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"The Cooperative Movement can point to shining examples all over the world today of where Cooperatives have grown to multiple billions of dollars of turnover and have remained a Cooperative – true to their democratic principles...In some cases, this has been achieved through newly emerging forms of capitalisation that include access to capital, liquidity and ‘appreciability’ of stock. In other cases, it has been through the setting up of other business forms such as limited liability companies which are 100% owned by the parent Cooperative or the establishment of joint ventures or strategic alliances such as those between agribusiness cooperatives and biopharmaceutical companies around the world." Read Trent's article in Cooperative News October/November 2005 [PDF] The Democracy Principle
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Dr Gary Lewis, Author |
Dr Gary Lewis, historian and author of Democracy Principle: Farmer Cooperatives in Twentieth Century Australia, poses the question: Can cooperatives continue to survive in a market driven world? - with reference to their defining characteristic, the democracy principle.
"Only the democracy principle, I believe, stands between the sector, a looming market identity crisis and potential social irrelevance. Only the democracy principle protects the sector from gradual conversion to corporate orthodoxy and offers some credibility in the quest for hearts and minds among current and future members, in serving that deep social and psychological hunger for self-determination to which G A J Beytagh referred."
"In these days of globalisation when traditional industrial relations are being rewritten, when threats and opportunities exist in equal measure for Australian producers, whether primary, secondary or tertiary, there is room in a mixed economy for a broader application of the democracy principle."
Read the full speech [PDF] by Dr Gary Lewis to the Cooperative Federation of NSW Ltd 'Cooperatives Today and Tomorrow' Conference, 17 November 2005
To contact Gary about this book or his other publications, email yeslewis@bigpond.com.
Cooperatives and Entrepreneurship in Rural Communities
Jennifer Grigg
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Jennifer Grigg, Sunraysia Institute of TAFE |
In 2003, Jennifer Grigg from the Sunraysia Institute of TAFE - Mallee Campus won a Churchill Fellowship to study how rural communities can use cooperatives to develop sustainable futures. Jennifer's Report contains valuable conclusions and key learnings for the Australian context.
"... It was with excitement and a little trepidation that I ventured forth to pursue my interest and vision for the development of Australian rural communities".
"Through the wonderful Churchill Fellowship program, I embarked in July 2004 to learn how certain rural communities are able to successfully develop economic opportunities through the utilisation of cooperatives and a culture of nurturing entrepreneurs."
Download the report: Cooperatives for Sustainable Rural Communities
Further information: jgrigg@sunitafe.edu.au
Cooperatives Today and Tomorrow
"...The Government would encourage more innovation and diversity in the cooperatives sector in order to increase its growth and success...". Diane Beamer
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Diane Beamer, NSW Fair Trading Minister |
17-18th November, Mercure Hotel, George St, Sydney
200 delegates from across Australia attended this year's NSW Cooperative Federation's Annual Conference. An interesting and comprehensive programme offered delegates an opportunity to:
- Network and receive first hand practical advice from financial and legal advisors
- To hear about successful co-op endeavours
- Learn about marketing and communications for co-ops
- Hear about revitalising co-op boards,
- Examine successful models for overcoming youth unemployment
- Explore mentoring
- Learn about econo-management systems and more...
The Hon. Diane Beamer NSW Fair Trading Minister opened the conference with these words, "...The Government would encourage more innovation and diversity in the cooperatives sector in order to increase its growth and success...".
Read more about the conference:
- Press Release
- Speaker Sally Cowling - cofFEE
- Speaker Dr Gary Lewis - the Democracy Principle
- Speaker Roxanne Smith - Bhiamie Dreaming cooperative
Associations in Australia
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Andrew Passey, former ACCORD Research Fellow |
Linking society and economy through membership: Associations in NSW Andrew Passey
More than 30,000 people are members of Incorporated Associations throughout Australia. The ACCORD survey of associations in NSW (ACCORD Report No.5 [PDF]) defines associations and draws on theoretical discussions on the third sector, civil society and social enterprise to illustrate how associations might be conceptualised within broader organisational frameworks. Some patterns emerge.
"...while associations are complex and diverse and are not neatly 'captured' by current theory, they do face common issues, especially the multitude of registration requirements for tax and fundraising purposes that overlay a relatively straightforward regulatory regime in NSW."
Did you know?
Associated Press is a not-for-profit cooperative? That the Berlin Philharmonic and London Symphony Orchestra were both created as cooperatives? That in the heart of capitalism (the USA) there are over 45,000 cooperatives and credit unions serving more than 100 million members, about 40% of the population? That more Americans own a share in a cooperative than in the stock market? That worldwide, cooperatives employ about 100 million people - considerably more than the 86 million employed in transnational corporations. A further 600 million are members. Since capital flight and currency devaluation unleashed a devastating economic depression at the close of 2001, over 200 failing businesses in Argentina have been occupied, legally expropriated and re-opened as worker cooperatives. Employing over 15,000 people, so far, not one of them has gone out of business. (quoting the "New Internationalist" 368 June 2004).
Associations and Cooperatives - what's the difference?
Most businesses and enterprises are incorporated bodies. All incorporated bodies operate within a legal framework, and exist and derive their authority to operate from the law.
By incorporation, a body corporate is formed. There are many different types of body corporates - cooperatives, credit unions, companies, building societies, friendly societies, trade unions, incorporated associations and strata title unit owners.
Each type of body corporate is incorporated under a specific Act and draws its powers, authority and limitations from that Act and associated Regulations. When formed, the body corporate adopts a set of rules or constitution that applies additional powers, authority and limitations, which apply only to that body corporate.
In New South Wales, a cooperative is incorporated under the NSW Co operatives Act 1992, an incorporated association is incorporated under the NSW Associations Incorporation Act 1984. A company however, is incorporated under the Commonwealth Corporations Act 2001, regardless of where it was originally incorporated.
Industry profiles
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Johanna Parker, Aboriginal Artist |
Bhiamie Dreaming Cooperative
Roxanne Smith
"I believe that cooperatives provide a structure that allows Aboriginal communities to develop economic independence whilst strengthening and building upon the cultural and community links that are such an important part of our culture." Roxanne Smith, Aboriginal Business Development Manager
Bhiamie Dreaming Cooperative, established in 2003 is an exciting concept to deal with Aboriginal Tourism in western New South Wales. It includes assessing current and future tourism assets, and the potential market for developing tourism businesses in the region. The design of the project and its inclusion in the Western Regional Coordination Management group's (WRCMG) Strategic Plan has been carried out in collaboration and partnership with key agencies including Tourism NSW and the Department of State and Regional Development.
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© Johanna Parker, Fire and Animals, 2004 |
A regional Aboriginal Tourism trail incorporating both Aboriginal and non-Aboriginal tourism experiences is proposed. The aim is to develop, promote and preserve Aboriginal Culture and history through quality Indigenous Tourism products.
Roxanne Smith, Aboriginal Business Development Manager, NSW Department of State and Regional Development, says, "I believe that cooperatives provide a structure that allows Aboriginal communities to develop economic independence whilst strengthening and building upon the cultural and community links that are such an important part of our culture.
More information can be found in the Bhiamie Dreaming Plan [PDF].
Governor Celebrates Macleay Centenary
The Macleay Regional Cooperative Limited celebrated its centenary in October. It commemorated this momentous occasion by launching MACLEAY, its official history, written by Carrolline Rhodes. Her Excellency, Professor Marie Bashir, Governor of NSW, opened the celebrations. A street parade and fun day, reminiscent of the old Empire Days, were also part of the revelry designed to include the whole of the local community.
Read more about Celebrating a Centenary [PDF].
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Macleay in History |
Merry Christmas from the COW Cooperative
The COW Cooperative Limited is a New South Wales initiative to assist people with mental illness in the area of work and employment. It is owned and operated by mental health consumers.
The Local Community Services Association
Neighbourhood and Community Centres formed the Local Community Services Association (LCSA) in 1974. The LCSA represents and advocates for the interests of members and provides a voice to decision makers. The LCSA resources and supports members to develop as community development organisations.
The Association believes in local participation in management and decision making and works towards social justice, using community development principles and strategies. The LCSA supports community organisations who work towards a fairer distribution of resources and the opportunity to direct resources towards disadvantaged, discriminated and marginalised individuals, groups and communities.
For further information about LCSA take a look at website http://www.lcsa.org.au
News from the NSW Registry of Cooperatives and Associations
Promoting the cooperative model to legal eagles
"Their [solicitors] first thought, if a community or other group venture is in the offing, is usually to suggest a company or an association. Very few would nominate the cooperative as an option," Jon Robinson
As part of a wider program promoting the cooperative structure for new business, community or other group ventures, the NSW Office of Fair Trading’s Registry of Cooperatives and Associations is educating solicitors about the cooperative form of organisation.
"Their [solicitors] first thought, if a community or other group venture is in the offing, is usually to suggest a company or an association. Very few would nominate the cooperative as an option," said Jon Robinson, Special Projects Manager at the NSW Registry.
Jon Robinson spoke to the Law Society Journal. Read the full article Solicitors urged to add co-op work to their practices [PDF], by Mary Rose Liverani in LSJ, Sept 2005, pp 29-31
A force in the economy
The total number of active co-ops registered in NSW is 785, making the state one of the largest cooperative sectors in the country. Aggregate membership is around 1.5 million. The sector employs approximately 11,000 people and has a turnover of $4.3 billion per annum.
Other territories
Cooperatives are being actively promoted by contemporary Western governments as models of 'good' collective action: the UK's Blair government is widely promoting the concept of "the social economy" which embraces all those legal structures, new and old, that allow communities to act collectively in pursuit of commercial and non-commercial goals.
Solicitors who would like to participate in the Registry's cooperative information sessions or to seek a listing on its professional support register can apply to Jon Robinson at the Registry of Cooperatives & Associations: ph+ 6333 1479. General information about cooperatives and other services provided by the Office of Fair Trading is available on the website www.fairtrading.nsw.gov.au
Consistent Cooperatives Legislation
The long awaited move to replace the current national Core Consistent Provisions legislative scheme for cooperatives with a template legislative model has come considerably closer to reality in 2005.
The draft bill covering the CCU and mutual recognition provisions is available for public consultation at www.fairtrading.nsw.gov.au (click on the "Legislation" tab at the top of the screen and then "Comment on proposed legislation" tab on the left.)
Read more about the draft bill.
Government grants to assist small businesses retirement planning
Benefits of mutuality principle restored
Legislation was tabled in Parliament on 7 December 2005 to restore the long-standing benefits of the mutuality principle to those organisations affected by the decision in Coleambally Irrigation Mutual Cooperative Limited v FCT in 2004.
The amendments effectively restore the long-standing benefits of the mutuality principle to those non-profit organisations affected by the Coleambally decision. The measure was announced in the Minister for Revenue and Assistant Treasurer’s press release no. 46 of 30 May 2005 reported in Non-Profit News Service No. 0098 - Extension to the law of mutuality. Published: 09 Dec 2005.
The Australian Government is offering specialist succession planning and retirement advice for the more than half a million small business owners who are aged over 50.
The Building Entrepreneurship in Small Business program is now offering grants ranging from about $50,000 to $300,000 to expert service providers who can provide business skills training and succession planning.
"Many of Australia's small businesses will need new owners in the next 10 years or so and succession and retirement planning become critical issues for owners in their late 50s and early 60s," said Fran Bailey, the Minister for Small Business and Tourism.
"Business owners spend years growing their small business so it is important they receive every assistance to sell or transition their business. In doing so, we can also position young entrepreneurs to take over and grow a small business." The application form indicates that employee buyouts are one of the important options to be considered here.
Further information on Building Entrepreneurship in Small Business can be found at www.ausindustry.gov.au or call the AusIndustry Hotline 13 28 46.
News Roundup
CofFEE for jobs
"Our interest in working with cooperatives recognises our shared goals with respect to social responsibility, caring for others, sustainability and community development." Sally Cowling, CofFEE, University of Newcastle
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Sally Cowling, CofFEE |
How often do we hear that the Australian economy is "nearing full employment" yet in September 2005, 550,000 Australians were unemployed and the youth unemployment rate was 16.2 per cent. This degree of ‘wastage’ generates enormous losses for unemployed individuals, their families and their communities. At the same time, local councils and community-based organisations point to an infinite number of important jobs that cannot be done in the absence of increased Commonwealth funding.
The Centre for Full Employment and Equity (CofFEE's) Job Guarantee (JG) proposal is a means to address both of these problems.
"If any cooperative would like to be involved in partnerships to generate local jobs - especially for young people - we would love to hear from you. We need your understanding and expertise to help build this project from the grass roots while we continue to engage with Federal Ministers and agencies."
Read more about Tackling youth unemployment cooperatively.
Government, The Third Sector And The Rise Of Social Capital
Centre for Research in Public Sector Management, University of Canberra
John Butcher asks whether social capital is set to emerge as a major theme in public policy at the national level and, if so, what are the implications for Third Sector organisations participating in newly contestable quasi-markets for health, labour market and community services? Read the full text
australia.coop
The Cooperative Federation of Victoria Ltd is exploring the option of developing sub-domains for the australia.coop site.
This would be an economical way for cooperatives to obtain a '.coop' address. A .coop domain name can only be used by cooperatives. It promotes the co-op to employees, suppliers and the public and shows members the cooperative difference is a marketing advantage.
How might a sub-domain to australia.coop work?
The domain name would remain australia.coop with a sub-domain prefix, for example 'tasmaniacoops'. The URL for 'tasmaniacoops' would be: http://tasmaniacoops.australia.coop.
The user would pay CFV an annual fee for the sub-domain name and for web space used. For more information contact: David Griffiths, Secretary, Cooperative Federation of Victoria Ltd; T: 03 97856704; Email: cfv@australia.coop.
Cultureshift Cooperative Ltd.
The Cultureshift Co-op is the NSW sustainability workers' think tank, network hub and advocate. The co-op is a member-created, free space governed by a voluntary board with nine directors. The organisation activates the three principles of cooperation, participation and sustainability. Viridian is the newsletter for members of the Cultureshift Cooperative Ltd. An example of a company converting to a cooperative.
Powering social change
AISE is a recently established network of social entrepreneurs with a keen interest in small-to-medium and micro social enterprises – 'passionate' about finding practical solutions to problems and 'driven' by a commitment to 'make a difference, to produce social impact, and to power social change through support for social entrepreneurs and community enterprises'.
The Australasian Institute for Social Entrepreneurship (AISE) has a new website.
Community owned retail the fastest growing social enterprise sector
Community-owned village shops are the fastest growing social enterprise form in England today, according to recent research conducted for the Small Business Service by the Plunkett Foundation.
Social Enterprise Coalition Launches New Guide To Procurement
SEC and the New Economics Foundation (nef) have launched More for your Money - a guide to procuring from social enterprises procurement pages.
Primarily aimed at local authorities, it is a short guide to achieving better outcomes from public sector procurement and how social enterprises as suppliers can help in achieving this.
Rural Cooperation
Project information packs are available free of charge. These packs are for people wishing to find collaborative solutions to rural business needs, whether it be for joint service provision, marketing or resource sharing; and for employees or communities wishing to take over a rural business in order to ensure its continuation.
National Cooperative Bank
Each year, the NCB Co-op 100 announces the top 100 cooperatives in America, highlighting the business activity and economic power of these member-owned, member-controlled businesses. In 2004, the top 100 co-ops generated revenues of more than $131 billion. That's their highest-ever yearly revenue number–and a jump of $15 billion from last year.
Study with Australia’s leading teachers and researchers in nonprofit and community management at UTS
The community management program at the University of Technology Sydney (UTS) is designed specifically for students working in the sector. It is taught primarily through distance education with online support. Students attend 5-day intensive workshops in February, June and December. The assignments are designed to address real work issues and to be completed in the workplace. Students come from regional, country and interstate locations. Travel bursaries are available to approved students. An undergraduate degree is not necessary for entry to the Graduate Certificate. This is a HECS approved program and does not incur University fees. Apply now for your place in 2006. Email sandra.chia@uts.edu.au. Phone 02 9514 5435.
About this Newsletter
We welcome your comments on our newsletter and any suggested topics or items for inclusion in the next issue, due for publication in mid-February 2006. Please forward any items of interest including news and events, case studies, profiles, reports or commentaries to suzanne.henderson@uts.edu.au by 5 February 2006.
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