ESTABLISHING A FEDERAL CO-OPERATIVE INVESTMENT PLAN

CMC is asking that the Government of Canada commit to exploring and establishing a Federal Co-operative Investment Plan to support the capitalization of qualifying co-operatives and federations of co-operatives that need equity capital for their development. This Program is needed because co-operatives do not have the same framework or the same opportunities as companies making public offerings. For example, they do not have the same opportunities in terms of raising capital. 

The Program could promote the capitalization of co-operatives by granting, at the federal level, a tax incentive for acquiring preferred shares from a qualifying co-operative or federation of co-operatives. Investment shares would not be offered to the general public and a potential investor would need to meet eligibility criteria, such as being an individual member or employee of the co-operative or being involved in a formal partnership. 

CMC would like to see the Government of Canada commit to exploring the creation of a Federal Co-operative Investment Plan and take inspiration from the Co-operative Investment Plan in Quebec, which has been active since 1985.  

The potential of a Canada-wide Co-operative Investment Program was explored in March 2009 in a report produced by the Agricultural Co-operative Development Initiative (Ag-CDI), and funded by Agriculture and Agri-Food Canada, before the responsibility for the co-operative sector moved to Innovation, Science and Economic Development Canada (ISED).