Co-operating for Economic Gain

Through co-operatives people and businesses in Newfoundland and Labrador are pooling resources to strengthen local and regional economies. Their contribution to the economy, particularly in the agriculture, fishing, film, and financial industries, is being emphasized across Canada during Co-op Week 2011 (October 16-22).

“Benefits derived from co-operatives are supporting community and economic development,” said the Honourable Susan Sullivan, Minister of Innovation, Trade and Rural Development. “Over the last number of years, this administration has been actively engaged in creating awareness of the opportunities linked with the development of co-operatives and creating an environment where they can excel. We look forward to continuing these relationships and expanding the number of co-operatives in Newfoundland and Labrador.”

In Newfoundland and Labrador, the Provincial Government established a close working relationship with the Newfoundland-Labrador Federation of Co-operatives (NLFC) that was formalized with a memorandum of understanding in 2007. Together the two entities are committed to promoting and enhancing business development that leads to vibrant and diverse communities.

“Our partnership with the Department of Innovation, Trade and Rural Development has been instrumental in increasing public awareness of the benefits of the co-operative business model as an important tool in the community development process,” said Glen Fitzpatrick, Managing Director of the NLFC. “Many thousands of people in the province are member/owners of their local co-ops. Many local co-ops have paid back millions of dollars in patronage rebates to these member/owners. During Co-op Week we celebrate such achievements. We wish to also thank the Provincial Government for its assistance in helping us promote the co-op business option and in facilitating the continued growth and development of the sector, particularly in rural Newfoundland and Labrador.”

In Canada, there are approximately 9,000 co-operatives with a value of more than $275 billion in assets which employ approximately 155,000 people. In Newfoundland and Labrador, there are 69 co-operatives operating throughout the provincial economy, helping facilitate greater activity in established and emerging industries .

“The success of this province’s film industry relies heavily on the formation of the Newfoundland and Labrador Independent Film Co-operative (NIFCO),” said Jean Smith, Executive Director, NIFCO. “As an industry we came together and shared valuable resources so that we could better access equipment and expertise. It has been an incredibly effective co-operative that has addressed the needs of industry and contributed to the growth of the sector, which today sits at $30 million – up from $2 million a decade ago.”

The national theme of Co-op Week 2011 is Co-operative Enterprises Build a Better World. The theme builds on the United Nations decision to declare 2012 as the International Year of Co-operatives, which will create greater awareness of the economic and social contribution of co-operatives and support their continued growth.

“As 2012 draws near, we look forward to working with our community partners to heighten awareness of the value of co-operatives in developing strong, sustainable communities and regions,” said Minister Sullivan. “A key part of that work will be to re-affirm our working relationships and our shared vision with the Newfoundland-Labrador Federation of Co-operatives.”

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2011 10 17             11:20 a.m.