TORONTO-- Credit Union Central of Canada (CUCC), the association representing Canada's credit unions, issued a statement saying it welcome’s the government’s budget recognition of credit unions as vital players in the economy and the financial sector. The Minister of Finance's decision to include an acknowledgement of credit unions in the budget is being seen as an important step to build a strong understanding between this part of the banking sector and the federal government, the CUCC said.
"Our members are leaders in banking innovation and vital contributors to the economy, investing billions in small business and communities each year," Martha Durdin, president and CEO of CUCC said in a statement. "We're pleased the budget has recognized the importance of credit unions to the financial sector."
In the budget, Minister Joe Oliver singled out the country's 313 credit unions indicating that “the Government will continue to engage stakeholders and work collaboratively with the credit union sector on its future development and on ways to meet the needs of the evolving sector.”
The minister's statement follows a 36-week broad-based grassroots campaign led by credit unions to promote a Capital Growth Tax Credit with the potential to equalize the federal tax treatment of credit unions with that of their share capital-based competitors. The "My Credit Union Matters!" campaign resulted in over 7,000 emails, post cards, and signatures on petitions urging the Minister to consider the proposal – the largest effort of its kind in the history of the Canadian credit union movement.
"We will continue to promote the Capital Growth Tax Credit and other appropriate measures to help financial cooperatives stimulate economic growth," Durdin said. "Now more than ever it makes sense for the government to partner with credit unions whose relationships with the SME sector can help create new investment and jobs."