A special House of Commons committee on co-operatives has recommended that responsibility for the sector be moved from Agriculture Canada to Industry Canada.
The committee, chaired by Alberta Conservative Blake Richards, also recommended Sept. 17 that the government recognize the importance of the sector in the Canadian economy, and that government agencies work with co-ops to make sure their programs fit the sector’s needs.
Richards said the impact of the sector is indisputable, with its millions of members and hundreds of billions of dollars in assets.
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“Co-operatives have proven remarkably resilient and they are a key contributor to Canada’s economic recovery,” he said.
The Conservatives caused an uproar In last spring’s budget by ending funding for the Co-operative Development Initiative, which helped nurture new and emerging co-ops and slashed funding for the co-op secretariat within the department. Co-operative leaders condemned the cuts, while agriculture minister Gerry Ritz insisted the sector is strong enough that it does not need small pots of government money.
The all-party committee did not mention the cuts, although the New Democratic Party issued a minority report calling for a renewal of the CDI fund and a strengthening of government support for co-ops.
However, co-op movement leaders said they were happy with the committee report and its recommendations.
It said the report reinforces the need for continued contact between government and the sector, which could lead to new ways to support new co-operatives.
Shawn Murphy, manager of government relations for the Canadian Co-operative Association, said the recommendation to put Industry Canada in charge of the file is a good one.
“We find it a better fit to move from agriculture because not all co-ops are agriculture co-ops and that was part of the reason the program was cut because it was not considered a core program by Agriculture Canada,” he said.
“Being housed in industry is a better fit in the long run and government will understand co-ops are businesses.”
Murphy said sector leaders decided it would not be useful to continue to fight against last spring’s funding cuts.
“The sector was upset, but there was an understanding that this government in particular does not change its mind on a decision so they are not going to come back with this program,” he said.
“We didn’t see any value in flogging this issue and we are still disappointed, but we see an opportunity to develop something new.”
