May 8, 2003

(Halifax) Eagle River Credit Union of Labrador was honored this week by the Canadian credit union system for its commitment to community as the winner of the 15th Annual Community Economic Development Award.

Eagle River Credit Union was formed in response to the withdrawal by a major bank from a rural community in the L’Anse au Loup area on the Labrador coast. After unsuccessful attempts to persuade the bank to keep its branch open, the residents in the area established a volunteer steering committee to spearhead the formation of a credit union. At the same time, the Labrador Fishermen’s Union Shrimp Company Ltd. was in the process of forming its own closed bond credit union. The groups made the decision that one credit union would be in the best interest of residents. For a credit union to succeed, it would need cooperation and support from all residents of the Labrador Straits and Eastern Labrador.

Eagle River Credit Union was honoured in Halifax during the annual conference for Credit Union system leaders. In paying tribute, Jack Smit, Chairperson of Credit Union Central of Canada, noted, “Eagle River Credit Union’s success demonstrates that a small, rural community with a fragile resource-based economy can take control of its destiny. It’s a model of partnership and citizen participation.”

Also announced at the conference were the inductees into the Credit Union Hall of Fame. They are Ralph Burtt of New Brunswick and Jack Craig of Ontario. Each inductee was recognized for outstanding service to the credit union system in Canada and/or internationally.

A final highlight of the event was the awarding of the first ever National Credit Union Innovation Award. The winner was Mennonite Savings & Credit Union, which has seven service outlets in southwestern Ontario. The award focuses national attention on a credit union that leads the way in an innovation initiative that strengthens the credit union, while also having a tangible impact on the entire system.

In 2002, Mennonite Savings & Credit Union partnered with a local technology company Covarity Inc., and Credit Union Central of Ontario to define, pilot and implement a solution for streamlining commercial credit monitoring and portfolio management. The software solution reduces administration costs associated with commercial loan monitoring and improves communication between the lender and small and medium-sized enterprise (SME) borrower by providing greater transparency in the review process.

The Credit Union system is a three-tier structure of local, provincial and national organizations. Local credit unions operate autonomously and are the primary shareholder members of provincial Centrals. The provincial Centrals are in turn the primary shareholder members of Credit Union Central of Canada, which functions as the national trade association and services provider.

Contact:
Veronica Feldcamp
Director, Trade Association Services
Tel: (May 8) 416-434-8777
Tel: (after May 8) 416-232-3417