September 2006
Competition Bureau Obtains Prohibition
Number 396
Order Against Sotheby’s and Sotheby’s
(Canada) Inc.
On August 28, the Competition Bureau obtained a prohibition order against the international auction house, Sotheby’s, and its Canadian sub-sidiary, Sotheby’s (Canada) Inc., following an investigation into an interna- Forty-Two Species
tional price-fixing conspiracy and its effects on auction services supplied Added for Protection
Under the Species at
Risk Act
. . . . . . . . . . . . . . . .
The order of the Federal Court of Canada prohibits Sotheby’s, head- quartered in New York, and Sotheby’s Canada, based in Toronto, from Hoodia Diet Pill
committing any offence contrary to the conspiracy and foreign directives Shipments Stopped at
the Border
. . . . . . . . . . . . .
Nunavut Receives $4.5
The order also prohibits Sotheby’s and Sotheby’s Canada from doing Million in Federal Gas
any act or thing directed toward the commission of an offence under Tax Funding for
sections 45 and 46 of the Act, and directs Sotheby’s and Sotheby’s Infrastructure . . . . . . . . . .
Canada to maintain and implement compliance measures that will pre- $1.15 Million in
vent any such future illegal activities. In addition, Sotheby’s will post a Funding To Support
notice of the order on its Canadian Web page, and both companies will the Canadian
Association of Fairs

notify Canadian auction sellers in writing about the Court’s order and will and Exhibitions . . . . . . . .
pay investigative costs, calculated by the Bureau at just under $800,000.
New Government
‘‘The Court’s order addresses the Bureau’s concerns that Canadian Continues To Deliver
vendors benefit from competitive prices for international auction serv- on its Tax Relief Plan . .
ices,’’ said Denyse MacKenzie, Senior Deputy Commissioner of Competi-
Business Accelerator
tion. ‘‘The Bureau’s investigation focused on the harm this international Receives $1.19 Million
Energy Ministers’
The companies must also educate their directors, officers, employees Conference Focuses
on Energy

and agents about complying with the Competition Act and for five years, Collaboration . . . . . . . . . .
each company must provide written proof to the Commissioner of Com- petition of compliance with the prohibition order. They must also pro- Prime Minister
Announces Increased

vide to the Commissioner any additional information or records Support for
requested for the purpose of monitoring compliance with the order.
2010 Olympic Games
Canadian Government Programs and Services Reports
For more information, contact: Maureen McGrath, The Bureau’s inquiry concerned an international con- Communications Advisor, External Relations and Public spiracy to suppress and eliminate competition by fixing Affairs Branch, Industry Canada, at (819) 953-8982.
auction commission rates, and the effects this conspiracymay have had on Canadian auction sellers between Source: This information originally appeared on the
April 1993 and February 2000. Bureau investigators deter- Industry Canada Web site at www.ic.gc.ca.
mined that Canadians may have been induced bySotheby’s and Sotheby’s Canada to consign their property Forty-Two Species Added for Protection
to auctions in the United States and elsewhere for sales Under the Species at Risk Act
subject to the fixed commission rates set by the illegalcartel. No evidence was uncovered that the conspiracy The Honourable Rona Ambrose, Minister of the Envi-
ronment and the Honourable Loyola Hearn, Minister of
Fisheries and Oceans, announced on August 24 the addi-
Under section 45 of the Competition Act, it is a crim- tion of 32 land-based species and 10 aquatic species to inal offence for competitors to unduly lessen competition Schedule 1, the list of species protected under the Species in a market by agreeing on prices they will charge their customers. Section 46 of the Act makes it a criminal offencefor a company carrying on business in Canada to imple- ‘‘I am very pleased that we are taking action today to ment any foreign directive intended to give effect to a protect and save some very precious species, from the conspiracy entered into outside of Canada that would con- north pacific right whale and the ancient murrelet to the green sturgeon. We are listing an incredible array of speciesthat are currently in jeopardy,’’ said Minister Ambrose.
The Competition Bureau is an independent law ‘‘Protecting species at risk helps us to ensure a safe future enforcement agency that promotes and maintains fair for our wild life and wild places and will allow future gener- competition so that all Canadians can benefit from com- ations to enjoy and experience their presence.’’ petitive prices, product choice and quality services. It over-sees the application of the Competition Act, the Con- Last fall the Governor in Council (GiC), on the recom- sumer Packaging and Labelling Act, the Textile Labelling mendation of the Minister of the Environment, acknowl- Act and the Precious Metals Marking Act.
edged receipt of 46 species assessments, undertaken bythe Committee on the Status of Endangered Wildlife inCanada (COSEWIC). This action initiated the nine month CANADIAN GOVERNMENT PROGRAMS AND
timeline for the GiC to decide on whether or not to add SERVICES NEWSLETTER
the species to SARA, or refer the assessments back to Published monthly as the newsletter complement to the CANA- COSEWIC. Of the 46 species, 33 were terrestrial species and DIAN GOVERNMENT PROGRAMS AND SERVICES, by CCH Canadian Limited.
13 were aquatic species. That number increased to For subscription information, see your CCH Account Manager or call 1-800-268-4522 or (416) 224-2248 (Toronto).
18 aquatic species by treating each population of six whitesturgeon populations as a separate species.
BINDIA PERSAUD, B.A., Information Specialist Eight aquatic species will not be listed at this time, including five populations of beluga whales, the porbeagle CHERYL FINCH, B.A., LL.B., Director of Editorial shark and two populations of white sturgeon.
‘‘Our focus continues to be the long-term health of these aquatic species,’’ said Minister Hearn. ‘‘We will con- tinue to enforce the protections offered by the FisheriesAct, while pursuing action plans to help these species recover. This approach allows us some flexibility to ensure RETURN UNDELIVERABLE CANADIAN ADDRESSES TO that we don’t negatively affect the fishing industry as we focus on helping these species make a comeback. These TORONTO ON M5W 1A1email circdept@publisher.com are both worthwhile goals, and I believe they can both beachieved.’’ The implementation of the Species at Risk Act rein- forces the Government of Canada’s commitment to ensuring the protection for species at risk and their ecosys-tems.
Canadian Government Programs and Services Reports
For more information, contact: Ryan Sparrow, Asso- permit and an importer cannot obtain such a permit after ciate Director of Communications, Office of the Minister of Environment Canada Wildlife Enforcement Division Source: This information originally appeared on the
works in close cooperation with the Canada Border Serv- Environment Canada Web site at www.ec.gc.ca.
ices Agency as well as other federal, provincial and interna-tional enforcement agencies to protect species at risk bothin Canada and abroad.
Hoodia Diet Pill Shipments Stopped at the
For more information, contact: Sheldon Jordan, Director, Wildlife Enforcement, Quebec Region, Environ-ment Canada, at (418) 649-6124.
Thousands of diet pill shipments ordered by Canadians are arriving at Canada’s borders and being Source: This information originally appeared on the
detained by federal wildlife and customs officials because Environment Canada Web site at www.ec.gc.ca.
they contain an endangered African plant species calledhoodia.
Nunavut Receives $4.5 Million in Federal
Hoodia has been featured on various media sources Gas Tax Funding for Infrastructure
as an effective, safe, natural appetite suppressant. Foreignmarketers, based predominantly in the United States, are The Honourable Lawrence Cannon, Minister of Trans-
advertising to Canadians who place orders, often unaware port, Infrastructure and Communities, the Honourable Levinia Brown, Nunavut Minister of Community and Gov-
ernment Services, and Elisapee Sheutiapik, President of the
Since May 2006, these diet pill shipments have been Nunavut Association of Municipalities (NAM), announced intercepted daily at international mail centres, courier facili- on August 28 that Nunavut has received $4.5 million in ties and airports in Montreal, Quebec City, Mississauga, federal gas tax funding for infrastructure projects and Calgary and Vancouver because importers do not have the proper permits. So far, in excess of 2,000 shipments havebeen detained. No charges have been laid, but federal ‘‘We are pleased to see these funds flowing to Wildlife Officers may charge importers who have not Nunavut to address the local infrastructure investment needs through stable and predictable funding,’’ said Min-ister Cannon. ‘‘Through this agreement, we are working in Hoodia is a cactus-like plant native to Namibia, Bot- partnership to help ensure that all of Nunavut’s communi- swana and South Africa. It is usually sold in powdered form ties enjoy improved quality of life, more economic oppor- or in capsules. A bottle of 60 pills usually costs between tunities, a healthier environment, and safety and security.’’ $30 and $45. Since 2005, the plant has been listed underAppendix II of the Convention on the International Trade The $4.5 million transferred on August 28 by the Gov- in Endangered Species of Wild Fauna and Flora (CITES).
ernment of Canada to Nunavut represents the second half There is legal trade in hoodia, which is managed by the of Nunavut’s 2005-2006 gas-tax allotment and the first half CITES international permit system which helps ensure that of their 2006-2007 allotment. Nunavut will flow the money wild populations of plants are not threatened by interna- to communities within the territory. Over five years, gas tax tional trade. In order for a shipment of hoodia specimens, funding of $37.5 million will be shared with communities parts, or products to be legally exported from, it must be accompanied by a CITES Appendix-II permit or certificateissued by the CITES Management Authority of the country ‘‘ The Government of Nunavut is committed to improving the infrastructure and quality of life of residentswithin Nunavut communities,’’ said Minister Brown. ‘‘This To protect this threatened species, Environment current funding agreement with the federal government is Canada is requesting that consumers ensure that before a good start to that end and we look forward to their they order hoodia diet pills, that the pills are being continued support and cooperation in the future.’’ imported legally with a proper permit. Consumers whoorder without proof of a valid CITES permit risk not Canada’s new government is committed to sharing receiving their purchase. Shipments without a valid CITES federal gas tax revenues — $5 billion over five years — with export or re-export permit will be detained by Environ- cities and communities across Canada. Gas tax funds sup- ment Canada wildlife enforcement officers or by Canada port environmentally sustainable municipal infrastructure Border Services Agency customs officers. Officers are not and will result in such environmental benefits as cleaner air legally permitted to release products without the proper and cleaner water in Nunavut. Eligible project categories in Canadian Government Programs and Services Reports
Nunavut include water, solid waste and wastewater sys- uing education component to provide resource materials tems. Funding can also help Nunavut communities build as well as follow-up training for program participants.
capacity for planning more sustainable communities.
‘‘The issue of E. coli and other pathogen outbreaks is ‘‘We are extremely pleased about the funding and the of great concern to the fair and exhibition industry sector in recognition of the infrastructure needs in Nunavut’s munic- Canada,’’ says Gary McRae, General Manager and CEO of
ipalities,’’ said Mayor Sheutiapik. ‘‘This funding will make a the Western Fair Association. ‘‘The C.A.F.E. program is a real difference and we look forward to being full partici- proactive step to ensuring that potential for E. coli contami- pants in the project identification and approval process.’’ nation is minimized and that animals can continue to bean integral part of Canadian fairs.’’ Nunavut receives more than its per capita share of the total gas tax funding available for provinces and territories, Participants of the C.A.F.E. interactive workshops will in recognition of the need for less-populated jurisdictions receive basic information on consumer protection and will to have sufficient funds to invest in infrastructure and of the help to develop site-specific tools to evaluate facilities and greater costs of infrastructure in the north. Within Nunavut, take action to reduce the risk of E. coli and other pathogen gas tax funding is allocated to communities under a flexible approach, as close as possible to a per capita basis, in C.A.F.E is a non-profit organization that provides lead- respect of the need to adjust for the smallest jurisdictions.
ership in the growth and development of the Canadian fair This allocation formula was negotiated between Canada, industry and responds to the needs of Canadian fairs, festi- Nunavut and the Nunavut Association of Municipalities vals, exhibitions, and their suppliers. For more information on C.A.F.E, please visit www.canadian-fairs.ca. Information
For more information, contact: Napatchie Kolola, Com- o n t h e A C A A F p r o g r a m c a n b e f o u n d a t : munications, Government of Nunavut, at (867) 975-6049.
Source: This information originally appeared on the
For more information, contact: Media Relations, Agri- Infrastructure Canada Web site at www.infrastructure.gc.ca.
culture and Agri-Food Canada, at (613) 759-7972.
Source: This information originally appeared on the
A g r i c u l t u r e a n d A g r i - F o o d C a n a d a W e b s i t e $1.15 Million in Funding To Support the
at www.agr.gc.ca.
Canadian Association of Fairs and

New Government Continues To Deliver on
On August 25, the Honourable Chuck Strahl, Minister
its Tax Relief Plan
of Agriculture and Agri-Food and Minister for the CanadianWheat Board, announced $1.15 million in support to the The Honourable Jim Flaherty, Minister of Finance,
Canadian Association of Fairs and Exhibitions (C.A.F.E.) for announced on August 31 that Canada’s new government is their Consumer Protection Programs for Farm Animal Con- keeping its promise to Canadians by delivering on its Tax tact at Fairs, Exhibitions and Shows program.
Relief Plan. The measures below are part of the govern-ment’s plan to deliver over $20 billion in tax cuts over the The federal funding under the Advancing Canadian next two years, which is more than the last four budgets of Agriculture and Agri-Food (ACAAF) Program will allow C.A.F.E. to deliver training programs to communities acrossCanada for reducing the risk of E. coli outbreaks to help These measures were part of the income tax measures protect consumers at events promoting human contact that were proposed in Budget 2006 but not included in the Budget Implementation Act, 2006, which received RoyalAssent on June 22, 2006.
‘‘Protecting the fair-going public from the risk of con- tamination while handling farm animals is a responsibility that we all take very seriously,’’ said Minister Strahl.
‘‘Canada’s new government is pleased to support the Canadian Association of Fairs and Exhibitions in its efforts tominimize the risk to humans and animals.’’ The primary focus of the C.A.F.E. project is to deliver ● the new tax credit for public transit passes; training workshops to individual fair, exhibition and showoperators. In addition, the program will feature a contin- ● the new deduction for tradespeople’s tool expenses; Canadian Government Programs and Services Reports
● a complete exemption for scholarship income received Steven Fletcher, Member of Parliament for Charles-
in connection with enrolment at an institution which wood-St. James-Assiniboia, made the announcement on qualifies the student for the education tax credit; August 31 on behalf of the Honourable Carol Skelton, Min-
ister of National Revenue and Minister of Western Eco-
● a doubling, to $2,000 from $1,000, of the amount on which the pension income credit is calculated; ‘‘Manitoba’s life sciences cluster presents economic ● an extension of the $500,000 lifetime capital gains opportunities for the province and promises medical inno- exemption, and various intergenerational rollovers, to vation for all Canadians,’’ said Mr. Fletcher. ‘‘Canada’s new government made a commitment to creating an environ-ment that supports jobs and growth, and we are ● the new Apprenticeship Job Creation Tax Credit; honouring that commitment to Canadians.’’ ● a reduction of the current 12 per cent small business tax Innovators and entrepreneurs looking to move new rate to 11.5 per cent for 2008 and to 11 per cent there- technologies from the laboratory to the marketplace need specialized assets and infrastructure in areas such as busi-ness operations, management, data security and quality ● an increase, to $400,000 from $300,000, of the amount control. Biomedical Commercialization Canada (BCC) will that a small business can earn at the small business tax provide these business applications in a secure and acces- sible environment that will also allow clients to collaboratewith partner companies in Manitoba and around the ● a reduction of the minimum tax on financial institutions.
The legislative proposals are being released in draft form so that taxpayers have an opportunity to consider and ‘‘By creating a shared business environment, we can comment on them before they are introduced in Parlia- reduce cost and provide clients with the programs they will ment. To facilitate this review, detailed explanatory notes need to be successful,’’ said Joe Wery, BCC President and
relating to the proposals are also being released.
CEO. ‘‘We will not only provide the business tools but wewill also show them how to use these tools to establish As the panel of health and physical fitness experts best business practices that will increase their investment appointed by the Minister of Finance to advise on the Chil- dren’s Fitness Tax Credit has not yet had an opportunity toreport its recommendations, the legislative proposals The life sciences sector in Manitoba consists of com- released today do not include provisions to implement this panies and research institutions that have expertise in car- credit. These measures will be incorporated in the legisla- diovascular and respiratory diseases, infections diseases, tive package to be tabled in Parliament.
diagnostics, medical devices, and pharmaceuticals. Exam-ples include the National Research Council Institute for Bio- Comments on the proposals are requested by Sep- diagnostics, the Canada Science Centre for Human and tember 22, 2006. Once the comment period is concluded, Animal Health, the St. Boniface General Hospital Research the government will work towards introducing these mea- Centre and the University of Manitoba.
sures in Parliament at the earliest opportunity.
Biomedical Commercialization Canada Inc. is a not- For more information, contact: David Gamble, Media for-profit organization founded by the National Research Relations, Department of Finance, at (613) 996-8080.
Council of Canada and the Province of Manitoba. Led by aprivate sector board of directors, BCC designs, implements Source: This information originally appeared on the
and manages a suite of technology commercialization Department of Finance Web site at www.fin.gc.ca.
services and programs for Canadian biomedical tech-nology and related firms.
Business Accelerator Receives
Western Economic Diversification Canada (WD) is a $1.19 Million
department of the Government of Canada that works inpartnership with the provinces, industry associations and Manitoba’s growing life sciences cluster may soon be communities to stimulate and encourage diversification of able to get its ideas to market more quickly with a the western economy, as well as to represent the interests $1.19 million investment from Western Economic Diversifi- of the West in national decision-making.
cation Canada (WD). Biomedical CommercializationCanada, a life sciences business accelerator, will use the For more information, contact: Jacquie Sippola, Com- funds to provide innovators and entrepreneurs with the munications Officer, Western Economic Diversification business tools they need to become successful.
Canadian Government Programs and Services Reports
Source: This information originally appeared on the
effectiveness of single-window approaches for regulatory Western Economic Diversification Canada Web site at processes. Ministers were also strongly supportive of set- www.wd.gc.ca.
ting timelines for the environmental assessment and per-mitting of energy projects.
As a followup to a federal, provincial and territorial Energy Ministers’ Conference Focuses on
meeting held in Regina in May 2006, the ministers dis- Energy Collaboration
cussed recommendations for a bio-fuels strategy in prepa-ration for a dedicated intergovernmental meeting planned Canada’s energy ministers concluded their annual meeting on August 28 by confirming their ongoing com-mitment to improving collaboration between jurisdictions Given consumer concerns with rising energy prices, to better address energy issues of concern to Canadians.
efficiency, conservation, supply and reliability, the ministersalso discussed the growing importance of ensuring that The meeting was co-chaired by the Honourable Canadians have access to reliable information about Gary Lunn, Minister of Natural Resources Canada, and the
energy and energy issues. Ministers agreed to work Honourable Archie Lang, Yukon Minister of Energy, Mines
together on energy awareness and public outreach to help Canadians better understand the challenges of energysupply and demand, and make informed decisions about Given the projected growth in Canada’s energy pro- their energy choices and consumption patterns.
duction to meet demand for both domestic use andexport over the next two decades, the ministers empha- The ministers agreed to reconvene in early 2007 to sized that energy supply, infrastructure, efficiency and con- confirm progress on identified priorities and prepare for servation options must be developed in a timely and the next Council of Energy Ministers’ Meeting to be held in responsible manner. The ministers committed to ensuring September 2007 in Whistler, British Columbia.
that Canadians have a secure, reliable and competitivelypriced supply of energy that maximizes economic benefits For more information, contact: Ghyslain Charron, and minimizes environmental impacts.
M e d i a R e l a t i o n s , N a t u r a l R e s o u r c e s C a n a d a ,at (613) 992-4447.
‘‘Canada is an emerging energy superpower. Our energy sector is prosperous and innovative, and we are Source: This information originally appeared on the
exploring new methods and technologies to produce Natural Resources Canada Web site at www.nrcan-
cleaner energy,’’ said Minister Lunn. ‘‘The agreements rncan.gc.ca.
reached today are critical to Canada’s approach to energyand to addressing the environmental challenges resultingfrom increasing energy demand in Canada.’’ Prime Minister Announces Increased
‘‘The approach being taken by the Council of Energy Support for 2010 Olympic Games
Ministers to work collaboratively with industry will helpCanada secure investment in, and support for, new, clean Prime Minister Stephen Harper and Gordon Campbell,
and efficient energy supplies,’’ said Minister Lang. ‘‘Minis- Premier of British Columbia, announced on August 30 that ters today recognize that developing more sustainable the federal and provincial governments will provide an energy supplies will require additional infrastructure like additional $110 million in funding for the 2010 Olympic pipelines and electricity transmission lines.’’ and Paralympic Winter Games, which will be held in Van-couver and Whistler, B.C.
Ministers reviewed a new model of technology collab- oration that would bring together industry, academia and Canada’s new government will contribute $55 million governments in public/private partnerships to strengthen in new funding to match $55 million the Government of the development and demonstration of energy technolo- British Columbia has set aside from its Olympic contin- gies. The model focuses on priority technologies needed gency budget. This will help offset increased construction to deliver a secure, prosperous and clean energy future and labour costs associated with building new sports and will link with other domestic and international pro- venues and renovating existing facilities. The Prime Minister grams. Ministers asked their officials to continue to develop noted that investments in the Games by the two levels of the model so that it can be finalized in early 2007.
government will pay dividends for Vancouver and theLower Mainland, both now and in the future.
Ministers also identified the need for further work in the area of regulatory efficiency. They tasked their officials The total funding dedicated to the Games is $552 mil- to identify and develop pilot projects demonstrating the lion. The funding is allocated as follows: Canadian Government Programs and Services Reports
● $290 million for sport and event venues, consisting of the ● $20 million for the operating costs of the Paralympic initial $235 million and the $55 million additional invest- ‘‘Expo 86 vaulted Vancouver into the top ranks of the ● $130 million for federal essential services such as health great cities of the Pacific,’’ the Prime Minister stated. ‘‘The and immigration, as well as border and meteorological 2010 Games will lift her into the ranks of the great cities of services. This amount also includes an investment of $87.5 million for security issues that are cost-shared withBritish Columbia; ‘‘The support of the Prime Minister and his govern- ment’s commitment to partner with us to make the ● $55 million to establish a Legacy Endowment Fund that 2010 Games the best ever highlights the fact that these truly will provide operational funding for specific 2010 Winter are Canada’s Games,’’ said Premier Campbell. ‘‘We look Games sporting venues and fund charitable and not-for- forward to showcasing Canada to the world and to sharing profit organizations conducting high performance ama- the incredible benefits the Games will bring with all teur sport programming at those venues and elsewhere Canadians.’’ Prime Minister Harper concluded by praising in Canada. This will ensure Canadians will continue to the work being done in preparation for the Games. ‘‘We use the venues and benefit from sport programming know the organizers and the athletes are going to keep working hard to make the 2010 Winter Games the bestever.’’ ● $37 million for horizontal management, such as commu- nications activities, support to the Four Host First Nations For more information, contact: Jennifer Chiu, Press Sec- retary, Office of the Minister of International Trade andMinister for the Pacific Gateway and the Vancouver-Whis- ● $20 million for the Live Sites Program (Olympic and Paralympic viewing venues located in Vancouver andWhistler that will allow residents and visitors to share in Source: This information originally appeared on the
the excitement of the Games experience); and Office of the Prime Minister Web site at www.pm.gc.ca.

Source: http://www.pch.gc.ca/cs-kc/cgpsr/cgov396.pdf


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