Canadian co-operative leaders called it a “disturbing signal” from the government about its lack of regard for the importance of the co-operative movement.
New Democratic Party agriculture critic Malcolm Allen called it a “ruthless” and “misguided” government decision that will hurt rural development.
Agriculture minister Gerry Ritz said it simply is a reflection that the co-op movement is big and healthy enough to stand on its own.
As the implications of the deficit-reducing March 29 federal budget trickled out last week from affected unions and interest groups, sharp reductions in federal co-operative support programs were part of the picture.
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Staff positions at the rural and co-operatives secretariat within Agriculture Canada will be cut to 15 from 92 over several years.
And the $4 million annual Co-operative Development Initiative, created in 2003 to help new and expanding local co-ops, will be axed.
The cuts come in the midst of the United Nations-sanctioned International Year of Co-operatives, supported by Canada and whose Canadian launch in January came with a speech from Veterans Affairs minister Steven Blaney.
In an April 13 interview, Ritz suggested the sector is strong enough that it does not need taxpayer subsidy.
“When I think of the co-operatives, they tell me they have a net worth of $385 billion in Canada,” he said.
“I’m not sure why they ask for $4 million from taxpayers to write books about the history of their co-ops and that’s predominantly the applications we are getting. I think this could be done at a whole different level than taxpayer money.”
Brigitte Gagné, executive director of the francophone division of the Canadian co-operative movement, said the decision to cut the CDI and federal co-op staff was a lack of recognition of the importance of the sector in the country’s economy.
“The cuts in the CDI program and the rural and co-operatives secretariat send a very disturbing signal for all Canadian co-operatives,” she said.
“We don’t understand this decision in light of the program’s success. We are now waiting for a concrete gesture on behalf of the (prime minister Stephen) Harper government to show its support for the co-operative sector.”
