Thank you, Mr. Chairman.
Mr. Chairman and members of the special committee, thank you for the opportunity to speak to you today. I compliment you for your efforts to review and explore the important role of cooperatives in this International Year of Cooperatives.
My name is Vera Goussaert, and I am the executive director of the Manitoba Cooperative Association, or MCA. The Manitoba Cooperative Association is a provincial association of cooperative organizations, created by our members to enhance and support the development of a united, growing, and influential cooperative movement in Manitoba.
MCA has been around, informally, since the 1970s and 1980s, when a small group of cooperators would meet to discuss issues of importance to the cooperative movement. However, MCA formalized in the late 1980s and early 1990s, with the creation of two key programs that are still in existence today: the Manitoba Cooperative youth leadership program and the Manitoba Cooperative awards program.
While MCA has been around for a number of years, it was not until 2005 that the organization was able to hire its first full-time executive director and begin delivering cooperative development services. This was thanks to the federal co-operative development initiative advisory services funding that was received by our association.
With increased capacity at the association, in 2007 MCA entered into partnership with the Government of Manitoba and
the Conseil de développement économique des municipalités bilingues du Manitoba.
Along with this partnership, the Government of Manitoba announced $1.25 million to be spent on cooperative development over five years. What followed was the co-creation of a vision and a strategy for the cooperative community in Manitoba.
The implementation of this strategy is ongoing today, but we are very proud of the work we have already accomplished.
Some of the initiatives include, for one, the introduction of resources on cooperatives for high school teachers, in both French and English. These resources, known as the All 4 Each program, were developed by the Ontario Co-operative Association in partnership with provincial associations across Canada.
We've also been successful in the introduction of a course on the management of cooperatives at the University of Winnipeg's Faculty of Business and Economics. We are continuing to work with the university to strengthen our relationship and to pursue other activities to enhance cooperative education at the post-secondary level.
We also have been successful in the creation of an interdepartmental co-op group within the provincial government, recognizing that cooperatives operate in many industries and within many sectors of our economy and should not fall under the responsibility of just one government department.
We have seen changes to our Manitoba Cooperatives Act to allow for the creation of multi-stakeholder co-ops. And we've seen some other changes to our act that have made it easier for existing cooperatives to operate.
Finally, one of the more notable initiatives that resulted from the strategy was the creation of a co-op development tax credit, the first of its kind. It allows co-ops and credit unions across Manitoba to make contributions to a fund managed by MCA. In turn, they receive a substantial tax credit. MCA then uses the funds we receive from these co-ops to deliver technical assistance and to offer small grants to new and existing co-ops.
MCA has been actively working with groups and providing technical assistance to co-ops since 2005. In that time, capacity at MCA has increased. We now have a full-time co-op developer on staff who works with groups to help them develop their co-ops.
MCA also delivers small grants for co-op development. They come from three pools of funding. The first is CDI advisory services funding. The second is co-op tax credit funds, and the third is co-op assistance funds, which we receive from the Province of Manitoba. These grants assist with things such as group development, technical expertise, incorporation fees, the development of business plans and feasibility studies, and small capital expenses.
One of the groups we have been able to assist is the Peg City Car Co-op in Winnipeg. This co-op has been operational for just over one year. They received grants and technical assistance from MCA. They also received a large grant through the cooperative development initiative innovative cooperative projects program. Peg City currently has over 80 members, three vehicles on the road, and employs two people. This co-op is growing and has visions of operating across Winnipeg, with numerous cars and serving numerous members.
Another example is the Western Manitoba Seniors Non-Profit Housing Co-op in Brandon. It received small grants and some technical assistance from MCA. It is currently under construction, building a 34-unit, mixed-income housing complex for seniors.
The Mondragon Worker Co-op in Winnipeg is another example. It received small grants from MCA to expand its business into a restaurant, bookstore, and organic grocer. This co-op has been operating since 1996 and employs 16 to 20 youths in downtown Winnipeg.
Finally, another example is the Compo-stages Manitoba Services Co-op out of La Broquerie, which received small grants and technical assistance. It is currently in development to provide composting consultancy and services to livestock operators and municipal waste departments.
As you can see, there's a variety of areas in which these cooperatives are starting.
We encounter many challenges working with groups trying to start and grow cooperatives. First and foremost, there's a general lack of understanding of the cooperative model. Economic development officers, lawyers, accountants, and the people who generally assist in business start-ups, are not familiar enough with the co-op model and often discourage groups from pursuing that model of incorporation, even though it might be the most suitable for the project.
Also, given that co-ops are groups of people working together for a common purpose, typically a lot of time needs to be spent on group development, and this can take a lot of patience and resources.
Finally, access to capital has been a long-time struggle of cooperatives. We have seen some co-ops dissolve in order to meet the capital requirements needed to grow their businesses.
Moving forward, we would like to build on the success and momentum we have achieved in Manitoba. This work has been a direct result of working in partnership and having ongoing and open dialogue between government and members of the cooperative community. Working in partnership, we can develop strategies to address the needs of the co-op sector, as well as the needs of government.
We also need to see that co-ops can access relevant programs at all levels of government. Co-ops are often excluded from the vernacular of government programs. But even if they are included, sometimes they are discouraged from accessing programs due to lack of understanding and awareness of the co-op model.
Finally, we would like to see the creation of a national co-op development fund, developed by the sector in partnership with government. This could address some of our needs for access to capital.
I want to thank you again for giving me this opportunity to be with you today. I am open to any questions you might have.