The Government of Newfoundland and Labrador and co-operatives are working together to develop new businesses thanks to an initiative which was started two years ago by the province and the Newfoundland-Labrador Federation of Co-operatives (NLFC). To build on this initiative, the Provincial Government has signed a five-year memorandum of understanding with the federation.

The MOU was signed today at the Newfoundland-Labrador Federation of Co-operatives and Canadian Co-operative Association�s national annual general meeting and co-operative congress in St. John�s.

"In September 2005, our government and NLFC established a regional developers� network dedicated to using a co-operative model of economic development," said the Honourable John Ottenheimer, Minister of Intergovernmental Affairs, on behalf of the Honourable Trevor Taylor, Minister of Innovation, Trade and Rural Development (INTRD). "At that time, a number of staff members from INTRD offices across the province began working with NLFC through this network to provide dedicated counseling services to potential and existing co-ops. Since February 2006, six new co-ops have been incorporated which is a very positive development for rural Newfoundland and Labrador."

The main components of the MOU are: a continuation of the current network structure; development of training modules; linking the two organizations� Web sites; mutual promotion of each organization�s programs; and the development of an operational strategy to implement micro-enterprise pilot projects in the province.

Co-ops work well in rural areas where they are often community owned and often have good survival rates. While rural businesses tend to be small, collective purchases of equipment and joint marketing and promotions reduce individual business costs and increase profits.

"Our organization has a long history of working with the Provincial Government to create and sustain businesses, especially in rural areas," said Glen Fitzpatrick, managing director of the Newfoundland-Labrador Federation of Co-operatives. "This MOU means we will be able to build on that relationship and enhance our services as we work to help co-ops contribute to local economies in Newfoundland and Labrador."

New co-ops formed since February 2006 are: Labrador Farms Co-operative Ltd. (Happy Valley-Goose Bay); Quality Agricultural Producers Co-operative (Bay St. George); Blueberry Industry Co-operative Ltd. (pan-provincial); Baccalieu e-Business Co-operative (Carbonear); Advocate Youth Services Co-op (Baie Verte); and Central Newfoundland Manufacturing Co-operative (central region). These new developments have seen individual farmers and business owners join together and combine resources in order to expand, diversify and become innovative in their business activities.

For more information on co-operative development visit:
www.gov.nl.ca/intrd/CooperativeDev.htm
www.nlfc.coop

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