Chief Executive of Wales’ leading co-operative development organisation welcomes Welsh Co-operatives and Mutuals Commission Report

Derek Walker, the Chief Executive of the Wales Co-operative Centre, welcomed today’s publication of the report of the Welsh Commission on Co-operatives and Mutuals.

The Wales Co-operative Centre was set up in 1982 and supports the development of co-operatives and social enterprises across the country.

Mr Walker acknowledged the breadth of evidence taken and the impact that the recommendations in the report could make to the Welsh economy.

He stated:

“The Wales Co-operative Centre welcomes the publication of the report. It makes some bold and ambitious recommendations which, if implemented, could accelerate growth in an already dynamic and innovative sector.

“The co-operative sector has been a part of our society and culture in Wales for two centuries. Individuals in Wales have always worked together to achieve common aims. From the co-operative societies in the Valleys to the miners’ libraries of the early twentieth century, co-operative approaches are part of our history and our culture.

“We acknowledge the Commission’s leadership and the innovative approaches put forward in the report.

Education:

“The Wales Co-operative Centre wholeheartedly agrees with the recommendations that learning about co-operatives and mutuals should be integrated into broad curricula and baccalaureate study. The Centre is particularly pleased to see the emphasis placed on co-operative and mutual business models in mainstream business and management qualifications. Too often students leave education not knowing about co-operative and mutual business models. We welcome the promotion of these models within career and entrepreneurship discussions in both further and higher education establishments.”

Finance, Support and Development of Co-operatives:

“The Wales Co-operative Centre has supported the development of worker co-operatives and employee owned businesses for many years. From supporting the miners in their efforts to purchase Tower Colliery, to firms like Primepac and more recently Accommodation Furniture Solutions, we have helped employees sustain their own futures through the co-operative and democratic ownership of their businesses.

“The Wales Co-operative Centre warmly welcomes the Commission’s findings on business advice and investment finance. The Centre agrees with the recommendation that specialist business support for developing co-operatives and employee owned businesses is essential. The Commission argues that there is a need to establish specific funding for these types of businesses. We welcome the acknowledgement of the need for specialised and targeted availability of grants and loans for co-operative and employee owned businesses and we would echo the call for that funding to be made available.

“These recommendations address a major barrier to the development of worker co-ops and employee owned businesses in Wales. “In our experience employee groups who have the opportunity to buy into or take over a business often struggle to secure secondary funding. A loan fund designed to plug this gap would make it easier for employees to take over businesses and secure their own futures.

“We have long advocated seed finance and investment funding for co-operatives and employee owned businesses. Their implementation would make the move to employee ownership a more practical and attractive option for both the business owners and the employee groups.

“The Centre supports the reports focus on co-operatives helping other co-operative businesses. Co-operation amongst co-operatives is a key principle in co-operative development. Co-operatives should help other co-operatives to grow and develop and work with them when they can. The Wales Co-operative Centre is pleased to see the importance of this principle recognised within the Commission’s report. The Centre welcomes the report’s focus on new business development through spin offs, supply chain and mentoring approaches and in applying this co-operative principle into fostering business growth.

“The Centre welcomes a sector based approach to co-operative and mutual development and support, in particular the opportunities in health and social care, energy development, housing and education. The Centre also welcomes the recognition that there is a need for a specialised, focused approach to the delivery of support to new and existing co-operatives and mutual organisations and supports the idea of utilising a central web portal to provide easy access to those people looking for support in this area.”

Procurement:

“The Wales Co-operative Centre has been heavily involved in the design and development of Value Wales’ Joint Bidding Guide. We are very much in favour of the report’s recommendations that procurers are encouraged to develop the supply chain to facilitate the potential of co-operative and mutual businesses to access work. We recognise the impact that a strong lead from Welsh Government is having on procurement in Wales. We welcome the effect these measures will have on co-operatives business and businesses working together as co-operatives to deliver goods and services.

“The Centre welcomes the idea of a pilot project to stimulate the growth of co-operatives in Wales. The suggestion that the pilot should reflect the work undertaken in Cleveland, Ohio is to be applauded. The Evergreen Co-operatives are pioneering innovative models of job creation and sustainability. In this work, the creation and growth of co-operative businesses have been stimulated by targeted procurement processes undertaken via a number of public and private sector partners. The approach aims to stimulate a local economy, develop new business opportunities and create sustainable supply chains.”

Land and Assets:

“The Wales Co-operative Centre welcomes the Commission’s recommendations on Land and Assets and the proposal that communities should be able to list the assets within their communities and have first right of refusal to bring those assets into community ownership.

“We also welcome the inclusion of sports clubs within this definition. Sports clubs are often essential elements in a vibrant community and contribute to the identity and cohesive spirit of that community.” Innovation:

“The Wales Co-operative Centre welcomes the recognition that innovation is vital to the long-term success of co-operative enterprises.

“Co-operative models are adaptable and have been used innovatively in a number of different sectors. These include: people co-operating in the use of their direct social care payments to purchase bespoke care services and help their money go further ; community investment in purchasing and running local services such as pubs, shops and community centres; development of community renewable energy facilities; different rental and ownership models for co-operative housing development and, co-operative consortia of small businesses working together to access contracts they couldn’t access by themselves.”

Networks:

“We welcome the Commission’s suggestions that the co-operative sector works together to increase its voice, influence and its capacity for research and strategy, in order to advise Welsh Government and to represent the sector. As a co-operative development agency we are keen to work with all stakeholders to ensure that Wales is recognised as a home of co-operation, where co-operative businesses can grow and flourish with the support of a strong network of advisors, mentors and supportive businesses”.

Summary

“The Wales Co-operative Centre was set up over 30 years ago to support the development of co-operatives and social businesses. As an organisation we welcome this report as it provides a framework for supporting the development of co-operative, mutual and employee owned businesses across the country.

“The co-operative sector in Wales is strong and diverse and it has massive potential to grow and develop. Co-operatives can make a positive impact on the economy and communities in Wales.

“We look forward to working with Welsh Government and the co-operative sector across Wales to make the future envisaged in the report a reality”.

Ends

For further information on the Wales Co-operative Centre, client and international case studies, please contact David Madge, Press and PR Officer on 01792 484005 / 07900 167906 / 0300 1115050 or by email david.madge@walescooperative.org and twitter @davemadgecoop

Follow @WalesCoOpCentre onTwitter for case studies and links to blogs discussing different aspects of the report.

Some useful facts and figures:

There are 446 co-operative organisations active in Wales, accounting for a total annual turnover of £1.54 billion

More than 725,000 co-operative memberships exist in Wales, from individuals participating in local social, sports and community clubs to residents in housing co-operatives and co-operative agricultural business trade shaping the Welsh economic landscape

Co-operatives employ around 11,000 people in Wales, supporting a diverse range of jobs

Twelve of the UK’s top 100 co-operative businesses are based in Wales, accounting for around £280 million annual turnover

Source: Homegrown: The Co-operative Economy in Wales 2013 http://www.walescooperative.org/the-co-operativeeconomy-in-wales-2013