Monday 4 August 2003

The first detailed profile of NSW co-operatives has revealed that far from being in decline, the sector has grown to multi-billion dollar proportions and plays a crucial role in regional areas of the state.

Prepared by the Australian Centre for Co-operative Research and Development (ACCORD), The State of the Sector: New South Wales Co-operatives 1999-2000, has found that co-operatives in NSW grew their turnover by 81 per cent during the 1990s, becoming a $4.4 billion sector by the year 2000.

Over the same decade, the sector's assets grew by almost 70 per cent and 440,000 people became new members of co-operatives, taking total membership well over the million mark (1.29 million).

Launching the report on the weekend, Helen McCall, Executive Officer of the Co-operative Federation of NSW, said it shows co-operatives operating across the state in a broad range of industries and activities, from traditional areas such as agriculture, to recreational activities, consumer co-operatives and those providing human services.

"Almost 300 new co-operatives were formed during the 1990s, showing that communities still see the co-operative structure as the best way to develop sustainable economic growth," Ms McCall said. “In 2000 around 13,500 people were employed by co-operatives, and 5,000 members were actively involved in their running, as directors.

"The report has also shown the importance of co-operatives in regional NSW - 57 per cent of co-operatives are located outside the state’s metropolitan areas and 60 per cent of the total turnover comes from these co-operative businesses."

"The marked growth in the agricultural co-operatives in the 1990s further emphasises their importance to regional and rural communities," she said.

The findings included:

• Just over one in four co-operatives distribute profits to their members in the form of dividends, to the tune of $24 million in 2000.
• The co-operatives that do not pay dividends reinvest any surplus within the organisation for the advancement of the community. More than $10 million was reinvested for such purposes in 2000.
• There was strong growth among primary producer agricultural co-operatives and those involved in culture and recreation.
• Co-operatives, in human services, consumer and producer fields grew more slowly.
• By contrast there was a decline in co-operatives working for interest groups.

Senior ACCORD Research Fellow and report co-author Andrew Passey said the research had provided a unique insight into how co-operatives working in different activities and different communities are faring.

"The findings will help co-operative leaders consider the sector’s development, and the regulator to muster its resources effectively to support NSW co-operatives," Mr Passey said.

"ACCORD aims to develop its own research program to map these issues, and to extend that research across different states to encompass member-based associations. These developments will enable us to build unique and comprehensive profiles of the social economy in Australia."

ACCORD is a joint venture between the University of Technology, Sydney and Charles Sturt University, initiated and supported by the NSW Government.

Ends...

Further Information:
Suzanne Henderson,
ACCORD Communications Manager,
Ph 0407 104 268

Issued by:
Terry Clinton
Media Office
Ph (02) 9514 1623 or 0419 293 261