Ian Reid points out, that government agencies, politicians and staff have very little understanding of co-operatives (beyond a handful of people) and no resources to enable them consider co-operatives as an alternative business model.

That may appear remarkable when one considers that co-operatives in NZ generate a collective annual turnover of at least NZ$25 billion from an asset base of about $17 billion. This is equivalent to about 22% of the NZ gross domestic product. These figures do not include Credit Unions and revenues of Building Societies.

One problem is that few co-operatives businesses have been established in recent years. The real momentum was in the first half of the 1900’s when many of the successful co-operatives of today were formed.

In order to foster the understanding of co-operatives businesses and provide a working resource, the NZ Co-operatives Association is urging government to demonstrate some level of commitment towards the co-operative business model. This is expected to involve producing, in conjunction with the Association, an electronic information guide on the establishment of co-operatives and how they need to operate in compliance with the law. Those who give guidance to people wishing to establish businesses can then access such a resource.

Once the resource is available, education and training initiatives can be introduced into business development centres around the country, giving day-to-day guidance on establishing new businesses.

The NZ Co-operatives Association favours a government resource that will make information on the co-operative business model available in the same way as that concerning companies, incorporated societies etc. These models have a range of materials issued by government. The prospect of government agreeing to supply some electronic information material on co-operatives and their formation is as good as it will ever be, as this Labour government should have reasonable sympathy for the concept of co-operation and self-help solutions.