| Newsletter 8 - October 2002 | |
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Spotlight on ACCORDWelcome to the new look of ACCORD News online. The newsletter has been re-designed to complement our new website, launched today. The new site will give our regular readers and visitors easier access to information and the latest research on co-operatives and the wider social economy. Previous newsletters, commentaries, case studies, co-operative profiles, case histories and other ACCORD publications have been transferred to the new site. The website was redeveloped by the Institute for Interactive Media and Learning (IML) at the University of Technology, Sydney. In this edition of ACCORD News, we feature new approaches to improving the social economy. The UK Government for example, has commissioned a number of reports aimed at helping the social economy in its process of reinvention. We look at research on the need for major legislative and regulatory reform to provide greater protection to co-operatives from de-mutualisation. We feature an article from the New Zealand Co-operatives Association on capital structures of agricultural co-operatives and explore other innovative approaches to fundraising. Education is key theme and our case study on Tranby Aboriginal College illustrates how the co-operative approach accommodates the traditional way of doing things and is a compatible business structure for Indigenous people. 15 October 2002 was World Rural Women's Day and we commemorate the event by profiling Australian dairy farmer, Sue McGinn. Sue is the first female director on the board of Dairy Farmers Cooperative in its 101 year history. ACCORD news is published online every eight weeks. If you would like us to announce your event, or if you have an interesting story to tell, please contact the editor, suzanne.henderson@uts.edu.au Contents in this issue
New legal forms proposed for UK social enterprises and charitiesA report to the UK government from its influential Strategy Unit has recommended a major overhaul of legal forms for charities and social enterprises. Entitled, Private Action, Public Benefit. A Review of Charities and the Wider Not-for-Profit Sector, the report proposes new legal forms for social enterprises and charities and a modernising of existing Industrial and Provident Society Legislation to offer co-operatives greater protection from de-mutualisation and to require them to commit to the ICA principles. The report is one of four major reports that the Blair government has used to help the UK social economy in its process of reinvention. A fuller analysis is available from the Commentaries section.UK law provides protection for co-ops and mutualsA new law, passed by the UK Parliament, provides greater protection to co-operatives and mutuals, from the threat of take-over, by so-called carpetbaggers. The Industrial and Provident Societies Act, places co-operative bodies on a similar footing to building societies in the UK. If a conversion vote arises, the new law requires a 50% minimum turnout of members with at least 75% voting in favour of a conversion, for it to become effective. The Australian Co-operative Legislation also requires a 75% majority vote in favour for a conversion, the main difference is, that there is no requirement for a minimum number of members to be present for the vote to be valid. The requirement of at least a 50% turnout of members would appear to give greater protection to member-based organisations in the UK. (Source ICMIF's online Newsletter 42 08/2002 [PDF], also UK Co-operative Party website).What is ICMIF?The International Co-operative and Mutual Insurance Federation (ICMIF) includes the majority of the world's most popular risk-bearing insurers, operating on the basis of principles common to the co-operative movement and democratic mutuality.
Since it was founded more than three quarters of a century ago, the Federation has steadily built up its membership from five European co-operative insurers in 1922, to over 120 insurance groups, representing over 300 insurance companies, from more than 65 countries. Members include some of the largest insurers in the world, as well as some of the smallest. Their collective assets account for over ten per cent of the world's insurance market. There are no current Australian members, although a New Zealand based insurer Farmer's Mutual Group, recently joined. Other well known members include, The Cooperators Group, Canada, the Folksam Group, Sweden, CIS in the UK and Nationwide from the USA. ICMIF was recently engaged by the International Co-operative Alliance (ICA) to assist in the review and restructure of financial systems as part of the re-engineering of that organisation. ICMIF has a high regard for the value of research. Information about a groundbreaking study into the comparative performance of mutual insurers and the reasons for demutualisations is available on their website. A copy of their online magazine is also available. ICMIF recently commenced working with the Association des Assuerers Coopératifs et Mutualistes Europeans (ACME), its European regional member, to gain approval for the new European Union Co-operative Statute, see ACME's online journal RAPPORT [PDF] for more information. Study tour forges links between Australia and BrazilIn Brazil, effective co-operative leadership is encouraged and supported through government policy, funding, education and training. In September, as part of a professional development program, twenty-nine senior executives representing Brazilian agricultural co-ops participated in a study tour, visiting agricultural co-ops in NSW, Victoria and Queensland. The purpose of the visit was to look at successful co-operative models and identify opportunities for co-operation between the two countries. The delegation met with representatives of ACCORD and the NSW Registry of Co-operatives and Associations. They were keen to know how Australian agricultural co-operatives are structured, how they raise capital, maintain member control and loyalty and still manage to compete internationally. ARCH - a catalyst for co-operative housing developmentThe Association to Resource Co-operative Housing (ARCH) http://www.arch.asn.au is a state based peak body representing housing co-operatives throughout NSW. It has 45 member co-ops, with between 5 and 90 dwelling units each, in metropolitan and non-metropolitan areas. Of the 1,200 people living in co-operative housing, over 40% of the co-op's membership represents people from non-English speaking backgrounds. Although it receives funding from the NSW Government, to develop co-ops for people with a high housing need, up to 35% of ARCH's clients are not eligible for Department of Housing assistance. As a catalyst for co-operative housing development, ARCH provides training and support for existing housing co-ops. It assists groups in planning and policy development, managing finances, tenancies and assets, as well as in key learning areas of organisational management. In future editions of ACCORD NEWS, we will report on successful models of cooperative housing overseas. Investors in Social EconomyINAISE (the International Association of Investors in the Social Economy) is a global network of socially and environmentally oriented financial institutions. Created in 1989, INAISE has grown rapidly as the movement of social investors gained importance, volume and visibility in a number of European and non-European countries. Earlier this year Investors in Community (IIC) joined INAISE. IIC is an ethically and socially responsible financial intermediary, operating in Australia. As a wholly owned subsidiary of CAF Australia, IIC works as a specialised agent of Bendigo Bank. In July 2002, CAF Australia, through IIC, became one of 19 non-profit partners in Bendigo Bank's new banking initiative known as "Community Sector Banking". This new branch of Bendigo Bank will offer financial and banking services especially geared towards the organisational needs of the not-for-profit and cultural sectors. Community Capital Alliance EstablishedThe Community Capital Alliance (CCA) has been formed, as a result of the success of the Community Capital Conference, held in Maleny, Queensland, early this year. The mission of the CCA is:"To develop a cohesive alliance committed to building economic, social and ecological capital in local communities, by working with investors and communities, government and innovators." The two founding members of the Community Capital Alliance are Foresters ANA Friendly Society and Maleny and District Community Credit Union. Both organisations are recognised leaders in community-based, socially and environmentally responsible investment. Two CCA project workers have now started working with CCA members, to link potential investors with community and environmental capital building projects. As well as forging new links and facilitating progressive ethical investment, a quarterly newsletter will be produced and a new CCA website created. In the meantime information is available from http://www.communitycapital.asn.au. Capital structures of agriculture co-operatives in New ZealandIn recent times, we have witnessed the generic growth of successful co-operatives and while some co-ops have adopted innovative approaches to meeting the needs of their shareholders / members, many still have a low nominal share value and in many instances a very modest 'share standard'. At the other end of the spectrum is the 'hybrid model', where there are 'Investor Shares' as well as 'Transactor Shares'.
The needs of the co-operative to incur capital development costs are often the indicators as to whether capital raising is an issue. In some instances, capital retained by the co-operative over a period of time can provide much of the financial resources required for such development. This can also be augmented by some 'bank' borrowing or by issuing capital notes or other debt security. For co-operatives that do not have a stream of retained surpluses to draw upon and whose shareholders/members are not in a position to inject the capital required to fund capital developments, the hybrid model may be of interest. A fuller analysis can be obtained from the Commentaries section or from the web site of the NZ Co-operatives Association http://www.nzco-ops.org.nz ANZRSAI ConferenceACCORD Research Fellow, Kathryn Parker, attended the recent Australian and New Zealand Regional Science Association's International Conference titled, Public-Private Partnerships: Investing in Regions. The issue of creating long term financially sustainable organisations in remote and regional areas was given little attention, with the exception of a few case studies focussing on community foundations set up to harness local financial resources. The various legal and regulatory obstacles were seen as a hindrance to community development finance initiatives. ACCORD will continue its research on overseas and locally emerging community development financial institutions and endeavour to shift the debate towards the practical steps to achieving financial sustainability in regional communities. For details, contact kathryn.parker@uts.edu.au Co-ops demonstrate that community involvement is more than dollarsA recent Canadian Co-operative Association (CCA) survey found that in 2001, Canada's non-financial co-operatives gave over $16.7 million to their communities through donations and sponsorships. When combined with the contributions from credit unions and caisses populaires, the total jumps to over $60 million. These figures are striking, especially given the relatively small size of most co-operatives and the fact that these figures do not include the patronage dividends returned to co-op members. http://www.coopscanada.coop/NewsLetter/CSR/index.html But financial returns to the community are not the whole story. When it comes to assessing overall community contribution, co-operatives emerge as an integral part of the fabric of local communities. The nature of their business is to meet community needs. They provide essential community services. Whether it is affordable housing, accessible childcare, reliable ambulance transportation, or local fire-fighting services, co-operatives demonstrate community involvement by their presence in the community. In over 900 Canadian communities, for example, credit unions are the only financial institution. Co-ops - a grassroots alternative to market forcesInspired by the World Social Forum in Porto Alegre, Brazil this year, a smaller scale event was held at the University of Technology, Sydney in September. The Sydney Social Forum aimed to create an opportunity for participants to:
ACCORD Research Officer, Paul Simpson attended a workshop conducted by Arpita Ariell (from Proutist Universal, info_au@prout.org) and Keelah Lam (founding member and coordinator of the Manly Food Co-op). The workshop, Co-ops: A Grassroots Alternative, included a video highlighting co-operative success stories of Maleny, Queensland. Discussion ranged from the practical steps needed to start a Co-op; co-operative principles and how they can provide an alternative to market forces; the need for research and development, particularly in terms of lobbying government for legislative changes that support the development of co-ops. An email list was set up to enable participants to share information and to keep in touch with each other's co-operative interests. Delegates were keen for the forum to become a regular event with the aim of improving our understanding of social justice, globalisation and sustainability and to focus on how communities can work together for positive change. Tranby - "Step by Step, the Co-operative Way"Tranby Aboriginal College, http://www.tranby.com.au located in the Sydney suburb of Glebe, has been a pioneer in indigenous adult education. The Co-operative for Aborigines Ltd established the College in 1958 to provide teaching and learning facilities for Aboriginal and Torres Strait Islander peoples. For over 45 years, the college has been involved in the struggles for social justice and Aboriginal rights and has become known as a 'meeting place' for social action.
Since 1998 the College has set its own educational agenda, based on a holistic approach to Aboriginal education. The learning areas have been designed to reflect Indigenous learning circle practices. Around 150 students are enrolled in a range of courses including, nationally accredited diploma-level courses in Legal Studies, Applied Aboriginal Studies and Community Development. The college also runs community-based courses and workshops. Through Tranby Aboriginal College, students are empowered by the acquisition of skills within a culturally appropriate context. For a case history on Tranby click here.Changing the gender balance in agribusinessSuccessful dairy farmer from Kempsey on the mid-North coast of NSW, Sue McGinn, is the first female director on the board of Dairy Farmers Cooperative in its 101-year history.
Sue believes it's time for women to become more visible in leadership and management roles. 'We need to recognise ourselves as farmers and not farmer's wives, she says. 'It's exciting to think that the gender landscape in the not-too-distant future could and should be far more balanced. 'It is apparent to me that women are conspicuously absent from the public world of farming organisations, agri-support services, processing co-operatives and companies. It is disappointing to find very few women in the roles of directors or chairpersons and this reflects a gross under-utilisation of the tremendous human resource that is available to rural Australia'. 'The technological evolution of the farming enterprise means that women are in a far better position now to be making a difference. Their managerial, administrative and communication skills are relevant and essential for balanced decision making within key organisations'. Sue McGinn initiated the First International Forum for Women in Dairying in 2000 and is a Nuffield scholar. Her story is included in the Federal Government's book of case studies called 'Women Taking Action - making a difference in regional and rural communities'. 
November 2 - 3: Fifth Annual Agribusiness Co-operative Leadership and Governance ForumThe forum, organised by Monash University in conjunction with the co-operative federations of Victoria, WA, SA, NSW, Qld and NZ, will be held at Shearwater Resort, Cape Schanck, Victoria on 2-3 November. Keynote speaker, Professor Daniel Côtè, Rabobank Fellow in Agribusiness Co-operation at the University of Montreal, Canada, will discuss the future of agricultural co-operatives and the pursuit of competitive advantage, through the development of co-operative values and member loyalty. Professor Côtè will present case study analyses of prominent international agricultural co-operatives to illustrate this strategy. Guest speakers include: Gary Helou, CEO of the Ricegrowers Co-operative; Terry Kilmister and Graeme Nahkies of Boardworks International and Alan Robb from Canterbury University, New Zealand. For details, contact Dr Lawrie Dooley at Monash University on (03) 9903 2757 or visit the website http://www.agribis.net Gold Medal for co-operative directorsPresentation of the Sir John Monash Gold Medal for Agribusiness Co-operative Directors is a highlight of the Agribusiness Co-operative Leadership and Governance Forum on 2-3 November. The award is presented in recognition of outstanding achievement in agribusiness co-operative leadership and is open to co-operative directors across Australia. Co-operative Hall of HonourThe Australasian Agribusiness Co-operative Hall of Honour, an initiative to recognise the achievements of leaders in the agribusiness co-operative sector (past and present), will be launched at the agribusiness forum in Victoria. For information, contact Dr Lawrie Dooley at Monash University on (03) 9903 2757 or visit the website www.agribis.net
November 14-15: Co-operative Federation of NSW, Annual ConferenceThe Co-operative Federation of NSW Ltd hosts its 2002 national conference - Making Your Co-operative Status Work for You - at Sydney Olympic Park on 14-15 November. Speakers include: Ian Reid, New Zealand Co-operatives Association; Gary Moore, NSW Premier's Department; Brian Given and Robyn Donnelly, NSW Registry of Co-operatives and Associations; Tony Addison, Addisons Solicitors, and Ian Langdon, Dairy Farmers Group. The program will address topics such as: salary packaging, the Privacy and the Co-operatives Acts, franchising and benchmarking. Delegates will have time to do some serious thinking about board matters and what being a co-operative means for the co-operative, its members and the community. Board members, in particular, are encouraged to attend and there's a special breakfast for chairpersons to get together to discuss common problems and future directions. If you would like to hear the latest developments and network with other co-operators, please contact Helen McCall, Co-operative Federation of NSW for a registration brochure on: (02) 4938 5308, or email hmccall@onaustralia.com.au December 10: Social Enterprise and Community Development Financial Institutions (CDFI) SeminarACCORD will host a seminar to discuss its research into CDFI's in Australia and overseas. ACCORD Research Fellow, Kathryn Parker will present some of the successful CDFI models overseas and discuss their relevance in the Australian context. Other speakers - to be confirmed.
Venue: UTS Haymarket ACCORD Pays tribute to NCU EditorThe last edition of National Co-op Update (NCU) was published in September 2002. During its six-year lifespan, over forty issues of the newsletter were published and for most of that time it was the only national publication serving the Australian co-operative movement. NCU established a reputation for accuracy and has become the journal of record. NCU's editor, Chris Greenwood, was an active participant in the co-operative movement. His post-graduate research focused on the capital structures of Australian co-operatives. He sought to lift the standard of debate and communication among co-operatives and policy makers. Regretably, it appears the newsletter failed because of the lack of sufficient support from the co-operative sector in this country. Maybe we should leave the last word to the editor? Understandably, he is somewhat pessimistic about the future of co-operation in Australia. 'Perhaps, as many suggest, the era of the 'co-operative' is over as such. By the same token, maybe the era of the member or farmer-centred business is just beginning. The nucleus for this sector may well be in the generation following the one that 'sold on' their co-operative. Their touchstone may be the need for affordable health services, education or, indeed, adequate bargaining power when dealing with globally dominant corporations. You know, the ones that long ago took over those old co-operatives'! If the co-operative sector in this country fails, it will not be for lack of effort by the likes of Chris Greenwood and the team that produced NCU. We thank them for their contribution and wish them well in the future. Farewelling friends and welcoming new arrivalsProfessor Eddie Oczkowski has been appointed Co-Director of ACCORD, representing Charles Sturt University. Eddie replaces Kay Plummer who has been Co-Director of ACCORD at CSU for the past two years. Eddie Oczkowski is Associate Professor in economics and quantitative methods in the School of Management, Charles Sturt University, Wagga Wagga. He has held senior academic positions at CSU and La Trobe Universities, including a term as Head of the School of Management, CSU from 1999-2001. Eddie hopes to strengthen the 'economics' focus of ACCORD's research by applying conventional economic and econometric methodologies to gain a better understanding of co-operatives. Kay Plummer will continue to have an important role with ACCORD in addition to her own research activities. She will be responsible for liaison with the NSW Registry of Co-operatives and Associations and for supervision of ACCORD's Bathurst based staff. Professor Jock Collins replaces Associate Professor Jenny Onyx on the Board of ACCORD. Professor Collins has been with the University of Technology, Sydney (Kuring-Gai campus), since 1997. His teaching areas include: Economics for Management, Labour Market Economics, International Economics and Economics for Leisure and Tourism. He often comments on immigration matters in the media and has an international reputation for his research work in this area. ACCORD would like to thank Jenny Onyx for her significant contribution to ACCORD over the past two years. As a board member, she contributed to the intellectual development of ACCORD as well as helping to shape its strategic direction. She also worked in a collaborative way with ACCORD's research staff. Jayo Wicks, who has been at ACCORD since its inception in 1999, will return to the Department of Fair Trading later this month. Jayo has played a significant role in helping to establish our IT support systems and manage the website. While at ACCORD, he specialised in analysis of co-operative performance and public policy issues. As a team member, Jayo will be greatly missed. We have all valued his considerate and supportive nature and wish him well in the future. Jodie Matheson, from the NSW Registry of Co-operatives and Associations will replace Jayo Wicks and will be based at ACCORD's CSU office in Bathurst. We welcome your comments on our newsletter and any suggested topics or items for inclusion in the next issue, due for publication in December. If you have any items of interest please ensure that these are forwarded to suzanne.henderson@uts.edu.au by 20 November 2002. To refer a friend or to unsubscribe, please e-mail: accord@uts.edu.au. All contact information provided will be kept strictly confidential. |
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The history of the Co-operative dates back to 1952, when the Australian Board of Missions (ABM) employed the Reverend Alf Clint as Director of Co-operatives in Australia and New Guinea. Alf's work in New Guinea convinced him that co-operatives were suited to the traditional tribal structure and ways of doing things. In 1957 he was appointed the first
Secretary General of the ABM Christian Community Co-operative Ltd, which was renamed the Co-operative for Aborigines Ltd in 1962. Alf Clint was a driving force in the establishment of the college. Today the College is Aboriginal-run and managed.
This seminar will feature the work of one of Canada's leading co-operative researchers. Professor Côtè is the Rabobank Fellow in Agribusiness Co-operation as well as Co-Director of the Desjardins Centre for Studies in Management of Financial Services Co-operatives at the University of Montreal.
Professor Côtè current academic focus is:
21 September 2006 11:36 AM
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