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ACCORD News Edition 13, August 2003

Contents in this issue

Co-operative profile

Albany GateWAy, a portal for the West

AlbanygateWAy.com.au is a community portal for the Great Southern region of Western Australia. The brainchild of an Albany focus group, this innovative site was constructed by former portal manager, Gill Sellar. Gill wanted to assist her local community to come on-line and keep pace with global developments on the Internet. GateWAy logo

Although there are many examples of good e-business sites and community portals, this is the only regional community portal run by a co-operative that is e-commerce capable.

Albany Gateway Co-operative recently completed a virtual shopping mall and has a secure credit card facility. The group is now planning to introduce the concept of e-commerce to the local business community. They are also partnering with the Albany Chamber of Commerce and Industry and the University of Western Australia to develop business-to-business capability. This ambitious project will take many years to be fully integrated into the e-community.

The new keeper of the portal and co-ordinator of the co-op, Julie Bucknell, is optimistic about their future and being at the forefront of research and development for e-business. "It may sound a bit like singing our own praises," says Julie, " but given it's special features, we believe AlbanygateWAy.com.au can be held up as world best practice. The nature of enquiries we receive from around the world about our portal development confirms this". Why not visit the site and see for yourself. http://www.albanygateway.com.au

Public policy and legislation

Demutualisation in Australia?

Australian law does not protect mutuals from demutualisation and in general fails to acknowledge their existence as separate entities. - Do we need legislation to prohibit demutualisation of credit unions, building societies, co-operatives, and friendly societies?

David Griffiths, Secretary of the Victorian Co-operative Federation comments and publicises the views of others http://www.australia.coop/stopre_demutual.htm

"Stopping Demutualisation" - Kiwis prefer no regulation

There is an ongoing debate, at least in Australia, about possible steps towards preventing future demutualisation of co-operative and mutual businesses.

From the eastern, the New Zealand side of the Tasman, it appears that Australians favour government (state or federal) intervention and legislation to control matters considered to be in the best interest of the wider community. This is one side of the debate about stopping demutualisation.

Commentary by Ian Reid

Government research into social capital

The Australian Bureau of Statistics (ABS) is now involved in the measurement of social capital; the networks, social norms and trust relations that facilitate group action. The ABS has consulted academics, nonprofit organisations, and state and federal government agencies, on how to define social capital, and the indicators to best measure the concept.

The aim is to develop indicators that will most benefit users; those wanting to use government-collected data, and those interested in undertaking their own measurement of social capital. The ABS social capital theme page provides more details, and a comprehensive series of links to work on social capital: http://www.abs.gov.au themes, social capital (under People) and: http://www.abs.gov.au/CA25670D007E9EA1/

Charities and Not-for-profits: A modern legal framework

In July 2003, the British Home Office published the government's response to a report from the Strategy Unit (Private Action, Public Benefit). The Strategy Unit report set out 61 recommendations for the reform of voluntary sector law and regulation, and the Home Office report details: (i) the submissions to a consultation on the proposals and (ii) the Government's response, taking account of the views expressed in the consultation. The Home Office report can be downloaded from their website.

The report has a number of sections: general comments on the review; recommendations for modernising charity law and charitable status; recommendations for improving the range of legal forms; recommendations for ensuring accountability and transparency, building public confidence; and recommendations for ensuring independent, fair and proportionate regulation. Government only rejected outright two recommendations, one of which would have allowed charities to carry on trading activities without setting up a separate trading company, and the other that would have given co-operatives a statutory definition following International Cooperative Alliance principles. All the other recommendations were accepted, either as laid out in the initial report, or with some modifications.

A number of recommendations will be taken forward by the charity regulator - the Charity Commission, especially those relating to new reporting requirements by charities, such as: (I) reporting on their procedures for recruiting trustees, (ii) that larger charities should complete standard information return highlighting key qualitative and quantitative information about the charity, focusing on how it sets objectives and measures its outcomes against these, and (iii) reporting on ethical investment policies by large charities and/or those with large equity holdings. The Charity Commission will also take forward recommendations for better dissemination of information to the public, and measures to increase public confidence in the probity of fundraisers.

Other recommendations will require legislation, in the form of a proposed Charities Bill. If Government takes this forward, it will addresses a range of issues including (but not exclusively): broadening the definition of charity; personal liability for trustees; audit thresholds for annual returns; changing requirements for currently exempted and excepted charities; and measures to facilitate charity mergers and the administrative running of charities.

In the UK, the NCVO (National Council for Voluntary Organisations) is heading a campaign to have a Charities Bill in the next session of Parliament. A number of charities have signed up the campaign, and details can be found on NCVO's website.

Financial issues and community benefits

Public to benefit from Community Interest Companies

Proposals for developing a new entity - the Community Interest Company (CIC) by the UK Department of Trade and Industry, Treasury and Home Office that confer special regulatory and legal status to community and social enterprises, is innovative and worthy of careful examination, in view of potential transferability to Australia.

CICs will have the flexibility of the company form, but with additional requirements to show that they are dedicated to the community interest. CICs will protect community interest by locking in profits and assets for use for the public good. Read the full article here.

futurebuilders - An investment fund for the Voluntary and Community Sector Public Service Delivery

In May 2002, the UK government announced it would establish a 125 million pound (A$ 350m) fund to build the capacity of voluntary and community organisations to creatively tackle problems in the areas of public concern: health and social care, crime and social cohesion, education and learning and support for children and young people. Monies would be "invested" over a three-year period.

After an extensive process of deliberation via six reference groups drawn from the voluntary and community sector, in April 2003 the UK Treasury, which is responsible for the Fund, and the Compact Working Group released a set of proposals for wider public consultation.

What is being proposed is a Fund that will be independent of government and will invest in voluntary and community organisations with proposals for new ways of addressing problems in target areas, or to build their capacity to manage more complex tasks and to seek independent funding. In effect it is an R&D fund for the charitable part of the voluntary sector.

The fund was introduced as a sop to the voluntary sector that had long lobbied to be relieved from some of the burden of the VAT.

UK government strong on policy to build social economy

This issue notes four reports recently released by different departments of the UK government. In different ways, each report is designed to build the capacity of the social economy to innovatively respond to the new roles required of it in the new century. They testify to an ongoing policy interest in the social economy by the UK government - an interest that stands in marked contrast to Australia.

In an important respect these policy developments are a consequence of the Compact signed between the voluntary sector and the government in 1998. The issue also carries a brief report on the progress of that Compact. Read the full article here.

Bank of England considers social enterprises as a distinct entity

Financing Social Enterprises, is a recently released report commissioned by the Bank of England (BOE). This is the first time the bank has considered 'social enterprises' as a distinct small or medium sized business enterprise and examined their access to various sources of finance, and the importance of such enterprise development.

Read the extended Infobrief on our web-site

Community Development Financial Institutions - latest Developments

ACCORD Research Fellow, Kathryn Parker, highlights the latest CDFI developments in the USA and UK.

Cooperative development

Model Rules Discussion Paper

The NSW Registry of Co-operatives & Associations has drafted a discussion paper to highlight issues relating to the development of model rules and their implementation. http://www.fairtrading.nsw.gov.au

New co-ops in NSW highlight diversity and innovation

Co-operation and leadership

Accord Associates Network Meeting on 4 July 2003

Paul Fitzgerald
Paul Fitzgerald - ACCORD Associate

ACCORD Associates Network is a group of twenty-nine leading co-operative researchers and consultants from around Australia. The group met recently in Sydney to discuss co-operative development in theory and practice, the current status of the sector, and the way forward.

The National Executive Committee was established, with members from Queensland, Western Australia, New South Wales and Victoria.

The committee will focus on:

  • National co-operative legislation
  • Projects to promote co-operation between co-operatives
  • Relationship of the co-operative sector to professional advisors
  • Best practice in community development models
  • Relationships with Government on both funding research and program delivery
  • 'Distributive' verses the 'non distributive' co-operatives and how to address their separate needs

For information on the ACCORD Associates Network please email Jodie Matheson jmatheson@csu.edu.au

Karine Shellshear
Karine Shellshear - ACCORD Associate

Social inclusion or exclusion

Conference considers links between poverty and social exclusion

Over 500 people attended the conference, held in Sydney from 9-11 July. Most were from academia and government (local, state and commonwealth).

Andrew Passey, Senior Research Fellow of ACCORD, who was at the conference summarises:

'The theme was social inclusion, although most of the papers dealt with elements of social exclusion, such as welfare, health, housing, and employment and a range of cost-cutting areas: gender, citizenship, indigenous and disability issues, and social capital. The lack of explicit reference to social inclusion (or social exclusion) perhaps reflects the European origins of the concepts, which have only recently been adopted in the UK. Jonathan Bradshaw, from the University of York, dealt with this topic' in his keynote address.'   View Andrew's extended article.

Social Entrepreneurs - putting people first

How far do governments have to go to become 'civic entrepreneurs?' Kathryn Parker, Research Fellow of ACCORD discusses the main theme of the Social Entrepreneurs conference held in Canberra in March 2003. Read Kathryn's Infobrief.

News in brief

Lie of the labels

The Brussels-based European Community of Consumer Co-operatives has welcomed the proposed ban on misleading and dubious label claims as an important step towards providing better consumer information and public health protection. www.thenews.coop

ICA to manage community names for .coop

The International Co-operative Alliance (ICA) and DotCooperation LLC (dotCoop), the sponsors of the .coop Internet domain, have announced that the ICA will take over administration of the dotCoop Community Names program. The Community Names program allows eligible organisations to become sponsors of .coop names such as http://www.australia.coop, http://www.scotland.coop and http://www.creditunion.coop. All are committed to serving the co-operatives in their locales or sectors. 

"ICA will be able to provide the Community Names program for .coop domains. This is a truly global view, and will enable the ICA Special Interest Groups in different sectors to fully utilise the world-wide reach of .coop," says ICA Director General Iain Macdonald. For more on the new Community Names program, visit http://www.coop

Collective marketing adds value for Hunter beef producers

Marketing meat meals in a bid to encourage consumers to eat more red meat is the Hunter Natural Co-operative's latest venture. The ready-to-cook meals are stored in heavy-duty, air sealed, plastic bags and have a shelf life of 12 months, without refrigeration. The challenge for this new co-operative venture is to get people used to the concept of eating meat that has been in a bag for a year!

Celebrate CO-OP Week October 12 - 18

Co-operatives and Credit Unions: The Heart of Our Community... live the co-operative experience! has been chosen as the theme of this year's Co-op Week, which will be celebrated October 12 - 18. Credit Union Day is October 16. See the web-site for more info

Mutuals, the better option for UK Customers

Customers Trust Mutuals more than PLCs - UK survey - media release 8/5/03 http://www.mutuo.co.uk

Some interesting facts

Did you know that the famous Parma Ham and the Parmesan cheese are produced by small co-operatives, federated into "conzortiums" in the region of Parma, Italy? or that the provision of electricity outside the big cities in the USA is co-operatively organised?

ACCORD Hosts Sydney Chapter of SEN

The reconstituted Sydney Chapter of the Social Entrepreneurs Network is now being hosted by ACCORD. The Chapter meets monthly, at the University of Technology, Sydney.

Peter Gates, convener of the Chapter, welcomed the close association between SEN and ACCORD. Visit the web site for information about SEN.

Mapping Co-operative Studies in the New Millennium Conference (May 28 -31)

ACCORD's General Manager and Senior Research Fellow Garry Cronan was one of the international speakers at the recent co-operative studies conference hosted by the British Columbia Institute for Co-operative Studies, at the University of Victoria. Over 100 researchers from twenty countries attended the conference. The main purpose of the gathering was to review the current state of research into co-operatives, and to explore and map Co-operative Studies as a field of academic enquiry. Visit the web site for information.

Gabriella Sozánski, ICA's European Director with ACCORD staff
Gabriella Sozánski, ICA's European Director with ACCORD staff

What's on

In Australia

2 August:NSW Co-operative Federation's Not-for-profit co-operatives.
A one-day seminar at Canterbury-Hurlstone Park RSL Club, Sydney
Details: hmcchall@onaustralia.com.au

2 August 10.30 am: Launch of ACCORD Report - State of Sector by Helen McCall, CEO, NSW Co-operative Federation at Canterbury - Hurlstone Park RSL Club

4 September: ACCORD seminar at UTS Sydney Ethnic Communities Building Better Australian Cities and Towns. For details view our Events diary.

18-19 September:1st National Gathering of Social Entrepreneurs - There's no business like social business, and presentation of Awards, Sydney.
Website: http://www.sen.org.au | Email: lynne@sen.org.au

21-24 September: Life Activities International Conference on Disability, Creative Community Initiatives for People with Disabilities, Newcastle
http://www.lifeactivities.org.au/conference

25 September: Western Australian Co-operative Federation Annual Conference
Details: The Secretary, John Booth
Email: cfwa@cfwa.org.au

Friday, 24 October: The Co-operative Federation of South Australia hosts its Annual Conference and AGM at Nuriootpa, in the Barossa Valley.
Email: cfsa@adam.com.au

15 November: NSW Co-operative Federation seminar, Not-for-profit co-operatives Raymond Terrace

Details: hmcchall@onaustralia.com.au

30 Nov-3 Dec: Building a Truly Civil Society, 3rd Australian Family and Community Strengths Conference, University of Newcastle, NSWhttp://www.pco.com.au/familystrengths

Events Overseas

30th August - 5th September: International Co-operative Alliance General Assembly - World Congress on Co-operatives - Oslo, Norway
ICA Oslo

The Norwegian Prime Minister, Mr Kjell Magne Bondevik, will address the Assembly and The Norwegian Minister of International Development, Ms Hilde Frafjord-Johnson, will represent Norway in the programme session on Global Environment for Development: External Challenges.

10th - 11th October: Co-operative Young Film Makers Festival - National Museum of Film, Photography and Television, Bradford, UK

Showcase of films created by those 21 or under: Co-operative Young Film Makers online

15th - 18th October: ICMIF Biennial Conference - Paris

How mutual and co-operative insurers make a difference in their market and social environment. Email: icmif@icmif.org

15-17October: International Cooperative Trade Fair Beijing, China
Email: icdsmc@public2.bta.net.cn

Announcements

International co-operatives leader launches report in Sydney

ICA Director launches ACCORD Report
ICA Director launches ACCORD Report & meets author Jayo Wickremarachchi.

New Cooperatives: Motivations and barriers

The recent visit to Sydney, of Gabriella Sozánski, European Director of the International Co-operatives Alliance was a highlight of International Co-operatives day, which is celebrated worldwide on 4 July each year. During her visit, Gabriella launched the latest ACCORD report, New Co-operatives: Motivations and Barriers, which profiles the formation of co-operative businesses in Australia over the past ten years - around 300 in NSW alone. Figures show that globally co-operatives provide more than 100 million jobs. Collectively the sector is bigger than the multi-national corporations, but it doesn't have the same prominence because it is made up of many small organisations working at a local level. Read the full Infobrief.

Boolean Algebra and social research

Branka Krivokapic-Skoko, ACCORD Senior Research Fellow, attended the Second workshop on Research Methodology organised by the Royal Netherlands Academy of Arts & Science. The seminar was hosted by Vrije University, Amsterdam on 25-27 June 2003. http://www.knaw.nl/rm2003

Branka's paper's titled, "Boolean Algebra and the Comparative Method : Features and Applications to Social Science" was drawn from her longstanding interest in new methods of providing causal explanations in social science.

New Publications

Publications

New Cooperatives: Motivations and Barriers
Author: Jayo Wickremarachchi, former ACCORD Senior Research Fellow

The State of the Co-operative Sector in New South Wales
Authors: Jayo Wickremarachchi and Andrew Passey


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 September. If you have any items of interest please ensure that these are forwarded to suzanne.henderson@uts.edu.au by 30th August 2003.

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