IYC launched in New Zealand to public applause on co-ops

Co-operatives put long-term gain and stability ahead of short-term profits according to a survey conducted by the New Zealand Co-operatives Association.

The survey - which also showed that 71 per cent of New Zealanders have less trust or totally distrust financial companies - was released on the occasion of the launch of the UN International Year of Co-operatives in late March.

"The impact of this lack of trust has also flowed through to the level of confidence in investment in general," Chairman of the Association Blue Read told launch attendees. "Fifty per cent of respondents rated themselves as “uncomfortable” about investing in publicly listed companies on the New Zealand share market."

Read pointed out that co-ops's focus on the long-term had assisted their sustainability. "This has helped our co-ops come through difficult financial times relatively unscathed, compared to many investor-driven companies," said Read.

However, he highlighted that co-ops do not communicate adequately with the general public.

"Cooperatives have traditionally shied away from profile raising," he said.

"Cooperatives often don’t perceive the need to communicate their successes any wider than their own membership, meaning the wider community remains uninformed – perhaps also missing the opportunity to become involved."

Read said more than 70 per cent of respondents believed that there was not enough awareness about the difference between co-ops and investor-owned companies, and 60 per cent would like to see universities, polytechnics, and the NZ accounting and legal professions offering more understanding of co-ops.

"The International Year of Cooperatives is a unique opportunity to raise awareness of the cooperative business model, and this function tonight joins New Zealand with people in many nations around the world who are also celebrating cooperative and mutual enterprise," he said. Rabobank's Piet Moerland attended the launch and ICA President Dame Pauline Green gave an address via video.

"For us, it’s an opportunity to work with government and professional groups to facilitate an environment which supports the cooperative and mutual way of doing business in New Zealand," said Read.

The New Zealand government has funded a statistical exercise on the co-operative sector.

The statistics gathered show that about three per cent of New Zealand GDP comes from the co-operative sector. And the top 40 New Zealand cooperatives employ about 50,000 people between them.

"Our own research indicates that this top 40 had a combined turnover of more than $NZ39 billion in the 2010/2011 financial year; an increase of over 10 per cent over the previous year," said Read.

This big increase comes on the back of a economic stagnation in many economies around the world.

"By way of comparison, in the United Kingdom, long considered the home of cooperative enterprise, there are 10 times the number of cooperatives, employing five times the staff of their New Zealand counterparts," said Read.

"But the combined turnover of the UK cooperatives is not even double that of the combined revenues generated in this country."

To hear the interview with Blue Read visit: http://newzealand2012.coop/node/172