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Ministry of Consumer and Corporate Affairs Annual Report for the year ending March 31, 1981 British Columbia. Legislative Assembly 1981

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 Ministry of Consumer and Corporate Affairs
Annual Report
for the year ending March 31,1981
Province of British Columbia
Ministry of Consumer and Corporate Affairs
Legislation   4
The Year in Review
Liquor Control and Licensing Brancffl
Liquor Distribution Branch   23
Consumer Affairs
Operations Branch   9
Investigation Branch   10
; ^Consumer Credit and Debtor
Assistance Branch   11
Information and Eoucation Branch
Boards and Commissions
Corporate and Financial Services
Commission   26
Auditor Certification Board   26
Travel Assurance Board   26
Corporate Affairs
Corporate and Central Registry Office   14
Superintendent of Brokers, Insurance
and Real Estate   15
Superintendent of Credit Unions,
Co-operatives and Trust Companies   16
Support Services
Finance and Administration Branch!
Policy, Legislation and Program
Planning Branch   30
Legal Services Branch   30
Rentalsman   19
nistry of Consumer and Corporate Affairs
Senior Staff
As At February 1,1982
Peter S. Hyndman
Real Estate and Insurance
R.L. Bullock
! Mister
M.A. (Jill) Bodkin
Deputy Superintendent of
E.T. Jewitt
i e Director of Finance
W.G. Stewart
Deputy Superintendent of Real
Estate and Insurance
T.D. Hammill
1 of Operational
Director, Filings
E.E. Affleck
1 of Finance
W. MacMunn
Director, Investigations
and Inspections
F.E. Fagan
Superintendent of Credit Unions,
1 Legal Services
Go-operatives and Trust
J.D. Edgar
J.H. Thomas
1 Policy, Legislation
Deputy Superintendent
R.C.I. Beattie
hgram Planning
J.C. Lovelace
Acting Registrar of
tof Information
L.G. Huck
J.D. Usher
Deputy Registrar
L.G. Huck
a nan
Liquor Control and
J.D. Patterson
Licensing Branch
C.R. Green
General Manager
R.A. Gould
P.B. Smith
Director of Licensing
Ii Research and
Director of Enforcement
D.D. Cliffe
P.J. Larmour
Director of Policy, Research
c, Rent Review
K. Hancock
and Administration
K.G. Stewart
tl Manager
D.A. Tant
Chief Inspector
R.E.G. Smith
if., Victoria Operations
F. Fenn
Liquor Distribution Branch
|i Sandards and Review
L.R. Tubman
General Manager
R.A. Wallace
iter Affairs Program
Director, Finance
L.N. Dyer
uir Affairs
Director, Management Services
R.L. Simpson
sit Deputy Minister
S.G. Goodings
Director, Purchasing
K.D. Brownlow
tcif Investigations
M. Hanson
Director, Store Operations
CE. Ruddick
tttf Consumer Credit
Director, Distribution
Elton Assistance
H.F. Atkinson
Rector of
Security Manager
J.R. Bowcott
B.W. McCulloch
Chief Auditor
ote Affairs Program
Communications Manager
CJ. Courtenay
l| Affairs, Acting
Manager, Employee Relations
K.L. Leigh
is it Deputy Minister
M.A. Jorre de St. Jorre
Manager, Recruitment
ri indent of Brokers,
To the Honourable
Henry P. Bell-Irving, D.S.O., O.B.E., E.D.,
Ueutenant-Governor of the
Province of British Columbia
May It Please Your Honour:
I have the honour, Sir, to submit respectfully the Annual Report of
the Ministry of Consumer and Corporate Affairs Act for the Year
ended March 31, 1981.
Pefer S. Hyndman
Minister of Consumer and
Corporate Affairs
 The Honourable Peter S. Hyndman
Minister of Consumer and Corporate Affairs
Parliament Buidings
t^Por/a, B.C.
Sir: I have the honour to submit for your consideration the Annual
Report of the Ministry of Consumer and Corporate Affairs under
the Ministry of Consumer and Corporate Affairs Act for the year
ended March 31, 1981.
Jill Bodkin
Deputy Minister
Ministry of Consumer and
Corporate Affairs
 Province of British Columbia
Ministry of Consumer and Corporate Affairs
Bankruptcy Act (Federal - Part X only)
Blind Persons Rights Act
Builders Lien Act
Cemetery Act
Cemetery Company Act
Cemetery (Municipal) Act
Consumer Protection Act, 1967
Consumer Protection Act
Credit Reporting Act
Cremation Act
Debt Collection Act
Debtor Assistance Act
Motor Dealer Act
Pawnbrokers Act
Pyramid Distribution Act
Repairers Lien Act
Sale of Goods on Closing Out Act
Trade Practice Act
Trading Stamp Act
Travel Agents Act
Book Accounts Assignment Act
Chattel Mortgage Act
Commodity Contract Act
Company Act
Company Clauses Act
Condominium Act
Cooperative Association Act
Creditor Assistance Act
Credit Union Act
Funeral Plan Act
Insurance Act
Insurance (Marine) Act
Investment Contract Act
Mortgage Brokers Act
Mutual Fire Insurance Companies Act I
(not consolidated)
Partnership Act
Real Estate Act
Sale of Goods Act
Sale of Goods in Bulk Act
Sale of Goods on Condition Act
Sale of Goods on Consignment Act
Savings and Loan Associations Act
(not consolidated)
Securities (Forged Transfer) Act
Securities Act (excluding Section 140JB
Society Act
Trust Company Act
Vancouver Stock Exchange Act
Liquor Control and Licensing Act
Liquor Distribution Act
Residential Tenancy Act
Commercial Tenancy Act
Rent Distress Act
Ministry of Consumer and Corporate Affa
Warehouse Lien Act
Warehouse Receipt Act
Woodworker Lien Act
IB I; %
tfifl jj¥|-,
a§ m
i:he year, a number of important legislative
Siments were introduced and initiatives
|> maintain a fair balance in the
Ntor Dealer Act was amended to establish
the requirement that motor dealers post a
all vehicles offered for sale, to enable
iters to shop around.
ei n amendment to the Trade Practice Act,
Wis were authorized to order payment of
J 000 to consumers following conviction of
The courts were also given authority to decide
whether a supplier has violated the legislation by
exceeding a prior estimate when billing
"Shop Hop," a board game developed the
previous year for elementary school youngsters,
was introduced in the school system and was
received enthusiastically, as was "IOU," a
four-part video tape presentation about money
management and credit.
A budgeting guide, "8-Ball," was produced and
widely distributed. The booklet includes a
 strategy for money management, a financial skill
test and detailed budget charts to summarize the
participant's financial picture.
In its day-to-day operations, the Consumer
Affairs Program continued to help consumers
with their marketplace problems. Consumer
Centre staff answered more than 118,000
inquiries and mediated 6,876 cases where
consumers and suppliers had not been able to
resolve their differences.
Ministry debt counsellors were instrumental in
helping over 4,171 British Columbians with their
debt and money management problems.
Financial assistance to 14 community consumer
groups in areas not easily served by Ministry
offices enabled these groups to help thousands
of consumers with their consumer and debt
In corporate affairs, the CreditPpipn Act was
amended to improve the finaneiafstability and
accountability of credit unions.
Under the amendments, financial reserve level
requirements for credit unions were increased
from 21/4 per cent to the pre-1975 level of 5 per
A provision was introduced to provide for the
government appointment of an administrator if a
central credit union is found to be engaging in
unsound practices.
In addition, a uniform standard of auditing and
accounting practices for credit unions was
Later in the year, amendments to the Act were
introduced to encourage a more active ownership
of credit unions by their members. The
amendments, requested by the credit union
movement, provide for the introduction of equity
shares as a stable source of capital.
All amendments to the Credit Union Act were
designed to expand these institutions' investment
powers, facilitating competition with banks and
other financial houses.
A report was released dealing with share trading
activities surrounding the take over of Kaiser
Resources Limited by the British Columbia
Resources Investment Company. ThejB
investigation, carried out by securities law;
Leon Getz, concluded that there were no
violations of B.C. legislation.
Other amendments to the legislation were
introduced to assist the public, the legal
profession and the Ministry itself in comfflI
with the Company Act.
During the year, 21,380 companies were
incorporated, reflecting confidence in the
provincial economy and growth in businsl
|a3tjwty. The total, an all time record, wast
3,764 over 1979.
In response to the province's extremely tit
rental market, rent review provisions wSjl
retroactively extended. Under these proviI
tenants in units renting for $700 per mdffll
may appeal what they consider to be excsi
rent increases. Under another amendmer
landlords and tenants were authorized to
claims up to $2,000 with the Rentalsman. j
The annual rent increase limit for contMl
suites was raised from 7 per cent to 10 pel
reflecting the inflation rate and the governs
commitment to gradually phase out rente!
in order to encourage construction of new J
Interest paid to tenants on their security!
was increased from 8 per cent to 12 perca
improve incentive for landlords to upgrad
buildings, renovation rent increases were*
from 12 per cent to 18 per cent of the cos's
Owners of mobile home parks were proh a
from unreasonably restricting a tenant win
wishes to sell his or her mobile home witl tj
During the year the Rent Review Commit)!
was merged with the Office of the Rental H
In Liquor Control and Licensing, several $&
were made to better suit the public need I
convenience. One of the more controverll
matters concerned liquor licences for sp<ii
stadiums. The Regulations were changeM
allow consumption of beer and B.C. o@eH
 :lor areas. This occurred first at Nat Bailey
I ii in Vancouver and, subsequently, in
Sums throughout the Province. Reports
|||y the Branch indicated that this change
t about a substantial reduction in drinking
ins at sports events in these stadiums.
I r important change introduced the
II of designated resort areas whereby
:;hments in those locations could qualify
day openings. Furthermore, Regulations
aspect to the operation of restaurant holding
/ere clarified and provisions adopted
iy restaurant owners could make greater
lolding areas on their premisesp£
[me year, it was announced that the
would no longer regulate the price of beer
bed establishments. Another change
13d all licensees to special order products
Bilable in liquor stores thereby increasing
Ije of alcohol beverages for their
I distribution, the ministry opened the
i! iquor store in the province — a 22,000
rfoot specialty outlet at 39th and Cambie in
:iver. The store features many innovative
;<ng and display techniques, and offers the
lie of products, plus some exclusive to the
The Liquor Distribution Branch's Distribution
Centre in Vancouver shipped 7.9 million cases to
liquor stores during the year. An additional 1.4
million cases of imported beer were handled
through a separate distribution system during the
two-month labour dispute at B.C. breweries.
Plans are underway for a second distribution
centre, scheduled to open in Kamloops in the Fall
of 1981.
Net income from the sale of liquor for the year
was $280,410,866.00.
On January 6,1981, the Honourable Peter S.
Hyndman was appointed Minister of Consumer
and Corporate Affairs.
Other appointments during the year included:
E.T. Cantell, Q.C., Acting Deputy Minister;
Stewart Goodings, Assistant Deputy Minister,
Consumer Affairs; Allan Gould, General
Manager, Liquor Control and Licensing; William
H. Rourke, Registrar of Travel Services.
Vic Woodland, General Manager of Liquor
Control and Licensing since 1975, retired in
March, 1981.
^^^e rat ions
MpMaic ement
.^^^^terrier Credit and Debtor Assistance
fMr^l^rtion and Information
 Iations branch
aerations Branch mediates consumer
if ints and regulates several spefflc|||
a loops, Prince George, Vancouver and
IBransumer workers in Consumer Centres
io complaints and inquiries received from
j lie. In cases where the consumer has tried
llilfully to seek satisfaction from a
Ir or trader, Ministry staff will attempt to
I the dispute. Most consumers are given
libout their particular problems and deal
II matter themselves.
I^irarof Motor Dealers is responsible for
Iffijstration of the Motor Dealer Act. This
pises motor dealers and requires them to
t irtain standards and to disclose
bed information to consumers,
pnee with the Act is monitored by the
sir and three inspectors, based in
per and Kamloops.
Fgistrar of Travel Services is responsible
kidministration of the Travel Agents Act.
liters travel agents in British Columbia,
kiitors the activities of registered travel
ho ensure their compliance with travel
ton. In addition the Act provides for
y sation for travel services paid for but not
Bneteries division is responsible for the
rtration of the Cemetery Act, the Municipal
Sry Act, the Cemetery Companies Act and
^nation Act in British Columbia. In addition
Krapns of all cemeteries, mausolea,
niria, crematoria in the PrqjSTnce of British
i a, the Division audits the care funds for
M"iercial and municipal cemeteries, as well
Bnber of smaller cemeteries, mausolea
1 mbariathat have established care funds.
Bsion investigates all consumer
Jl its forwarded to it pertaining to the
ly ana funeral industries.
illations Branch administers the Blind
I Rights Act, which protects the rights of
blind people accompanied by registered guide
dogs. This program is administered in close
cooperation with the Canadian Nationalijnstitute
for the Blind.
• In 1980/81 Consumer Centres received more
than 107,000 phone inquiries, and were visited
by more than 11,600 people. There were 6,876
consumer complaints that required detailed
inquiries and mediation.
Ministry staff assisted consumers in recovering
$714,654.39 in rebates for goods or services
that were unsatisfactory.
At year end, there were 1,725 registered motor
dealers in British Columbia.
The Registrar of Motor Dealers conducted 14
hearings during 1980/81, resulting in the
cancellation of 9 registrations, the rejection of
three applications, and the issuance of one
registration subject to conditions.
• There were 667 registered travel agents and
wholesalers in B.C. as of March 31,1981.
During the year, 30 claims resulted in payment
of approximately $60,895 under the Travel
Assurance Fund, from which consumers are
reimbursed for prepaid travel services they fail
to receive. The fund held $545,950.10 at year
• During the year 12 registrants went out of
business either through bankruptcy, a
voluntary surrender of their registration, or a
revocation of their licence by the Registrar.
• The Motor Dealer Act was amended to
establish clearly the requirement that motor
dealers post a price on all vehicles offered for
• Under an amendment to the Trade Practice
Act, the courts were authorized to order
payment of up to $2,000.00 to consumers
following conviction of a supplier.
• The courts were authorized to decide whether
a supplier has violated the legislation by
 exceeding a prior estimate when billing
• A B.C. travel wholesaler, Tripmakers
International, ceased operations but consumer
loss was negligible. Approximately one
hundred consumers were given the option to
transfer to other tours or accept a full refund.
• Cemetery Statistics:
Inspections of cemeteries, mausolea,
columbaria and crematoria 167
Audits/Passing of Perpetual Care
•-Funds 43
Cemetery, mausolea, columbaria,
crematoria bylaw amendments and
rules approved 63
Cemetery, mausolea, columbaria,
crematoria rate approvals 52
Cemetery trustees appointed 2
Provincial Cemetery Board
appointments 9
Cemetery Closures 3
Cemetery, mausoleum,
columbarium, burial areas
approved 7
Certificates of Public Interest
for the establishment of cemeteries
issued 1
Certificates of Public Interest for
the establishment of mausolea
issued 2
• During February of 1981, the Ministry
contracted the Reverend Nunzio J. Defoe as a
consultant in the drafting of the new Cemetery,
Cremation and Funeral Services Act and
The Investigation Branch takes formalH
enforcement proceedings (civil or
"quasi-criminal") when consumer laws suil
the Trade Practice Act or the ConsumejBI
Protection Act have been violated. Under 11
Trade Practice Act, the Director of Tradall
Practices is empowered to substitute raBI
a consumer or consumers in situations ral
principle of law requires clarification in the I
Investigators are located in each of the Mill
Consumer Centres (Victoria, Vancouver, ll
George and Kamloops).
• A Company in the travel field agreed to t
$200 each to consumers who complain I
about an unsatisfactory cruise.
• Two consumers received settlements iij
connection with the premature rusting cj
• An investigation into the operation of ai
studio produced partial repayment tofil
• A supplier received a term of imprisonnil
unnecessary repairs carried out to the In
of elderly widows.
• The following enforcement activitiesg(l
completed during the 1980/81 fiscal ye:ij
Substitute Action and Defences
Assurance of Voluntary Compliance
Application for Receiver
(There were 15 enforcement proceeding!?!
underway at year end.)
11ncludes prosecutions taken under otlien
provincial statutes administered by the ctm
tisumer Credit and Debtor Assistance
fhas two distinct programs. The first is
> ible for the administration of credit
ig, debt collection and consumer
laMegislation touching on consumer
t he second is responsible for delivering a
lalve and remedial debt counselling
p These programs educate and inform
uers as well as the credit industry.
priES 1980/81
ler Credit Program:
pte Credit and Debt Law Guide 1980.
ihleted a minor study on credit
cnination and women, to be drafted for
fflBi in the fall of 1981.
[nued participation in a federal/provincial
brce on consumer credit. The task force
|se is to influence Bank Act Regulations
di seek consistency of credit regulation in
IsEces in Canada.
Eated draft regulations for the Consumer
hion Act.
(iissistance Program:
ii3d an evaluation of the Debtor
sance Program.
r>.sed funds handled — approximately
))00 or 35 per cent increase.
j sed ongoing caseload — approximately
) 14 percent increase.
nleted user specifications, developed
hire and chose hardware for the
cated needs of the Debtor Assistance
>cim over the next 5 years.
}'■ a decentralization process that will
Sdebt counsel ling services out to the
nunities and to the consumers who most
Soreventative and remedial services.
*>ped a campaign around our new "8
Budgeting pamphlet.
Debtor Assistance:
(a) Total counselling sessions'  4,004
(b) Orderly Payment of Debt2 orders granted
by the Branch   473
(c) Orderly Payment of Debt orders Paid
in full, settled or defaulted   277
(d) Net increase in caseload   196
(e) Total ongoing caseload
March31,1981  1,499
(i) Orderly Payment of Debts  1,142
(ii) Debtor Assistance Pool Plan3  80
(f) Funds receipted Orderly Payment of
Debts Program   $1,993,615.13
Funds receipted Debtor Assistance
Program   $   712,240.62
Total funds receipted  $2,705,855.75*
(g) Funds disbursed to credit grantors
Orderly Payment of Debts .... $1,865,039.90
Debtor Assistance Pool
Plan  $   615,525.97
Total funds disbursed  $2,480,565.87*
(h) Settlements, funds saved by
negotiating settlements for
debtors   $   228,526.05
Debt Collection:
(a) Number of licences issued to collection
agencies for calendar year end 1980  142
(b) Number of licences issued to collectors
for calendar year end 1980  516
(c) Number of licences issued to agencies
under Credit Reporting Act  40
(d) Number of written complaints handled
(April, 1980-March31, 1981)    156
(e) Number of telephone complaints/
enquiries  1,007
(f) Number of prosecutions underway nil
1 Includes 2,696 new clients and 1,298 updates.
2 The "Orderly Payment of Debt" provision of the
federal Bankruptcy Act provides that a court
 order may be issued, binding the debtor and
creditor to a realistic plan of repayment.
3 The "Debtor Assistance Pool Plan" is a
voluntary method of repayment acceptable to
both debtor and creditor. It may be
administered by either the Consumer Credit
and Debtor Assistance Branch, or by the
* The discrepancy between funds receipted and
disbursed is due to the fact that funds are held
in trust until authorized for payment.
The branch is responsible for explaining laws and
policy, and providing advice to the public by
means of speaking engagements, news
releases, enforcement reports, radio and
television appearances, and newspaper
interviews. Information officers also look after
advertising and general public relations programs
for the Ministry as a whole.
Resource centres, located in the Ministry's
storefront offices, provide books, magazines,
clipping files, and consumer product reports, to
help consumers make more informed decisions
in the marketplace. Also consumer education
programs are designed to assist teachers in
classrooms across the province.
The Trade Liaison Division keeps the business
community up-to-date with guidelines and
bulletins on consumer legislation.
A special Trade Liaison team monitors
newspaper, radio and television advertising;
questionable ads are followed up by telephone
and letters.
• The following publications were printed and
1. Organizing a Co-op in British Columbia
2. 8-Ball, A Game of Money Management
3. You and Your Marketplace Ministrl
4. B.C. Trade Practice Act
5. Exploring Stores
6. I.O.U. A Teacher's Guide
7. Shop Hop
8. Consumer Credit and Debt Law, 19i
9. Consumer Assistance Directory, 19
10. 1979 Annual Report
11. Legal and Financial Managements
Own Life, Prime Time, 1980
12. An update on Chimneys, Air-tighta
Fireplace Inserts and Glass Doors
"Shop Hop" and "I.O.U.," two educator
projects developed in 1979/80 to markt
International Year of the Child, were
introduced into the school system. 1
Two Enforcement Reports (#23 and #2
were issued.
Rick Stevens was appointed Chief of
Information Services.
Twenty speeches for the Minister, Depu
Minister, and other senior officials were
Thirty news releases were issued. I
Nineteen Consumer Action columns we
prepared and distributed to weekly ■
Three slide/tape audiovisual presentat
were completed: "So You're Looking fo
Car?;" "Inside the Companies Office*
Practice Act."
Two Trade Bulletins were produced am
distributed: "Use of the Word FREEiffi
Advertising;" "Repossession ProceeaH
lEjstribution statistics were as follows:
Letters/Requests/Bulk Mailings 11
Acts I
Brochures  M\
Education Materials  .91
Advertising Guidelines Ml
Motor Dealer Guidelines  91
Special Kits SI
Teacher's Kits |
Trade Liaison Kits 	
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The Registrar-General/Registrar of Companies
is responsible for the administration of all matters
relating to the filing of corporate documents
under the B.C. Company Act, Society Act and
other related statutes. He is also responsible for
all encumbrances filed in the Central Registry.
The office maintains complete corporate files on
all B.C. companies, extra-provincial companies,
co-operatives, societies, partnerships and trust
companies. It also maintains specialized files on
library commissions, cemeteries, railroads and
savings and loan associations.
• The recently installed online computer system
is operating efficiently. Conversion of the
200,000 existing files progressed on schedule.
• There was a general increase of 25 per cent
over last year in new incorporations together
with a revenue increase of 38 per cent.
• At March 31,1981, there were approximately
2,150,000 encumbrances on the data base of
the Central Registry.
• Planning was started and a study initiated for
microfilming all the manual filings in the office.
The urgency of space and security
requirements have made this project a priority.
• All of the Companies Office forms were
reviewed by a Systems Analyst. This resulted
in a reduction of the number and complexity of
forms. Most forms are now clear, functional
and simple to complete.
1. Incorporations & Registrations I
(a) B.C. Companies
(b) Extra-Provincial Companies
(c) Trust Companies
(d) Partnerships
(e) Co-operatives
(f) Societies
(g) Changes of Name (Companies)B
(h) Changes of Name (Societies)  I
(i) Amalgamations
(j) Continuations - 36 (into the Provffl
(k) Continuations - 37 (out of Proving
(I)   Roll-Overs
2. Dissolutions & Restorations
(a) Companies
(b) Societies
(c) Partnerships
(d) Company Restorations
3. Encumbrances
4. General Filings
5. Miscellaneous
(a) Certificates of Good standing
(b) Certified Copies
(c) Change of Purposes-SocietiesJ
(d) Partnership Changes
6. Searches
7. Total Revenue
1. Documents Registered Under: I
(a) Sale of Goods on Condition Acfl
(b) Chattel Mortgage Act
(c) Repairers Lien Act
 look Accounts Assignment
ffipany Act
'rovincial Home Acquisition
) ate Order Registrations for Sale of
ioods on Condition Act
ate Order Registrations for
Chattel Mortgage Act
ate Order Registrations for Book
iSunts Assignment Act
icuments Discharged Under:
I ale of Goods on Condition Act
i ihattel Mortgage Act
depairers Lien Act
j ook Accounts Assignment Act
rovincial Home Acquisition Act
ii Number of Documents Filed
locument Registration Fees $4,129,684
jearchFees 831,557
j hotocopy Fees 11,401
Revenue $4,972,642
5PERINTENDENT of brokers,
] Superintendent regulates the investment,
n ranee and real estate industries for the
irection of investors. He also contributes to
hjptimization of the economy of British
jmbia by encouraging operating efficiency
ieSapital markets, stimulating individual
rastment in securities, and monitoring the
pketplace in insurance and real estate
1:>. "Insurance Amendment Act" was
(Dduced, and, when proclaimed, will allow
9aterflexibility in defining the various
classes of insurance. Other provisions of the
Act clarify the procedures used for hearings
under the Insurance Act.
• The Regulations to the Real Estate Act were
amended to provide for the election rather than
the appointment of members who sit on the
Real Estate Council of British Columbia. Also,
municipalities and regional districts were
excluded from the requirements of Part 2 of the
Real Estate Act which deals with real estate
• British Columbia hosted the 63rd Annual
Conference of the Association of the
Superintendents of Insurance in Vancouver
from October 19 to 21,1980. Over 500
delegates from the Canadian insurance
industry were present and a wide variety of
topics were addressed.
(a) Securities Act 1,792
(b) Mortgage Brokers Act 904
(c) Investment Contracts Act 4
Licences Issued
(a) Insurance Act 8,596
(b) Real Estate Act 15,043
Vettings and Filings
(a) Securities Act
1. Prospectuses accepted 576
2. Statement of Material Facts
accepted 256
(b) Real Estate/Strata Titles Act
1. Subdivisions accepted 867
2. Strata Plans approved 643
(a) Before the Superintendent 48
(b) Before the Corporate and
Financial Services Commission 5
Rulings and Orders
(a) Securities Act 2,415
(b) Real Estate Act Nil
(a) Securities Act
(b) Mortgage Brokers Act
(c) Real Estate Act
Investigation Orders/Investigations
(a) Completed
(b) Underway
Total (Securities Act, Mortgage
Criminal Code)
Brokers Act,
Securities Act
Mortgage Brokers Act
Real Estate Act
Insurance Act
The Office of the Superintendent of Credit
Unions, Co-operatives and Trust Companies is
responsible for: regulating credit unions and
examining their finances regularly; registering
co-operatives; and regulating and inspecting all
trust companies operating in the province.
1. Credit Unions
• Total credit union assets continued to grow in
1980; reaching $4.93 billion as at March 31,
1981 - an increase of 15.2 per cent over
• Membership in credit unions reached 978,000
by the end of March.
• Liquidity reserves as at March 31,1981, were
11.7 per cent of the net share capital and
deposits, an excess of $270 million oven
statutory requirement.
• The number of credit unions in the prcH
dropped to 157 from 166 as a result of ss
amalgamations and the dissolution of IS
credit unions.
• The office's six inspectors inspected a tc
131 credit unions while the Credit Unioll
Reserve Board administered 26.
• Senior staff attended two meetings of m
National Association of Administrators d
Co-operative Legislation during 1980. B.
hosted the National Convention of N.A./
in June, and the Western Regional Meel
was held in Calgary in March.
• The Ministry met with B.C. Central cH
Union on several occasions to discuS
proposed changes to the Credit UnkM
• The most important changes were tfH
increased reserve provisions, and tnS
provision to allow credit unions to issra
shares. Other amendments updated the
financial reporting sections, gave the
the ability to appoint an administrator
centrajjjcredit union, and re-defined the |
of the Superintendent.
• Assets of the Provincial Share and Depc
Guarantee Fund (which provides an unli
guarantee on the shares and deposit®]
union members) totalled $45.8 millioMj
March 31,1981.
2. Co-operatives
• 37 new co-operatives were incorporatec
including 17 housing co-ops, 11 conOT
co-ops, 5 producer co-ops, 1 service co
others of a general nature and 1
» A new system of surveillance over
co-operative activities has been put into
operation. In keeping with Section 48 th
officers now make regular visits to, and
meetings with, co-operatives in all parts
jst Companies
tlijplarch 31, there were 113 trust company
IBtoffices - an increase of 3 per cent over
!f a total of 29 main offices were inspected
IBhe fiscal year, as well as 23 of a total of
ranch offices.
ffi of the Ministry attended the Annual
eral Meeting of the Trust Companies
raEtion of Canada in April, and also
:ded the Annual Conference of
H|trators of Trust Company Legislation
in Toronto in June.
Assets under administration by trust
companies in B.C. totalled $5.4 billion
including estates, trusts and agency funds.
Demand deposits from the public totalled
$289.4 million - an increase of 12.5 percent
over the previous year.
Guaranteed investment certificates and term
deposits totalled $1.4 billion, an increase of 4.8
per cent over last year.
Overall total of deposits and certificates was
$1.74 billion.
Mortgage lendings totalled $3.02 billion - an
increase of 2.8 per cent over last year.
fice of the Rentalsman disseminates
Htion, conducts research, and mediates
us related to the rental housing market in
[Columbia. Under the Residential Tenancy
p Rentalsman has jurisdiction to adjudicate
[dand tenant disputes related to:
| 1. Termination of tenancies
2. Rental rates and increases
3. Monetary claims and the disposition
of security depositees
^Contractual rights and obligations of
landlords and tenants.
ES 1980/81
(continued high rates of inter-provindai
igration into British Columbia during 1980
kted in near zero vacancy rates in almost
r immunities with a corresponding
cased strain on landlord and tenant
Bonships. The economics of building new
19 units, influenced largely by high interest
I, limited the ability of the rental housing
ditry to respond to the increased demand
r ntal units. As a result, significant pressure
kiloped on rents and the workload of the
■3 of the Rentalsman increased by
fcwimately 30 per cent.
p)pe with the increases in workload, further
Biizational and efficiency improvements
e implemented which increased employee
WJt by more than 70 per cent. Officers were
obliged to handle more than 150 open dispute
files at one time and, with the implementation
of a new word processing system, typing
output was increased from 21 to 36 original,
finished letters per typist per day.
» The Office of the Rentalsman and the Rent
Review Commission were legislatively
• A large number of miscellaneous amendments
were proclaimed in January 1981, which
addressed many of the inequities identified by
landlord and tentant representatives, and
simplified many of the procedural
requirements. The amendments resulted in a
reduction of the number of security deposit
claims requiring Rentalsman intervention and
a levelling of the volume of disputes other than
rent related disputes. Disputes related to renfl||
continued to increase in volume.
• An office was opened in Prince George, the
sixth in the province.
- 359,750 telephone inquiries were received
- 27,749 cases were opened and resolved
- 37,607 members of the public visited the
offices for information
- 7,821 inspections and service of documents
were conducted
- 90,449 letters were received
- 144,320 letters were sent out
- 198,914 notices of rent increase were received
and processed
■- nH
r m
H;    fa
sis?*      I:^2
[•RT3T8 § iKiiYl»
Bar Control and Licensing Branch, under
jftf the Liquor Control and Licensing Act
sgulations, is engaged in the following
Ujjng and transferring licences for the sale
■King breweries, distilleries and wineries.
. msing the agents of breweries, distilleries
pi wineries.
i/iitoring and controlling liquor advertising in
ir province.
I^Sing licensed premises to ensure they
Duply with the law.
ping appropriate disciplinary action against
insees for contraventions of the Liquor
iwol and Licensing Act and Regulations.
fence categories are as follows:
Bffs:   Hotels, resorts, clubs, recreational
centres, aircraft, trains, motor
vessels, airports, municipally and
provincially owned cultural centres,
universities, military messes.
Bices:   Dining establishments primarily
engaged in the service of food.
pees:  Cabarets primarily engaged in
providing entertainment.
pees:   Neighbourhood Public Houses.
Sports stadiums or concert haliUfc
Establishments oriented to marine
activities (Marine Public Houses).
l)he General Manager of the branch, Victor
■ Woodland, after a distinguished career
ui over 30 years with the B.C. Government,
p Hired on March 19,1981. R.Allan Gould
was appointed as his successor on March
(b) During the year, the branch continued to
improve its manual systems while at the
same time working with B.C.jSystems
Corporation to establish a data processing
and word processing system. The B.C.S.C.
project rose out of four separate
management studiesMnce 1975 and is
scheduled for implementation in
November, 1981. Upon full
implementation, the branch will have the
ability to make its decisions in a much more
sophisticated way and will have acceasjto
statistical information never before
(a) The branclrfcontinued its full support for the
R.C.M.P. and Vancouver City Police
walk-through programs. 1980 was the first
full year of the program under the R.C.M.P.
and it now covers most of British Columbia.
The reports provided by the police from
their visits to licensed establishments are
forwarded to the branch, whether those
reports are good or bad. The branch has
been concentrating on following up these
reports with disciplinary action as quickly
as possible. In addition, when the branch is
in receipt of a number of good reports in
relation to an establishment, the Director of
Enforcement makes a point of writing to the
owners of the establishment and
complimenting them on their operation.
(b) The policy of conducting hearings in the
field was continued wherever possible.
(c) The General Manager, Deputy General
Manager and Director of Enforcement each
had the authority to conduct hearings with
licensees, making the enforcement
process much faster and more efficient.
(a) Business expansion in the Province was
noticeable in the requirements for new
liquor licences. The branch noticed
 considerable expansion in new hotel
construction and upgrading of existing
facilities. Furthermore, licensed restaurants
continued to be opened rapidly.
(b) There was considerable expansion in the
recreational centre type of licence. This
licence class is used to permit lounges to
be open in golf clubs, curling clubs, ski
resorts, bowling alleys, etc. By far the
greatest expansion in this area during the
past year has been in racquet centres of
one type or another and has proven to be a
valuable asset to such a facility in providing
an amenity for the user and making the
facility much more viable.
(a) There was continuing encouragement for
British Columbia wineries. In cooperation
with the Ministry of Agriculture, the branch
has been working towards the
development of new acreage for grapes in
the Okanagan.
(a) Amendments to the Liquor Control and
Licensing Act, primarily of a housekeeping
nature, were enacted in the 1980 session
of the legislature and became effective on
June 27, 1980.
(b) There were various amendments to the
Regulations as follows:
May 9,1980—this amendment allowed
the sale of beer and B.C. cider in seating
areas of licensed sports stadiums.
August 14,1980 and September 24,1980
— there were various amendments relating
to Sunday sales in resort areas,
establishing rules for holding areas in
restaurants extending Sunday hours from
11:00 a.m. to 11:00 p.m. and limiting
maximum capacity in neighbourhood public
houses and marine public houses to 65
September3,1980 —this amendment
allows licensees to special order any liquor
product through the facilities of the Liquoi
Distribution Branch.
Effective October 15,1980, amendments
were made to increase licence fees as
Issuances and Renewal — from $100 to
Transfers — $50 to $100
Special Occasion Licences:
Private - from $2 to $5
Public-from $10 to $20
• Liquor Licences
Total Licences Licences Issued Total L
at          April 1, 1980 —
April 1, 1980  March 31,1981 March:
A Licences              1,313               107
B Licences              2,454                366
C Licences                245                 30
D Licences                144                 16
E Licences                    1                   4
F Licences                    4                   1
Totals:                     4,161                 524
There were 170 lice'nce cancellations rani
1,1980, to March 31,1981. Many canclBI
were the result of establishments conveffliil
other types of premises.
Licences issued to March 31,1981, by
A Licences ■
B Licences ■
Public House
"A" Pub
Combined Pub
Recreation Centres
Cultural Centres
Dining Rooms
Dining Lounges
Dining Lounges/
Holding Areas
Public Houses
■ 5   Sports Stadiums
5   Marine Public Houses
iJontrol and Licensing Revenue for the
;lided March 31,1981:
faFLicence Issuance
j ers Licence Fees
fy Licence Fees
|3B|Licence Fees
|"ir Purchase Assessment
65 10,659,199.41
iferFees 44,100.00
!l|of Shares 11,100.00
fy Receipts 408.04
lijBlccasion Licences 138,869.00
|ir Control and Licensing Branch
B3||ient statistics for 1980/81:
e/alk-Through Program
iner of walk-throughs — April 1, 1980 to
n 31,1981, (Reported to Liquor Control
|»wising Branch)
it 5,599
April 1,1980 to March
solinary Action -
Jiier of Warning Letters Sent:
Jn^of Hearings:
iner of Suspensions:
I e mandate of the Liquor Distribution Act,
•icor Distribution Branch is solely
arble for managing all operations
^'3cjflvith the distribution of beverage
alcohol in the province. While encouraging the
production and sale of B.C. products, the Branch
selects listings on the basis of quality, value and
consumer demand. The Branch offers a
comprehensive product selection, through a
province-wide system of retail liquor stores and
agency stores in remote communities.
The purpose of the Liquor Distribution Branch is,
in accordance with the Liquor Distribution Act, to
provide service acceptable to consumers of
alcoholic beverages in British Columbia; to
achieve established financial returns; and to
provide suppliers with a controlled access to the
marketplace on a fair and equitable basis.
Its goal is to achieve service levels in an efficient
and equitable manner, while bearing in mind the
many responsibilities associated with the
distribution of liquor.
• As a result of its twice yearly Listing
Committee, the branch added 85 new products
to its portfolio, including 42 table wines, and 6
new beers.
• At year-end, the total of general listings was
maintained at approximately 1,200, while over
500 specialty items were offered for sale.
• AsatMarch31,1981, the Branch employed
1,799 regular and 1,493 auxiliary staff in
administration at Head Office, in the large
Vancouver distribution centre, and the store
Total government liquor stores numbered 211
at year end, consisting of 141 self-serve and
70 conventional (counter) stores. During the
year, major renovations were done on 6
stores, including 3 conversions to self-serve.
New premises were completed in 12 locations,
with 4 of these additions to the overall store
system. In December, the Branch opened the
largest store in B.C., a 22,000 square foot
specialty outlet at 39th and Cambie in
Vancouver, featuring many innovative
marketing and display techniques and offering
the full range of products, plus some exclusive
 to the new store. A total of 9 agency stores
were appointed while two were closed,
bringing the total at year-end to 53.
• The Distribution Centre shipped 7.9 million
cases to liquor stores throughout the province.
During the two month domestic beer labour
dispute, an additional 1.4 million cases of
imported beer were handled through a
temporary and separate distribution system.
Store delivery frequencies were increased and
telephone ordering service implemented for
most stores. A decision was made to proceed
with the development of a second distribution
centre in Kamloops, scheduled to open in Fall,
1. Summary of Balance Sheet
as at March 31,1981
Current Assets $29,492,020
Fixed Assets (at cost, less
accumulated depreciation)  9,807,775
Total Assets $39,299,795
Current Liabilities S34.8
Working Capital Advance 4,4
Total Liabilities $391
2. Summary of Statement of Income, J
year ended March 31,1981
Sales $694,0
Cost of Merchandise Sold  3701
Provincial Malt Levy 321
Operating Expenses  78,9
Other Income 3,7
Net Income .J280.4
 "-V*. **K. **
: ^-=^QMMISilONS
.A^r^frpoT'ate and=g|iai3.eiaj
uw Service SvC.grwi i ss i q n
^A ujjjtb r "Gert ifieat wm Bb^a'rd
The Commission acts as an appellant body to
hear and review rulings under certain sections of
the following statutes: the Securities Act,
Mortgage Brokers Act, Company Act, Credit
Union Act, Liquor Control and Licensing Act,
Liquor Distribution Act, Travel Agents Act, Motor
Dealer Act, Society Act, Investment Contract Act,
and the Credit Reporting Act.
Generally, any person or company primarily
affected by any administrative direction, decisISnp
order, or ruling under any of the above Acts, or by
a stock exchange, has a right of appeal to this
Commission. (There are specific exceptions.)
• The Commission heard 11 appeals, requiring
15 days of hearing and review; 14 additional
appeals were filed and subsequently
abandoned. The appeals were made under the
following statutes:
3 under the Liquor Control and Licensing Act
3 under the Securities Act
1 under the Motor Dealer Act
1 under the Credit Union Act
2 under the Company Act
1 under the Liquor Distribution Act
• Abandoned appeals were under the following
1 under the Motor Dealer Act
1 under the Society Act
2 under the Liquor Disttibution Act
7 under the Liquor Control and Licensing Act
2 under the Securities Act
1 under the Credit Union Act
• During the fiscal year the membership of the
Commission consisted of:
W.H. Kemp Edmonds, Q.C. — Chairman
Charles F. Long, Esq. — Vice-Chairman
Kenneth G. Russell, Esq. — Member
John M. McEwen, Esq. — Member
John H. Carter, C.A. — Member
The Board considers claims from consum
travel agents or travel wholesalers wholl
out-of-pocket for services not rendered or
services paid for twice. The Board may
recommend whole or part payment and mi
conduct hearings or other investigational
o During the year 30 claims resulted in pa
of $60,895.00 under the Travel Assurffl
Fund, which held $545,950.10 at year e
• Members of the Board include: GustaS
(Chairman), David T. Hardouin, Malcolr
Nicholson, Jean M. Douglas, GerrardE
Manning, Stewart Goodings, and David
The Board examines and certifies
non-professional accountants as audit®
reporting companies.
A reporting company is generally one whi
comes under one of the following specifi)
(a) a company with securities listed on an
(b) a company ordered by the Registrar
Companies to be a reporting company
(c) a company deemed to be a public dffljl
prior to the 1973 Companies ActH
(d) any corporation by or under an act oft
• Of six applicants, two were approved fcj
certification in 1980/81.
• Members included: R. Campion, F.Cffll
(Chairman); B.F. Adams, C.G.A.; W.J.
Fedorak; G.C. Gray, C.A.; R.L. Bullock
^^^Rijee aifd Administratis^
Iwlllfea alServieeMijfJB^I^
The roles of the branch are now undertaken by
the Personnel Administration Division and the
Financial Services Division, which work closely to
provide effective support to Ministry programs. In
this way, effective control of support services
ensures optimum use of the fiscal, human and
physical resources available to these divisions.
Financial Services is responsible for all matters
pertaining to financial planning, accounting and
fiscal control within the Ministry. Three
managerial positions were created in 1980 to
head the major sections within the Branch.
Personnel Administration provides a complete
range of personnel activities for the Ministry,
including organizational design, classification
analysis, labour relations, recruitment, and staff
training and development.
Personnel Administration Division
• Integration of all Personnel functions within the
Ministry of Consumer and Corporate Affairs
brought about a major change for the
Personnel Administration Division. Personnel
staff in Liquor Distribution Branch now report to
the Director of Personnel at Head Office in
Victoria, thus creating a single Personnel
Division for the entire Ministry, reporting to the
Executive Director, Finance and
Administration. The Personnel unit in the
Liquor Distribution Branch was reorganized
with a Manager over Labour Relations,
Classifications and Safety and another
Manager responsible for Recruitment and
The following activities exclude the Liquor
Distribution Branch:
• Joint union-management committees were
established to deal with occupational health
and safety standards.
• A Personnel Regional Office was estac
in Vancouver to service Ministry progre
the lower mainland and interior and to t
closely with Financial Services' Adminii
Manager, whose position was establill
the same time.
• The Office of the Rentalsman and the
Corporate Affairs Division underwent
organizational reviews primarily as a re
heavy increase in the volume of workB
• The following mangement positions m
Assistant Deputy Minister, Consumer J
General Manager for Liquor Control an
Licensing Branch; Regional Personnel
Director of Policy, Legislation and Proc
Planning. As of March 31, 1981, reguls
employees numbered 494 maintainM
1979/80 level. Auxiliary employees tofl
128, an increase of 7 from 1979/80 lev
of this number of regular employees, tn
were two retirements and 161 resignal
total of 136 regular positions were fillel
from the previous year's level of 146.
The following activities relate to the Lioffll
SEistribution Branch:
• Organizational reviews of Liquor Disg]
Branch's Finance Department and
Management Services Department we
initiated. The Director of Purchasings
was filled.
• Total number of regular positions as of
31,1981, was 1,799 while auxiliary em
numbered 1,493. The 1979/80 level w:
1,775 and 1,496 respectively. There wi
retirements and 1,235 resignations froi
Branch's employee ranks, down frorrj||
1979/80 level of 85 and 1,374 respectf
Financial Services Division
• Financial Planning
Primary responsibility is for the prepar;
monthly and annual statements on the
financial position of all areas of the Mm
consultation with Program Operating
Managers, the Financial planning secti
produces year-end expenditure and re
 gns for budgetary control and
ifnent decision-making purposes. The
is responsible for coordinating the
ition of the Ministry budget. During the
Iffiiscal year, the budget process was
developed, utilizing a modified
Be budgeting system, to improve the
||decision-making process and to
e program management accountability,
won is called upon by senior
ement from time to time for special
ii assignments.
Responsibility is to process Ministry
3S and expenditures, including the
Considerable effort has been made to
; accounting policies and procedures in
:tion with central agency guidelines.
Bess will take several years to
E. Thislpction is also responsible for
ffing the purchase of supplies and
Bnt, planning and coordinating office
Bordinating Victoria mail and courier
Pand telecommunications requests.
Financial Services, Vancouver
A unit was created in Vancouver to provide
timely advice and guidance on financial and
general administrative problems to Program
Operational Managers within the Vancouver
area, on behalf of the Director of Finance.
1980/81 Estimates
The following table indicates the total
approximate Revenues and Expenditures for
the fiscal year 1980/81:
Revenues $26,662,000
Travel Expenses
Office Expenses
Office Furniture and Equipment
Advertising and Publications
Materials and Supplies
Acquisition of Motor Vehicles
Data Systems and Processing
Building Occupancy Charges
Other Expenditures
The branchfpfovides a central resource of staff
services to the Ministry's executive and line
branches. Its functions are to evaluate the
Ministry's policies, programs, systems, and
legislation, and to coordinate their development
to meet the requirements of a changing
• J.C. Lovelace, who had been Acting Director of
the branch since August, 1979, was appointed
Director in November, 1980.
• The branch coordinated revision of or
amendment to the following pieces of
legislation: The Credit Union Act, the Company
Act, and the Real Estate Act. In addition, the
branch coordinated minor amendments to
other acts within the Ministry's jurisdiction
contained in Miscellaneous Statutes
Amendment Acts.
• Work continued on new security and personal
property security laws, new warranty/product
liability legislation, consolidation of consumer
protection legislation, and on liquor policy. A
study of alternative mortgage instruments was
also initiated.
• A major new element in the work of the branch
concerned the evaluation of the effectiveness
of the Ministry's programs, beginning™
Liquor Control and Licensing BranchH
• The branch continued to coordinate syj
development throughout the Ministry^
operations. Development of a major sy
the Rentalsman's office was continued
work was initiated on the basic Licensl
Information system for Ministry-wide
application. An evaluation was conduq
word processing equipment, which mm
promise of increased productivity in rrfj
applications in the Ministry.
The Ministry of Consumer and Corpor^
administers a large number of statutes ar
regulations with a particularly high degrei
To meet this situation, the Legal Services
^Sffipmposed of eight lawyers from the Mi
Attorney General who are assigned on a
llpfsis to provide legal advice, services an
information to the Ministry and its stats
Three lawyers are located in the Minisffl
offices in Victoria. Five lawyers are locate
Ministry's Vancouver offices.
In addition, law students are retained on
time basis throughout the year to assi^
research and advisory work.


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