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ACCORD News Edition 11, April 2003

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Contents in this issue


Co-operative Profile

Capricorn sets the pace in the automotive industry

by John Banks, Corporate Policy and Quality Officer, Capricorn Society

One of Australia's fastest growing privately owned enterprises, Capricorn Society, is the largest, independent automotive parts buying co-operative in Australia and New Zealand, and has recently expanded to South Africa. It provides parts and services to mechanical workshops, service stations and smash repairers throughout the three countries.

Capricorn CEO, Trent Bartlett
Capricorn CEO, Trent Bartlett

The Capricorn Society was formed in 1975 by a group of service station owners who wanted to combine their buying power to obtain better prices and service. Chief Executive Officer, Trent Bartlett says, "the idea behind a co-operative like Capricorn is simple, it's all based on people working together."

Capricorn has nearly 8000 members in Australia, New Zealand and South Africa with an annual turnover approaching A$400 million. Over 1200 suppliers in Australia, New Zealand and South Africa supply the membership. To be eligible for membership, a business must be a registered automotive repairer, panel beater, auto electrician, service station or general workshop.

Max and Rosalie Braidwood, Wesco, Victoria Park. W.A.
Max and Rosalie Braidwood, Wesco, Victoria Park. W.A.

Commitment and loyalty are the core strengths of the cooperative with many members recently receiving 15 and 20-year recognition plaques. Annual conventions, golf days, trade shows and social events, complement the relationship between members and the co-op and provide great networking opportunities.

Trent Bartlett, comments enthusiastically about his experience of working within the co-operative environment. "Before coming to Capricorn, I hadn't worked with the co-operative business model, but I would have to say, I am now one of its strongest advocates! The members, the suppliers and the staff share a unique bond that is a powerful commercial force and certainly great fun to work with".

For more information visit the Capricorn web site.


Co-ops and the Financial Advantages

Co-operatives can now frank dividends

Developing Directors for the co-operative advantage

The Co-operative Federation of Victoria Ltd has developed and published the Co-opAdvantage: Developing Directors of Co-operatives Kit with support from Consumer and Business Affairs Victoria.

Copies of the kit can be purchased from the Co-operative Federation of Victoria Ltd - $100 for members and $150 for non-members. A PDF copy of the kit can be downloaded as a read-only copy, http://www.australia.coop

Information from John Booth, Secretary, Co-op Federation of Western Australia

Changes to the law in relation to franking of dividends by co-operatives, to take effect from 1 July 2002, were introduced into Federal Parliament on 5 December 2002.

The amendments will provide co-operative companies with the option of franking distributions made to members on, or after, 1 July 2002. Co-operative companies choosing not to frank distributions made to members will still be entitled to claim a deduction for the distributions made.

The legislation also makes provision for a distribution, paid by a co-operative company within three months after the end of the financial year, to be considered paid during that financial year.

The Bill can be downloaded from http://www.aph.gov.au and a fact sheet is available from http://www.taxreform.ato.gov.au


Co-operative development

Co-operative development Grants Program

An initiative of the NSW Government, the Co-operative Development Grants Program provides funding for specific projects that foster development of the NSW co-operative sector. The registry of Co-operatives and Associations, in the Department of Fair Trading, administers the program.

Grants under the CDP are generally available on two levels:

Co-operative Trust Company of Canada Expands

Co-operative Trust Company of Canada, was created in 1952 by credit unions and other co-operatives with a mandate to expand member services, particularly in the areas of personal trust services and mortgage funding. With the subsequent addition of deposits and corporate trust services, the company now provides financial intermediary and trusteeship services nationwide to credit unions, corporate clients, mortgage brokers, and deposit agents. Corporate assets total $1 billion, with assets under administration of approximately $10 billion.

  1. Co-operatives Formation Program
    To assist potential and newly formed co-operatives in assessing feasibility and enhancing viability. The grants are made on a dollar for dollar basis and the applicants are expected to demonstrate a commitment to the project by contributing 50% towards its cost
  2. Co-operatives Education and research program
    Projects funded under this program are government priority projects, normally initiated by or for the Minister and Department of Fair Trading. Eligible projects under this program would aim to develop the government's co-operatives policy objectives in the NSW economy and demonstrate alternative means of economic development, social empowerment, equity and social justice.

Enquiries about the grants program should be made to the NSW Registry of Co-operatives and Associations on 1800 504 042 or http://www.fairtrading.nsw.gov.au

Masters degrees for Co-operative and Credit Union Managers

A unique distance education program, designed to equip co-operative and credit union managers with the skills, knowledge and ability to successfully lead their organisations in the global economy will commence in September 2003. The degree will be offered as a distance Masters in Management of Co-operatives and Credit Unions.

Education is central in co-op development

According to the Co-operative Federation of Victoria, education is central to the establishment, development and survival of co-operatives, because they are uniquely different from public and investor enterprises. Co-operative values and principles (Read the ICA Statement here) are unique and, therefore, are integral to co-operative practice and must inform co-operative education.

The main partners behind this exciting new initiative are the School of Commerce at St Mary's University in Nova Scotia, Canada and an international co-op comprising credit union organisations, co-operative educational institutions and individuals from the UK, Canada and the USA.

The partners have formed the Co-operative management Education Co-operative (CMEC). CMEC includes major and small co-operatives, and credit unions. Executive Director, Tom Webb, former manager of Co-op Atlantic says, "In the age of Enron, we see our co-operative difference as 'the co-operative advantage'. The key is to link values, sound management and financial success,"

The Masters program will foster the creation of co-operative accounting tools, drawing on the best practice of co-operative businesses around the world. Details on the program are available at this web-site or from Tom Webb, Executive Director, CMEC at jtwebb@auracom.com

Article courtesy of the Co-operative Federation of NSW - Extract from Federation News, March 2003


Corporate Social Responsibility - trends and issues

CSR in Canada and Australia

Coro Strandberg is the Editor of Concern for Community, the Canadian Co-operative Association's online newsletter. In the winter 2003 edition he discusses his research and findings and the impact that corporate social responsibility (CSR) has had on business and co-operatives: http://www.coopscanada.coop/newsletter/csr/winter2003/

Recent failures of large businesses in Australia have put the spotlight on the wider topic of corporate governance. In March 2003, the Australian Stock Exchange (ASX) published Principles of Good Corporate Governance and Best Practice Recommendations, http://www.asx.com.au/about/CorporateGovernance_AA2.shtm

Enforcement or voluntary compliance?

The jury is out amongst leading experts on Corporate Social Responsibility (CSR) in developed countries as to the role of government in advancing CSR in the foreseeable future. Winter 2003 Newsletter (click on 'Governments push for mandatory disclosure & voluntary compliance').

Most observers think that there will at least be mandatory disclosure, in which companies are required to report on their social and environmental policies and performance, possibly with third party verification encouraged if not required. Most expect that governments will be working to support accountability and transparency in company operations, particularly through reporting. While minimum government standards for CSR disclosure is expected, governments will not enforce CSR standards, leaving room for voluntary compliance and corporate experimentation.


Mutual Resources

Inspiring mutual success

Communicate Mutuality Limited is a non-profit distributing Society based in the UK. Trading as Mutuo, it brings together the different wings of the mutual sector to promote a common message of success and to encourage mutual approaches to business and public policy, http://www.mutuo.co.uk.

Through Mutuo, consumer co-operatives, building societies, mutual insurers and friendly societies work together to promote their shared interests to the government, media and other decision makers. Mutuo is committed to:

  • Campaigning for a better understanding of the benefits of mutual businesses
  • Conducting and publishing policy research on issues of importance to the mutual sector
  • Developing innovative new mutual businesses for the delivery of public services

Ethnic Community Capital: The Development of Ethnic Social Infrastructure in Sydney

Russian Orthodox Church (Old Believers) Holy Assumption of the Virgin Mary, Lidcombe. Work undertaken by volunteers, including the domes, completed in 2000
Russian Orthodox Church (Old Believers) Holy Assumption of the Virgin Mary, Lidcombe. Work undertaken by volunteers, including the domes, completed in 2000. Photograph courtesy: W.Lalich

Ethnic Community Capital: The Development of Ethnic Social Infrastructure in Sydney, is the subject of a PhD thesis by ACCORD Research Associate, Walter Lalich. It is a study on the development of various religious and secular buildings by ethnic communities in Sydney since 1948 and examines the contribution of immigrant communities, of non-English speaking background, to community capital.

Immigrants have established many essential community facilities in Sydney. Over 400 different ethnic organisations have developed their own places of worship, social and sporting clubs, education and aged care facilities. Such buildings, defined as ethnic community capital, are visible urban resources and expressions of cultural diversity in Sydney.

The development of ethnic community capital is a result of a collective form of ethnic social entrepreneurship, characterised by voluntary involvement and participation in the production and consumption of collective goods. This voluntary involvement and investment by thousands of immigrant settlers manifests in important new community buildings and in converted heritage buildings built by former settlers across Sydney, creating a new urban landscape. These places are important centres of community life with effects beyond community, city and even national boundaries.

The creative endeavour of 344 organisations is identified and quantified in the thesis, through data indicating financial investment and sources; spatial location and developed space; functions and activities; management; participation; perceived social values and future expectations.

Walter Lalich was educated in Croatia and Australia. He has a Bachelor of Economics degree from the University of Zagreb, and a Master of Economics degree from the University of Western Australia (Perth). His current interests are in various aspects of migrant and ethnic social economy, and in particular in the production and consumption of collective goods in the urban environment; non-profit organisations; ethnic collective social entrepreneurship and transnational linkages. His former professional interests were mostly in the marketing of place, sporting and cultural events, and consumer goods.


Commentary

Co-operatives in NZ - a mini renaissance?

Ian Reid
Ian Reid

"It seems, that after many years favouring the investor-driven business model in the belief that it could do no wrong, at last many people want more than just a money-hungry approach to business," says Ian Reid, Executive Director of the New Zealand Co-operatives Association. In an article for ACCORD NEWS, he comments on what he calls a mini renaissance in the acceptability of co-operatives in New Zealand.

 







News from co-op federations

Co-operative Federation of NSW welcomes new co-ops

Four new co-operatives have been incorporated in NSW:

  • Maaiangal Aboriginal heritage Co-operative Ltd, a multi-faceted venture, incorporating culture based eco-tourism, retail opportunities, consultancy and tourist accommodation at Port Stephens
  • Crew Cuts Industrial Co-operative Ltd, a lawns and grounds maintenance service at Lake Macquarie
  • Villa Alegre Housing Co-operative Ltd, providing secure and affordable housing to members of Latin-American backgrounds in Parramatta
  • Wardell Housing Co-operative Ltd, development and management of housing complex in Ballina

Conference Reports

Shepherds Producers Co-operative Post Harvest review

Mergers and acquisitions in the grain industry have resulted in major industry players moving into the storage and freight business as well as marketing their raw product, according to Scott Bradley, CEO of Shepherds Producers Co-operative. In his keynote address, Co-operative Development and Industry Change in Focus, to the co-op members at the Annual Post Harvest Review in Wagga Wagga, Mr. Bradley pointed to the multiple interests many grain growers now pursue in a variety of businesses.

Philanthropy Australia Conference, March 2003

The conference brought together some of the major players in the social economy, including welfare agencies, government departments, job networks and philanthropic organisations. Delegates had the opportunity to learn about new developments in establishing and funding community foundations, and to discuss the various impediments, including taxation, legal and regulatory factors. A session titled Creating community philanthropists highlighted the fundamental building blocks for setting-up and running a successful community foundation. Read the full report.

He presented suggestions by the Grains Industry and Co-operative Development Committee advocating the necessity for adding value to the raw product, improving volume and creating leverage by working with other groups.

Powerpoint display of the keynote address, published by ACCORD, courtesy of Scott Bradley, CEO, Shepherds Producers Co-operative, can be found here (Powerpoint 135Kb).

MEDIA RELEASETalking water reform sees rain fall at ACCORD Seminar in Wagga

Whilst water reform is a topical issue in the present climate. ACCORD's seminar held on the 21 February 2003 titled, 'Water Reform, Co-operation and the Role of Co-operatives' brought the topic of water lapping at the door steps literally.

Associate Professor Eddie Oczkowski, Co-Director, ACCORD, said the objective of the seminar was to put a positive light on the water reform process. He said, "the angle we are trying to put forward is that of co-operation, and the greater use of the co-operative form may enhance community benefits and also improve the water situation in the long term."

A joint presentation was made on the ACCORD paper "Water reform and co-operation" by Professor Oczkowski, and Kathryn Parker, one of ACCORD's Research Fellows. In summing up, Professor Oczkowski acknowledged that the paper raised a series of questions and hoped that with its launch, more debate would be generated on the issues and that ACCORD may have the opportunity to contribute to better policy and more co-operatives in the water market.

Speakers at the ACCORD Water Seminar in Wagga, from left to right, Joe Jones, John Francis, Dr. Gamini Herath, Professor Eddie Oczkowski, Kathryn Parker
Speakers at the ACCORD Water Seminar in Wagga, from left to right, Joe Jones, John Francis, Dr. Gamini Herath, Professor Eddie Oczkowski, Kathryn Parker

Presentations were also given by Joe Jones, Deputy Chairman, Hunter Wine Country, Private Irrigation District. Geoff Hopkins spoke about co-operation amongst irrigators from the perspective of Murrumbidgee Irrigation. John Francis, Department of Land and Water Conservation talked about water sharing plans in NSW and co-operation amongst the various stake holders. Dr Gamini Herath, Senior Lecturer, LaTrobe University, Wodonga Campus, highlighted co-operation in overseas markets and the lessons that could be learned from an international perspective.

Community, business, government representatives, fellow researchers and others with an interest in irrigation and the effects of water reform in NSW, attended the seminar.

Interviews were conducted with Radio, 2BS(Bathurst); 2PK (Parkes); 2WG (Wagga) and ABC Riverina. Highlights of the seminar were also broadcast on the evening news on Prime TV, Wagga Wagga and a mention was also made on Win TV Wagga Wagga.

'Water reform and co-operation' paper no. 9 can be viewed at: http://www.accord.org.au/publications/ & http://www.australia.coop (archived news and views, February 2003) refers to the seminar, and a proposed series of articles on water privatisation to be published by the Melbourne Age.


What's on

Australian Events Diary

NSW Premier's Department
29-30 April, Sydney
People, Place and Partnership Conference

Garry Cronan, General Manager and Senior Research Fellow ACCORD, will explore the Role of co-operatives in strengthening communities.
Kathryn Parker, ACCORD Research Fellow, will present research on CDFIs overseas and discuss the missing market of financial intermediaries in Australia. She will also focus on how the NSW government can improve access to loans and other financial resources to support community enterprise.


Social Entrepreneurs Network Australia
22-23 May, ACT
Summit on Civic Entrepreneurship and Re-inventing Government

Professor Jock Collins, Board Member of ACCORD, will present Koori Capitalists: A Survey of Aboriginal Enterprises in NSW
Walter Lalich, ACCORD Research Associate, will present Migrant Social Entrepreneurship: Development of Ethnic Community Capital in Sydney
Kathryn Parker, will compare the emergence of community development finance institutions (CDFIs) in Australia, the USA and the UK



International Events Diary

Mapping Co-operative Studies in the New Millennium
28 to 31 May, 2003

General Manager and Senior Research Fellow of ACCORD, Garry Cronan, will present a paper titled "Do Co-operative Studies have a Future? - An Australian Case Study", to the 2003 BCICS international conference - "Mapping Co-operative Studies in the New Millennium" to be held at the University of Victoria, Canada. The conference is concerned primarily with "mapping" the field of Co-operative Studies. Full Story: http://web.uvic.ca/bcics

Co-op conference targets younger generation
28 to 31 May, 2003

A concurrent seminar will be devoted to people aged 18 to 25 who are interested in the co-operative system, model, and values. The long-term goal of the forum is to attract young people to the co-operative and credit union systems, looking at careers and consumer choices. Full Story: http://web.uvic.ca/bcics

Vertical Markets and Cooperative Hierarchies
12-16 June 2003, Bad Herrenalb, Germany

The conference will explore the role of co-operatives in the international agro-food industry. http://www.esf.org/ or email Professor Jerker.Nilsson@ekon.slu.se at the Swedish University of Agricultural Sciences, Uppsala, Sweden

International Cooperative Trade Fair
15-17 October 2003, Beijing, China

The conference is aimed at promoting trade co-operation among co-operatives in the world and is sponsored by the All China Federation of Supply and Marketing Cooperatives with the cooperation of the Canada Co-op Atlantic, the UK Cooperative Group and the Singapore NTUC Fairprice. And is supported by the International Cooperative Alliance (ICA) and the ICA ROAP. For further information, email the Organising Committee of the International Co-operative Trade Fair icdsmc@public2.bta.net.cn


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