With world leaders calling for new business models to help the global economy recover from and prevent another GFC, the co-operative businessmodel already holds many of the answers.
Visiting Australia this week to mark the United Nations International Year of Co-operatives, Dame Pauline Green, President of the International Co-operative Alliance said co-operatives were generating profits for members and creating jobs in just about every sector of the economy.
“In the wake of the GFC, the world is looking for alternative business models to strengthen economies, generate jobs and support communities – and the co-operative model is that alternative. It’s viable, strong and growing,” Dame Pauline said.
“Running a profitable business and caring for people does not need to be a trade off, in co-operative businesses they sit comfortably side by side.
“They have come through the GFC stronger than ever; and internationally, the top 300 co-operatives are worth more than $US1.6 trillion, these are serious businesses with scale.
“In Australia the economy is not just run by big corporations and big not-for-profits - there is a dynamic and successful third force that could be making an even bigger contribution to the complex and pressing economic issues of our time.
“Indeed co-operative businesses in Australia have more than 7.5 million customer owners and generate more than $15 billion in annual turnover.
“I’m looking forward to meeting Australian co-operative business leaders, where I will call on them to form a council of social businesses to better represent their interests in the economy and to government.
“Governments across the world need to be looking at how they can reduce red tape and ensure that taxation and accounting regimes allow shared equity to be better managed.
“For example, in Australia, the regulation of co-operatives is state-based creating duplications and unnecessary regulatory burdens for your large national co-operative businesses,” Dame Pauline said.
As part of her visit, Dame Pauline will launch a set of commemorative stamps in Melbourne today, which feature nine Australian co-operative businesses.She will also meet with business leaders.
At the meeting Australian co-operative business leaders will discuss a range of issues that could form the platform for the business council including greater recognition from the Federal Government for the sector through the appointment of a Minister for Co-operatives; legislative reform that removes regulation from states and brings it into the national arena; and, tax and accounting reform to better manage shared equity.
Greg Wall, Chair, Australian Secretariat for IYC 2012 and Group Chief Executive, Capricorn Society agrees that it is time for Australian cooperatives to shine.
“Across agriculture, banking, insurance, retail and many other parts of the economy, co-operatives are demonstrating that there is an another way of doing business that can be successful as well as responsible.
“It is now time that we come together and focus on what needs to be done to allow our sector to flourish – to create Australian jobs, to generate profit for our customer owners and to provide viable solutions in tough economic times,” Mr Wall said.
“This is the first time the United Nations has granted International Year status to a business model, recognising the significant contribution that cooperatives are making across the globe,” Dame Pauline said.
“A renewed focus on co-operatives over the past three years by the Government and the sector itself in the UK has seen our sector outperform the country’s GDP by 21 per cent and a 18 per cent growth in membership between 2008 and 2010. And this example is being replicated around the world.
“While there are 328 million individuals in the world who are direct shareholders, there are one billion who are owner/members benefiting from a co-operative enterprise,”Dame Pauline said.
media highlights
Read Dame Pauline Green's interview with The Age "Let's Stick Together"
Click here to view Dame Pauline Green's interview on ABC's The Drum.
co-operatives featured on Australia Post’s stamps
- CBH Group – a farmed owned co-operative in Western Australia with a turnover of $1.3 billion in 2011.
- Capricorn Society – a family of 14,500 small business automotive repair shops in Western Australia with turnover of nearly $1 billion in 2011.
- Norco Co-operative – a large dairy business providing products to thousands of Australian families, with a turnover of over $350 million in 2011.
- The Community Mutual Group – a financial services provider to 70,000 member/owners in regional NSW.
- West Belconnen Health Co-op – Australian’s newest co-operative GP and health practice with 2150 local family owners providing health care to 10,500 people.
- Hepburn Wind Park Co-operative – Australia’s first community-owned wind farm that is expected to produce enough electricity to power 2300 local homes.
- Common Equity Housing Ltd. – which provides affordable housing to 5000 low income Victorians.
- Fitzroy & Carlton Community Credit Co-op – which has a long history of providing local residents with banking services and help with budgeting and financial planning.
- Barossa Community Store – owners of the retail precinct in Barossa providing the local community with a supermarket, hardware, department store, toys and electrical goods.
more information
Contact: Fiona Nixon – 0439 578 489