| Past Communiques |
| Wonderful Co-op Life | CU Turmoil | EduNova in UAE | Money for apples | ACA | EduNova hosts | Farmers market | Council lauded | CU no. 1 | Protect co-op housing | Big Banks Not Doing Enough | Kent Co-op renos |
CO-OPERATIVES IN N.S. - Wonderful co-op life
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 per cent.
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 per cent 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. U.S. credit unions have grown by 25 per cent 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 U.S. 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.
- Chronicle Herald, October 2008
(To the Top)
Credit Unions ready for financial turmoil
Nova Scotia’s economy hasn’t taken a direct hit from the financial turmoil in the U.S., but it undoubtedly will feel some effect, says the president and CEO of Credit Union Atlantic.
"So far we haven’t had a direct sudden drop because we didn’t hold mortgage-backed securities or subprime debt that had to be written off," Jamie Baillie said in an interview with the Chronicle Herald in mid October. "But to the extent we sell, as a province, 80 per cent of our exports to the U.S. and they are in a severe downturn, that can’t help but affect us, and we are probably just beginning to feel the effects of this." Mr. Baillie said the credit union has been less affected by the international money crunch because the credit union’s fortunes are tied to the local economy, "and Nova Scotia has been doing very well."
"We raise all our funds locally as a credit union and we invest them all locally in our own economy, so we are not directly affected by anything that happens to go on on Wall Street," Mr. Baillie said. Credit union funds are raised through deposits or the sale of shares, "and whether we lend it out or give it away through corporate giving, it is all returned to the local economy," he said. "We have a loan portfolio of over $220 million in the case of my credit union alone, and all of that is lent to out to individuals and small business in the Halifax municipal area."
But he acknowledged the credit union is not immune to the financial woes of the U.S. and said it "will live, or not, by the health of the local business community. So to be fair, indirectly, if (union members) are going to face a downturn we are going to face it with them, as we have for decades." With a slowdown a real possibility, Mr. Baillie said the credit union is preparing for what appears to be the inevitable. "We are battening down the hatches to manage our own business through the downturn, so we are watching statistics on the quality of our loan portfolio daily," he said. "We are also watching our own expenses to make sure we have a sufficient cushion to get us through any downturn."
But at the same time, Credit Union Atlantic is still moving forward. The company is opening a new business centre on Young Street in Halifax in a few months "to further make the point that we are available to help the small and medium-size business grow or, if we are not in a period of growth, to sustain themselves through the downturn," he said.
By Tom Peters, The Chronicle Herald
(To the Top)
EduNova Opens Canadian Village in the UAE
In August, 2008 the EduNova School Improvement Project Team officially opened "Canadian Village". The "village" consists of six self-contained villas in a compound which houses the entire team. The "village" is located in the rapidly growing Mohammed bin Zayed City, a suburb of Abu Dhabi.
EduNova has entered into a three-year contract with the Abu Dhabi Education Council (ADEC) to provide educational services to six government schools. 35 Leader Mentors, Curriculum Advisors, Teacher Mentors, Language Teachers and Translators are part of the on-site team involved in the Abu Dhabi School Improvement Plan (SIP) Project. EduNova's mandate is to assist the schools in implementing a new, English-based, curriculum and to improve overall educational standards in six government schools.
(To the Top)
Government aid puts shine on apple operation
Scotian Gold Co-operative Limited, Eastern Canada's largest apple packing and storage operation, will modernize and expand to better service apple growers and buyers here and around the world, with the help of provincial assistance.
The province will provide a $2-million loan, through the Industrial Expansion Fund, to Scotian Gold, established more than 50 years ago in Coldbrook, Kings Co., to increase productivity and efficiency to meet a worldwide demand for a high-quality, premium-priced product. The investment will also help maintain 75 jobs with a payroll of $2.8 million. "Scotian Gold is an asset to the agriculture industry in Nova Scotia," Minister of Agriculture Brooke Taylor said in mid-October. "This well-established, rural producer-owned co-operative has made a significant contribution to this industry in Eastern Canada and it continues to grow and thrive."
Scotian Gold generated $17 million in gross sales in 2007, and, during the last six years, capacity has been increased through planting premium apple varieties and higher yielding orchard systems by progressive growers in Annapolis Valley. "This is an investment in a Nova Scotia success story," said Minister of Economic Development Angus MacIsaac. "The province is helping this essential co-operative diversify, increase productivity and expand its export markets, while contributing to the growth and sustainability of the industry."
The expansion involves converting the apple packing system to a new pre-sorting system. It will increase capacity, provide quicker turnaround time on orders, consistent quality sizing of graded apples, as well as expand markets for high-quality apples. The new technologies could, potentially, expand the entire apple industry in Nova Scotia. "We have a committed group of progressive growers who have invested heavily in new orchard systems that are yielding increased production of high quality and premium apples," said David Cudmore, president and CEO of Scotian Gold. "This significant expansion and modernizing of the facility provides the needed infrastructure to move our industry forward."
(To the Top)
Government crows about ACA's role in rural economy
A rural poultry processing plant that has been supporting the growth of Nova Scotia's agricultural industry for the past 65 years, will receive an investment from the province of Nova Scotia for working capital.
A $3.5-million loan for ACA Co-operative Ltd. in New Minas, through the Department of Economic Development's Industrial Expansion Fund, will help the company maintain 650 jobs with an annual payroll that exceeds $25 million annually. ACA also creates almost as many spin-off jobs. "This sole poultry processor for Nova Scotia has grown significantly over the years and continues to seek and develop new markets for its quality products," said Economic Development Minster Angus MacIsaac. "This investment further demonstrates the province's commitment to supporting economic growth in rural areas of the province and maintaining important jobs."
Since 1943, ACA Co-operative Ltd. has grown to include seven divisions including eggs, feed, hatchery, poultry, retail farm equipment and processing. The company operates a processing poultry meat operation, breeder barns for producing selected genetic broiler chicken crosses, chick hatchery, feed mill, table egg division and grading facility, a retail division for farm furnace and diesel fuel, farm equipment division, and an outlet store. "ACA is an integral part of Nova Scotia's agricultural industry, which generates about $450 million in the province," said acting Agriculture Minister, Ron Chisholm. "Along with chicken, it processes nearly all of the turkeys available in Nova Scotia and 25 per cent of our eggs, offering people the opportunity to buy local food products."
The company's major customers include Sobeys, Co-op Atlantic, Sysco Food Service and commodity markets in Ontario and Quebec. Its annual sales exceed $110 million. "We take great pride in producing top-quality products for our customers and playing an important role in our industry," said Sue Payne, chief executive officer of ACA Co-operative Ltd. "With this investment, we will continue to contribute to the industry and support our community." The Industrial Expansion Fund is one method used by the government of Nova Scotia to support economic development in the province. The Industrial Expansion Fund has considerable flexibility in the amount and type of funding it can provide.
(To the Top)
Education co-op hosts international students
For the second summer, EduNova has welcomed students from the United Arab Emirates who have come to Nova Scotia as part of the Abu Dhabi Education Council's (ADEC) 'Summer English Program'. The program is designed to enhance the English language and leadership abilities of Emirati students while exposing the 15-17 year old students to a new culture and environment.
The group grew from 50 students in 2007 to 150 students this summer. EduNova members East Coast School of Languages and the International Language Institute hosted 100 girls and 50 boys respectively. The male students resided with families in the Halifax Regional Municipality and the female students spent the 6-week program at the Annapolis Basin Conference Centre in Cornwallis. In addition to intensive English language training, leadership and IT curricula, the students also visited several historical sites and participated in a wide range of cultural events. Highlights included camping trips, whale-watching, university visits, and shopping.
Both students and chaperones reported that the camp was a life-changing experience. In the words of one of the female students: "This summer has changed me a lot, now I'm independent, confident and I can make new friends really fast. My English has improved and my vocabulary has expanded, so to make things short, because of this camp I'm a better person and I'm proud of myself and everything I accomplished during the six weeks I spent here".(Najima)
Not only was the program a resounding success in the eyes of the participants but also for Nova Scotians who learned a great deal about the culture and history of the United Arab Emirates from the students and chaperones. "Programs such as this one go a long way towards bridging cultural divides and creating an awareness and respect for different cultures and religions - the importance of which cannot be underestimated in times such as these," remarked Amber Germain, EduNova's Director of International Projects.
The project is part of the expanding cultural and economic linkages between Nova Scotia and the UAE and EduNova looks forward to hosting ADEC sponsored students again next summer.
(To the Top)
Feds give $2 million for Market
Construction of the $10-million Halifax Seaport Farmers’ Market, expected to start later this year, got that major boost Sept. 6 from the federal government.
"The proposed market will greatly benefit the almost 200 rural farmers, artists and artisans who depend on selling their products directly to consumers in order to maintain their small businesses," Peter MacKay, minister responsible for the Atlantic Canada Opportunities Agency, said in a news release. "Our government recognizes that urban and rural areas are interdependent, economically, socially and environmentally, and therefore rely on each other to prosper."
The new waterfront market will be twice as large as the Brewery Market space and will be open six days a week. Right now the market is only open Saturdays, serving about 6,000 people. It’s been in business since 1750. "There’s such a huge demand for local food right now, we just can’t get everybody in the building," said Fred Kilcip, manager of the Nova Scotia Farmers’ Market Development Co-operative. "We can’t get all our vendors that want to get in. We certainly can’t get all our customers that want to get in. If we’re serious about supplying local food direct from farmers, you can’t do it in a city this size one morning a week."
Mr. Kilcup said having the third government partner on board is a major advance for the project, but the co-operative still needs to secure more financial help.The province has already chipped in $2.25 million for the project, with Halifax Regional Municipality providing another $1 million and the Halifax Port Authority contributing $1.1 million. The co-operative has raised $760,000. The facility will be environmentally friendly, incorporating wind and solar power, with water collection on the roof. "It makes sense," Mr. Kilcup said. "Every time the cost of electricity and oil goes up, our costs stay relatively flat."
The market will have room for more than 200 small businesses. The ground floor will be devoted to retail, with a few permanent storefronts. There will also be a mezzanine level with seating, a rooftop terrace and gardens, and a canopied market outside the building. Mr. Kilcup said vendors from all over the province will be able to sell their wares in Halifax when their regular markets aren’t open.
(To the Top)
Council's governance model lauded
The Nova Scotia Co-operative Council was one of four Canadian co-ops recognized recently for their innovative approach to co-operative governance. The council received the Innovations in Co-operative Governance Award in the small co-op category (less than 500 members) for its commitment to be the best in all aspects of governance. The award committee recognized the council’s efforts that entailed research on best practices, the hiring of specialists to conduct board workshops on governance, and an agreement to have ”governance” as a standing agenda item at every board meeting
Created to showcase the best models for co-operative governance practices, the awards were handed out during the annual general meeting of the Canadian Co-operative Association in Winnipeg. The other winners included: Coast Capital Savings of British Columbia for its efforts to determine the ”ideal skill set” for its board of directors, Mountain Equipment Co-op for its outreach program supporting a long-term vision for the co-operative, and Gay Lea Foods Co-operative, for its approach in addressing board and delegate engagement.
(To the Top)
Credit unions beat big banks
For the fourth consecutive year, an independent survey of thousands of Canadians has shown that credit unions rank first in customer service excellence among all financial institutions.
“Credit unions’ provide the service that their customer-owners want and need. Synovate’s research has again confirmed that fact,” says Bernie O’Neil, President and CEO of the Credit Union Central of Nova Scotia. “We are delighted to be recognized by the Best Banking Awards.” “The customer-owned structure is the core of what sets credit unions apart and it is what leads us to focus on serving the needs of our customer-owners as our sole priority. More than five million customer-owners across Canada choose credit unions to provide their financial services and Nova Scotia credit unions are proud participants in the national credit union network.”
The Synovate Best Banking Awards 2008 found credit unions ranked ahead of all banks and other financial institutions in the following categories:
• Customer Service Excellence
• Values My Business
• Financial Planning & Advice
• Branch Service Excellence
Credit unions also placed among the award winners across all financial institutions this year for Recommend to Friends & Family and Telephone Banking Excellence. Credit unions have scored highest across all financial institutions for branch service excellence in each of the past four years.
The Synovate Customer Service Index (CSI) 2008 survey was sent to a total of 124,000 demographically and regionally representative Canadians. The Best Banking Awards for 2008 were based on the cumulative total of 35,000 responses for the year ending August 2008. The CSI survey has been conducted since 1987.
(To the Top)
Co-op Housing Deserves Cap Protection – Gosse
Sydney - NDP Housing Critic and MLA for Cape Breton Nova, Gordie Gosse, has written to the Minister of Service Nova Scotia and Municipal Relations, Jamie Muir, asking him to review the Assessment Cap regulations and to bring co-op housing under the protection of the cap. “This is another class of property that has been left out of the program,” says Gosse. “Co-op Housing Units are currently seeing rises in their assessments of more than 10 per cent and are finding it difficult to make ends meet. Housing co-operatives are a valuable source of affordable housing for families and individuals. In addition, they uphold value cooperative principles in the communities they serve.” Gosse says when the cap on assessments was first introduced in 2004 it was soon realized that some property owners had been left out of the program, namely condominium and mobile home owners. “When these shortcomings were brought to the Department’s attention, the needed changes were made to the regulations to include these properties,” says Gosse. “The same protection should be given to co-op housing.”
Source: NDP
(To the Top)
Big Banks Not Doing Enough for Small Businesses
Canada’s banking sector is making little progress in meeting the needs of Atlantic Canada’s small businesses, although banks continue to say they want to do better.
A new national report from the Canadian Federation of Independent Business, entitled Banking Matters, shows that major financial institutions are losing ground on service improvements to small businesses across the country, with only two improving their rating since the previous survey in 2003. "Most Atlantic Canadians work for small- and mid-size businesses, and a strong and competitive banking sector is essential to the future of the region’s economy," Leanne Hachey, CFIB’s Atlantic vice-president, said in a release. "And if they’re not being served as they should, opportunities are being lost."
The report looked at nine indicators, including willingness to lend, treatment by account managers and service charges. Nationally, HSBC, credit unions and ATB Financial (Alberta Treasury branches) continue to receive highest marks from their small-business clients, Of the three, only credit unions have a strong small-business customer base in Atlantic Canada. The report highlights the dominance of a few players in Atlantic Canada, with Royal Bank and Scotiabank capturing a combined 50 per cent of the market share. Royal Bank and Scotiabank ranked in the middle of the pack of the 10 major banking institutions examined.
The report confirmed that Atlantic Canada continues to have higher loan-rejection rates than the rest of the country, ranging from 14 per cent in Newfoundland and Labrador to 17 per cent in Prince Edward Island. The national average is 13 per cent. As well, Atlantic Canada’s businesses pay slightly higher interest rates. "We have fewer players, higher loan rejection rates and higher interest rates," Ms. Hachey said, "and it’s likely all three are linked." That's why she says business in Atlantic Canada are forced to seek non-traditional financing programs such as the Small Business Financing Program in Nova Scotia, a partnership of the Nova Scotia Co-operative Council, the credit unions and the Department of Economic Development.
The loan program, which provides up to $150,000 to new and existing small and medium-sized ventures, was started four years ago by Nova Scotia’s major credit unions with help from the provincial government.
(To the Top)
Kent Co-op Completes $800,000 Renovation
New Minas - The Kent Co-operative in New Minas has completed an $800,000 renovation to its store.
The renovations to the 20,000 square foot building include an expanded deli section, a small bakery, and more space for fresh produce and increased fridge and freezer capacity. Eric Meek, a member of the co-op's nine-member volunteer board of directors, told reporters the store will focus on local products, and proudly identify them with tags. The provincial government has been promoting its new Select Nova Scotia labels as part of a province-wide 'buy local' campaign and the store plans to continue its participation. The co-op store is going so far as to hang large billboards identifying local farms and what they produce.
The co-op has about 1,800 members. The co-op stores in Windsor and Middleton closed earlier this year because of a declining membership. The newly refurbished New Minas outlet now includes a farm supply store. Co-op Atlantic is a member of the Nova Scotia Co-operative Council.
(To the Top)
