“Good political theatre” yields concrete steps at Ottawa gathering of co-operatives and mutuals

Participatory decision-making took centre stage at the Co-operatives and Mutuals Canada conference in Ottawa this week, with some members of Parliament pausing mid-discussion to verify their identities with a selfie before remotely voting on a bill before the House of Commons.

The three-day-long conference brought sector leaders from across Canada together to discuss the future of co-operatives and mutuals, focusing on the need for greater inclusion in the creation and implementation of federal grant programs.

Ryan Turnbull, member of Parliament for the riding of Whitby and a former social innovation consultant, and Jasraj Singh Hallan, who represents the riding of Calgary Forest Lawn,  addressed co-operative sector concerns during a live question and answer session. The candid exchange was welcomed by the sector, which often sees its interests overshadowed by those of private businesses or more well-known types of social purpose organizations, like non-profits and charities.

Co-operatives and Mutuals’ advocacy director, Diamond Isinger, said federal grants often lack specific direction for co-operatives despite their ability to compete with private businesses and other social purpose organizations. 

She pointed to a 2020 federal survey comparing the resilience of small and medium enterprises to that of co-ops during the early days of the COVID-19 pandemic. It found co-ops were nearly twice as resilient as similarly sized businesses; 15.8 percent of co-ops closed temporarily — three months on average — compared to 33.4 percent of small and medium sized enterprises.

Much of her work involves clarifying which federal programs co-ops can apply for, something Isinger said is complicated by the diversity of co-op models in Canada. 

“Within the co-operative movement we have for profit co-ops, non-profit co-ops,” she said. “We have unincorporated co-ops that are new and upstart, and we have incorporated co-ops. Some co-ops are entirely volunteer-run at the local level; some are major national players like Gay Lea Foods and Sollio.”

Turnbull, a Liberal who also chairs Parliament’s social innovation caucus, suggested individual co-ops reach out to national advocacy organizations like Co-operatives and Mutuals Canada or local members of Parliament, with their concerns — particularly if they employ people in the riding or make a positive impact within a member’s constituency.

Hallan, a Conservative who also serves as the Shadow Minister of Finance and Middle Class Prosperity, added that the Parliamentary finance committee’s pre-budget consultations are also a chance for co-ops to share their concerns.

Turnbull highlighted existing programs that already include co-ops, including the Investment Readiness Program ⁠— a $50 million two-year opportunity announced in 2021 — and the Social Finance Fund. Six years in the making, the first $400 million of the Social Finance Fund’s $755 million funding pool was announced in May to both relief and criticism. 

“I’m excited to see the co-operative movement grow in Canada [through the Social Finance Fund],” Turnbull said. “It’s been strong and vibrant for a long time. But I think we could grow it significantly more, and it has a lot to contribute.”

He also noted that the Business Development Bank of Canada recently underwent a review of its funding to small and medium enterprises, and that co-ops could be eligible for Bank funding in the future.

Additionally, Hallan highlighted commitments to tax changes for employee ownership trusts, a form of business succession planning where owners can sell their business to workers, in the recent federal budget. These trusts can hold shares for eligible employees so that employees can earn dividends from the business without owning shares directly. Co-operatives and Mutuals Canada and the Canadian Worker Co-op Federation have previously called for worker co-ops to be included in these trusts so private businesses can transition towards a more employee-owned model.

David ‘Lobie’ Daughton, a founding president of the co-op support network CoopZone and a long-time presence among Prince Edward Island’s co-ops, described the discussion with the MPs as “good political theatre” from both sides of the aisle but was happy to see concrete discussion of federal programs.

Targeted programs like the Social Finance Fund ensure taxpayer dollars are distributed to social purpose organizations instead of being given to provinces or repurposed for other uses, he said. 

“Social finance money that is supposed to combat climate change and promote community investment is so easy to turn into more road construction and paving,” he said. “If it’s federal, then they can put some parameters on it.”

This independent journalism is made possible by a Future of Good editorial fellowship on community resilience, funded by Cooperators. See our editorial ethics and standards here.