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B.C. credit unions welcome province’s decision to halt tax increase

Change means more money will be invested in local communities

VANCOUVER — Central 1 Credit Union (Central 1) is pleased that the Government of British Columbia has decided to retain the current tax rate on credit unions while consulting further on the matter.

“On behalf of B.C. credit unions, we deeply appreciate the minister’s decision to defer the tax increase. This announcement demonstrates that the province understands the importance of credit unions and their impact in the communities where they operate,” said Don Wright, President and CEO of Central 1.

“We look forward to continued consultations with the government and we hope that the result will allow credit unions to continue to support local economic development and provide financial services to underserved communities,” Wright said.

A competitive tax environment allows credit unions to reinvest in a diverse provincial economy by creating quality, head-office jobs across the province, providing more financial support for community projects; and making more local lending decisions to help small businesses and individuals.

The province had planned to phase out a small business tax rate on credit unions and increase it incrementally over the next four years. The lower tax rate was put in place in recognition of the fact that credit unions, as B.C.’s cooperatively-owned financial sector, are in a unique position to reinvest capital back into the provincial economy, as well as support initiatives in local communities. For the past three years B.C. credit unions have been advocating for a continuation of the existing tax rate.

British Columbia’s 42 credit unions operate in every corner of the province and provide financing for homeowners and businesses in excess of $56 billion.

About Central 1

With offices in Vancouver, Mississauga and Toronto, Central 1 holds on balance sheet approximately $15.7 billion in assets. We provide wholesale financial products, trust services, payment processing solutions and direct banking services to almost 300 credit unions and institutional clients from coast to coast.

In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our 42 member credit unions in B.C. and 70 Ontario member credit unions. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.3 million members and holds more than $112 billion in assets. For more information, visit www.central1.com.

Contacts

Art Chamberlain
Media Relations Manager
Central 1 Credit Union
T 905.282.8534 or 1.800.661.6813 ext. 8534
E achamberlain@central1.com