Cooperatives need to be better understood by NZ politicians

MEDIA RELEASE : New Zealand Cooperatives Association

22 November 2011

Cooperatives need to be better understood by NZ politicians

In the run up to the November 26 general election, the New Zealand Cooperatives Association circulated seven questions to the major political parties seeking their views on issues which are important to cooperative and mutual enterprise.

Commenting on the answers received, Cooperatives Association chairperson Chris Knowles said:

“The general confusion in these responses shows that some of our political parties, and presumably the politicians who represent them, just don’t understand how beneficial cooperatives are to New Zealand society.”

Blue Read, chair of the Association’s UN International Year of Cooperatives 2012 NZ Steering Committee said:

“I am confident that by celebrating the International Year of Cooperatives in 2012, many more people will appreciate the strengths, the virtues and the values of the cooperative model.

“Cooperatives represent the best of all worlds, being formed by individuals or business enterprises with common needs who realise the value of acting in a collective manner for mutual benefit and the common good.

“A cooperative epitomises the proud New Zealand heritage of self help and getting on with the job.”

The responses can be found at http://nz.coop/2011-election/

The questions

1 Larger cooperatives are often made up of smaller family businesses which are sizeable. Because they run a family business, the owners consider the detail of their businesses to be very personal. In past years there have been two attempts by MED to force these family businesses to publicly disclose their trading activity. Given that private information is personal property and so compulsory ling would be theft, do you believe this is a good or bad idea, and why?

2 The UN International Year of Cooperatives 2012 is about to be celebrated in New Zealand. In terms both of a nancial commitment and in assisting the New Zealand Cooperatives Association to showcase this important business event to the world, what would your party in Government be prepared to offer as a support package?

3 It is very noticeable that cooperative businesses did not fail during the recent recession. One — AMI Insurance — required and paid for a government guarantee, although not a single dollar has been drawn down. In light of this, does your party see the value in promoting the more stable cooperative and mutual business model, and if not why not?

4 It is a sad fact that those involved in the governance and administration of cooperatives have reported to the Association that in many cases both Government and professional bodies aligned to business show a marked lack of awareness of cooperative and mutual enterprise, tending to dismiss the model as inferior when in fact worldwide evidence proves the contrary. What specific action can your party take to assist the New Zealand Cooperatives Association rectify this anomalous situation, particularly within Government departments and agencies?

5 Does your party see Government as having a role to play in developing successful businesses in New Zealand, or do you see that function as being outside the responsibilities of a Government? What kind of support would your party be prepared to offer those wishing to start a cooperative or mutual enterprise?

6 If a seminar were to be arranged in Wellington by the New Zealand Cooperatives Association specifically for MPs would your party see value in this and send the relevant spokespeople?

7 Does your party believe that there is an increasing role for cooperatives in the Pacic Islands for which New Zealand has varying levels of responsibility? If so would your party consider involving the New Zealand Cooperatives Association in the regular discussions which are held with these island countries, the purpose being to assist them with good governance, promote goodwill and further our trade opportunities?

Cooperatives in New Zealand ... and the world

* While there are less than 200 member-owned businesses in New Zealand, they generate an aggregate revenue of more than $30bn

* Making up almost 10% of Management magazine’s Top 200, some of New Zealand's best known businesses are cooperatives and mutuals, including our single largest -- Fonterra Cooperative Group

* Other member-owned businesses include Foodstuffs (Pak'n'Save, New World, Four Square), Alliance Group, Silver Fern Farms, Mitre 10, Paper Plus, Ravensdown Fertiliser Cooperative, The Co-operative Bank, Southern Cross, the Automobile Association and Interflora

* The world’s 300 largest cooperatives and mutuals, of which six are here in New Zealand, generated an aggregate revenue in 2008 of US$1.6 trillion (US$1,600 billion), which is comparable to the GDP of the world's 9th largest economy

* According to the International Labour Organisation, cooperatives provide more than 100 million jobs, more than all the world's multinational corporations combined.

ENDS

About the New Zealand Cooperatives Association

The New Zealand Cooperatives Association aims to:

* encourage, promote and advance cooperative enterprise
* act as representative association for those engaged as cooperatives
* promote discussion and cooperation with decision makers at all levels of government to further the interest of the cooperative movement
* provide services and expertise to those engaged in the cooperative movement and carry out research into all aspects of the movement
* collect, verify and publish information relating to the cooperative movement

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