Thank you, Mr. Chair.
Desjardins Group thanks the Standing Committee on Finance for the opportunity to meet with members of the committee during the 2012 pre-budget consultations.
With current assets of 194 billion dollars, the Desjardins Group is the largest cooperative financial group in Canada. Its main network of caisses is in Quebec and Ontario, with branches found around Canada. Desjardins Group offers expertise in wealth management, life and health insurance, property and casualty insurance, personal services and business services. It has 5.6 million members.
Recognized in 2012 as the top corporate citizen in Canada and ranked among the 100 best employers in Canada in 2012, we focus on the skills of nearly 45,000 employees and over 5,400 elected officers.
It is also worth noting that Desjardins Group offers an education and cooperation program for its members, but also for the general public. In addition to responses provided earlier this year during written consultations, we would like to draw the committee's attention to avenues that fit with issues related to the economic recovery, i.e. growth, job creation and economic stability.
The year 2012 is the International Year of Cooperatives, as declared by the United Nations and supported by Canada. The year has seen many cooperative events including, more recently, the first International Summit of Cooperatives held last week in Quebec City. This event brought together over 2,800 participants, representing over 91 countries. Regulations on cooperative banks were also published this year, and a special committee on cooperatives was struck and published its report a little earlier.
All of these measures, and the International Year of Cooperatives, have highlighted a plural economy. Diversification, which most of our economists advocate, is not only about different sectors but also about different types of businesses. The cooperative structure deserves to have its place in the Canadian economy. It is an excellent complement to the traditional structure of equity companies.
To illustrate the economic role of cooperatives, there are 9,000 cooperatives in Canada, representing 18 million members. There are over 150,000 jobs through them. The survival rate of cooperatives is twice as high as that of traditional equity companies; they are more resilient and perform better, particularly during times of economic stress. They also serve regions and categories of clients that are not served by traditional business and they are highly adaptable.
Nevertheless, financial cooperatives and all cooperatives are facing particular issues including capitalization issues, which also lead to demutualization pressures. Even more importantly, cooperatives need a high-quality representative within government. The significant reduction to the Rural and Co-operatives Secretariat a little earlier this year, as announced in the previous budget, sent a mixed message to all cooperatives from the government. It can be interpreted either as a lack of interest or, on the contrary, as an opportunity for renewal and transformation. We fervently hope that it is the latter that is planned.
In conclusion, the federal government can greatly contribute to spreading the cooperative model for the benefit of all. Transfer and responsibility for cooperatives from the Department of Agriculture, where it is now, to the Department of Industry is essential in our eyes for cooperatives to be able to benefit from all policy and program support.
Finally, we invite the government to ensure there are safeguards to prevent all unjustified enrichment, particularly for demutualization applications.
Thank you.