Mark Goldblatt of the Canadian Co-operative Assocation (Photo by Darren Brown, OBJ)

Dying, at the moment, seems a lot cheaper on the Quebec side of the Ottawa River than here in Ontario, experts in the funeral service industry agree.

But proponents of introducing funeral service co-operatives to Ottawa – including Mark Goldblatt, of the Canadian Co-operative Association – hope to make the cost of dying equal.

His group organized a meeting in Ottawa late last month to gauge local interest in the idea. People were keen enough that a follow-up session is planned for this week, he said, adding there's a tremendous price discrepancy on funerals between Ottawa and Gatineau.

"If you come from Ontario, like I do, in every way it is in last place in terms of the penetration of co-ops," he said. Experts say funerals in Ottawa cost, on average, $8,500 versus $3,200 in Quebec.

Co-operation is an important business value, but co-ops – business organizations owned by members, who usually pay a fairly modest, one-time or annual membership, which entitles them to the co-op's services as a business model – haven't taken off in Ontario. But experts say they can provide virtually any product or service, and can be either non-profit or for-profit.

Mr. Goldblatt, the association's development manager, said they exist across the country, but that Ontario's eastern neighbour has developed a much more evolved co-operative economy. "Quebec is in first place, Ontario is in last," he said. "In Alberta – the heartland of conservative thought in Canada – 63 per cent (of residents) belong to one type of co-op or another.

"The United Farmers of Alberta is 100 years old . . . Calgary Co-op, the retail (grocery), is the largest in the country." Their sales last year were just under $1 billion.

Mr. Goldblatt and his allies hope to change that, and they're pinning their hopes that it'll happen with co-operative funeral services.

Funeral services in Ontario, he said, are ripe for co-ops. Costs have risen tremendously over the last 35 years: average funerals in Canada cost $655 in 1972; by 2004 they cost $6,325.

In 1972, funerals were costliest in Quebec. That year the first funeral co-ops were formed, and since then they've flourished. Today, Quebec has the cheapest funerals – 30 per cent less than the Canadian average, said Mr. Goldblatt, because of membership dues and less of a reliance on profit.

Any profits earned are reinvested in the business, or used on other, "compassionate" services for members, he said, like free funerals for children.

Funeral costs in Ottawa, according to numbers issued by the co-ops, are some of the highest in Canada. The conditions here, some say, are ripe.

But not so fast, according to Barry Nabatian, retail analyst with Market Research Corp. Co-ops thrive in left-leaning, more "socialistic" regions of the country, he said, like Saskatchewan, Quebec, and "pockets" of Ontario, like Oshawa, Hamilton, and perhaps Sudbury. But elsewhere, he said, not so much.

"If the price is low, it might appeal to some of the lower classes. But on the whole, (Ottawa is) upper-middle class, generally, and we really don't go for this type of business model," he said.

Besides, he said, independent or "local" funeral homes are very well-established in Ottawa. Incumbents do well if they're local, he said.

In Quebec, however, co-ops have become the alternative to multinational corporations, said Rejean Laflamme, a board member of the funeral co-operative in Gatineau and chair of the Federation of Funeral Cooperatives of Quebec.

The co-op's Gatineau wing has, over the past 25 years, increased its membership to about 11,000 and has 65 per cent of the funeral market. Business straddles all economic classes, he said, adding that besides their price advantage, co-ops market to Quebec's sense of pride.

"We're the only – except for one other in Hull – business owned by Quebecers. The rest of the profits are going (out of Canada). I think Quebecers are very sensitive to that fact."

While mom-and-pop funeral homes still exist in Ottawa, Mr. Laflamme said co-ops can penetrate the market on price differential.

"I think it's just a matter of people getting to know that (co-ops) are a possibility," he said. "People are not stupid in Ontario. (Once) they realize they can pay $5,000 less and have as good a service," they'll try it out.

"The only difference is the river. Why would people in Ottawa pay that much?" he asked.

The river does make a difference, though, said Julie Tubman, president of Tubman Funeral Homes and Cremation. She can provide a unique perspective: she runs four homes in Ottawa and two in Quebec.

While the figures provided by Mr. Laflamme were "inflated," she said, price differences did exist, but it isn't gouging.

"(Funerals) are significantly less expensive in Gatineau because the cost of living is not as (high)," she said. Property taxes, utilities, building and construction costs are all "significantly lower," she said.

Costs to provide the exact same service at Tubman are cheaper in Quebec, she said. (see sidebar).

Ms. Tubman added that discounted or free services for compassionate reasons have always been the norm, just not publicized, and that insurance for your funeral – much like a co-op membership – exists as well.

"You've got to find the need that's not being met," she said. "I think (the co-ops) might struggle here in Ottawa, because those needs are being met by the current providers. If they want to try, go for it. But I think they might find it a struggle."

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Price differential between two Tubman funeral homes

"Traditional service"

Ottawa $5,150

Gatineau $3,860

"Minimum care service"

Ottawa $1,890

Gatineau $1,120

Source: Tubman Funeral Homes and Cremation

Follow-up meeting for the feasibility of a funeral co-operative in Ottawa

Thursday, May 8, 5 p.m. at the Canadian Co-operative Association office, 4th floor, 275 Bank St. (at Somerset)