Whereas: Communities acting together to create local economic opportunities to enhance social conditions, employment, and services in their communities face the challenge of access to capital in order to pursue their CED initiatives.
Whereas: Locally and collectively owned enterprises are responsive to local priorities, are more likely to be committed to service the community rather than simply serving profit, and have a much higher rate of sustainability. For instance, 62 per cent of new co-ops are still operating after five years, compared with 35 per cent for other new businesses. After 10 years, the figures are 44 per cent and 20 per cent respectively.
Whereas: Collectively owned community businesses create economic democracy, root ownership locally, distribute profits equitably, and often create jobs and services in communities where they are otherwise lacking.
Whereas: Various financing models catered to local contexts that include the mobilization of individuals as investors and the provision of equity investments with financial incentives are succeeding across Canada, and a recent report by CCEDNet - Manitoba analyzes the need and potential for a Manitoba-specific model.
Whereas: The Province of Manitoba has created the CED Tax Credit that has been successfully used to create approximately a dozen community-owned businesses around Manitoba, investing approximately $2.25 million in community enterprises.
Whereas: There is insufficient support for community groups to apply for the Manitoba CED Tax Credit and insufficient education and promotion of the CED Tax Credit such that most co-op, community, and economic developers in Manitoba are unaware of its existence and potential.
Be It Resolved That:
CCEDNet - Manitoba urge the Province of Manitoba to strengthen the Manitoba CED Tax Credit by:
- Creating and implementing marketing tools in consultation with industry stakeholders to ensure community enterprises know the steps required to effectively apply for CED Tax Credit status as well as to sell shares;
- Implement commitments made in 2012 to streamline and simplify the application process for CED Tax Credit status, removing unnecessary administrative challenges and ensuring the responsible office is positioned in an appropriate government department with sufficient capacity and expertise;
- Build and support a central resource housed in the co-operative community to champion the CED Tax Credit, through public promotion, applicant support and network capacity building;
- Develop tools and a strategy to educate and train co-op developers, existing co-operatives in Manitoba, economic development officers, and anyone else involved in business and co-op development in Manitoba to ensure that they are confident in using and supporting the use of the CED Tax Credit model; and
- Increase investment incentive by raising the CED Tax Credit from 30% to 35% and by creating additional incentives for investment term renewals after 5 and 10 years.