Thank you, Mr. Chairman.
The Conseil canadien de la coopération represents a network of francophone cooperatives across Canada and more than 8 million francophone cooperative members in over 3,300 cooperatives, whose consolidated assets now exceed $125 billion.
As part of these pre-budget consultations, Mr. Chairman, the Conseil canadien de la coopération would hereby like to share with the committee a number of suggestions and proposals. My submission will focus on four axes, the first of which is the capitalization of cooperatives, or the introduction of a cooperative investment plan.
The Cooperative Investment Plan, an investment plan designed to meet the identified needs of cooperatives, promotes and enhances the growth and capitalization of eligible cooperative enterprises, because this is the primary tool that allows cooperatives to grow and develop across Canada.The plan primarily targets worker cooperatives, producers and the agricultural sector in general.
The CCC testified before the committee in 2004. In the 2005 budget, the Canadian government made a commitment to continue studying the idea of creating a cooperative investment plan. It should be remembered that this plan grants a tax benefit to members who acquire eligible preferred shares, thereby making capitalization possible. Such a plan was first established in Quebec over 20 years ago. Currently, over $200 million has been invested in cooperatives to allow for their development and sustained growth.
Therefore, Mr. Chairman, we call upon the Minister of Finance to introduce a nation-wide cooperative investment plan for agricultural cooperatives and worker cooperatives in its 2007 budget. I would point out that these are long-awaited initiatives.
Axis 2 , Mr. Chairman, is the cooperative development initiative, a five-year program instituted in 2003. The purpose of the CDI is to help groups develop the cooperative model, to assist with research and to test innovative applications of the cooperative model.
Our submission notes the lack of available financial resources to the advisory service component. This became clear last year following an exercise conducted with the Cooperatives Secretariat.
Mr. Chairman, we ask the Canadian government to confirm the renewal of the existing partnership agreement with the Conseil canadien de la coopération and with the Canadian Co-operative Association with a view to extending the program until the Co-operative Development Initiative comes to an end. We would like the government to make a commitment in its next budget to renew the program for the 2008-2013 period before the current phase of the initiative expires.
Axis 3, Mr. Chairman, is the social economy sector. In 2004, the Canadian government committed to a social economy development program to promote businesses involved in the health care, home care and community care sectors.
Recently, as part of its cost-cutting exercise, the Canadian government eliminated certain program components. We are asking the Canadian government to reinstate in its 2007 budget a development incentive program for cooperatives and social economy enterprises.
The final axis, Mr. Chairman, is the funding of the Conseil canadien de la coopération. The CCC represents all provincial councils and we ask for greater, ongoing support from the Canadian government, so that we may promote the development of francophone cooperatives across Canada.
In conclusion, we ask that the Canadian government acknowledge more forcefully the cooperative movement as a partner in social and economic development across Canada. The cooperative formula was first developed over a century ago and provides the community with an opportunity to take charge of its own affairs and in the process, ensure its survival. The population of Canada is concentrated in some densely populated areas, while certain other regions are threatened. We want to be perceived as the government's partner in social and economic development.
Thank you.