mb magazine business - 19 may issue
DESCRIPTION
Pilgrims have a favorite part of the Easter story. You’d think it might be the arrival at the tomb by the women or by the two disciples; tombs have historically been the endpoint of religious pilgrimages.TRANSCRIPT
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How To Create A Business
Vancouver Property Assessments
Growth Foundations for Canada
ProfileShaun ChenProfileShaun Chen
ISSUE 19 | MAY 2016
MAKE YOUR DESTINATION
ST. JOHNS , YOULL BE
GLAD YOU DID.
MAKE YOUR DESTINATION
ST. JOHNS , YOULL BE
GLAD YOU DID.
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EDITOR'S NOTEDear Readers,
Pilgrims have a favorite part of the Easter story. Youd think it might be the arrival at the tomb by the women or by the two disciples; tombs have historically been the endpoint of religious pilgrimages. But for most pilgrims, its later on Easter Sunday, with two obscure disciples walking away from Jerusalem for an unnamed reason. The resurrected Christ appears, but they dont recognize him. Its only after their encounter, as Jesus vanishes, that they start to understand Easter. Its only after their journey that they recognized its significance: Were not our hearts burning within us, they asked each other, while he talked with us on the road?
We got an incredible response from our readers with our last edition. The readers gave positive responses on the articles Create Success, Auto Show and You Can Never Succeed. They also appreciated the redesigned layout and the new ideas. We also received overwhelming feedback regarding last issues cover.
In May, we are thrilled to have Sissi Wang back in our pages with another article Four ways to make tax time less painful for small business. Its not an Easter article per se, but it reminded me of that Emmaus journey, mixing pain, joy, and hope.
Our Facebook group is going well so far. Thanks to everyone who has joined in already. We ran into some spam issues with Facebook, so if you didnt get an invitation yet, please email us at [email protected] or call us at 1-866-667-1377. Were truly eager to share awe and wonder with you more often than once every month!
Sincerely,Editor In Chief,Aurora Zabala.
Publisher MB EnterprisesEditor-in-chief Aurora Zabala
Senior EditorPeter Z. Vaisey
Managing EditorsSteve Montgomery
DesignCynthia Tolson
A. KhanZ. Zaidi
Production, Technology & PrintSimon Wilson
R.J
AdvertisingS. Hassan
Shoeib Kamal
AdministrationAlamdaar Hussein
Erum AsgharR. Adil
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MB Business Magazine is a monthly issuebusiness magazine published byMB Enterprises Ontario,Canada.
Printed by Vision Printers
Contents Copyrights 2016 byMB Enterprises, may not be reprintedwithout written permission.
Subscribe / Unsubscribe or Advertise byemailing us [email protected]
CONTENTSHow to Create a BusinessPunctuality, Relationships, Planning, Execution, Results.
Teamwork and SuccessGroup Effort Is More Effective Than Individual Effort
Small BusinessAt the mercy of political red tapes.
Vancouver PropertyAssessments go through the roof
MB GlobalThat add value to your business.
Life MarketSolid growth foundations for Canada.
ProfileShaun Chen - MP Liberal Party.
Why St. John'sBeing the most easterly point in North America.
05
06
07
08
10
12
15
16
Four ways to make tax time... Dont't leave tax planning to the last minute
World Interest RatesCentral banks tend to rise rates when the economy is growing
Ernie HudsonGhostbusters, The Crow, Hollywood and humanity
MoviesFive anticipated movies of the summer
Men Get NaughtyAt the age of 40 - Be Careful!
Quit Your Job And TravelWhy i don't tell people
DepressionWhat causes depression
ClassifiedBusiness Ads
17
20
22
27
28
29
30
73
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IMAGINATIVESOLUTIONSTHAT REINVENT BUSINESS
ATM SolutionsCard SolutionsMobile SolutionsAccount ProcessingInternet Banking SolutionsAutomated Clearing House
OUR SERVICES
Rewards & Loyalty SolutionsPayment Network & SwitchesBusiness Intelligence SolutionsInformation Management SystemsCredit & Debit Processing SolutionsElectronic Billing & Payment Solutions
1-866-667-1377 [email protected]
www.mbeforyou.com
For all business inquiries
ABOUT USMB Global is a software house and IT firm that specializes in providing financial technology solutions to enterprises and firms worldwide.
We serve more than 10,000 clients worldwide with the vision of becoming the largest provider of information technology services to the financial services industry.
04
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The meaning of a Business is to make
space in the premises and to save and
create revenue. Is there anyone that is
thinking about why you have not achieved
your goals and why you are not at a point
in life where you are satisfied? There are
some major factors that a person needs to
follow and work upon diligently. The
following points will help you create stability
in your life and help you achieve the
success you have been striving for.
1. Punctuality
2. Relationships
3. Planning
4. Execution
5. Results
Punctuality: If you are working you have to
dedicate yourself to what time you will start
the work and how you will mange the day
effectively. Never delay the work for
tomorrow because tomorrow never comes.
Procrastination will always let you do down
and will not help you get anywhere in life. If
this is a problem one must rectify it in order
to produce maximum person efficiency.
Another tip to fix yourself is what time you
are starting your job. If you are always early
you will be the best performer. If you are on
time you will go to the next level and if you
are late than you are just passing time
in life.
Relationships: Finding strong, trustworthy
and lasting relationships are a major key
towards success. If you find that you are
not able to convey your message to your
own family and feel the need to hide
information from them then you must fill this
gap. Along with family it is also vital to
create strong bonds with your colleagues
at work. If your colleagues do not trust you
and do not respect you then you will never
be able to achieve anything with them.
Planning: Planning is very similar to
organizing data. For example; if you are
working in an office then every day you will
learn something new and it is your
responsibility to compile this new
information and data you are receiving. The
example I always give to my marketing
team is that if you are meeting new people
every day consider this as gathering data.
This data if you compile and follow up on
properly you will be able to achieve the
results you have set out to achieve.
Execution: Execution is vital in our
everyday lives and work places. In my eyes
execution refers to planning a strategy and
delivering upon it. For Example:
Whoever is reading the article everyone is
executing one thing. Executing a plan can
be as simple as driving to somewhere.
When you sit in the car you map out a
direction and use this to reach from point A
to point B. Every single person has the
ability to achieve what they set out to as
long as they have a proper plan and
strategy for execution.
Results: In the field of marketing you will
always hear about how you have to collect
both nos and yes. One of those is seen
as a positive result and one is seen as a
failure. In my world both of them are your
results. So never be sad when you fail
because it is a part of learning. When you
start something never leave it incomplete in
the middle. If you take it to the end you will
always learn something and will never be
depressed.
My message to you today is, when you
dream about something and make a plan
to achieve it you have to take it all the way
till you have achieved success without
giving up.
Courtesy: MANSOOR NAQVIPresident MB Enterprises
How to create aBUSINESS
RESULTSRESULTS
PUNCTUALITYPUNCTUALITY RELATIONSHIPSRELATIONSHIPS PLANNINGPLANNING
EXECUTIONEXECUTION
MB BUSINESS MAGAZINE MAY 2016
05
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Working as part of a team is an essential
part of character building. It is not an easy
task building a team and managing a team.
When building a team one must first set
themselves as an example to follow.
When it comes to working as a team there
must be no excuses and one must be
willing to step above and do the job
whenever they are required. The
development of a team comes with time
and effort and a developed team can take
upon any task that they are presented with.
Group Effort Is More Effective Than Individual Effort
Small business ventures can be
run independently,
however if
you are ever trying to expand your
business and move on to the next level
having a strong core team is very
important. The most impressive feats are
accomplished by groups of people, not
individuals.
Leadership
The purpose of a leader is to work with the
people to find solutions that work best
collectively. Leaders bring people together.
The best leaders dont act with a sense of
superiority or try to patronize the people
working for them; they act like a father.
Improving Others = Improving Yourself
If you are working as a team the people
around you in the team will try and emulate
you. If you work hard and set the bar high,
then others will follow this example. Most
people also have a competitive spirit and
this is fueled more when they see others
around them succeeding. So if you set a
good example for the team they will follow
you. This will work both ways as it will also
inspire you to do better in order to be a
good example for others.
Attitude Matters
You should be the kind of person who
wants to be a team player. People respect
the ability to work well with others more
than anything. Your individual actions have
an impact, but if youre reluctant to do
something to help your team, itll have a
negative impact on whatever task you are
trying to complete
Dont Ever Think There is No Team
The amount of work you put in with your
team will directly result in more success.
And always remember: the success of
your team is your success.
Why I Don't Tell People 'QuitYour JOB ANDTRAVEL'
TEAMWORK andSUCCESS Courtesy: MAHMOOD NAQVIVice President MB Enterprises
06MB BUSINESS MAGAZINE MAY 2016
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Liberal Party of Canada recently suggested
that while small businesses should indeed
be paying a lower corporate tax rate, the
rules should be tweaked to ensure that
wealthier Canadians dont use the lower
rate simply to reduce their tax bills. The
suggestion precipitated howls of outrage
from other political parties and business
advocacy groups. But liberals comments
invite debate on a broader issue: Is it time
to abolish the preferential rate altogether?
The small-business deduction reduces the
federal tax rate on the first $500,000 of
annual business income earned by a
Canadian-controlled private corporation (or
by an associated group of such
corporations), provided taxable capital
does not exceed $10-million. The federal
small-business rate is 11 per cent, and the
general federal rate is 15 per cent, a
four-percentage-point differential.
The 2015 Canadian federal budget last
year announced a further
two-percentage-point decrease in the
small-business rate (to 9 per cent) to be
phased in over four years. The New
Democrats have also proposed a
9-per-cent small-business rate, and the
Liberals also seem comfortable with the
general concept of a lower rate. Rarely has such a simple issue been misunderstood by so many.
It is true that many small businesses have
only one or two employees (including, for
example, professionals who may
incorporate primarily to avoid personal
taxes and access the lower corporate
rates), and that an incorporated small
business may benefit from income splitting
and other tax-planning arrangements.
It is also true that there is no tax rule
requiring that savings from the lower rate
be invested in the business. However,
Industry Canada estimates that 70 per cent
of Canadas non-government labour force
is employed by small businesses, and so
surely a few percentage points of tax (and
a bit of tax planning by wealthier
Canadians) is a small price to pay to
encourage job creation and economic
growth. Or is it?
Based on Department of Finance
estimates, the existing four percentage
point differential reduces annual federal tax
revenue by more than $3-billion. If the small
business rate is further reduced to 9 per
cent, the annual cost will be more than
$5-billion. This is a significant cost that
other taxpayers must bear, and there is little
if any economic evidence supporting the
proposition that the lower tax rate
contributes to job creation in any significant
way.
This is not surprising: A small business that
takes full advantage of the lower rate this
year would save just $20,000 (4 per cent
of the $500,000 limit), hardly a springboard
for business expansion. But with close to
700,000 small businesses claiming the
lower rate, the aggregate cost is significant
indeed.
Britain faced a similar problem. In 2006, its
general corporate rate was 30 per cent,
versus a small profits rate of 19 per cent.
The 2007 budget announced a reduction
in the general rate and an increase in the
small profits rate, to reduce the differential
between incorporated and unincorporated
businesses, and to discourage individuals
from incorporating as small companies to
avoid paying their due share of tax. In April
of this year, Britain repealed the small
profits rate altogether, and all British
corporations are now taxable at the general
rate of 20 per cent.
There is no doubt that small businesses
are critical to job creation and economic
growth in Canada. But it is precisely
because they are so critical that it is
important that tax incentives be as targeted
and effective as possible. The
small-business rate is neither, and it is time
to stop spending billions of dollars of our
federal taxes every year on a program of
such dubious merit.
The Canadian economy small
businesses included would be better
served by a complete repeal of the lower
rate, replaced by targeted measures such
as tax credits and accelerated deductions
for capital expenditures by small business.
Small Business at the mercy
of POLITICAL RED TAPES Courtesy: ALLAN LANTHIER
MB BUSINESS MAGAZINE MAY 2016
07
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Assessed values of both Vancouver east
and west side single-family properties
climbed dramatically over the past year,
according to B.C. Assessment.
It released its annual assessment figures
January 4 and it provided a few examples
of some individual assessments including
one for an East Side, single-family, 33-foot
lot, which jumped by 28% from $993,000
to $1,267,000, and one for a West Side,
single-family, 33-foot lot that rose by 23%
from $1,575,000 to $1,940,000.
Assessed values for strata properties didnt
grow nearly as significantly. In one example
provided by B.C. Assessment, a West
Side low-rise strata unit increased by 8%
from $615,000 to $662,000, while the
value of an East Side high-rise strata
increased 6% from $381,000 to
$405,000.
The real standout [in Vancouver] this year
would be the market movement for
single-family properties. You would
probably have to go back if you went
back to 1980, theres probably only two or
three other times when single-family
properties in Vancouver have moved by
this much this quickly, Jason Grant,
regional assessor for B.C. Assessment,
told the Courier.
What really contrasts this year as well is
the strata market would really be down in
that five to 10% range, so its not moving
the same amount. Its a significant contrast
this year.
Grant added that in any given year there
might be extreme pockets of movement,
but whats notable this year is that the
assessed value of the majority of
single-family properties across Vancouver
climbed by between 15 and 25% and
some in excess of that figure.
The fact many East Side residential
properties, on a percentage basis,
outperformed West Side ones also doesnt
happen very often, he said.
Property owners should note that the
assessment roll reflects market values as of
July 2015 and the value of many
single-family properties have grown in
some cases significantly since then.
So the other big difference this year is
people might open their assessment and
its reflecting July values and their values
might have risen fairly dramatically since
then depending on whereabouts theyre
located. That also doesnt happen very
often to that degree, Grant said.
Vancouver propertyassessments go
THROUGH THEROOF Courtesy: NAOIBH OCONNOR
08MB BUSINESS MAGAZINE MAY 2016
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B.C. Assessment sent 37,000 warning
letters, in a province of more than
2,000,000 property owners, advising of
extreme changes in assessments that
is, if a propertys assessed value was going
up more than 15% above the typical for the
taxation jurisdiction.
Grant said 22,000 of those letters went to
property owners in the Greater Vancouver
region.
If the typical was 25% in a particular
jurisdiction, we would send letters to
people who went up 40% or above, he
explained. You probably wouldnt get a
letter in Vancouver unless you were going
up more than about 40%. If youre in the
20 to 30% range or the 25-35% range that,
believe it or not, is fairly typical.
Assessments for single-family properties in
many Lower Mainland communities
including North Vancouver, West
Vancouver, Burnaby, Tri-cities, New
Westminster and Squamish also saw large
assessment increases in the 15 to 25%
range, but assessed values of single-family
and strata properties outside the Lower
Mainland didnt grow as much. They
ranged from 0-10%.
Overall, the Greater Vancouver regions
total assessments increased from $546.7
billion in 2015 to $636.2 billion this year.
Assessments are in the mail this week, but
they can be found online already. B.C.
Assessments e-valueBC service went live
January 1.
Its been overhauled since last year. Now
its map-based, so you dont have to know
the address of a property you can
simply click on it. The site allows users to
check other properties assessed values
and compare them to their own.
Typically, only 1-2% of property owners ask
for a review of their assessment, a figure
that usually doesnt change even in years
where assessment values rise significantly.
A notice of appeal must be filed by
February 1.
Grant said changes in assessments dont
automatically translate into a corresponding
change in taxes.
Its going to depend on where you are
relative to the average, he said.
So, what should property owners expect next year?
We are already, believe it or not, six
months in towards our next valuation cut
off of July 2016 and the market has moved
significantly already since July. So if it
keeps on this trajectory, there will be an
increase again next year for 2017,
Grant said.
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MB BUSINESS MAGAZINE MAY 2016
09
-
MB Global is a software house and IT firm
that specializes in providing financial
technology solutions to enterprises and
firms worldwide. We serve more than
10,000 clients worldwide with the vision of
becoming the largest provider of
technology solutions to the financial
services industry.
At our heart, we are a company with an
inventive and forward thinking approach,
our services extend beyond financial
solutions and our portfolio incorporates
services such as Information Management
Systems and Intelligence based IT
Solutions for a wide variety of institutions.
Rewards & Loyalty SolutionAt MB Global, we design our rewards
programs to suit your objectives; theyre
built to increase revenues and enable you
to direct business growth the way you
choose.
Branchless BankingConsidering the needs of our valuable
clients MB Enterprises have mounted the
milestone for easy access to financial
services without the hassle of visiting the
branch.
Card PersonalizationBy using our customized card
personalization solutions, banks and other
institutions can offer customized and
dynamic cards to their consumers on EMV
or non-EMV
E-CommerceE-Commerce is revolutionizing the market
and giving businesses the opportunity to
open up their doors to a global base of
clients instead of operating locally. MB
Global works with firms to design
E-commerce platforms that fit their needs.
Mobile SolutionsStaying on the edge requires delivering the
latest in mobile technology in todays fast
paced world. More customers' access
markets over smartphones & are
increasingly looking forward to mobile
based solutions.
Payment Networks and SwitchesMB Global hosts a leading payments
network that enables financial institutions
to open multiple channels for their
customers to access their funds, make
purchases online and send and receive
money in real time and stay financially
connected any place, any time.
MB GLOBALSOLUTIONS THAT ADDVALUE TO YOURBUSINESS
Electronic Billing & Payment SolutionsWith a considerable shift in the way
people, process transactions, we see
billions of transactions shifting from paper
to electronic in the next few years.
Electronic Billing & Payment Solutions for
MB Global can help you meet the
demands of todays customers and enable
you to keep a competitive advantage.
Bank Intelligence SolutionsBank Intelligence Solutions for MB Global
use information from existing and new
sources to develop an intelligent solution
that foresees and predicts market changes
by analysing current and past trends. Our
intelligence solutions enable you to make
the right financial
decisions for your firm.
Information Management SystemsInformation Management Solutions from
MB Global help you collect, organize and
manage data from multiple sources across
your organization to help you control
expenses, generate more revenue and
manage your day to day operations in a
better way.
Account Processing SolutionsAccounts Processing Solutions from MB
Global help financial institutions have their
own dependable platform for all kinds of
financial processing.
Card SolutionsCard Solutions for MB Global provide
complete debit, credit, prepaid and ATM
payment services to financial institutions.
ACH SolutionsWhether you're a new start-up or a large
financial institution, we offer effective and
sensible automated clearing house (ACH)
solutions.
ATM SolutionsAccounts Processing Solutions from MB
Global help financial institutions have their
own dependable platform for all kinds of
financial processing.
Online Banking SolutionsOnline Banking Solutions for MB Global
empowers you to improve the banking
experience of your clients by adding
convenience and easier accessibility.
Credit and Debit SolutionsWe combine inventiveness, superior
performance and remarkable service to
offer everything you need for a successful
full-service payment card program.
10MB BUSINESS MAGAZINE MAY 2016
-
MB Global is a software house and IT firm
that specializes in providing financial
technology solutions to enterprises and
firms worldwide. We serve more than
10,000 clients worldwide with the vision of
becoming the largest provider of
technology solutions to the financial
services industry.
At our heart, we are a company with an
inventive and forward thinking approach,
our services extend beyond financial
solutions and our portfolio incorporates
services such as Information Management
Systems and Intelligence based IT
Solutions for a wide variety of institutions.
Rewards & Loyalty SolutionAt MB Global, we design our rewards
programs to suit your objectives; theyre
built to increase revenues and enable you
to direct business growth the way you
choose.
Branchless BankingConsidering the needs of our valuable
clients MB Enterprises have mounted the
milestone for easy access to financial
services without the hassle of visiting the
branch.
Card PersonalizationBy using our customized card
personalization solutions, banks and other
institutions can offer customized and
dynamic cards to their consumers on EMV
or non-EMV
E-CommerceE-Commerce is revolutionizing the market
and giving businesses the opportunity to
open up their doors to a global base of
clients instead of operating locally. MB
Global works with firms to design
E-commerce platforms that fit their needs.
Mobile SolutionsStaying on the edge requires delivering the
latest in mobile technology in todays fast
paced world. More customers' access
markets over smartphones & are
increasingly looking forward to mobile
based solutions.
Payment Networks and SwitchesMB Global hosts a leading payments
network that enables financial institutions
to open multiple channels for their
customers to access their funds, make
purchases online and send and receive
money in real time and stay financially
connected any place, any time.
Electronic Billing & Payment SolutionsWith a considerable shift in the way
people, process transactions, we see
billions of transactions shifting from paper
to electronic in the next few years.
Electronic Billing & Payment Solutions for
MB Global can help you meet the
demands of todays customers and enable
you to keep a competitive advantage.
Bank Intelligence SolutionsBank Intelligence Solutions for MB Global
use information from existing and new
sources to develop an intelligent solution
that foresees and predicts market changes
by analysing current and past trends. Our
intelligence solutions enable you to make
the right financial
decisions for your firm.
Information Management SystemsInformation Management Solutions from
MB Global help you collect, organize and
manage data from multiple sources across
your organization to help you control
expenses, generate more revenue and
manage your day to day operations in a
better way.
Account Processing SolutionsAccounts Processing Solutions from MB
Global help financial institutions have their
own dependable platform for all kinds of
financial processing.
Card SolutionsCard Solutions for MB Global provide
complete debit, credit, prepaid and ATM
payment services to financial institutions.
ACH SolutionsWhether you're a new start-up or a large
financial institution, we offer effective and
sensible automated clearing house (ACH)
solutions.
ATM SolutionsAccounts Processing Solutions from MB
Global help financial institutions have their
own dependable platform for all kinds of
financial processing.
Online Banking SolutionsOnline Banking Solutions for MB Global
empowers you to improve the banking
experience of your clients by adding
convenience and easier accessibility.
Credit and Debit SolutionsWe combine inventiveness, superior
performance and remarkable service to
offer everything you need for a successful
full-service payment card program.
1921 Eglinton Ave E, Unit # 802 Scarborough, ON M1L 2L6 | Tel: (416) 755-22172 Thorncliffe Park Drive, Unit# 31, Toronto, ON M4H 1H2 | Tel: (416) 467-2378
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Fax: 1-866-204-6888
MB BUSINESS MAGAZINE MAY 2016
11
-
Despite historic low interest rates, there are
several factors expected to drive growth in
the Canadian life insurance market by
2018 including insurers' strong capital
base and innovative product development
Rising employment and increased
consumer confidence, together with
insurers in Canada adopting innovative
pricing and risk-averse strategies for their
products, mean the gross written premium
of the Canadian life segment is expected
to increase from CAD53.4bn ($43.4bn) in
2013 to CAD63.6bn by 2018.
This is one of the highlights from the
Timetric report, Life Insurance in Canada,
Key Trends and Opportunities to 2018,
which is available at the Insurance
Intelligence Center.
Life insurance is the largest segment in the
Canadian insurance industry, accounting
for 39.8% of its gross written premium in
2013. It is also the most developed
segment, with a penetration rate of 2.3% in
2013.
However, the segment posted a
compound annual growth rate (CAGR) of
-0.2% during 2009-2013 to reach a value
of CAD53.4bn in 2013. The segment's
decline was associated with prolonged low
interest rates, rising levels of household
debt and weak economic development.
Looking ahead to 2018 though, the main
factors expected to drive growth in the
Canadian life insurance market include:
Strong capital base of insurers
Revised eligibility criteria for old age securit
Innovative product development
Increasing life expectancy
Strong capital base of insurers:
The Canadian life segment is open to
foreign insurers and therefore has access
to capital from foreign sources. The
minimum continuing capital and surplus
requirement (MCCSR) ratio (which
measures an insurer's capital strength)
among Canadian life and health insurers
stood at 242% in 2013 - significantly above
the minimum requirement from the Office of
the Superintendent of Financial Institutions
(OSFI) in Canada of 150%.
A sufficiently-capitalized life insurance
segment is expected to present a stable
performance with minimum systematic risk
over 2013-2018.
Revised eligibility criteria for old age security:
The government has increased the age
eligibility criteria for old-age security (OAS)
and guaranteed income supplement (GIS)
benefits from 65 to 67 years, with effect
from April 2023.
The change will enable individuals to plan
retirement solutions in advance and
encourage insurers to launch products to
suit customers' needs.
Innovative product development: Demand
for products has changed with the
changing economic environment, with
insurers introducing customized policies to
suit customers' needs.
For example, Manulife Financial
Corporation launched Manulife UL in May
2014, a universal life plan which provides
both life insurance and investment benefits.
Under this plan, the insurer can select the
level cost of insurance and a yearly
renewable term. Customers can choose
between a professionally managed
balanced fund and customized investment
option.
Increasing life expectancy: A World Health
Organization report states that the life
expectancy for men in the country
increased from 74 years in 1990 to 80
years in 2013, while for women it rose from
81 to 84 years.
Rising life expectancy is expected to
contribute to the Canadian life segment's
growth over 2013-2018.
There are also several challenges facing
the Canadian life insurance market. These
include:
A persistent low interest rate
Increase in underwriting losses
Solid growth foundationsfor Canadas
LIFE MARKET Courtesy:RONAN MCCAUGHEY
12MB BUSINESS MAGAZINE MAY 2016
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A persistent low interest rate:
The benchmark interest rate has remained
at 1% since 2010. However, the Bank of
Canada's initiative to stimulate economic
recovery had a negative impact on life
insurers' earnings during 2009-2013.
According to the IIC, insurers are suffering
from reinvestment risk as assets are
reinvested at lower interest rates, yielding
lower returns. Consequently, insurers will
find it hard to sell new policies when
promised returns will diminish.
Increase in underwriting losses:
Canadian life insurers are suffering from a
reduction in income due to low interest
rates coupled with underwriting losses due
to a high combined ratio.
The combined ratio of the life segment rose
from 98.1% in 2009 to 118% in 2013 due
to a rise in commission and expenses. The
combined ratio is expected to remain at
more than 100% between 2013 and 2018,
which is likely to put pressure on the overall
earnings of life insurers.
A.M. Best notes that despite the continuing
low interest rates and a lagging economic
recovery, the Canadian life industry's
overall profitability increased in 2013 for the
third straight year.
The ratings agency said the industry
benefited from strong equity market returns
and a benign credit environment, as well as
self-directed actions such as re-pricing
products and focusing more on fee-based
income.
According to A.M. Best, the Canadian l life
insurance sector continues to benefit from
solid risk-adjusted capitalization,
risk-focused decision making by
management, improved earnings with low
credit impairments, strong growth in assets
under management and an ongoing focus
on wealth management.
In a report titled Canada's Growth Offsets
Turbulent Industry Climate, A.M. Best said:
"While continuing to concentrate on
investments, life insurers have reinvested
organically as well as through acquisitions
in chosen growth areas. Reduced leverage
and refinancing of existing debt also have
been positive rating factors for the
industry."
Consumer segmentation
Individual life products dominated the
Canadian life insurance market with 95.5%
of the volume of products in 2013,
according to the IIC.
Group life products accounted for the
remaining 4.5%. However, in terms of
gross written premium, individual life
insurance accounted for 80.8% of the
overall segment, while group life accounted
for 19.2% in 2013.
To target the individual segment, Forresters
Life Insurance Company introduced Family
life, a whole life insurance product in April
2013 which offers customized financial
protection to policyholders.
As a participating policy, the plan provides
dividends to the insured that can be used
to increase cover, decrease premiums, or
can be received in cash.
The policy provides built-in children's term
insurance, a quit-smoking incentive and
convenient pay periods. A recent fall in the
unemployment rate is also encouraging for
life insurers in Canada.
Distribution
The Canadian insurance distribution
network has undergone a shift during the
last two decades, with the advent of new
distribution platforms and the internet.
During the 1980s and 1990s, all Canadian
life insurance policies were sold by captive
agents. Some firms such as State Farm,
Co-operators and Primerica still distribute
life policies through captive agents.
MB BUSINESS MAGAZINE MAY 2016
13
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Aside from selling life insurance products
directly to customers, distribution channels
such as brokers, banc assurance,
agencies, ecommerce and others enabled
life insurers to generate new businesses in
2013.
Agencies were the largest distribution
channel for the life segment with 61.3% of
the new business gross written premium in
2013.
The number of agencies rose from 9,515
in 2009 to 10,423 in 2013, as they have
close relationships with insurers and
pension providers, and operate in insurers'
interests.
However, the number of policies sold
through agencies fell from 6.8m in 2009 to
6.3m in 2013, due to the emergence of
new cost-effective distribution channels
such as e-commerce. Furthermore, the
share of agencies is expected to decline to
60.7% by 2018.
Brokers were the second-largest
distribution channel, accounting for
32.5% of the new business gross written
premium in 2013.
The number of policies sold through
brokers fell from 3.8m in 2009 to 3.4m in
2013; however the number of brokers rose
from 18,356 in 2009 to 19,600 in 2013,
driven by the performance of the life
segment during the review period.
Direct marketing was the third-largest
distribution channel in 2013 in terms of
new business gross written premium.
Unlike Europe, where bancassurance is
well developed, Canada has a strict
demarcation between banks and life
insurers. Even banks that own life
insurance businesses are not permitted to
actively promote products.
This restricts Canadian banks from using
their client databases to cross-sell
insurance.
However, the number of bancassurance
channels rose from 54 in 2009 to 64 in
2013.
Regulation
Canada is a federal state consisting of 10
provinces and three territories. The
Canadian insurance industry is regulated
on both federal and provincial levels.
In addition to the federal insurance
regulator, OSFI, there are regulators for
each province and territory.
However, in order to maintain uniformity in
insurance regulation across Canadian
provinces and territories, an
interjurisdictional association of insurance
regulators called the Canadian Council of
Insurance Regulators (CCIR) was set up in
1914.
The regulatory frameworks at the federal
and provincial levels differ. A company
operating in more than one province is
regulated by the federal regulation, but it
has to obtain a licence in each province in
which it carries out the insurance business.
OSFI also regulates the established foreign
insurance companies and the branches of
foreign insurers licensed to conduct
insurance business in Canada.
In order to strengthen the existing
regulatory framework for federally regulated
life insurance companies, OSFI released
the new Life Insurance Regulatory
Framework in September 2012.
The new framework proposed many
changes in the existing regulatory
framework, which are to be implemented
over a period ending 2016.
Through the issued regulatory framework,
the OSFI is seeking feedback and
consultation from various stakeholders.
The proposed regulatory initiatives are
expected to overhaul the existing life
insurance regulatory framework in the
country in terms of corporate governance,
risk management and capital requirements
of life insurance companies operating in the
country.
Competitive landscape
Canada's life segment is dominated by
domestic insurers. The segment is highly
concentrated, with the 10 leading
companies accounting for 97.1% of the
segment's gross written premium in 2013.
Manulife Financial dominated the segment
with a 36% share in 2013, and the three
leading operators, Manulife Financial,
Great-West Life and Sun Life Financial,
collectively accounting for 87.7% of the
segment's total gross written premium.
Maintaining market share for leading
companies is challenging, and requires a
constant focus on cost-efficiency and
product innovation.
Low interest rates and volatile
equity-market conditions are also
prompting companies to re-examine their
product and pricing strategies.
Manulife Financial, Great-West Life, Sun
Life and Standard Life recorded declines in
investment income in 2013 compared to
2012.
Overall, the future growth prospects for the
segment will depend on insurers' approach
to issues, such as streamlining cost
structures and focusing on consumer
behaviour.
14MB BUSINESS MAGAZINE MAY 2016
-
SHAUN CHENMP Liberal Party
Named by Maclean's magazine as one of "100 young
Canadians to watch," Shaun Chen is a prolific community
leader who has articulated with passion the voices of his
generation a characteristic he will continue as representative for
Scarborough North.
A lifelong advocate
for children and
youth, Shaun was
first elected to the
Toronto District
School Board
(TDSB) in 2006 as
Trustee for ScarboroughRouge River. As Trustee, Shaun
championed programs to support newcomers, launched an
annual tree planting
initiative in the Rouge
Park, and initiated a
popular leadership
training program for
parents. In 2014,
Shaun was elected
Chair of the TDSB on
a pledge to restore
transparency
and accountability at Canada's largest school
board. He has served as director of the
Ontario Public School Boards'
Association and member of the City
of Toronto Children's Services
Advisory Committee, where he
worked to support a multi-year
strategy to expand Toronto's child
care system.
Shaun holds a BSc in Computer
Science and Equity Studies and an
MA in Sociology in Education from
the University of Toronto, and is
currently a PhD student in Social
Justice Education at the Ontario
Institute for Studies in Education.
15
-
For starters, we have our very own time
zone. In Canada, the sun rises first on
Newfoundland and Labrador. Were the
closest province to Europe, which means
St. Johns harbour is a safe haven for
transatlantic travelers and a bustling
commercial port. Were the youngest and
coolest province in Canada, home to the
oldest street in North America, and weve
been welcoming adventurers from all
corners of the world for over 500 years.
A city rich in culture, we honour tradition
while embracing eclectic sophistication.
When in St. Johns, you hear your fair
share of tall tales and yarns, and thats not
all. As you walk through the winding
alleyways of our vibrant downtown, youll
encounter fashionistas, chefs, musicians,
and more, all elements of a colourful
tapestry of experiences unfolding before
your eyes.
Thirsting for adventure? Its easily
quenched by skirting the dramatic coastline
on foot, or enjoying a day on a boat on the
bay having close encounters with
humpback whales, puffins, or icebergs
(and maybe all three!). Beautiful vistas,
unique culinary pleasures, and unique
architecture are just tiny slices of an urban
experience that will feel like no other. But
its the colourful characters who are most
memorable, in a place where strangers
quickly become friends, and the local
vernacular has you smiling and scratching
your head all at once. Performances
abound: sing along. Toe tapping is
welcome.
Conferences,
conventions, meetings,
events with superb
facilities and amenities,
and a knack for
hospitality that cant be
beat, St. Johns is an
excellent choice, one of
the best in the world!
Heres something that
might surprise you:
those who attend conferences in St.
Johns tend to travel with more people and
stay longer, on average, than when they
travel to other destinations. St. Johns
hosts an average of 95 conferences per
year.
"Colourful experiences. Colourful
characters. Colourful encounters. Make
your destination St. Johns - youll be glad
you did."
WHYST. JOHNS ?Colourful Experiences.Colourful Characters.Colourful Encounters.BEING THE MOST EASTERLY POINT IN NORTH AMERICA HAS ITS ADVANTAGES.
Courtesy:ERUM ASGHAR
16MB BUSINESS MAGAZINE MAY 2016
-
Ian DiNovo has been settling small
business owners concerns about
accounting matters for 16 years. At his
firm, the Certified General Accountant
who also vlogs about tax planning on
YouTubehas witnessed numerous cases
where a stressed client approaches him for
help in tax planning just days before tax
returns are dueat which point its far too
late for any real planning. Its no wonder
these entrepreneurs find filing taxes to be a
terrible exercise. DiNovo, however, believes
with a bit of forward thinking and regular
bookkeeping, it can be a less painful task
for small business owners. Here are his
four top tips:
1. Dont leave tax planning to the last minute
If your businesss filing due date is March
or April, then now is not the time to do tax
planning, says DiNovo. Tax planning (a
plan for how to accomplish all your financial
goals in the most tax-efficient way) should
be done beforehand, during the year, not
near the filing date, he explains. By
planning early, I can put more plans in
place and tax time just becomes a matter
of filing the actual tax return, rather than tax
planning, explains DiNovo. He tells his
clients that tax time should be strictly for
filing the returns and creating tax plans for
the following year.
2. Have a sit-down discussion with your accountant
DiNovo encourages business owners to
hold face-to-face meetings with their
accountants when they relay their financial
information. Busy entrepreneurs often just
drop off their documents at their
accountants office and leave. But DiNovo
says a one-on-one meeting allows him to
discover additional information that could
save his clients money.
For example, if he learns his client is
planning to borrow money to invest in
properties, he can structure the investment
in a way that would grant them a bigger tax
write-off. This would only work if his client
told him about it before the purchase is
made.
3. Keep your accounting up to date
Business owners get too involved in
their business and are not good
bookkeepers, says DiNovo. Their books
are often not up to date, since they expect
their accountant will help them piece
everything together before the filing date,
but accountants are busy serving multiple
clients during tax time, and arent going to
have as much time to work on a specific
clients file then as they would throughout
the year, explains DiNovo.
To circumvent this problem, DiNovo would
set up a spreadsheet system for his clients
where they only need to spend one to two
hours each month to keep their books up
to date. This makes the work much easier
during filing time, and avoids accounting
mistakes.
4. Stay off the Canadian Revenue Agencys radar
Make it a priority to pay your tax
instalments on time in order to stay off the
CRAs radar, says DiNovo. The
consequences of not paying your dues on
time can be severe, he says. Business
owners may be selected for an arbitrary
assessment, where the CRA will personally
audit their finance if they dont respond to
the agencys calls and letters. It usually
ends up being ten times the amount the
business owner actually owns, and they
end up giving the CRA more money than
they would have originally.
Four ways to make tax timeless painful for
SMALLBUSINESS Courtesy: SISSI WANGwww.canadianbusiness.com
MB BUSINESS MAGAZINE MAY 2016
17
-
A FINANCIALLY STABLE AND CONSERVATIVE BANKING SYSTEM Canada has a national banking system with diversified, well-managed institutions.
Canada has a strong regulatory system.
Canada's banks are well-capitalized.
Mortgage lending in Canada is stable and prudent.
A strong and stable banking system benefits all Canadians.
CANADA HAS A NATIONAL BANKING SYSTEM WITH DIVERSIFIED, WELL-MANAGED INSTITUTIONS Canada's banks are well-diversified organizations; investment banks are anchored by solid deposit-taking institutions.
Canada's system of national institutions diversifies regional risk, so a downturn in an individual economic sector is balanced. And a national system contributes to economic growth by moving funds from areas of excess deposits to regions where growth is creating demand for new credit.
Banks in Canada make lending decisions on a case-by-case basis, extending credit to those who have the capacity to repay their loans. This prudent approach is a key reason why banks in Canada have largely avoided the problems that have plagued banks elsewhere.
In a survey by the Strategic Counsel, 81% of respondents believe that prudent lending is a key reason Canadian banks have performed better than their international peers.
CANADA HAS A STRONG REGULATORY SYSTEM Canada has a streamlined bank regulatory system, with two primary regulators: the Office of the Superintendent of Financial Institutions (OSFI) for prudential regulation and the Financial Consumer Agency of Canada (FCAC) for consumer matters. In contrast, the United Stated has a complex network of different regulators.
Canada's Bank Act is reviewed and updated every five years to ensure the regulatory structure is keeping pace with changes in the industry.
Canada has been recognized by the International Monetary Fund and others as having a sound regulatory system.
CANADA'S BANKS ARE WELL-CAPITALIZED Banks in Canada are among the best capitalized in the world, exceeding Bank for International Settlements' norms by significant margins. This allows banks to continue lending and provides a cushion against loan losses which tend to increase during economic downturns.
Banks have been strengthening their capital levels by raising new capital from investors in the marketplace.
MORTGAGE LENDING IN CANADA ISSTABLE AND PRUDENTCanada's mortgage market has several fundamental differences from the US market.
Canada does not have the same problems with sub-prime mortgages that have been at the root of the problem in the US. In Canada, the vast majority of mortgage loans are prime.
There are many high-risk mortgage products in the US that do not exist in Canada. These include: adjustable-rate mortgages, with unrealistically low introductory interest rates that can rise substantially; interest-only payments, where the mortgage principal is never lowered; negative amortization payment schedules, with payments that are less than the interest charged; and no-documentation lending.
When American house prices decreased, many borrowers found that their mortgage was higher than the value of their house and unaffordable. Canadian mortgage products have not had these high-risk features and have stood the test of time as interest rates and house prices go up and down. As a result, Canadian homeowners have maintained a healthy amount of equity versus debt in their homes. Among homeowners with mortgages, the average amount of home equity in Canada stands at 66 percent of total home value.
Canadian lenders tend to hold the mortgages they originate. In the US the model was an "originate to distribute" model (through securitization). Canadian mortgage originators have a much greater incentive to be prudent because they directly bear the consequences of imprudent lending decisions.
In Canada bank mortgages with less than 20% down must be insured. This is not the case in the US.
CONSERVATIVE AND STABLEBANKING SYSTEM IN CANADA
ANOTHER REASON OF STRONG REAL ESTATEMARKET IN CANADA
Courtesy:SYED HASSAN
18MB BUSINESS MAGAZINE MAY 2016
-
A FINANCIALLY STABLE AND CONSERVATIVE BANKING SYSTEM Canada has a national banking system with diversified, well-managed institutions.
Canada has a strong regulatory system.
Canada's banks are well-capitalized.
Mortgage lending in Canada is stable and prudent.
A strong and stable banking system benefits all Canadians.
CANADA HAS A NATIONAL BANKING SYSTEM WITH DIVERSIFIED, WELL-MANAGED INSTITUTIONS Canada's banks are well-diversified organizations; investment banks are anchored by solid deposit-taking institutions.
Canada's system of national institutions diversifies regional risk, so a downturn in an individual economic sector is balanced. And a national system contributes to economic growth by moving funds from areas of excess deposits to regions where growth is creating demand for new credit.
Banks in Canada make lending decisions on a case-by-case basis, extending credit to those who have the capacity to repay their loans. This prudent approach is a key reason why banks in Canada have largely avoided the problems that have plagued banks elsewhere.
In a survey by the Strategic Counsel, 81% of respondents believe that prudent lending is a key reason Canadian banks have performed better than their international peers.
CANADA HAS A STRONG REGULATORY SYSTEM Canada has a streamlined bank regulatory system, with two primary regulators: the Office of the Superintendent of Financial Institutions (OSFI) for prudential regulation and the Financial Consumer Agency of Canada (FCAC) for consumer matters. In contrast, the United Stated has a complex network of different regulators.
Canada's Bank Act is reviewed and updated every five years to ensure the regulatory structure is keeping pace with changes in the industry.
Canada has been recognized by the International Monetary Fund and others as having a sound regulatory system.
CANADA'S BANKS ARE WELL-CAPITALIZED Banks in Canada are among the best capitalized in the world, exceeding Bank for International Settlements' norms by significant margins. This allows banks to continue lending and provides a cushion against loan losses which tend to increase during economic downturns.
Banks have been strengthening their capital levels by raising new capital from investors in the marketplace.
MORTGAGE LENDING IN CANADA ISSTABLE AND PRUDENTCanada's mortgage market has several fundamental differences from the US market.
Canada does not have the same problems with sub-prime mortgages that have been at the root of the problem in the US. In Canada, the vast majority of mortgage loans are prime.
There are many high-risk mortgage products in the US that do not exist in Canada. These include: adjustable-rate mortgages, with unrealistically low introductory interest rates that can rise substantially; interest-only payments, where the mortgage principal is never lowered; negative amortization payment schedules, with payments that are less than the interest charged; and no-documentation lending.
When American house prices decreased, many borrowers found that their mortgage was higher than the value of their house and unaffordable. Canadian mortgage products have not had these high-risk features and have stood the test of time as interest rates and house prices go up and down. As a result, Canadian homeowners have maintained a healthy amount of equity versus debt in their homes. Among homeowners with mortgages, the average amount of home equity in Canada stands at 66 percent of total home value.
Canadian lenders tend to hold the mortgages they originate. In the US the model was an "originate to distribute" model (through securitization). Canadian mortgage originators have a much greater incentive to be prudent because they directly bear the consequences of imprudent lending decisions.
In Canada bank mortgages with less than 20% down must be insured. This is not the case in the US.
$$MB BUSINESS MAGAZINE MAY 2016
19
-
The World Interest Rates Table reflects
the current interest rates of the main
countries around the world, set by their
respective Central Banks. Rates typically
reflect the health of individual economies,
as in a perfect scenario, Central Banks
tend to rise rates when the economy is
growing and therefore instigate inflation.
Rate cuts on the other hand, are a way to
stimulate a struggling economy. The
table includes actual rates, latest policy
changes and the date of upcoming
meetings / decisions, for the major ones.
WORLD INTERESTRATES Courtesy: WWW.FXSTREET.COM
South AmericaCountry Current InterestRate Previous Last Change
Colombia
Peru
Brazil
Chile
6.500 %
4.000 %
14.250 %
3.500 %
6.250 %
3.750 %
14.250 %
3.500 %
3-19-2016 - 06:00
1-15-2016 - 00:00
7-29-2015 - 23:00
12-17-2015 - 21:00
Central Banks Current InterestRate Next Meeting Last Change
Reserve Bank of Australia
Federal Reserve
Swiss National Bank
European Central Bank
Bank of Japan
Reserve Bank of New Zealand
Bank of Canada
Bank of England
2.000 %
0.500 %
-0.750 %
0.000 %
-0.100 %
2.250 %
0.500 %
0.500 %
4-5-2016 - 04:30
4-27-2016 - 18:00
6-16-2016 - 07:30
4-21-2016 - 11:45
4-28-2016 - 03:00
4-27-2016 - 21:00
4-13-2016 - 14:00
4-14-2016 - 11:00
5-5-2015 - 04:30
12-16-2015 - 19:00
1-15-2015 - 09:30
3-10-2016 - 12:45
1-29-2016 - 03:00
2-9-2016 - 20:00
7-15-2015 - 14:00
3-5-2009 - 12:00
Major Central Banks Overview
Asia Pacic
Country Current InterestRate Previous Last Change
China
Australia
India
Hong Kong SAR
South Korea
India
Taiwan
Philippines
Japan
Indonesia
New Zealand
4.350 %
2.000 %
6.750 %
0.500 %
1.500 %
5.750 %
1.875 %
3.500 %
-0.100 %
6.750 %
2.250 %
4.600 %
2.000 %
6.750 %
1.500 %
1.500 %
5.750 %
1.875 %
3.500 %
-0.100 %
7.000 %
2.500 %
10-23-2015 - 12:00
5-5-2015 - 04:30
9-29-2015 - 05:30
12-17-2008 - 02:00
6-11-2015 - 01:04
9-29-2015 - 05:30
7-1-2011 - 17:00
10-25-2012 - 08:30
1-29-2016 - 03:00
3-17-2016 - 09:00
3-9-2016 - 20:0020
MB BUSINESS MAGAZINE MAY 2016
-
EuropeCountry Current InterestRate Previous Last Change
Iceland
Romania
Hungary
Switzerland
European Monetary Union
Denmark
Sweden
Poland
Czech Republic
Russia
Norway
United Kingdom
6.500 %
1.750 %
1.350 %
-0.750 %
0.000 %
-0.750 %
-0.500 %
1.500 %
0.050 %
11.000 %
0.500 %
0.500 %
6.500 %
1.750 %
1.350 %
-0.750 %
0.050 %
-0.500 %
-0.350 %
1.500 %
0.050 %
11.000 %
0.750 %
0.500 %
10-1-2015 - 14:00
7-1-2015 - 08:00
7-21-2015 - 12:00
1-15-2015 - 09:30
3-10-2016 - 12:45
2-5-2015 - 15:00
2-11-2016 - 08:30
3-4-2015 - 12:56
11-1-2012 - 10:00
7-31-2015 - 11:00
3-17-2016 - 09:00
3-5-2009 - 12:00
North AmericaCountry Current InterestRate Previous Last Change
Mexico
United States
Canada
3.750 %
0.500 %
0.500 %
3.250 %
0.500 %
0.500 %
2-17-2016 - 17:15
12-16-2015 - 19:00
7-15-2015 - 14:00
AfricaCountry Current InterestRate Previous Last Change
Egypt
South Africa
8.750 %
6.750 %
9.250 %
6.250 %
9-19-2013 - 09:00
1-28-2016 - 14:00
Middle EastCountry Current InterestRate Previous Last Change
Bahrain
Turkey
2.250 %
7.500 %
2.250 %
7.500 %
1-4-2010 - 08:00
2-24-2015 - 12:02
China
Australia
India
Hong Kong SAR
South Korea
India
Taiwan
Philippines
Japan
Indonesia
New Zealand
4.350 %
2.000 %
6.750 %
0.500 %
1.500 %
5.750 %
1.875 %
3.500 %
-0.100 %
6.750 %
2.250 %
4.600 %
2.000 %
6.750 %
1.500 %
1.500 %
5.750 %
1.875 %
3.500 %
-0.100 %
7.000 %
2.500 %
10-23-2015 - 12:00
5-5-2015 - 04:30
9-29-2015 - 05:30
12-17-2008 - 02:00
6-11-2015 - 01:04
9-29-2015 - 05:30
7-1-2011 - 17:00
10-25-2012 - 08:30
1-29-2016 - 03:00
3-17-2016 - 09:00
3-9-2016 - 20:00
MB BUSINESS MAGAZINE MAY 2016
21
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rnie Hudson is an icon, and one
of the most compassionate
people Ive ever interviewed. Hes
smart and funny, and most of all, just an all
around nice guy. Ahead of his appearance
at Toronto ComiCon this weekend, I had
the chance to speak to Hudson for
half-an-hour about his incredible career,
including standout films like Ghostbusters
and The Crow, on top of his television
roles.
Read through the interview to hear what he
has to say about the new Ghostbusters
film coming out this year, and his part in it,
his role in the original film, making The
Crow and working with Brandon Lee, and
his moving thoughts on the Oscars so
white controversy. Its one of the most
personal interviews Ive had with an actor,
and frankly, Hudson makes some
wonderful comments on Hollywood, and
how people should treat each other.
Ernie Hudson called me Wednesday
morning, but he had to call me back again
an hour later because of some scheduling
issues. Once he called me back, heres
how the conversation started.]
Things get a little chaotic sometimes. Last
night Id been up for this show, so we finally
finished negotiating and so many things
were going on. I rarely ever oversleep, but
this morning was one time that I did.
Well that sounds like a good reason.
Yeah. No, no, its I love being active
more than sitting and looking at the phone
and wondering why nobody is calling.
Your list of projects certainly shows
that.
Yeah, yeah. Ive been very blessed. I love
what I do and Im still blessed to be able to
do it. Thats a good thing.
If you dont mind me asking, is there
anything you can talk about yet?
About the project youre booking?
Well Ill say this, its called APB.
I heard about that. Yeah.
Yeah, its a great project. Because
everyone makes you sign these
non-disclosure [agreements], or whatever. I
happened to talk about a project once and
the studio reamed me out.
You know what? Theres an article that
came out on Deadline. Its out there about
me joining the cast this morning. You can
find out what the project is if you look at
that. Thats all ready, I didnt put that out
there.
Itll be a fun Its a great script. Its a fun
show. Im excited about it. The problem is,
Courtesy: W. ANDREW POWELL
ERNIE HUDSONon Ghostbusters,The Crow, Hollywoodand humanity
we start shooting Monday.
Wow, thats right on the heels of
Toronto ComiCon.
Theres wardrobe and I got to you know
how that will impact me getting up to
Toronto, well see. Im determined to make
it up to Toronto at least Saturday, Sunday. I
wont get my schedule until later on today.
This literally just happened within the last
24 hours.
Well, Im sure the fans will be excited
to see you for whatever time you can
make. It seem as well like the last
couple of years, like this year and
last, have been big for Ghostbusters
for you too.
Yeah, Ghostbusters. Its been fun. I did a
cameo in the new one and got a chance to
meet the girls, who I hadnt met before.
Really, really funny. Very amazing. Theyve
got a great chemistry together.
Obviously its different than with four guys,
but theyll do their own thing with it and its
a great script. Im sure the special effects
are going to be phenomenal because of
what we can do now that we couldnt do
back in the 80s. Im excited about it. Im
looking forward to seeing it. Im really
honored that they asked me to come be a
part of it.
Thats cool. I mean, Im sure you cant
talk about much, but can you tell us if
you had a scene with all four stars?
Or just some of them?
Yeah, I worked with all four [actresses].
I know the studio is pretty excited and
working with Paul Feig was phenomenal. I
really like him a lot. I hope I get a chance to
do that again on something a little more
significant for me. It was a great
experience, and we shot at the fire house,
which was great going back there. It was a
good experience.
Thats awesome. One thing I read that I
had to ask you about was the fact that the
script changed for the originalGhostbusters
film. Almost before it was starting to film. Is
that right?
Yeah, yeah. Thats one of the things that I
was talking to Ivan Reitman [about]. We
kind of disagree about it. He remembers it
differently than I did. I have to acknowledge
that it was 30 years ago and sometimes
people see things from their own
perspective.
For me, at least in my mind, it changed
from what I went in thinking it was and what
it turned out to be, but in all fairness I look
back on it and I look at the movie with my
grandkids and its a perfect movie the way
it is. It works the way it is. I felt it might have
impacted my career in a different way had
it been different, but thats all looking back.
Its a wonderful franchise and Im very
blessed and thankful to be a part of it.
That brings me to another topic, and I hope
you dont mind. Its always a difficult
discussion, but with what weve seen
recently with the Oscars So White
discussions and everything elsewhats
your impression of Hollywood these days?
Youve had a very long career, but whats
your relationship with it? What do you think
is going on?
Well, ultimately I think that, you know, you
get into movies, and movies are financed.
People give the green light to have certain
things done. There are not a lot of Blacks
or people of color who are in the position
to give the green light. Theres also a
certain belief system that people have that
they make assumptions that the public
wants to see a certain thing, so there isnt
much diversity. There just arent many
stories. Theyll tell a story and theyll tell it
from their perspective. I used to wonder
how I would do a movie, and maybe I was
in the movie. I did one called Collision
Course.
I was in the movie, but they were
shootingsupposedly it was in downtown
Detroit even though we were shooting
somewhere else. The scene took place in
downtown Detroit. There were no Blacks in
the background. Jay Leno actually said
something about it, but how do you shoot
Detroit with no Blacks?
Then I realized that for a lot of white
Americans, who may even live in the city,
their circle of friends, maybe they dont
have any Blacks in their world. Hence
Woody Allens world that exists someplace.
It doesnt reflect the world as I see it, and I
travel to a lot of places.
We are diverse. We need these other
stories. We need to see the humanity of
other people. Hollywood doesnt feel its
part of their responsibility because their
primary goal, it seems, is to make money.
Not even to tell great stories. Not even to
make great films. Its all, somehow, it feels
to me as if its about lets make money and
in some peoples minds including Blacks or
Asians or Latinos or whatever will not make
money.
I read an article about one of the new
stories on Egypt, Ancient Egypt, with an all
European cast. They felt that they cant sell
the story if it included people of color. Its a
mindset that is behind the times, and its
wrong, and it needs to change, but its
hard to complain about the Academy [of
Motion Picture Arts and Sciences]. You
have to have worked for a fair amount of
time just to get in. Not everybody can get
it. Those people who have been working
are obviously those people, those whites.
Theyre the ones whove had the chance
to work. Theyre going to vote, and theyre
supposed to vote, based on what they
believe is the best of what they see. Since
theres not a lot of films out there with
people of color to choose from, its all
white.
Im a member of the Academy and have
been for 30 years, but there arent many
people of color in the Academy, and Im
not surprised. You cant have one film, that
even if you think its a good film, its
competing with 100 other movies. At the
end of the day theres not enough product.
Its not inclusive. Its a given assumption
that if were going to tell the story its going
to be all white. What I think we all do, and
its not just obvious racism, but its
something that we have to be mindful and
we have to thinkWait a minute, how else
can we go with the character?'
I have people who Ive worked for who like
my work, and they will say, Wow, we saw
this or that and we want you in the film.
Then they look, well how can we use
Ernie? Well well make him something. Well
make him the policeman. Its very hard for
me to be the bad guy or the guy whos
really involved in the story. I try not to do
those things anymore, because youre
included but youre not included. Thats
how I feel about Desperate Housewives.
I replaced a character who was involved in
the storyline, Kurt [Fuller], who was in
Ghostbusters. He was a policeman and he
was interested in Brie, and she rejected
him, so he was following her around. He
had a story. He was in the story. He got a
series and they called me and said, We
love your work. Im thinking theyre going to
carry on the storyline similarly to what he
had been doing, but all I was was the cop.
Id come in and say a couple of words and
then thats it. I did nine episodes, but I
wasnt involved. I think they need to look at
the world. Im glad to see now theres a
little more of the interracial coupling you
see in movies that you didnt see that many
years ago.
We need stories that are told from a
different perspective. I didnt boycott the
Oscars, because honestly, I think as a
member, if youre going to vote you cant
vote for somebody simply because theyre
Black or Hispanic or whatever reason. You
vote because you honestly believe its the
best performance. I think thats the way it
has to go. Also, I think a lot of people the
problem Ive always had with a lot of the,
and this will probably come out sounding
wrong, but I would much rather focus on if
someone comes up with a solution that we
can work with and gather round and be
excited about it.
Keep coming up with fighting the problem
and then wanting people to apologize for
what they did wrong to make them wrong.
To make them acknowledge that theyre
wrong.
I dont think people are very good at that. I
think theres no point in making someone
the bad guy here. Lets just figure out how
we can, you know, what we can do. Its not
the big stuff. Its the small stuff. Just be
more inclusive.
Well, and I mean the other side of this
is that, I mean, I loved Chris Rocks
segment, I dont know if he wrote it or
who wrote it, but going out and
talking to people at movie theaters.
The normal person on the street
didnt know a lot of the Hollywood
titles that were up for awards. They
were out to see films that they were
identifying with.
They werent identifying with it, and thats
unfortunate, because thats all they said.
They dont have a lot of choice.
Thats what everyone wants. Anyone
going to a movie theater wants to
identify with someone or something.
Thats what theyre trying to see.
We found that we, especially when I was
coming up, there were no films that you
could identify with. Somebody like a
Sammy Davis Jr. Or whoever. If there was a
Black then everybody would tune in to
watch it, because it was so rare that we
got a chance to see.
But, when they do that on the street thing,
Chris Rock, I mean okay, Im glad he
addressed it. He had to address it, and it
was okay, fine. Even though I dont
understand the Rihannas panties thing. I
know his point, but it wasnt that funny.
Secondly, he dragged on with it way too
long. I mean, lets not make the whole
show about that. Make your point and lets
move on. Youre hired because, you know,
be funny and stop I dont know. I just
thought it went too long. Thats just me. Im
just saying.
The thing I hate is you go on the street to
show people to make your point, I guess,
and then it comes a point like, are we
laughing at these people? I mean, you
know what I mean? You choose people
that, okay, this is really funny. Heres a
woman with her wig on wrong, and all it
does is lock more firmly these stereotypes
that you say you want to get away from.
You say you want to be a part of the
American story, but youre only showing a
certain part or the African-American story.
The fact that they dont see these people.
They dont see the movies, or they dont
understand, and I get that. Not all Black
people go to just those movies. I see all
movies, and so the studio is going, well of
course Im not going to make movies,
because theyre not going to see my
movies anyway.
I think you just have to be careful of the
message. Some of those people go, yeah,
theyll make a point. Then they resist and
you end up with somebody like Donald
Trump speaking for a lot of people who felt
a certain way but they didnt say it.
Im glad he addressed it, it had to be
addressed. Im glad they hired him, an
African-American. Im glad they were
inclusive on the program. Im glad the
president is Black and on and on and on,
but it really comes down to we need more
projects.
Blacks need to be whatever the
problem in society is, we Blacks, we
exemplify that even to a greater degree,
because we get very clique-ish. We get
very exclusive. We need to be more
inclusive as well. Its not just a white thing. I,
its hard for me sometimes to, people say,
well, is there racism in Hollywood, when I
got a job. You know what Im saying?
I dont have a job in Spike Lees movies. I
dont have a job in John Singletons
movies. I havent worked in those movies,
because, well I dont know why. Im just
saying, thank God, that it really shouldnt
be about color. It should be about humanity
and I believe that were human beings, and
on the being level, which is spirit, were all
one. That is the common denominator.
Until we kind of see the world from that
perspective and stop making people the
bad guy, because when you make them
the bad guy then youre justified in doing
anything.
Thats awesome. It was a pleasure
talking to you. Thank you so much.
Enjoyed talking to you man. You take care
of yourself.
22MB BUSINESS MAGAZINE MAY 2016
-
rnie Hudson is an icon, and one
of the most compassionate
people Ive ever interviewed. Hes
smart and funny, and most of all, just an all
around nice guy. Ahead of his appearance
at Toronto ComiCon this weekend, I had
the chance to speak to Hudson for
half-an-hour about his incredible career,
including standout films like Ghostbusters
and The Crow, on top of his television
roles.
Read through the interview to hear what he
has to say about the new Ghostbusters
film coming out this year, and his part in it,
his role in the original film, making The
Crow and working with Brandon Lee, and
his moving thoughts on the Oscars so
white controversy. Its one of the most
personal interviews Ive had with an actor,
and frankly, Hudson makes some
wonderful comments on Hollywood, and
how people should treat each other.
Ernie Hudson called me Wednesday
morning, but he had to call me back again
an hour later because of some scheduling
issues. Once he called me back, heres
how the conversation started.]
Things get a little chaotic sometimes. Last
night Id been up for this show, so we finally
finished negotiating and so many things
were going on. I rarely ever oversleep, but
this morning was one time that I did.
Well that sounds like a good reason.
Yeah. No, no, its I love being active
more than sitting and looking at the phone
and wondering why nobody is calling.
Your list of projects certainly shows
that.
Yeah, yeah. Ive been very blessed. I love
what I do and Im still blessed to be able to
do it. Thats a good thing.
If you dont mind me asking, is there
anything you can talk about yet?
About the project youre booking?
Well Ill say this, its called APB.
I heard about that. Yeah.
Yeah, its a great project. Because
everyone makes you sign these
non-disclosure [agreements], or whatever. I
happened to talk about a project once and
the studio reamed me out.
You know what? Theres an article that
came out on Deadline. Its out there about
me joining the cast this morning. You can
find out what the project is if you look at
that. Thats all ready, I didnt put that out
there.
Itll be a fun Its a great script. Its a fun
show. Im excited about it. The problem is,
we start shooting Monday.
Wow, thats right on the heels of
Toronto ComiCon.
Theres wardrobe and I got to you know
how that will impact me getting up to
Toronto, well see. Im determined to make
it up to Toronto at least Saturday, Sunday. I
wont get my schedule until later on today.
This literally just happened within the last
24 hours.
Well, Im sure the fans will be excited
to see you for whatever time you can
make. It seem as well like the last
couple of years, like this year and
last, have been big for Ghostbusters
for you too.
Yeah, Ghostbusters. Its been fun. I did a
cameo in the new one and got a chance to
meet the girls, who I hadnt met before.
Really, really funny. Very amazing. Theyve
got a great chemistry together.
Obviously its different than with four guys,
but theyll do their own thing with it and its
a great script. Im sure the special effects
are going to be phenomenal because of
what we can do now that we couldnt do
back in the 80s. Im excited about it. Im
looking forward to seeing it. Im really
honored that they asked me to come be a
part of it.
Thats cool. I mean, Im sure you cant
talk about much, but can you tell us if
you had a scene with all four stars?
Or just some of them?
Yeah, I worked with all four [actresses].
I know the studio is pretty excited and
working with Paul Feig was phenomenal. I
really like him a lot. I hope I get a chance to
do that again on something a little more
significant for me. It was a great
experience, and we shot at the fire house,
which was great going back there. It was a
good experience.
Thats awesome. One thing I read that I
had to ask you about was the fact that the
script changed for the originalGhostbusters
film. Almost before it was starting to film. Is
that right?
Yeah, yeah. Thats one of the things that I
was talking to Ivan Reitman [about]. We
kind of disagree about it. He remembers it
differently than I did. I have to acknowledge
that it was 30 years ago and sometimes
people see things from their own
perspective.
For me, at least in my mind, it changed
from what I went in thinking it was and what
it turned out to be, but in all fairness I look
back on it and I look at the movie with my
grandkids and its a perfect movie the way
it is. It works the way it is. I felt it might have
impacted my career in a different way had
it been different, but thats all looking back.
Its a wonderful franchise and Im very
blessed and thankful to be a part of it.
That brings me to another topic, and I hope
you dont mind. Its always a difficult
discussion, but with what weve seen
recently with the Oscars So White
discussions and everything elsewhats
your impression of Hollywood these days?
Youve had a very long career, but whats
your relationship with it? What do you think
is going on?
Well, ultimately I think that, you know, you
get into movies, and movies are financed.
People give the green light to have certain
things done. There are not a lot of Blacks
or people of color who are in the position
to give the green light. Theres also a
certain belief system that people have that
they make assumptions that the public
wants to see a certain thing, so there isnt
much diversity. There just arent many
stories. Theyll tell a story and theyll tell it
from their perspective. I used to wonder
how I would do a movie, and maybe I was
in the movie. I did one called Collision
Course.
I was in the movie, but they were
shootingsupposedly it was in downtown
Detroit even though we were shooting
somewhere else. The scene took place in
downtown Detroit. There were no Blacks in
the background. Jay Leno actually said
something about it, but how do you shoot
Detroit with no Blacks?
Then I realized that for a lot o