October 29, 2009

Dear Member:

As your provincial equestrian federation, it is our duty to inform you of our position on the recent communications from our national sport organization, Equine Canada (EC), and EC's attempt to unilaterally change its relationship with Nova Scotia, and with five other provincial associations.

First and foremost, regardless of what you may have recently been told by EC, you, as a member of NSEF, are automatically a member of Equine Canada. EC By-law 3.4 defines an individual member as: "Individual Member – Any individual who supports the aims and objectives of the Corporation and who is a member in good standing of a P/TA Member (NSEF) or of a National Association Member is an Individual Member…." We have obtained legal opinions to support our view that EC does not have the legal right to make the changes they are proposing without asking its members to amend EC By-laws at a general meeting of the membership.

We have concluded that it is not lawful for EC to deny your right to EC membership without this due process. There are six provinces, including NSEF, that have made the decision to contend EC's "Membership Reform". Instead of continuing to negotiate with these provinces toward a mutually beneficial solution, EC has labeled these six provinces "Non-Participating Provinces", and is attempting to force its new structure on them and on the individual members who reside in them. We truly regret that our membership has been subjected to this undemocratic and autocratic approach.

As an Equine Canada Sport License holder you will receive a sport license renewal form and a new "EC Membership Application" for Equine Canada. You will be told that you are no longer required to have an NSEF membership in order to compete in EC sanctioned competitions, and that Individual membership in EC is no longer an automatic one resulting from your membership with your province (NSEF). You should know that, because EC knows that its current bylaws do not allow it to charge you an individual membership fee, it has incorporated another organization. If you pay the required EC membership fee you will belong to this new organization that is not subject to the same bylaws as the current organization. Interestingly, EC has not provided any public information on this important fact.

You will be told that you must purchase a new Equine Canada membership at a specified cost ($25.00) that will include liability insurance from EC's insurance provider. Again, your membership will be in a new, separate organization structured to avoid the current by-law requirements, and we have a legal opinion that EC does not have the legal right to do this. Please be aware that the members of a "Participating Province" will be charged a $5.00 EC Membership fee – the only difference being that insurance is NOT included.

Our concerns are:

(a) NSEF has provided you with excellent insurance coverage and the continuity of that coverage is an important asset to our members;

(b) Your choice of insurance provider is being taken from you by EC;

(c) The requirements for individuals in Non Participating Provinces have been structured to extract your uninformed consent to alleged reform, without first providing you with sufficient information and an opportunity for consultation. The NSEF Board of Directors has refused to charge an Equine Canada membership fee to its Individual members for 2010 for the following reasons:

i) The EC Constitution does not give EC the right to assess a fee to the Individual member; fees are paid by the provinces or national association member, and NSEF has met all of its commitments in this regard.

ii) The EC Constitution provides that individual members of provincial equestrian associations are automatically members of EC. We do not believe EC has the right to unilaterally terminate your membership; or to force you to join a new organization incorporated to avoid the current requirements of the Constitution. NSEF has also refused to provide EC with our membership database at this time. Privacy laws require a signed and informed consent from any member to transfer their personal information from the primary source of collection (the NSEF) to an outside source (EC).

In short, EC is attempting to extort reform from the provincial associations that disagree with its actions by stating that:

i) NSEF will not be allowed to sell any EC products or services to its members

ii) EC will sell a voluntary EC membership in Nova Scotia at a cost of $10 ($5 in 2010). It will compete with NSEF in the insurance market and will offer a liability insurance package at a cost of $20 to voluntary members.

iii) EC will force all Sport License holders to purchase both the voluntary membership (making it no longer voluntary) and its insurance package.

iv) EC will not require a NSEF membership in order to purchase the EC Sport License.

v) EC states they will take over distribution and administration of all competitions, drug testing and coaching and official certification programs in Nova Scotia. EC has no local presence in Nova Scotia and believes it can do this from Ottawa.

vi) EC states that it will use the new revenues from individual memberships to provide programs and services to under-serviced members, including those in the recreational, breeds and industry, and non-sport sectors. However, it has not presented any specific information on how or when it will do this.

vii) EC will still allow the NSEF to belong as a member organization of EC and will recognize the NSEF as the PSO for the province, but it will maintain a two-tier structure of PSOs. The PSOs that have stood up for the rights of its members will not enjoy the same benefits of membership as the PSOs who have acceded to EC.

viii) NSEF members who do not purchase a separate EC membership cannot use the Members First program or other EC discounts for car rentals, hotels or travel insurance.

ix) Although NSEF will be severely penalized by EC for standing up for member rights, it will still be forced to pay a full share of the PSO EC Governance and Organizational fees to EC, although NSEF will have no benefits, cause no expenses and have no share in any EC programs.

x) NSEF will remain a voting member of the Provinces Division of EC. However, NSEF will not be permitted to vote at the EC AGM in its full capacity according to current EC By-Laws based on its membership numbers. Beginning in 2011, NSEF will carry only one vote instead of 1 vote per 1,000 NSEF members.

In short, EC's alleged reform will include the ejection of Non-Participating Provinces and its members from the current national federation without democratic due process.

We must also take strong objection to Equine Canada's statement that hundreds of thousands of dollars of members' fees are unaccounted for in the provincially administered Equine Medication program. This unfounded allegation against NSEF is shocking. Rest assured that all funds received from our members are put into a restricted bank account and used only for medication control programs as required by law. We have been transparent and accountable to Equine Canada and are seriously considering our legal rights in the face of this baseless accusation.

Equine Canada has also stated that it has no contact with its individual members. Any information that Equine Canada has requested this province to send to members has always been sent to you from our office. In fact, NSEF informs our members of all EC discount programs and services that will benefit you and passes along to all members all communications from EC.

Equine Canada is claiming that its high standards of program and service delivery require it to take action, and it alleges that PSOs have failed to meet these same standards. However, it has provided no evidence to support this view. We take great pride in providing good service and program delivery. In spite of the lack of direction from our national body and without adequate EC support; we have competently administered equestrian programs and competitions for many years on your behalf. We do not have any confidence that EC is ready or able to assume these many responsibilities.

At this difficult time, we urge you to be not complacent. Please take the time to consider the facts and exercise your right to speak up and offer your opinions to both EC and NSEF.

We also want to remind you that: Both the provincial and federal governments recognize NSEF as the governing body for equine activity within Nova Scotia offering programs and projects relating to:

Sport - Competitions, Coach and Instructor Programs, Officials, Athlete Development & Recognition, Safety, Clinics and Seminars; Provincial Awards

Industry - Maritime Bred Registry, Equine Health and Welfare, Calendar of Equestrian Activities, Nova Scotia Equine Directory

Recreation - Trail Development and Access, Education/Safety, Recreational Riding & Driving, Annual Provincial Trail Ride, Trail Warden Program.

In conclusion, we thank you for your patience as we attempt to work through this challenge. We encourage you to postpone renewing your EC Sport License for as long as you can, knowing that we are doing everything possible to resolve this issue. We also encourage you to send your concerns/comments to Equine Canada and to us here at NSEF. You can go to the EC website at www.equinecanada.ca and go to CEO's Blog to post a comment. You can also send an email to the CEO at ceo@equinecanada.ca . Please feel free to copy the NSEF on any comments so that we can gather our members concerns and ensure that the EC Board of Directors receives them. Comments, questions or concerns can be sent to us at nsef@sportnovascotia.ca

Kindest Regards,

Barbie Lewis, President Nova Scotia Equestrian Federation

on Behalf of the NSEF Board of Directors