Ryan Turnbull, Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions)
“Farmers struggle to pass their farms to the next generation. Our recent bill helps owners sell businesses to their workers without paying capital gains tax. This model could help farmers too, and the government is open to exploring that.”
“Mr. Speaker, it is good to be here in the very last moments before the House rises for the summer. I know that there are a large number of farms in the member opposite’s riding. There are farm succession plans all across this country, and farmers do struggle with succession, so I understand the issue the member is speaking about. We have done some things recently, in the spring economic update implementation act, on this front with capital gains exemption. It applies only to employee ownership trusts and worker co-operatives, but I think it highlights where the government is open to looking at options for succession to make it easier to hand down businesses. In this case, the one I am referencing is employee ownership trusts, which is a model I have advocated for. Worker-owned co-operatives will get the same tax treatment. It is a measure I have supported from day one because it offers owners of businesses that are small- to medium-sized, or they could be larger, the opportunity, when they want to sell the business, to protect those businesses and also to hand them down to workers. This creates wealth-building opportunities for frontline workers in a grocery chain, for example. There are many examples in the U.K. For example, Waitrose is a company run by John Lewis Partnership. It is a good example of how employee ownership trusts can create a shared equity model where frontline workers get to participate in the proceeds of the company. I think it is similar to a model that could be applied to farms in this country, although I do not know of any workup of the details on that at this point. I thank the member for bringing this up. I think it is an important consideration.”
Mr. Speaker, it is good to be here in the very last moments before the House rises for the summer. I know that there are a large number of farms in the member opposite’s riding. There are farm succession plans all across this country, and farmers do struggle with succession, so I understand the issue the member is speaking about. We have done some things recently, in the spring economic update implementation act, on this front with capital gains exemption. It applies only to employee ownership trusts and worker co-operatives, but I think it highlights where the government is open to looking at options for succession to make it easier to hand down businesses. In this case, the one I am referencing is employee ownership trusts, which is a model I have advocated for. Worker-owned co-operatives will get the same tax treatment. It is a measure I have supported from day one because it offers owners of businesses that are small- to medium-sized, or they could be larger, the opportunity, when they want to sell the business, to protect those businesses and also to hand them down to workers. This creates wealth-building opportunities for frontline workers in a grocery chain, for example. There are many examples in the U.K. For example, Waitrose is a company run by John Lewis Partnership. It is a good example of how employee ownership trusts can create a shared equity model where frontline workers get to participate in the proceeds of the company. I think it is similar to a model that could be applied to farms in this country, although I do not know of any workup of the details on that at this point. I thank the member for bringing this up. I think it is an important consideration.