If the federal government expects financial institutions to deliver government programs, it should include them when designing the programs, a senior credit union official said.
“It is our view that agriculture programs and policies that impinge on producers and financial institutions can only be successful if financial institutions are brought into the policy-making process in the early stages of development rather than at the tail end,” Pam Skotnitsky, associate vice-president of government affairs for Credit Union Central of Canada, told MPs June 9.
Poor program design has forced some new programs to be delayed once flaws were identified late in the process, she said.
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The credit union official said programs such as slaughter plant loans, administering AgriInvest accounts and giving out cash advances require lenders to act as agents for the government.
But in many cases, they have no say over the programs.
Skotnitsky said development of the details for recent amendments to the Farm Income and Marketing Co-operatives Loans Act was an example of how policy design should be done. The bill is scheduled to be approved in the Senate this week and likely proclaimed into law.
When the government first announced several years ago that the FIMCLA program had become outdated and would be cancelled, credit unions objected and the government agreed to reform the program instead. It expanded eligibility for loans to beginning farmers and to co-ops with up to 49.9 percent non-farmer membership. Loan levels also were raised.
She said those ideas came from credit unions.
“In our view, this stands as an example of a fruitful consultation that will ultimately benefit all stakeholders,” the credit union official told the House of Commons agriculture committee.
