Government relations
Co-operatives play a vital role in the Canadian economy. Federal policies, laws and regulations directly affect the strength of co-operatives and mutuals, which then in turn can impact local economies, social and environmental spheres of our communities and so much more.
As a part of its purpose, CMC regularly advocates for the co-operative and mutual sector at the federal level to ensure the ecosystem’s voice is being heard. Furthermore, CMC monitors federal government activities, funding announcements and emerging issues. It also regularly meets with Members of Parliament, Senators, political staff, departmental officials, and other public policy leaders to discuss sector priorities and to raise awareness on opportunities and concerns. CMC also works with its Members and partners to keep them informed and engaged.
Below you will find a list of CMC’s main advocacy priorities. CMC’s advocacy activities focus on making sure fiscal and financial measures positively impact the co-operative and mutual sector, and that investments are made by the federal government to ensure growth and prosperity for the movement. If you have any issues, comments or suggestions that you would like CMC to be aware of, please contact Daniel P. Brunette, Senior Director, External Affairs at dbrunette@canada.coop.
Public Policy Priorities
1.Ensuring access to government-funded programs and initiatives
Canadian co-operatives should be able to access the right financing opportunities to help them achieve their goals and objectives. This includes all applicable Government of Canada business infrastructure or relief programs, as well as investment readiness, data infrastructure and social economy ecosystem programs.
2. Ensuring increased support and access to the Business Development Bank of Canada (BDC)
CMC would like to see the Business Development Bank of Canada (BDC) amend its policies, procedures, and practices, including internal training, to better serve non-traditional business models such as co-operatives and mutuals, and increase the number of co-operatives (and social enterprises) in its broader portfolio.
3. Making the tax deferred co-operative share program permanent
CMC is advocating that the Government of Canada ratify the Tax-deferred Co-operative Share Program as a permanent fiscal measure for the benefit of the agricultural co-operatives throughout Canada.
4. Promoting Business Conversions to co-operatives
CMC is asking that the Government of Canada encourage business conversions to co-operatives to help maintain local businesses and offer retirement-aged owners another option for their succession plans. Business Conversions to Co-operatives (BCCs) take place when private, public, or non-profit entities transition for a variety of possible reasons into a co-operative corporation. Conversions help to save jobs and businesses, while meeting local needs.
5. CREATING A DEDICATED CO-OPERATIVE CAPACITY BUILDING PROGRAM
CMC wishes to see the Government of Canada create a Canadian Co-operative Capacity Building Program that would help co-operatives to either start up, scale up, gain skills and expertise, or prepare for next steps, ensuring they are ready to solve community challenges and meet needs across Canada.
6. ENSURING THAT TAX RULES ARE HARMONIZED TO INCLUDE WORKER-CO-OPERATIVES
In collaboration with the Canadian Worker Co-op Federation (CWCF), CMC is advocating that the Government of Canada ensure that worker co-operatives are treated fairly in terms of tax considerations. CMC is also asking that incentives be put in place to encourage more employee ownership of businesses, similar to Employe-Ownership Trusts.
7. ACCESSING THE SMALL BUSINESS DEDUCTION (SBD)
CMC is asking that the Government of Canada ensure that entrepreneurs and businesses are not penalized when claiming the Small Business Deduction (SBD) simply because they are members of a co-operative operating in sectors other than agriculture and fisheries.
8. RE-ESTABLISHING THE CO-OPERATIVES SECRETARIAT OR A DEDICATED CENTRE
CMC wishes to see the Government of Canada re-establish and resource a Co-operatives Secretariat, or a dedicated co-operative Centre, under Innovation, Science and Economic Development Canada (ISED).,
This Secretariat or Centre would advise the Government on, and coordinate the implementation of, policies affecting co-operatives. This Centre would also work on a federal co-operative strategy as committed to in Motion-100 (2017) as well as encourage the use of the business model for the social and economic development of Canada’s communities. It would also provide a link between co-operative enterprises and the many federal departments and agencies with which they interact.
9. ESTABLISHING A FEDERAL CO-OPERATIVE INVESTMENT PLAN
CMC is asking the Government of Canada to establish a federal co-operative investment plan, inspired by Quebec’s Régime d’investissement coopératif, to support the capitalization of qualifying co-operatives and federations of co-operatives that need equity capital for their development.
10. PROMOTING FAIR TAXATION FOR INDIVISIBLE RESERVES
CMC is advocating that the Government of Canada implement fair tax treatments and/or other fair public policy treatments for co-operatives with an indivisible reserve, regardless as to whether the reserve is mandatory or adopted by an irrevocable choice of a co-operative.
CMC is also involved in files where the eligibility requirements for programs and funding streams are unclear or need to be amended, such as the Business Development Bank of Canada and the National Research Council Canada Industrial Research Assistance Program. Additionally, CMC is documenting and exploring concerns around delays in the issuance of business numbers to new co-operatives and the negative financial impact of section 136 (2)(d) of the income tax act on financing received from outside investors, at a time when the government is encouraging more impact investing through its Social Innovation and Social Finance Strategy. In keeping with longstanding agreements, CMC will support as requested and through referrals, but will not lead discussions related to insurance, banking nor housing. If you have experienced issues with any of these files or others because you represent a co-operative, please contact Daniel P. Brunette.