated business segments: grain handling and marketing, agri-products, and processing. Our expertise, close relationships with producers, and superior logistical assets allow the Company to consistently meet the needs of the most discerning end-use customers, helping to fulfill the nutritional needs of people around the world.

VITERRA

THIRD QUARTER FINANCIAL REPORT – JULY 31, 2010

MANAGEMENT’S DISCUSSION AND ANALYSIS

1.0 Responsibility for Disclosure

Management’s Discussion and Analysis (“MD&A”) was prepared based on information available to Viterra Inc. (referred to herein as “Viterra” or the “Company”) as of September 7, 2010. Management prepared this report to help readers interpret Viterra’s consolidated financial results for the three months and nine months ended July 31, 2010 and July 31, 2009, respectively.

To support the discussion, this report includes information with respect to the agri-business industry, the markets in which the Company operates and trends that may affect operating and financial performance into the future. Please read this report in conjunction with Viterra’s 2009 Annual Financial Review, the 2009 Business Review and the 2009 Annual Information Form, which are available on Viterra’s website at http://www.viterra.com/, as well as on SEDAR’s website at http://www.sedar.com/, under Viterra Inc.

This MD&A, the unaudited Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows, Statements of Comprehensive Income, Statements of Shareholders’ Equity and Notes to the Consolidated Financial Statements have been prepared in accordance with Canadian GAAP and are presented in Canadian dollars (“CAD”) unless specifically stated to the contrary.

2.0 Company Overview

Viterra is a vertically integrated global agri-business headquartered in Canada with operations in North America, Australia and New Zealand.

On September 23, 2009, the Company expanded its operations into the southern hemisphere through the acquisition of all of the issued and outstanding common shares of ABB Grain Ltd. (referred to herein as “ABB”, “Viterra Australia” or “Viterra”), an Australian-based agri-business.

On May 5, 2010, Viterra completed the acquisition of Dakota Growers Pasta Company, Inc. (“Dakota Growers”), a United States (U.S.)-based durum miller and leading producer and marketer of dry pasta products in North America. Dakota Growers’ financial contributions are included in Viterra’s results as of May 5.

Subsequent to quarter-end, on August 17, 2010, Viterra completed the acquisition of 21st Century Grain Processing, a premier U.S.-based processor of oats, custom-coated oats and wheat. The company operates two plants in the Central U.S., an oat mill in South Sioux City, Nebraska and a facility that mills wheat near Dawn, Texas. The acquisition will add approximately 98,000 tonnes of annual oat milling capacity to Viterra’s oat milling operations. Contributions from this business will be reflected in Viterra’s fourth quarter as of the closing date of the transaction.

As a major participant in the value-added agri-food supply chain, Viterra’s core businesses are organized among three primary segments: Agri-products sales and services (including financial products), Grain Handling and Marketing, and Processing (which includes both food and feed manufacturing). The consolidation of these segments, beginning in the first quarter of 2010, better aligns Viterra’s external reporting with its internal operating structure.

Geographically, Viterra’s operations are diversified across Western Canada, Australia, New Zealand and the U.S. The Company also has marketing offices in Canada, Australia, Japan, Singapore, Switzerland and Italy. Viterra participates in fertilizer manufacturing through its 34% ownership in Canadian Fertilizers Limited (“CFL”). It has wholly owned feed processing, oat milling, canola crushing, pasta manufacturing and malt processing operations. It also has a 42% interest in Prairie Malt Limited (“Prairie Malt”), a Saskatchewan-based single-site malting facility operated as part of its partner, Cargill Malt’s operations. Viterra is involved in other commodity-related businesses through strategic alliances and supply agreements with domestic and international grain traders and food processing companies. The Company markets commodities directly to customers in more than 50 countries.

Viterra’s shares trade on the Toronto Stock Exchange (“TSX”) under the symbol “VT” and its CHESS Depository Interests (“CDIs”) trade on the Australian Securities Exchange (“ASX”) under the symbol, “VTA”.

Agriculture, Food and Rural Initiatives (MAFRI) Minister Stan Struthers today invited Manitobans to visit a participating Manitoba farm at the first Open Farm Day scheduled for Sunday, Sept. 19 and spend time with a farm family to learn more about the business of farming. 

The Honourable Stan Struthers

“For many Manitobans, Open Farm Day will be the first opportunity they will have to visit a farm, meet a farm family and see what the business of farming is all about,” said Struthers.  ”Entire families will be able to learn about agriculture, see demonstrations, take walking tours, buy local products, enjoy some recreational activities and gain some real hands-on experience on the farm.” 

More than 35 farms around the province are participating in the province’s first Open Farm Day including fruit and vegetable producers, crop and livestock farms, and agri-tourism farm businesses. 

In Steinbach, Supper from the Field at the Mennonite Heritage Village livery barn will be a celebration of local foods prepared by a team of chefs.  Supper begins at 5 p.m.  Tickets are available at 204-392-7268 and are $15 for adults and $10 for children 10 years and under.   

Information on Open Farm Day is available by calling MAFRI’s agri-tourism line at 204-821-5322 and online at http://www.gov.mb.ca/agriculture/.  Brochures with maps listing participating farms are also available from MAFRI GO Centres and GO offices. A listing of offices is available online at www.gov.mb.ca/agriculture/contact/agoffices.html. 

“To be successful, farmers must be well-versed in a wide variety of topics and are excellent teachers,” said Struthers. ”The time visiting a farm will certainly provide a unique educational experience and an enjoyable day for the entire family.” 

The 11-day mission will include stops in Beijing, Shanghai, Hong Kong and Manila. 

Premier Selinger

“The Asia-Pacific region is one of the fastest-growing economies in the world,” Selinger said.  “Manitoba has a wealth of opportunities to offer Asia including in the areas of education, tourism, agriculture and industry.” 

Selinger also noted the province’s new inland port, CentrePort Canada, is attracting a lot of attention in China. 

“One of the ways Manitoba is building its trading relationships with China and other markets is through its support for CentrePort, Manitoba’s new 20,000-acre inland port and multi-modal transportation hub, which is part of Canada’s Asia-Pacific Gateway and offers supply-chain options for companies doing business in international and North American markets.” 

In 2009, Manitoba’s total trade with the Asia-Pacific region was $2-billion. 

“This mission presents an excellent opportunity for Manitoba businesses to connect and develop inter-cultural business exchanges with almost one-quarter of the world’s population,” Lee said.  “I look forward to accompanying Premier Selinger and the Manitoba business delegates on this very exciting undertaking.” 

Close to 40 individuals representing almost 30 companies and organizations will join the premier and the lieutenant-governor on the trade mission.

First, to put the Minister’s response into context, consider that the Payroll Tax is profit insensitive tax that is triggered when businesses increase payroll (i.e. when they increase wages and/or hire more Manitobans). As well, here is an excerpt from the MCC’s letter to the Minister:      

“In our Pre-Budget submission we acknowledged the extensive business tax relief that has occurred. However, we also pointed out that the Government of Manitoba’s current vision for tax relief ends in 2011. As you move forward to think about further tax reform, you need to think about reducing and ultimately eliminating this tax on jobs. 

We cannot stress enough the insidious nature of this tax and its impact on our business environment. We recently spoke to a Manitoba company that had divided its operations into three so as not to trigger this tax – imagine the ‘needless’ administration involved in such a move. As well, they were approached by an out-of-province company about a possible merger but the company refused when they learned of the Payroll Tax.”    

Here is what the Resolution calls for: 

“That the Government of Manitoba publicly commit to developing a plan to eliminate the Payroll Tax and, as a first step,  increase the threshold of the Payroll Tax to $2 million for the base threshold and to $3.5 million for the second threshold.” 

Here is the Minister’s response: 

The Honourable Rosann Wowchuk

“I have review the Chambers’ resolution that our government commit to developing a plan to eliminate the payroll tax. We welcome input from your organization on taxation issues and the other matters raised in the Handbook. Maintaining an efficient and competitive taxation system is an ongoing concern of our government, as we manage the spending commitments that Manitobans expect within a responsible fiscal framework. 

Your organization’s concerns regarding the payroll tax will be given careful consideration, as our government’s policy and Budget priorities are formulated going forward. We appreciate the Chambers’ acknowledgement of the extensive tax relief that our government has provided for business. Since 1999, the Manitoba Government has reduced business taxes by $422 million annually and personal income and property taxes by $723 million annually, while continuing to maintain vital front line services in priority areas such as health, justice and community services. Tax reductions are important for ensuring Manitoba maintains its competiveness, but they also serve to promote a number of economic and social opportunities that will better position Manitoba’s economy and business community immediately and in the longer-run. 

Capital investments improve productivity, which is key to growing our economy. Since 1999, our Government has implemented significant changes that promote capital investment and increased productivity. The Manufacturing Investment Tax Credit and the Research and Development Tax Credit have been in place since 1992, but only in the past five years have they been considerably enhanced. 

Since 2005, the Manufacturing Investment Tax Credit (MITC) was broadened to include used property and, since 2008, the credit is primarily refundable. In 2008 (the latest year for which data is available), the MITC returned $42 million to Manitoba businesses.    

In order to further reduce the cost of capital for business, our Government eliminated the capital tax for manufacturers effective July 1, 2008. Other businesses will benefit from the elimination of the general capital tax at the end of this year. The total savings to business from the elimination of the general capital tax is at least $100 million yearly. Furthermore, in recognition of the role that small businesses play in Manitoba’s economy, the small business corporation income tax rate is being eliminated in December 2010. 

Research and development are also important for growing our economy. In 2005, the 15% Manitoba R&D Tax Credit was increased to 20%. The R&D credit returned $21.6 million to Manitoba businesses in 2008 (the latest year for which data is available). In the 2010 Budget, it was my pleasure to announce that the 20% R&D credit is now fully refundable for R&D undertaken with a research institution in Manitoba. Furthermore, I announced the tax credit for in-house will be one-quarter refundable in 2011, increasing to one-half refundable in 2012. Combined these Budget 2010 changes will return an additional $13 million annually to Manitoba businesses, which they can use for R&D, innovation and commercialization. 

Our Government believes that Manitoba’s economic future also lies in promoting and investing in environmentally-friendly technologies. In addition to the development of wind farms in St Leon and St Joseph and the establishment of ethanol and biofuels mandates, we are encouraging Manitobans to convert to renewable resources. The Green Energy Equipment Tax Credit provides businesses and Manitobans who install geothermal or solar heating systems with a maximum 10% refundable income tax credit, based on the cost of their heating systems. Also, manufacturers in Manitoba of qualified geothermal heat pumps qualify for a 5% Green Energy Equipment Tax Credit for pumps produced and sold for installation in Manitoba. Also, the Manufacturing Investment tax Credit was broadened to include energy conservation equipment acquired for use by manufacturers in Manitoba. 

No economy can grow without a continued investment in a better trained and educated workforce. That is why our Government annually provides school divisions with increases in provincial funding that have exceeded the rate of growth in provincial GDP. In addition, we have introduced tax credits to encourage post-secondary graduates to stay or return, and to live and work in Manitoba: in 2007 we introduced the 60% Tuition Fee Income Tax Rebate available to new post-secondary graduates of any institution in the work, and in Budget 2010 I announced a new feature, the Advance Tuition Fee Income Tax Rebate, that allows Manitobans to receive an advance of their Rebate while they are studying. We have also encouraged employers through the Co-Op Education and Apprenticeship Tax Credit to hire post-secondary co-operative education students and graduates and to employ advanced level apprentices and new certified journeypersons. In Budget 2010, I further extended this tax credit to employers who hire secondary students in co-op education programs, as well as entry level apprentices. 

In addition to eliminating the general capital tax and the small business corporation income tax rate, the general corporation income tax rate has been reduced by 29%, from 17% to 12%, which saves businesses an estimated $140 million.   

I believe that this underscores the Chambers’ assessment that our government has made very good progress in establishing “An Environment Where Business Can Thrive”.” 

To access the Resolution Report on this issue here.

Manitoba Family Services and Consumer Affairs advises the provincial 2011 rent guideline has been set at ­­­1.5 per cent and will take effect Jan. 1. 

The guideline is determined annually and takes into account cost increases such as utilities, property taxes, and other expenses in the operation of a residential complex.  From 2006 to 2010, the average rent guideline was 2.1 per cent. 

The guideline applies to most residential rental property including apartments, single rooms, houses and duplexes. The guideline does not apply to: 

• rental units renting for $1,120 or more per month as of Dec. 31, 2010; 
• personal-care homes; 
• non-profit housing with subsidized rent; 
• approved rehabilitated rental units; and 
• new buildings that are: 

- less than 15 years old, where an occupancy permit was first issued or a unit first occupied after April 9, 2001, or; 

- less than 20 years old, where an occupancy permit was first issued or a unit first occupied after March 7, 2005. 

 Landlords can apply for an increase above the guideline if they can show the guideline will not cover cost increases they have incurred.  

Tenants must receive written notice of a rent increase at least three months before the increase takes effect. For example, for a rent increase to take effect Jan. 1, 2011, tenants must receive notice by Sept. 30, 2010. With few exceptions, rent can only be increased once a year. 

Tenants have the right to object to any rent increase, whether it is below, at, or above the guideline.  Objections must be made at least 60 days before the rent increase is set to take effect.

Landlords and tenants can contact the Residential Tenancies Branch at 945-2476 or 1-800-782-8403 (toll-free) to find out more about rent increases and other rights and responsibilities. Information is also available at http://www.gov.mb.ca/fs/cca/rtb/.

Venture capitalists (VCs) in Canada expect their industry to contract further while those in emerging markets, including China, India and Brazil, expect to see theirs expand over the next five years, according to the 2010 Global Venture Capital Survey by Deloitte, Canada’s Venture Capital & Private Equity Association (CVCA) and several other international industry associations.

According to the survey results, two thirds (66%) of Canadian survey respondents expect the number of venture firms to decrease between now and 2015, while a great majority of venture capitalists in China, India and Brazil anticipate adding more venture firms in their country during the same time frame. Venture capitalists in the U.S. and the European continent also expect an industry tightening in their respective countries, but the Canadian industry is much more vulnerable to such a trend given its much smaller size.

The outlook for the dollar amount of venture capital available for investment in the next five years followed similar trends, with half of Canadian respondents seeing a decline or no change. In fact, 11% of respondents predict a decline of more than 30%, the second worst outlook of any country surveyed. Comparatively, respondents in Brazil, China and India see healthy increases. The institutional source of funds is also expected to be weak by Canadian VCs: Only 25% of Canadian respondents believe limited partners are likely to invest in the country’s venture capital funds in the next five years, compared to 92% for Brazil, 91% for China and 76% for India.

The 2010 Global Venture Capital survey, which measured the opinions of more than 500 venture capitalists worldwide, also examined the factors contributing to each country’s outlook and identified sectors of future growth.

Government policies to increase the size of the domestic VC industry seen as key to maintaining a capital venture industry in Canada

As opposed to past years, and following recent Deloitte-led changes to Section 116, Canadian respondents did not say that tax policy or regulations were creating an unfavorable climate for venture capital. Only 28% cited tax rules as a major barrier. And they are positive on government support of R&D, with 67% naming it as a favorable factor, second only to Israel.

Despite those advantages, when asked about the dangers of a lack of an established VC industry, Canadian VCs were by far the most critical in the world, with 61% suggesting our lack of critical mass is creating a poor climate for investment and innovation. In contrast, VCs in other developed nations saw this as a non-factor, with only 7% on average mentioning it.

“Clearly, Canadian venture capital firms are up against serious competition from emerging markets, as are their counterparts in the U.S. and Europe. But with the small size of the Canadian industry, the impact of this decline is even more devastating for Canada,” said John Ruffolo, National Leader, Technology, Media & Telecommunications Industry Group, Deloitte.

“This is an urgent situation and policy makers need to move quickly with measures that improve the odds of this vital sector here at home,” Ruffolo added. “We need to get more dollars into the hands of existing Canadian VCs, and encourage the creation of more domestic VCs. A reinvigorated Retail Venture Capital program (particularly in Ontario), angel and VC investing tax credits, and the expansion of government-sponsored fund of funds programs are the three main priorities. Some of these measures have been adopted in Quebec, and that province’s venture industry has seen growth in both the number of firms and the amount of capital available for innovation.”

Clean tech and new media/social networking: Opportunities to seize now for the future

Despite numerous challenges, survey respondents across the globe show interest in new investment opportunities on the horizon. In looking ahead, respondents singled out clean technologies, healthcare services and new media/social networking as areas of great interest over the next five years.

Clean tech is the leader overall, with 67% of Canadian survey respondents expecting increased investments. It is also ranked number one by China (95%), Brazil (92%), India (90%), U.K. (85%), U.S. (72%) and Germany (71%).

New media/social networking is seen as the second key sector of the future by 50% of Canadian venture capitalists as well as 58% of respondents in the U.S. and 64% in Germany. Healthcare services were ranked second by survey respondents in China (92%), India (89%), France (69%) and the U.K. (62%).

“With characteristic optimism, venture capitalists are already looking ahead to new growth industries and opportunities. In order for Canada to participate fully in this new economy, we need to have a larger and better-financed VC community to help incubate and grow these industries of Canada’s future,” concludes Ruffolo.

About the Deloitte and CVCA Global Trends in Venture Capital: Outlook for the Future

The Global Trends in Venture Capital: Outlook for the Future Survey was sponsored by Deloitte in cooperation with the Canadian Venture Capital Association and numerous other VC associations around the world. It surveyed venture capitalists in the Americas, Europe and the Middle East, and Asia Pacific. Deloitte received 516 responses from general partners with assets under management ranging from less than US$100 million to greater than US$1 billion. The survey was conducted during March and April 2010. Of the total number of respondents, 61% were based in the Americas (of which 7% or 36 firms were Canadian), 16% in Europe, and 23% in Asia Pacific.

About Deloitte

Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,700 people in 58 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

About the CVCA

The CVCA – Canada’s Venture Capital & Private Equity Association, was founded in 1974 and is the sole national representative of Canada’s venture capital and private equity industry. Its over 1200 members are firms and organizations which manage the majority of Canada’s pools of capital designated to be committed to venture capital and private equity investments. CVCA’s members actively collaborate to increase the flow of capital into the industry and expand the range of profitable investment opportunities. This is accomplished by the CVCA undertaking a wide variety of initiatives, ranging from developing comprehensive performance and valuation statistics to promoting the industry’s interests with governments and regulatory agencies.

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The province is seeking public comment on industry-led plans to change and improve access to safe and responsible recycling, and disposal of electronic and household hazardous waste, Conservation Minister Bill Blaikie announced today.                                      

The Honourable Bill Blaikie

“To improve recycling services in Manitoba, the provincial government requires industry to be more responsible for the waste associated with their products and to implement comprehensive programs to deal with it,” said Blaikie. ”This public consultation is one of the first steps in establishing the new programs.”  

Beginning in April 2011, the proposed programs would support permanent collection systems throughout the province and would replace the current government-funded household hazardous-waste depots and e-waste roundups.   

Once fully implemented, the programs would offer: 

• more opportunities to safely recycle or dispose of waste materials, 
• drop-off locations throughout Manitoba, and 
• increased diversion of toxic materials from landfills. 

Household hazardous waste includes products such as batteries, medications, paint, antifreeze, fluorescent lighting and products containing mercury.  Electronic waste includes products such as computers, televisions, video players and home-theatre systems. Recycling or properly disposing of these products instead of throwing them out with household garbage conserves natural resources and protects the environment, said Blaikie. Blue box, tire and oil recycling programs have already diverted a significant amount of waste from landfills, he added. 

The plans are required by the Household Hazardous Material and Prescribed Material Stewardship Regulation and the Electrical and Electronic Equipment Stewardship Regulation. Public input will help guide decisions about approving or adapting the proposed plans, the minister said, adding the provincial government is seeking feedback related to all areas of the plans including accessibility and convenience, environmental protection, funding sources and financial reporting.

The plans are available online through links at http://www.gov.mb.ca/conservation/pollutionprevention/ and at Manitoba Conservation’s public registries throughout the province. Comments may be submitted until Sept. 27, 2010.  

Comment documents can be faxed, emailed or mailed to: 

BACKGROUND INFORMATION