The time has come to repeal the 50% Rule (the
"Rule"). The Ontario Legislature took a step in
this direction by exempting renewable energy co-operatives from the
application of the Rule. In so doing the Legislature
recognized that if they did not act, the Rule would effectively
prevent renewable energy co-operatives from existing in the
Province.
I believe the Rule is a major impediment to the growth of
co-operatives in this Province and that its repeal would be
beneficial to the sector, not just renewable energy
co-operatives. Here are some reasons why the Rule needs to
go:
Why 50%?
What makes a co-operative that does more than 50% of its
business with members a co-operative? Why not 100%? How
about 75%? A percentage is arbitrary. I submit the
essence of being a co-operative is not who you do business with,
but how you do business. It is the desire of members to be
governed by the one member, one vote, distribution of patronage and
other principles
