Contents in this issue

• Public policy, legislation and co-operative renaissance
• National co-operatives legislation goes ahead
• Co-operatives consulted nationally
• Bargaining collectively easier

• Co-operative Profile
• The art of a co-operative

• Flexible funding arrangements benefit communities
• Credit Union Movement "A great mate"
• Holiday Coast Credit Union - Making a difference in the marketplace

• Co-operation at the grass roots
• Business Enterprise Centres assist small business and boost employment
• Community Resilience Manual

• International news in brief, including:
• America's Best and Worst Lenders

• Co-operative education
• Association of Co-operative Educators

• Co-operative development in Australia: theory and practice
• What is co-operative development?

• News from co-op federations

• What's on
• In Australia
• International Events Diary

Public policy, legislation and co-operative renaissance

National co-operatives legislation goes ahead

Further progress has been made towards a nationally uniform co-operatives legislation.

The Co-operatives National Working Party of government officials is finalising its submission to the Ministerial Council On Consumer Affairs, recommending the approval of template legislation to replace the Core Consistent Provisions Scheme. This is a longer term strategy to ensure, that the state and territory governments' commitment to consistent legislation for co-operatives, is not weakened through delays in getting changes to the law passed in each Parliament.

Until now, the Working Party's priority has been, to achieve improvements in the Scheme by adopting fundraising provisions in all jurisdictions that will allow co-operatives to issue Co-operative Capital Units (based on the existing NSW legislation). This replaces the foreign registration provisions with a mutual recognition system that allows co-operatives to operate interstate, without the current expensive and complex formalities. Ministers have agreed to securing the passage of these amendments in the Parliaments of each jurisdiction.

Brian Given, Assistant Commissioner, Operations, Department of Fair Trading, believes, that while it is important to proceed with the amendments, the development of a template legislation scheme will provide a better legislative framework for all co-operatives in Australia.

"If governments adopt the template legislation proposal, a model act will be passed in the Parliament of one jurisdiction, and be applied in all other states and territories through the passing of Application of Laws Acts in the respective Parliaments," explains Brian. "This will ensure that future agreed amendments to the template legislation are applied throughout Australia at the same time and through a much speedier process."

Bargaining collectively easier

The Dawson inquiry into the Trade Practices Act (TPA) has potentially important implications for the development of collective bargaining groups and co-operatives in Australia. If the recommended changes are implemented, then it will be easier for small businesses, including farmers and co-operatives, to legally form collective groups and bargain with larger businesses and processors over prices and other sale conditions. ACCORD Co-Director. Professor Eddie Oczkowski discusses the implications and benefits for small businesses and co-operatives.

Co-operative Profile

The Art of a Co-operative

The Art of a Co-operative

Nearly three years ago, a group of artists were seeking a way, in which they could work together to run an art gallery in order to exhibit and sell their artwork. This was the genesis of the Curious Art Minus Zero No Limit Co-operative Ltd, based on the riverbank in the small town of Chinderah Bay, just south of Tweed on the New South Wales and Queensland border.

The Curious Artists' Co-operative is now heading into its third successful year with a 20 strong membership. 'It's worked well for us," says Michael Bryant, Founder and Manager of Curious. This is an upwards spiralling growth area, with lots of new people moving in and we're poised to sell to the locals; in fact, that's were most our sales are coming from," he says. "We've done the market research and growth in this area translates into cultural spending."

Michael is a passionate advocate of the co-operative business model "It's a great structure, it's flexible, as long it's based on sound business management principles and a democratic approach. We had a lot of help in the beginning from the NSW Registry of Co-operatives and Associations to set it up," he says.

Members at Curious share the workload of the day-to-day running of the art gallery, and are expected to make weekly financial contributions to assist with gallery expenses. "It's to cover the overheads until we realise a profit from sales. The good thing is, we haven't had to borrow a cent," Michael says.

Curious Art

In return for their commitment and contribution, a portion of wall hanging space in the gallery is allocated to each member, along with a number of other benefits that the co-operative business structure allows.

Curious Artists' Co-operative has been an enormously successful vehicle in its own right. Sales of the artists' work has increased steadily, fuelled by the enthusiasm, and the collective power of twenty people with a wealth of experience and life skills. All members have a say in the running of the gallery, how their work is presented and they have the opportunity to acquire business skills.

The Curious Artists' Co-operative has the potential to become a launching pad for new artists. Members have multiple benefits from being actively involved, because the co-operative culture generates additional motivation and inspiration for artists. The co-operative model has induced the birth of an art movement in Chinderah Bay, and Curious is looking to the future and alternative ways to market and expand the business.

Flexible funding arrangements benefit communities

Credit Union movement "a great mate"

Credit Union Foundation of Australia (CUFA) Domestic Development assists rural, remote and Indigenous communities gain access to credit union services.

At the official opening of the Ganmain Rural Transaction Centre in New South Wales, the Prime Minister, Mr. John Howard, congratulated the credit union movement on being "a great mate to country Australia." This centre offers services from Wagga Mutual Credit Union, government and community services.

The aggregated service model, which involves CUFA working with community groups, credit unions, governments and the private sector, continues to produce solutions through the introduction of multiple services into a small community.

There are now 11 Rural Transaction Centres, with more to be opened over the next 12 months.

Holiday Coast Credit Union - making a difference in the market place

The staff and committee of the Holiday Coast Credit Union are always approachable!

Holiday Coast Credit Union on the New South Wales north coast is located in one of the strongest areas of natural population growth in the state. The Credit Union operates 17 branches from Kempsey in the north to Maitland in the south.

A community based financial institution, the Credit Union delivers a wide range of high quality financial services to its members. Its vision is 'To excel in providing personalised solutions for mutual benefit', and its prime values are professionalism, responsibility, integrity, cooperation and equity. "A core part of our business is to provide services for mutual benefit," says General Manager Neville Parsons. "We believe, this is one of our greatest points of difference in the marketplace."

Informal Community Meeting

The Credit Union is committed to the growth and development of the communities in which it operates. "We conduct market research and community meetings to find out whether our services are meeting their needs. We believe, the future is about one-to-one relationships with members."

The Credit Union plans to provide the widest possible range of access choice for its members. It encourages the use of technology to support the traditional transaction business, leaving staff to provide quality time to interface with members, and provide personalised solutions for mutual benefit. See our article for more on the evolution of the Holiday Coast Credit Union.

Co-operation at the grass roots

Business enterprise centres assist small business and boost employment

Mike Jacobs

Business Enterprise Centre's (BECs), started in Australia in the mid 1980s as a result of a Rotary project. Originally conceived in the UK, they are intended as a link between business, government and the community to improve small business performance and employment growth. "Our aim is to boost sustainable economic development and employment," says Michael Jacobs, Manager of Hastings Business Enterprise Centre.

In NSW the government appreciates that small business represents a major success factor in the state economy and that the small business sector creates many jobs. In recognition of this, the state government has partially funded BECs throughout NSW since their inception. "The funding has continued for over thirteen years and is a powerful testimony to the value that BECs provide," says Michael.

Each BEC is an autonomous, not-for-profit entity. Over 130 BECs in all states and territories support national and state BEC Associations, which maintain professional standards and co-ordinate activities across the network. Approximately fifty BECs operate in NSW. The majority is funded by the NSW Department of State and Regional Development via a three-year competitive tender process, with approximately forty-four centres now funded. Additional funding is provided by local government.

Community Resilience Manual

The Centre for Community Enterprise in British-Columbia (Canada) has been exploring the concept of community resilience. At issue is the economic and social vitality of rural communities across Canada, the United States and also in Australia. Many have deteriorated in the past decade due to drastic changes in many industries, especially agriculture, and fisheries. Others have taken steps that have enabled them to survive crisis, influence change, and become healthy, vital places for their citizens.

The Community Resilience Manual, published by the Centre, is available from here. Although specifically addressed to the rural communities of British Columbia, the manual offers valuable assistance to other small communities (including some in Australia and New Zealand) that want to make better decisions about mobilizing their resources.

International news in brief

Surprising co-op market shares

What is the economic significance of co-operatives? Are they really important to national economies? The International Co-operative Alliance (ICA) in Geneva is able to provide information derived from input by ICA members. Did you know that the market share of the Korean Federation of Fisheries Co-operatives was 71%? And that in Norway, dairy co-operatives are responsible for 99% of the milk production and consumer co-operatives held 25% of the market? More in ICA e-news on http://www.ica.coop/.

Dame Pauline

Pauline Green, ICA Vice President and CEO of Co-operatives UK, was recently knighted by Queen Elizabeth II in recognition of her service to the co-operative movement and to the development of the European Union, See our Infobrief for more details.

Tax eliminated

The US Senate Finance Committee has approved an amendment, backed by the National Cooperative Business Association (NCBA), that eliminates a triple tax on co-operatives as part of the overall tax dividend relief package. The measure repeals the dividend allocation rule, which NCBA says penalizes co-ops that issue non-voting stock to help grow their businesses.

Top web site

People's Food Cooperative of Ann Arbor, MI, received a design award for its attractive and easy-to-navigate web site that also educates visitors about co-operatives. Judges found the co-op had melded clever and innovative design with its co-operative and community values, maximizing the public relations and marketing value of the site.

Research, case studies and policy framework

The Sectoral Involvement in Departmental Policy Development (SIDPD), in partnership with the Co-operative Secretariat of the Federal Department of Agriculture and Agri-Foods, has commenced a Low Income Communities Project in Canada. The project will develop a policy framework for using the co-operative model in those communities. The research will include: a literature review of the use of the co-operative model in low income communities and/or among disadvantaged groups in Europe, the United States and Canada; a review of case studies of co-operatives currently operating in low income communities; interviews with federal and provincial government officials; and consultations with stakeholders.

50 years Canadian-Indonesian co-operation

CS CO-OP, one of the oldest credit unions in Canada, has signed on as sponsor of the annual Co-operative Development Foundation of Canada (CDF) fundraising gala. The event is scheduled for Friday, June 20 during the Canadian Co-operative Association's Annual General Meeting week. This year the gala will be held at the Indonesian Embassy in Ottawa, to celebrate 50 years of co-operation between Canada and Indonesia. CCA continues to work in Indonesia, supporting the development of co-operatives and credit unions there.

The Co-op Directory makes contact

Oxford, Swindon & Gloucester Co-op has given local co-operatives and mutuals a boost by publishing The Co-op Directory, which is sponsored by The Phone Co-op, the UK's only telecom co-operative. The directory lists 57 co-op organisations between the Forest of Dean and Oxford. All listings state the activities of the groups, where they are based, and full contact details. The Co-op Directory aims to encourage those with an interest in co-operative and mutual business to use organisations that share their aims.

Best and worst lenders in the USA

The National Community Reinvestment Coalition (NCRC) in March released America's Best and Worst Lenders: A Consumers' Guide to Lending in 25 Metropolitan Areas. The guide is a comprehensive ranking of lending institutions. It ranks banks, thrifts, mortgage companies and credit unions based in the percentage of home purchase and re-finance loans they made to minorities, women, and low and moderate income borrowers and neighborhoods, http://www.ncrc.org/.

Co-operative development in Australia: theory and practice

What is co-operative development?

By David Griffiths

Co-operative Development is the process of encouraging and facilitating the establishment of co-operatives through co-operative means. The key element is that the means (co-operation) are consistent with the ends (co-operatives).

David Griffiths

The values and principles of co-operation provide the basis for guiding co-operative development practice. Co-operative development, therefore, must be consistent with these values and principles - voluntary and open membership, democratic member control, economic member participation, autonomy and independence, education, training and information, co-operation among co-operatives and concern for community.

In the real world, the development of co-operatives is not exclusively based on co-operative development. It is inherently ambivalent and complex, with governments, social entrepreneurs, non-government community service agencies, universities and private enterprise also involved. Many co-operatives are being established without following co-operative values and principles. This creates a contradiction that can establish the ingredients of eventual failure. View the extended commentary here.

News from co-op federations

Western Australia

Courtesy of John Booth, Executive Officer, Co-operative Federation of Western Australia

Three metropolitan co-operatives were recently the target of tax audits with the focus on:

• Payroll tax - salary sacrifice in favour of superannuation and fringe benefits, and
• Stamp duty - share transfers from members and shares purchased from members and subsequently reissued to members.

Some co-operative managers reported errors that had occurred, when registering the names of the holders of shares. The Federation recommends, that all co-operatives should consult their accountants to ensure correct compliance with State taxation requirements.

The ATO has requested the Federation coordinate information seminars for managers, directors and board members, at which ATO representatives will explain the application and implication of changes made to the Tax Act, in respect of franking credits for co-operative dividends.

Elizabeth Cheong, recipient of a three-year Ph D research grant from Edith Cowan University and the Western Australian Department of Agriculture, will attempt to answer this question in her PH D thesis. Elizabeth will examine the factors that stimulate or inhibit the potential of the co-operative structure as model for success in the agricultural industry today.

Anyone interested in the research work can contact Elizabeth at e.cheong@ecu.edu.au

What's on

In Australia

The NSW Co-operative Federation, in conjunction with the Association to Resource Co-operative Housing Ltd (ARCH) will hold four one-day seminars for not-for-profit co-operatives, covering the issues of board member duties, finance, policies and procedures, human resources and GST:

• July 12: Lismore RSL, 1 Market Street
• July 19: Coffs Harbour Ex-Services Club, cnr Vernon St & Pacific Hwy
• August 2: Canterbury-Hurlstone Park RSL, 20-26 Canterbury Rd, Hurlstone Park
• November 15: Muree Golf Club, 7 Walker Crescent, Raymond Terrace

For information and registration email hmccall@onaustralia.com.au

Early August: Ethnic Diversity and Community Capital Building, ACCORD Seminar, Sydney

The seminars will explore the ways in which ethnic community organisations in Sydney, Melbourne and Brisbane have contributed to improvements in the quality of community facilities, and to strengthening of community relations locally in the past, and how this contribution can be further developed.

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

Friday, 24 October: The Co-operative Federation of South Australia hosts its Annual Conference and AGM at Nuriootpa, in the Barossa Valley. Delegates will have the opportunity to view the Community Co-operative Store (Nuriootpa) Ltd, one of the largest retail co-operatives in Australia. Discussions will focus on corporate governance and amendments to the Co-operatives Act, to be implemented on 1st July 2003.

30 Nov-3 Dec: Building a Truly Civil Society, The 3^rdAustralian Family and Community Strengths Conference, University of Newcastle, NSW http://www.pco.com.au/familystrengths/

International Events Diary

12-16 June: Vertical Markets and Cooperative Hierarchies;co-operatives in the international agro-food industry.
Bad Herrenalb, Germany,
http://www.esf.org/ or email Jerker.Nilsson@ekon.slu.se

23-26 June: WOCCU Forum 2003, A Platform for Innovation andKnowledge Exchange, Brisbane, Australia. www.woccu.org

15-17 October: International Cooperative Trade Fair, Beijing, China
The conference is aimed at promoting trade co-operation among co-operatives in the world icdsmc@public2.bta.net.cn

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

July 8-10, 2004: Mending the Global Economy: A Role for Economic Participation
Saint Mary's University, Halifax, Canada

The conference theme focuses on the different forms of economic participation in the global environment, and the impact of corporate globalisation on the evolution of cooperative sectors around the globe. http://www.stmarys.ca/academic/commerce/economic/IAFEP/