Press Release: November 17, 2005

Canadian Association of Income Funds steps up campaign to “Set the Record Straight”

Calgary, AB, November 17, 2005 – The Canadian Association of Income Funds (CAIF) today announced the launch of a stepped up advocacy campaign designed to engage fully in the Government of Canada’s consultation process on the tax treatment of income trusts and to correct any misconceptions surrounding the industry that may affect the outcome of the consultations.

Following on the heels of a series of regional meetings, CAIF and its member businesses are dramatically increasing their efforts to set the record straight by rolling out a multi-faceted campaign that will support CAIF’s official consultation submission to the government in the coming weeks. The campaign will involve bringing forward the concerns of Canadians to their elected representatives at the Federal and Provincial levels, building support from third party organizations, as well as increasing communications with Canadians in general.

“We think the industry has a tremendous story to tell about its positive contributions to the economy in terms of jobs and investment,” said CAIF President George Kesteven. “Through our campaign, we intend to dispel the popular myth that income trusts are responsible for causing ‘sluggishness’ in the Canadian economy.”

Each year, income trusts operating in Canada invest billions of dollars in the national economy. These trusts, which now number more than 220, employ an estimated 250,000 Canadians, both directly and indirectly through the underlying businesses they operate, in every part of the country.

Today’s campaign launch also coincides with the release of an Ipsos Reid public opinion survey which indicates most Canadians are on the industry’s side. The poll shows a clear majority of Canadians, some 66 per cent, agree that any new taxes on income trusts would be a “bad idea.”

The campaign will also include the upcoming release of an HLB Decision Economics study of productivity in the industry and its role in capital formation and investment.

At present, more than one million Canadians across the country own units in income trusts and several million more invest in income trusts indirectly through mutual funds and pension plans. In fact, a large and growing segment of unit holders are seniors or baby boomers preparing for retirement. Income trusts not only form an important element of their saving strategy, they also offer seniors the ability to plan for an independent retirement.

With a view to keeping member businesses and unit holders up to date on the latest campaign news and to assist them in engaging their Members of Parliament on this important issue, CAIF has developed an advocacy website containing all the pertinent details of the campaign.

“Many Canadian investors have expressed genuine concern that any tax changes for income trusts could put their retirement plans in severe jeopardy,” said Mr. Kesteven. “Through its advocacy efforts, CAIF will ensure the voices of these Canadians are heard by the federal government.”

Formed in 2002, CAIF/ACFR represents and promotes the interests of Canadian income funds, publicly listed limited partnerships, income trusts and royalty trusts.

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For more information on the survey please visit www.ipsos-na.com/news.

For more information or to arrange an interview, please contact:

Rick Harari
Hill & Knowlton Canada
613-786-9963

Or

Jennifer Field
Hill & Knowlton Canada
613-786-9956