Nova Scotia Co-operative Council

EMPLOYMENT PARTNERSHIP LAUNCHED

The provincial government and the Nova Scotia Co-operative Council kicked-off a new partnership Feb. 24 that will connect unemployed or under-employed Nova Scotians with jobs that meet today's labour market needs.

Premier Darrell Dexter and Community Services Minister Denise Peterson-Rafuse launched the Target 100 employment program. Mountain Equipment Co-op, a member of the Nova Scotia Co-operative Council, hosted the event, which was broadcast live via a government webcast.

The Target 100 program is designed to recruit, train and employ 100 Department of Community Services' clients over the next two to three years for jobs at co-op businesses around the province.

"Target 100 connects real people with real jobs in their community, and not just any jobs, but good jobs with benefits, profit sharing and opportunities for advancement," said Premier Dexter. "These are the kind of jobs that will enable struggling Nova Scotians to raise their families and build a life."

Over the next few years co-ops and credit uions will have hundreds of vacant positions to fill. It makes sense to work with Community Services, which shares the same values, to fill the positions, said Ms. Peterson-Rafuse.

"Both the co-op council and Community Services operate on values of self-help, social responsibility and caring for others," Ms. Peterson-Rafuse said. "Target 100 allows us to work together to support the healthy productive people and communities we believe in."

"This is the best kind of partnership, one where everybody wins," said Dianne Kelderman, chief executive officer of the council. "It is a win for the co-ops looking for employees, a win for Community Services in its efforts to provide people in need with opportunities to become independent and, most importantly, a win for those who find not just a job, but a career."

Potential positions vary from customer service to marketing, management, skilled trades and administrative. Salaries will start at $10.50 to $15.50 an hour. Jobs will also come with medical and dental benefits, pensions, co-op shares, training and the opportunity for loans at reduced rates.

Budget Allows Credit Union Growth

Credit unions are applauding the federal government’s plan to introduce legislation that will make it easier for the co-operative financial institutions to operate nationally.

In his federal budget, Finance Minister Jim Flaherty said Ottawa will move forward with legislation that allows credit unions to incorporate federally.

Credit unions say the legislation will give them more growth options if they are allowed to operate outside their traditional provincial boundaries.

"We are marking a historic milestone today," said Mark Mcloughlin, chairman of the Case for Progress committee, an industry group that has been lobbying for such changes for years.

"This new legislation benefits all Canadians by increasing their choices in selecting a financial institution. It will strengthen the stability and competitiveness of the entire financial services industry in Canada."

Credit unions are relatively small co-operative financial institutions that are owned by their members. Currently, more than five million Canadians belong to a credit union.

In Quebec, one of that province’s biggest financial players is the Desjardins financial co-operative, which operates banking, credit union and other financial services.

Credit unions also have a bigger presence in British Columbia and other parts of Western Canada, where the movement has deep roots.

From The Canadian Press

Valencia Named to Co-operation Council

The Nova Scotia Co-operative Youth Alliance would like to announce the recent selection of NSCYA participant, Amber Valencia to the Atlantic Council for International Co-operation’s Active-8. Amber attended NSCYA’s Eastern Region Seminar in 2009 and has been working to educate her fellow peers on the issues surrounding global development.

Amber has dedicated the last 4 years to such groups as NSCYA, Students With Boards, Global Issues Committee, 30Hour Famine, and has taken part and directed numerous fund raisers for international groups. Inspired by her heritage, Amber says her dedication is driven by the words of Dr. Seuss. “And the turtles, of course... All the turtles are free- As turtles and, maybe, all creatures should be."

As part of the International Development Week for 2010, the Atlantic Council for International Co-operation wants to recognize youth leaders who promote global social justice and environmental sustainability in their everyday lives. Amber is one of eight Youth Ambassadors from throughout the Atlantic region who was selected to be part of the ‘Active-8’ Team who will lead the campaign by inviting individuals and groups to create an on-line pledge to take action during International Development Week. Each Youth Ambassador will compile a team of other youth who will compete to win a prize for the most pledges obtained. The eight individuals and their efforts to build a better future will be profiled nationally with other youth leaders from across Canada.

“Amber is an inspiring and outstanding young lady. Her love for her fellow man, and the beliefs and values of co-operation makes her a perfect candidate. Her positive attitude is motivational and she is an absolute asset to any team. Amber is an amazing young leader, and she continues to groom herself for a bright future”, says NSCYA Program Coordinator Meghan Farrell.

Co-op Sector Launches Innovative Health Management Service

HealthConnex – Connecting People for Health, a new initiative pioneered by Nova Scotia’s co-op and credit union, recently launched its first in a suite of service offerings. A web-based portal, offering access to a range of health management information and moderated health discussions went live for the 300,000-person strong co-op sector in the province and is also open to all Nova Scotians.

“The goal of this initial offering is to start more Nova Scotians on the path to actively managing their own health care. Our health system is set up to provide care when we get sick. HealthConnex is about helping people stay healthier and better manage illness when it strikes,” Dianne Kelderman, CEO of the Nova Scotia Co-op Council said.

The HealthConnex portal perfectly complements Canadians changing expectations and desires about health care. Earlier this year a detailed study by the Deloitte Center for Health Solutions found 58% of Canadians want online tools to help them assess, monitor and manage their health.

While the internet has millions of sites offering health information, a challenge isfinding sites that are reliable and offer medically sound information. The HealthConnex portal meets that challenge.
All of the health information provided on the site comes from respected and validated sources. The blogs and discussion forums on the site will be moderated.

“We see HealthConnex complementing the efforts of doctors by making patients more aware of how they can better manage their health,” Kelderman said.

From this start as a source of reliable health information, HealthConnex will grow in 2010 with a mix of services and tools. The initiative will be offering easy access to affordable health and wellness services not covered by government funding. And it will be providing services to family physician clinics that allow doctors to spend more time on patient care.

“We are targeting the early spring for another launch of useful health and wellness services,” Kelderman said.

Seaport Market Construction Hits Halfway

Construction of the new $11.5 million Halifax Farmers’ Market at Pier 20 in Halifax has reached the halfway point, virtually assuring the state-of-the art facility will be open for vendors and shoppers this summer.
Designed by Lydon Lynch Architects, the Seaport Farmers’ Market will be one of the most environmentally sustainable markets on the continent. Energy will be provided through wind turbines, solar panels and a geothermal heating system. A green roof will deflect heat in summer and collect rainwater year-round to be used for cleaning and flushing the toilets.
The open concept project will be double the size of the current space in the historic Brewery Market.
The project received money from three levels of government, but organizers have also set up an economic development fund that offers tax incentives to individuals who invest in the market.
Gordon Michael, executive director of the Farmers’ Market Investment Cooperative, said the market will be returning a dividend back to the cooperative when it turns a profit — likely a year and a half after it opens this June or July,
“It’s a business model. It’s not a charity,” he said in a release.  “The more that the market does in the way of business and other revenue streams, the investors will benefit.”
So far, the cooperative has raised $1.2 million with over 430 investors.
Shares will be sold into the spring.
For more information www.halifaxfarmersmarket.com and click on investment

Former Scotsburn Head Honoured with Lifetime Achievement Award

Jim MacConnell, retired president and CEO of Scotsburn Dairy, was honoured recently with a Lifetime Achievement Award by the Pictou County Chamber of Commerce.
During his 36 years with the giant dairy MacConnell oversaw expansion and acquisitions that grew the company to 800 people when he retired five years ago.
MacConnell did odd jobs at the plant when he was a young child, but he never worked in the business until after university and some time working with a Halifax oil company.
There was just 20 employees when he joined as sales manager in 1964, but that number grew at the businesses focus on butter grew to include milk and especially ice cream.
Over the years he fought efforts to move the company to Toronto, preferring to keep the company close to its Stellarton roots.
MacConnell`s community involvement has been extensive. His name appears among the lists of presidents or directors of community organizations ranging from Chamber of Commerce, the Pictou Regional Development Corporation to the Pictou County YMCA.
In retirement he still sits on the advisory board for Scotsburn and is a member of the Board of Directors for Co-Op Insurance and Knox College in Toronto. He is the current chair of the Aberdeen Hospital Foundation and an elder at Kirk Church.

Council lauded for governance procedures

The Nova Scotia Co-operative Council was honoured recently (Dec.2009) by the Canadian Cooperative Council with the Leadership in Co-operative Governance Award (Small Co-op Category).
The award recognizes innovation and excellence in governance in co-operatives and credit unions across Canada and seeks to showcase the movement's strengths in the area of governance. It is also provides the opportunity for co-op and credit union boards to learn from each other.
The Nova Scotia council was selected for undertaking a board-led, comprehensive governance review built on significant research and best practices. The result was a comprehensive and sound governance framework and manual that is considered the guide for all of their actions and decisions.
The effort was considered significant because the organization is relatively small and the results were deemed to be so successful. During the process it was recognized that the leadership shown by the board, the strong evidence of excellence in its governance practices, and the commitment to co-op principles were exemplary.
Additionally judges were impressed because the governance processes can be readily transferred to other co-ops of a similar size.
Dianne Kelderman, CEO with the Nova Scotia Co-operative Council, said after the board decided to undertake the governance renewal process it researched best practices both in the co-operative and the private sector, hired specialists to conduct board workshops on governance and held ongoing discussions at board meetings about policies and procedures.
“Governance became as a standing agenda item at every board meeting,” she said.
Ms. Kelderman says the task of governance renewal is daunting, but worthwhile. It can be a time consuming process, but she said if tackled in bite-sized pieces and boards use the research and models already in place, they can duplicate the Nova Scotia council’s success.

Affirmative House-Co-operative Futures visited by Premier

A 10-unit co-operative housing project for people recovering from mental illness was officially named Affirmative House - Co-operative Futures in an Oct. 23 ceremony attended by Premier Darrell Dexter
“This is more than just safe affordable housing,” said Dr. Norman Greenberg, a board member with Affirmative Industries, the not for profit organization that has been promoting the project for more than three years. “This is a way people with disabilities can begin to take more control over their own economic future.”
Since 1991 Affirmative Industries has been helping people with disabilities find work or start their own businesses as a way to build their economic independence. With the construction of Affirmative House - Co-operative Futures that effort takes another step forward.
“In addition to paying their rent, each tenant contributes monthly to a special savings plan. Their contribution is matched by Affirmative Industries and the province so at the end of five years, the tenants have earned savings that they can use as a down payment, or toward the purchase of a car if transportation issues are hurting their employment options,” said Affirmative Industries chair Ken Greer.
The tenants are supported to develop specific plans for their savings that can only be accessed after five years of contributions.
"I am pleased that government is able to work with a community organization to develop a model that offers safe, secure housing in a supportive environment so people can manage their lives and participate in their community, “ said Premier Dexter.

Land for the project at 66 Lakecrest Drive was donated by the Halifax Regional Municipality. A fundraising campaign and the construction trades contributed the remaining 10 per cent of the $1.2 million price tag.
Dianne Kelderman, CEO of the Nova Scotia Co-operative Council, said the project is a model that can and should be replicated across the province and across the country.
“It is a huge challenge for people recovering from mental illness to find a home and begin to recover what they have lost. Affirmative House - Co-operative Futures proves that it doesn’t have to be that way.”
There are eight one-bedroom units in the complex and two two-bedroom units. The property shares a common room and all tenants are actively involved with the management of the property.
In 2008 the project won a Canadian Institute of Planners Award of Excellence for Housing.

Look Out Mr. Dexter A Co-operative Youth Group Is Out To Get You

A dozen young people who share a passionate belief in the future of co-operative businesses have set themselves a challenge: get a picture of Premier Darrell Dexter in one of their “I Love Co-ops” T-shirts.

They’d hoped to nab the NDP head honcho during a community spirit conference held in Truro in late September, but the premier was unavailable to attend due to commitments in the House of Assembly in Halifax. Undaunted, the young people, members of the Nova Scotia Youth Co-operative Alliance, and finalist in the Excellence in Youth Leadership category at the conference, have a new plan to get Mr. Dexter to struggle into one of their shirts.

“This is the 60th anniversary of the Nova Scotia Co-operative Council, and the 75th anniversary of credit unions, so we were looking for a fun project to mark those milestones,” said Meghan Farrell, an organizer of the group. “We came up with this. It’s fun and we’ve got another chance to get Mr. Dexter in late October when the Co-op Council holds a wine and cheese get together.”

Ms. Farrell said there is education that goes with the frivolity as the group gets to tell those who don the shirts about the impact Co-ops and Credit Unions are making in the province.

“People are surprised when you tell them that there are more than 400 Co-ops and Credit Unions in the province and collectively they control $5 billion in assets,” she said. “They are intrigued when we talk about Co-ops that deal in Health Care and Credit Unions that offer special green loans for the purchase of environmentally cars.”

A recent survey by Progress Magazine showed that ten of the 100 largest companies in Nova Scotia are co-operatives. Companies that are household names like Scotsburn, Co-op Atlantic, Co-operators Insurance, and Credit Union Atlantic are on the list.

Dianne Kelderman, CEO of the Nova Scotia Co-operative Council, said she’s inspired by the enthusiasm of the young people and proud of their efforts to make the advantages of co-operative businesses better known.

“While Nova Scotia is exporting our young people at record numbers, Co-ops and Credit Unions have launched aggressive youth strategies that are seeing young people actively engaged in leadership development, internships and sitting as directors on boards,” she said. “They offer a fresh and exciting perspective.”

In addition to the Nova Scotia Co-operative Youth Alliance - which has been rolled out across the Province - the Nova Scotia Community College has taken an interest in co-operatives. In January, the business school on the Truro Campus introduced the province’s first co-op curriculum. Fourteen students completed the course and there are now discussions underway to replicate the program in other community college locations across the province.

Co-operative businesses and Credit Unions also worked with the Nova Scotia Community College, Waterfront Campus, to place young management and accounting students in Co-ops and Credit Unions for their work terms this year.

Ms. Kelderman said the group’s 60th anniversary has been marked with special events that ranged from special picnics, to a visit in June by U.S. civil rights activist Jesse Jackson. During his speech at The World Trade and Convention Centre he energetically endorsed co-operative business principles.

More than the events, Ms. Keldeman said it is the council’s efforts to support the day-to-day work of co-operative owner-operators that is the most rewarding. Those efforts include innovative programs like micro credit, a small business loan guarantee program that put $28 million into the hands of small business, and the recently announced $2 million loan guarantee program targeted at immigrants.

“At a time when we are exporting nearly $1.6 billion a year in RRSP dollars out of Atlantic Canada - over $600 million from Nova Scotia alone, with less than four percent of it coming back in the form of re-investment - co-operatives and credit unions are providing attractive options and mechanisms for people to keep their hard earned dollars at home, at work and in our communities where it belongs.”
Mark Sparrow, a development office for the council working in Cape Breton, stressed the financial bottom line is not the only bottom line for co-ops. Almost half of the registered co-operative enterprises in the province are non-profit organizations created by individuals who have seen a problem that needs fixing, and determined the co-op model is the best way to make the needed changes.

As a result, many Nova Scotians with special needs are gaining meaningful employment through co-ops like The Missing Lint in Sydney, Quick Stuff Food Co-operative in Dartmouth, or Team Work Co-operative in Halifax. These groups find or create jobs for the most marginalized in our society and give them the opportunity to claim their independence and their dignity.

Co-operatives also offer many seniors and young families an opportunity to live in their own homes. There are more than 40 housing co-operatives in the province where members take responsibility for everything from financing to snow shovelling in exchange for the opportunity to live in homes that would be beyond their reach.

On a structural note, Ms. Kelderman said the council was successful this year in securing a change to the Nova Scotia Co-operative Associations Act. It now allows for the issuance of preferred shares for all co-operatives registered in Nova Scotia. This is an important change for the sector, as it allows co-operatives to raise needed capital in new ways, keep existing capital in the business, and it removes a competitive disadvantage that co-operatives have faced for many years.

Moses Coady Inducted into Hall of Fame

Rev. Moses Coady, the driving force behind the Antigonish Movement has been inducted into the Canadian Co-operative Hall of Fame. Although a great honour, he was not named ``Canada’s Greatest Co-operator.`` That honour went to Alphonse Desjardins, the father of Canada's Caisse populaire movement and founder of Canada's sixth largest financial institution. He received the designation on June 19 following an online vote by more than 8,000 people across the country.

``My understanding is we were a very close second,`` said Dianne Kelderman, CEO of the Nova Scotia Co-operative Council, a driving force behind the Coady bid. ``I`d like to thank all the people who voted and spread the word about Coady`s accomplishments, especially the members of the Nova Scotia Co-operative Youth Alliance.``

Rev. Coady was a Roman Catholic entrepreneur who believed that with the right education, and collective action, even the smallest communities could thrive. From his base at St. Francis Xavier University he organized kitchen classrooms in local fishing and farming communities. His work sparked a wave of co-operative development across the Maritimes and credit union development across English Canada. The influence of the movement spread across Canada in the 1930s and by the 1940s and 50s, to the Caribbean, Africa and Asia.

Mr. Desjardins, born to impoverished parents in 1854, established North America's first co-operative savings and loan society - a Caisse populaire, or "people's bank" - in Lévis, Quebec in 1900 as an alternative to commercial banks that charged exorbitant interest rates to farmers and workers. His example inspired the creation of credit unions across Canada and the United States and today, Desjardins Group is Canada's sixth largest financial institution. It is also the largest co-operative organization of any kind in Canada, based on turnover, and the 33rd largest co-operative in the world.

The Canadian Co-operative Association launched the Hall of Fame project in an effort to honour Canadians past and present who have made a significant contribution to the Canadian co-operative sector. Canadian Co-operators and supporters across the country were asked to nominate deceased individuals who had made an important historical contribution to the movement, then vote online for the Greatest Canadian Co-operator.

The Hall of Fame, which will be posted on CCA's website (www.coopscanada.coop) later this summer, will include past, present and future winners. Rev. Coady will be one of the 14 pioneers of the Canadian co-operative movement nominated for the online award.

Just Us! Founders Honoured as Leaders in International Development & Education

Debra and Jeff Moore, co-founders of Just Us! Coffee Roasters Co-operative were recently presented honorary degrees by the Nova Scotia Agricultural College in recognition of their ongoing commitment to social justice issues, and especially to the introduction of Fair Trade business practices in Canada.

Just Us! Coffee Roasters was founded in 1996 by the Moores, along with three of their friends. Since then they have worked to develop direct relationships with farmers all over the world to pay fair, above market value prices for the products they sell. Debra and Jeff have also been leaders in the areas of sustainability and education. Their commitment to fair trade, community, organic standards and co-op principles have helped to promote their business as an example of a successful business model to other Atlantic Canadians.

“Jeff and Debra Moore’s fair trade practices laid the bricks for agriculture and rural development worldwide,” Dr. Leslie MacLaren, Co-President of the college said during the ceremony. “But they added the mortar by educating the public on how they can support rural development in their own transactions.”

In addition to the coffee business, the Moores have founded the Just Us! Development and Education Society (JUDES) and L’Arche Homefires Community. JUDES is a non-profit organization committed to education on fair trade and social, environmental and economic issues related to community and international development. L’Arche is a non-profit international community of homes and workshops for the intellectually challenged that includes four group homes, a day program and a retail store; Applewicks.

Co-ops Cleared to Issue Preferred Shares

More than 275 co-operative businesses in Nova Scotia can now offer preferred shares to interested buyers. The issuance of shares was made possible through changes to the Nova Scotia Co-operative Associations Act. Those changes were initially approved in the fall of 2008 but were only proclaimed into law in late April.

Nova Scotia Co-operative Council CEO, Dianne Kelderman, said co-operatives, like other business, are in need of capital to grow, expand and diversify. Access to capital through the provision of non-voting preferred shares has been an attractive business option that the Council has been pushing for since 2001. ”It really levels the playing field,” she said. “Until today co-ops had two ways of financing their operations. They got money by selling common shares to their members, or they went to a bank or credit union. Now they have a third option. They can sell shares to members of the public who can judge their potential for a return of their investment.” Ms. Kelderman stressed the shares are non-voting shares with benefits relating only to the financial performance of the company. “It doesn't give anyone a seat on a board or any control of the operation. The integrity of the membership and ownership model of co-operatives is maintained.”

Six other provinces, including PEI, allow for preferred shares. The federal Co-op Act also allows for preferred shares. In addition to the issuance of preferred shares, the changes allow co-ops to offer “tax deferred co-operative shares” as way of keeping existing capital within co-operative enterprises. Tax deferred co-operative shares are shares issued as consideration for payment of dividends. By paying dividends in the form of tax deferred co-operative shares, Ms. Kelderman said co-ops will be able to keep more capital in the company, and still claim the dividends as a deductible to the co-operative. The changes followed consultation with all co-operatives that are members of the Nova Scotia Co-operative Council.

Some of the companies that may already be considering the issuance of the preferred shares are Scotian Gold, Farmers, Scotsburn, and Just Us! Coffee Roasters. Regional associations whose members will benefit could include the Canadian Worker Co-op Federation and Co-op Atlantic.

What Budget 2009 Means for Co-ops & Credit Unions

The Canadian Co-operative Association has summarized some of the key areas of the federal budget that impact on co-ops and credit unions. However, here are some of the highlights related to agriculture, housing, credit unions, business, and environment.
(For the full report click here)

AGRICULTURE

There were three announcements of interest to co-ops: proposed amendments to the Farm Improvement and Marketing Co-operatives Loans (FIMCLA) Act, a new investment in slaughter houses and a five-year, $500 million agricultural flexibility program. The FIMCLA program provides loan guarantees to financial institutions, including credit unions, to enable them to lend to co-operatives that are involved in the processing, distribution or marketing of farm products as well as individual farmers for farm improvements. The Act will be amended to “make credit available to new farmers, support inter-generational farm transfers, and modify eligibility criteria for agricultural co-operatives.”

The Government will invest $50 million over the next three years to strengthen slaughter house capacity. The investment appears to be aimed at existing slaughter house operations, not new and emerging abattoirs that need funding to develop. The government will make contributions available to match private sector investments.

The budget also included a five-year, $500 million agricultural flexibility program for new initiatives. The plan is aimed at helping the sector adapt to pressures and improve its competitiveness. It's a "standalone pool of money that will drive innovation, environmental change, and marketing opportunities."

SOCIAL HOUSING

The was a promise to invest $1 billion over two years for renovations and energy retrofits for up to 200,000 social housing units (that would include co-op housing) on a 50/50 cost-shared basis with the provinces; $400 million over two years for the construction of social housing for low-income seniors; $75 million over two years for the construction of social housing for persons with disabilities; and $400 million over two years for the remediation of existing social housing stock on First Nations reserves. For the Co-operative Housing Federation of Canada’s comments, click here.

CREDIT UNIONS

The budget contains a large number of measures to increase credit, as well as some tax reductions and depreciation changes which will generally have a positive impact on credit unions. Credit Union Central of Canada has done a comprehensive analysis of these measures which is available here.

BUSINESS SUPPORT

Like all businesses, co-operatives need credit, and Budget 2009 promised to improve access to credit through a variety of means. Specific measures include:

$13 billion in additional financing for national Crown corporations. This includes at least $5 billion in new financing under the new Business Credit Availability Program.

Increasing the maximum eligible loan amount a small business can access under the Canada Small Business Financing Program.

The tax and tariff relief measures to “stimulate business investment” also apply to co-operatives. They include a temporary 100 percent capital cost allowance (CCA) rate for computers acquired in the next two years, extending generous tax write-offs on new machinery and equipment and permanently eliminating import tariffs on a range of machinery and equipment purchased by Canadian industry over the next five years.

Business Loan Program for Immigrants Open for Application

Nova Scotia credit unions are now accepting applications for the new Immigrant Small Business Financing Program. The program was announced in December and is open to immigrants who have recently moved to Nova Scotia and are interested in starting, expanding or buying a small business. Up to $150,000 is available to successful applicants.

"Small businesses are the foundation of the Nova Scotia economy," said Murray Scott, Minister of Economic and Rural Development. "We want to ensure new immigrants have the opportunity to become small business owners, put down roots in their communities, and contribute to a prosperous future for all Nova Scotians." Information sessions for people interested in applying will be held at credit unions across the province beginning this week. "Immigrants who are able to establish businesses here are more likely to stay in Nova Scotia, thereby contributing to Nova Scotia's economic, social and cultural growth," said Immigration Minister Len Goucher. "Since the program was announced, we have had calls from across the province from people interested in applying," said Dianne Kelderman, CEO of the Nova Scotia Co-operative Council. "This tells us the need is there and we want to give them the support they need to get up and running."

In Nova Scotia, there are more than 30,000 small businesses, representing 92 percent of all businesses in the province. Many immigrants find it difficult to get business funding as lending institutions in Canada generally do not recognize international credit history. The two year pilot program is available solely through credit unions across Nova Scotia and is administered by the Nova Scotia Co-operative Council. It is a joint initiative of the Council, Credit Union Central of Nova Scotia, local credit unions and the provincial government. The Department of Economic and Rural Development is providing $2 million in loan guarantees to the program, which will be reviewed annually. The Office of Immigration will provide $100,000 a year for operating and other costs of the program, such as business counseling, administration, technical services and legal costs.

More information on the program is also available on the Economic and Rural Development website at www.gov.ns.ca/econ.

Media Contacts:
Donna Hooper, Economic Development, 902-424-1728, E-mail: hoopermd@gov.ns.ca
Dianne Kelderman, Nova Scotia Co-operative Council, 902-896-7291, E-mail: dianne@nsco-opcouncil.ca

The following is a list of dates and locations for information sessions about the loan program:

Halifax -- Jan. 28, 1:30 p.m. to 3:30 p.m., 2nd floor, Credit Union Central of Nova Scotia, 6074 Lady Hammond Road
Sydney -- Feb. 5, 2 p.m. to 4 p.m., Sydney Credit Union Limited, 95 Townsend Street
Port Hawkesbury -- Feb. 6, 10 a.m. to noon, boardroom, East Coast Credit Union, 299 Reeves Street
Truro -- Feb. 13, 10 a.m. to noon, 2nd floor Colchester Co-op Boardroom, 339 Willow Street
Wolfville -- Feb. 17, 10 a.m. to noon, Old Orchard Inn, 153 Greenwich Road South

Click here for an invitation to the information sessions.
Please contact Andrea Jackson at 902-893-8966 or andrea@nsco-opcouncil.ca to reserve your seat.

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Wonderful Co-op Life

(Editorial from The Chronicle Herald, Oct 19, 2008 - reprinted with permission)

REMEMBER the classic Frank Capra film, It’s a Wonderful Life? An eccentric angel saves Jimmy Stewart (George Bailey) from despair by showing him what life would have been like for people in his small town if he and his ever-helpful savings and loan had never existed and the only source of local credit was grasping Old Man Potter’s bank.

Wonderful Life came to mind this week when Dianne Kelderman, CEO of the Nova Scotia Co-operative Council, dropped by to talk about co-op week in this 60th year of the council’s existence. For she posed something akin to Clarence the angel’s salient question. What would this province be like without its co-operatively owned enterprises?

Her answers make a pretty impressive case for the importance and vitality of this sector. For starters, we’d be missing some $5.1 billion in business assets, many of them constituting the economic backbone of our rural communities, if there were no co-ops. Indeed, one-sixth of the provincial economy is in co-op hands and the top 25 co-op enterprises routinely produce a healthy return on investment in the range of 10 to 20 percent.

Seven thousand of us are employed by co-ops; 6,000 of us live in co-op housing. A third of us, 308,000 Nova Scotians, are member-owners of the province’s 402 co-op businesses, a membership that grew by four percent in the last year.

Without credit unions, 34 Nova Scotia communities would have no financial institution. In total, Nova Scotia credit unions hold $1.7 billion in deposits, all raised in the province and all invested locally in mortgages, business loans, car loans, education loans and other debt that Nova Scotians take on in striving to get ahead.

As world credit markets have tightened because of America’s binge of too-easy credit and subprime lending, the credit-union model of relying on local deposits and knowing their borrowers has turned out to be a source of economic stability. US credit unions have grown by 25 percent this year, says Jamie Baillie, CEO of Nova Scotia’s Credit Union Atlantic. He notes that credit unions exist to help the very people of modest means who were preyed on by US subprime lenders, "but no credit union had to write off hundreds of millions of subprime debt because we loaned in a responsible way… and those members are still moving up the economic ladder." George Bailey would approve.

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Co-operative Council Signs Come to Life Charter

The Nova Scotia Co-operative Council has become the 164th organization to join the Nova Scotia "Come to life" movement.

Premier Rodney MacDonald welcomed the new members in a ceremony at the Holiday Inn, June 3 in Truro. Charter members act as ambassadors for Nova Scotia, raising awareness about the province and the benefits of living, working, learning and doing business in Nova Scotia. "Momentum and support for Nova Scotia 'Come to life' is growing. Together we are a strong voice and we're telling the Nova Scotia story to the world," said Premier MacDonald. "The businesses and associations signing the charter today represent the strengths and successes of this province."

The new members are: Community Access Program; Central Nova Scotia Tourism Association; CKEC 94.1 East Coast FM; Cumberland Regional Economic Development Association; Commercial Safety College; Fair Trade Community Café Jost Vineyards; Marigold Cultural Centre; Nova Scotia Agriculture College; Rural Communities Foundation of Nova Scotia, Truro and District Chamber of Commerce; Green Data Centre; Glooscap Heritage Centre; That Dutchman's Farm; and the Nova Scotia Co-operative Council.

"The co-op movement in the province shares the "Come to life" commitment of celebrating the innovation and lifestyle that makes Nova Scotia the envy of anyone who has ever walked on one of our beaches," said Dianne Kelderman, CEO of the Nova Scotia Co-operative Council, an umbrella organization representing more than 300 co-operative business and credit unions. "I can't get on a plane without someone telling me how lucky I am to be able to work and live in Nova Scotia. And they are right." The charter document formalizes the involvement of public and private-sector organizations. The two sectors are coming together to promote Nova Scotia to business leaders, immigrants, visitors and students. As a charter member, each organization agrees to help develop and support those goals.

A brief profile of the Council and other charter members is available on the Come to life website at www.novascotialife.com.

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Credit Union Loan Program Tops $19 Million

A four year old loan program run by Nova Scotia's credit unions in co-operation with the province has offered more than $19 million in loans to 221 small businesses across the province.

"What began as an $8 million pilot project in June 2003 has exceeded everyone's expectations," says Alvin Hubley, President of the co-operative board managing the Small Business Financing/Loan Guarantee Program. "The program has helped maintain 100 jobs and created over 600 new positions." The program is an exclusive arrangement between credit unions and the province. It is designed to offer start-up financing for small business initiatives, especially for young people with limited financial histories and in rural areas where access to capital has been problematic. Although the initial loan target was $8 million, in July 2005 it was converted to a standing lending program with a $33 million guarantee granted by the province. The loan risk involved with the program was targeted as 75 percent of the province and 25 percent for the credit unions. The group's year end report shows credit unions have embraced the program and have on averaged accepted more than 30 percent of the risk.

"Loan losses to date hover at around three percent, far less than anticipated", says Dianne Kelderman, CEO of the Nova Scotia Co-operative Council and a director of the program's board. "I think that is solid evidence, credit unions are doing business differently". "The province is exceptionally pleased with the way credit unions have used the program to reach out to businesses across the province", says Marvyn Robar, Director of Development Initiatives with the province's Office of Economic Development. "We are looking to expand the program for other enterprises," he said following the board's annual meeting in Halifax Wednesday. "We want to work with credit unions wherever and whenever possible."

Bernie O'Neil, President and CEO, Credit Union Central of Nova Scotia, said when the loan program was initially discussed five years ago, no one was predicting the kind of job numbers or spin-off benefits to the economy that have been created. "But perhaps more importantly, it has given people an opportunity to start businesses that they wouldn't have the opportunity to start otherwise," he said. "We've given people a sense of worth and provided them the motivation to succeed. That's quite a contribution to be able to make." Mr. O'Neil, a member of the program's management board, said the loan effort has generated new business for credit unions beyond the program. He said at least 44 applicants have come into branches inquiring about the program, but ended up qualifying for more than $2.9 million in loans through traditional credit union programs.

Value of loans approved: $19.5 million
Total number of loans approved: 298
Value of current active loans: $14.1 million
Applicants approved without loan guarantee: 44
Loans approved without guarantees: $2.9 million
Credit Union risk: 31 percent
Province's risk: 69 percent
Loan losses to date: 3 percent
Number of new jobs created: 674
Number of jobs maintained: 1,072

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Province - Co-op Council Renew Agreement

The Nova Scotia government and the Nova Scotia Co-operative Council have renewed a five year Memorandum of Understanding that underscores the value of the co-operative and credit union sector to the provincial economy. The signing ceremony took place Wednesday, October 24, 2007, at the Prince George Hotel in Halifax.

According to the latest report from the province's Co-operatives Branch, Nova Scotia's 402 co-operative businesses have recorded combined sales of just over $725 million during the past year. "That's a $3 million increase from the previous year," said Dianne Kelderman, chief executive officer with the Nova Scotia Co-operative Council, a lobby group representing 85 percent of all co-ops and credit unions in the province. "Co-ops are often overlooked as an economic force in the province, but their collective impact is significant. And the numbers we're looking at in this study don't even include revenue from our growing network of credit unions." 90 Nova Scotia co-ops have been founded in the last five years.

The report from the Nova Scotia Co-operatives Branch also found that co-operative businesses generated more than $8 million in profit for their members and employ over 7,000 workers. "Five years ago, co-ops and credit unions weren't even on the provincial radar. With the recognition that went with the initial MOU, they're now front and centre when the province considers its economic options," said Ms. Kelderman. Co-operatives are businesses owned by the people who run them. The control of the business is in the hands of its member-owners. In Nova Scotia, they range in size from small four or five person operations running laundry mats and hair salons to large operations like the producer-owned apple co-operative Scotian Gold; or chicken, turkey, and egg producer ACA Co-operative Limited. There are 308,000 co-op member-owners in Nova Scotia.

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Made in Canada

As baby boomers retire, co-op businesses offer a blueprint for leadership development that can help fill the voids appearing at the top of many organizations in Canada. That's one of the conclusions of Amal Henein and Francoise Morissette after examining the operation of the Nova Scotia Co-operative Council, and similar organizations across the country, for their new book 'Made In Canada Leadership.' "The co-operative and credit union model is singled out for study because leadership growth is integral to the carrying out of co-op's economic and social mandates," says Dianne Kelderman, CEO of the Nova Scotia Co-operative Council and one of the authorities quoted extensively in the 364-page book. The human resource specialists who authored the book are deeply concerned about the growing leadership deficit in the country and examine the ways new leaders are being developed to meet the current and future needs of the country. While efforts are scattered in universities and traditional business, the authors had high praise for the efforts in the co-op sector.

"Our incursion into the co-op world proved fruitful, surprising and refreshing," they write. "Everyday co-ops prove that leadership is about service and empowerment." The authors were impressed " by the level of resourcefulness and community spirit" they encountered, writing that they learned a lot about the power of economic development and the power of people pulling together. "Not only do co-ops come up with innovative ideas, they develop new mindsets that transfer to other sectors. For example, corporate social responsibility and ethical investing were a brainchild of the co-op movement."

Co-ops raise the skill level of shareholders through training and the infusion of new resources. In co-ops everyone is expected to lead in some capacity, thereby providing numerous opportunities for growth as a leader. In the book, Ms. Kelderman rails against the old-fashioned image of co-ops as less than professional, close to charitable organizations. "We are doomed to fail if we project poor us, we need help, charity and special treatment. We don't do that. The image we project is one of action and delivery."

The Nova Scotia Co-operative Council is an advocacy group for 250 co-operative businesses in the province that collectively employ 7,000. Ms. Kelderman says balance is the key in the co-op world: striking a balance between social and economic mandates, business and community concerns, long and short term goals. In many ways, she says co-ops have more experience with balance than do the private and pure business sectors. The book, published by John Wiley and Sons Canada, is available in leading book stores. The author's hope it will be used as a text for business students in university programs.

FACTS

There are 9,500 co-ops and credit unions in Canada employing 155,000 people.
Four out of 10 Canadians are members of a co-op or a credit union.
In Nova Scotia, the Co-op Council represents approximately 250 co-operative enterprises that employ 7,000 people and provide housing for 6,000.
Nationally, co-ops and credit unions have combined assets of $300 billion.
In 900 communities, a credit union is the only financial institution.

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The Target 100 program is designed to recruit, train and employ 100 Department of Community Services' clients over the next two to three years for jobs at co-op businesses around the province.

TARGET 100 LAUNCHED

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