Nova Scotians Investing in Nova Scotia

BCA Investment Co-operative Ltd. of Sydney launched the first fund in Nova Scotia's new Community Economic Development (CED) Investment Fund program today.

The co-operative is hoping to raise up to $2 million to invest in Cape Breton businesses. And a number of other communities across the province will soon be making public offerings available to residents.

"CED investment funds provide a direct way for Nova Scotians to invest in their own communities," said Gordon Balser, Minister of Economic Development. "These funds will help the private sector and ordinary citizens to take control of their economic destinies, to grow their communities from within."

BCA Investment Co-operative comprises a dozen Cape Breton County business, church and community leaders and other residents. The group is launching its fund-raising drive today and expects to be looking for investment opportunities by early spring.

"The lack of investment capital keeps lots of good opportunities on community wish lists," said Greg MacLeod of BCA Investment. "A CED investment fund puts community capital to work in your own community and provides jobs and income for your friends, family and neighbours. Everyone benefits."

Every year Nova Scotians invest more than $600 million in RRSPs. Less than two per cent of this finds its way back into Nova Scotia's economy as reinvestments. The province has created the new CED Investment Fund program to encourage more people to make investments at home.

"If Nova Scotians reinvested their existing RRSPs in their own communities, the economic impact would be as significant to Nova Scotia as the offshore," said Brian Watling, a securities broker and president of Hants Ventures Inc., a CED investment fund that will soon be offering shares in a local telework enterprise. "By creating the CED Investment Fund program, the Nova Scotia government has done a major service to the cause of economic development."

Investors receive a 30 per cent tax credit under the Nova Scotia Equity Tax Credit program. Investments outside metropolitan Halifax enjoy a further guarantee by the province against the loss of the last 20 per cent of their investment. Shares in funds approved under the program are automatically pre-approved as eligible investments in self-directed RRSPs. With these advantages, CED investment funds can attract investment through community solicitation and assist or develop local businesses within the community. Investments must be in for-profit ventures, and cannot be made to charitable, non-taxable or not-for-profit organizations.

Nova Scotians wanting to invest in CED Investment Funds may simply respond to ads announcing the particular funds offered in their communities. If they wish to form a co-operative to offer a fund, or find out about any developing funds in their areas, they can contact their local Economic Development Business Service Centre or regional development authority.

Economic Development has worked closely with the Department of Finance and the Nova Scotia Securities Commission to develop the program. Economic Development supports projects that grow from local initiatives and build on the strengths of communities, creating jobs and increasing exports in the process. The department provides continued support to those setting up CED investment funds through a network of 11 Business Service Centres across Nova Scotia. Centre staff can help community groups complete the application process.