"Student Unions - the co-operative hubs of tomorrow"

An article about the co-operations and students dropped into my reader from Politics for People. It's quite a brief article but I found it interesting it raises a few points relevant students, specifically how co-operation could be introduced into universities.

The current economic downturn is going to make it harder for students to support themselves throughout their education. It is more important than ever that students are at the heart of the services that their unions offer. It has been widely acknowledged that, working with the co-operative movement, student unions could be developing a co-operative model of student housing, where students could have democratic control in the way that their student residence is run. Apathy is a huge challenge when it comes to getting the vast majority of students to use their vote in student union elections and the indicators show that this is because they don’t see how elections directly affect them. By giving students a real say in their living arrangements, we can show how being involved in the wider politics of the student union can also affect their student experience.

I am still very proud of my union and the opportunities and services that it offered me whilst I was a student. However I share a progressive dream with others in the co-operative movement that in the future student unions can go even further down the path of becoming co-operative hubs for the needs of their students. Why couldn’t the union act as a credit union for the use its students to help them through the hard times? Why shouldn’t students be given a dividend if they are regular customers of student union shops and other services?

"The Co-op a brief history"

Over at A Comrade in Ellon our Club Secretary has posted the first (of possibly many) of a series of posts concerning the Co-operative Party. So if you want to learn more about the history of the Co-operative movement you should go and check it out.

Blogorama V: Politics for People

[To find out more about the Co-operative Party visit their website. Membership is only £15, with a reduced rate of £5 for young members (under 26), you can join here.]

As you may or may not know several of us here at the Labour Club are not just members of labour, we are also members of the Co-operative Party. And since the Scottish Co-operative Party Council is this Saturday in Glasgow I thought it would be appropriate to have a Co-operative blog as the subject of Blogorama V.

Politics for People in their own words:

Unofficially blogging for the Co-operative Party, part of the global co-operative movement. We work with the Labour Party to influence its policies towards more co-operative solutions.

We believe in individual empowerment and self-help. We believe that a better share of this planet's wealth between Northern and Southern hemispheres and a greater respect for our environment will help us build a sustainable, safer and progressive society.

I hope that you'll agree that those are extremely laudable goals to pursue and values to promote.

As has been said here before, the current economic situation, caused in large part by the recklessness of profit seeking corporations, is a clear demonstration of the benefits of mutuality. Of companies that are held responsible for their actions by the people whose money allows them to operate in the first place. Politics for People recently reported on the Co-operative Party in Wales launching a document concerning the recent credit crunch (emphasis mine):

Yesterday the Co-operative Party and Wales 20:20 launched a new document, "Co-operative Values in a Credit Crunch Wales". "Difficult times call for new ways of thinking" is the key message from the authors, Karen Wilkie and Robbie Erbmann of the Co-operative Party. With co-ops and building societies, not least Principality Building Society, thriving and attracting new customers, they put forward a vision of a Welsh economy remade with co-operative values.

Huw Lewis AM, a Labour Co-operative Assembly Member, wrote the foreword for the pamphlet, saying, "I’ve been a proud member of the Co-operative Party for over 20 years, and the proposals in this pamphlet explain why. The movement has never stopped bringing forward radical, yet workable ideas. With the onset of the recession policy makers have a duty to look closely at these excellent proposals which underline co-operative values, matching innovation with pragmatism."

One point I think cannot be emphasised enough is the success of Co-operatives in the current economic climate. Their responsible and ethical business practices have kept them away from the massive losses (and subsequent bailouts) of the banks.

Politics for People also cover the Co-operative Party's campaigns, including Plan Bee [which we also posted about] the Co-operative Party's brand new campaign to arrest a worrying decline in bee numbers:

The bee is the symbol of the Co-op's membership and, more importantly, a major part of the ecosystem and our food producing system. A third of the food we eat is pollinated by bees. So the news that bees are declining in numbers fast is a major threat to agriculture. It was the subject of a debate at last year's Co-operative Party conference, but hasn't yet hit the headlines. It's time it did.

To address the disturbing issue of bees dying out, The Co-operative - Britain's biggest farmer - has launched Plan Bee. They have launched a ten-point plan to save bees and a campaign where we can all get involved.

I'd like to stress that last sentence, "a campaign where we can all get involved", because I think it illustrates one of the major characteristics of the Co-operative Party and co-operative groups in general, the involvement of members, and in every facet of the organisation and decision making processes of a group. This structure makes co-operative groups more accountable, and thus more prudent in their actions. A characteristic that would benefit a lot of ordinary people if it was spread to more businesses. [If you agree you can join the Co-operative Party and makes this a reality.]

Through its People's Rail campaign the Co-operative Party have worked hard to incorporate a responsible and accountable structure for the governance of Network Rail. As posted here:

This week saw Network Rail's AGM. It was a big milestone in our People's Rail campaign. The Co-operative Party has been calling for a review of the company's governance, and for that review to give the public more power and hold the various levels of governance to account. There was a motion put up by a small number of the members of Network Rail which called for a review: "that members establish a governance 'Review Group' to consider the effectiveness of company's corporate governance practices, with particular reference to the accountability of the Board to its members and of its members to the company’s wider stakeholders."

We knew there would be strong opposition, even though a regular review of governance is difficult to oppose. After all, the UN, the EU and the NHS are among the institutions doing so. But we hoped that the AGM had taken note of the public, politicians and the press who had supported the People's Rail campaign.

And so it turned out, to our great pleasure. Against the odds, members narrowly backed the motion (all other votes were won overwhelmingly). It's good to see that the senior team, who according to reports opposed the motion, have accepted the result graciously and have welcomed the chance to consider the future structure of Network Rail.

The Chair of the Co-operative Party Parliamentary Group, Sarah-McCarthy-Fry MP, made it clear that the campaign will continue until we get the right result for passengers: "This decision represents a vindication of the People's Rail campaign. However, we have to remember this is just the first step of many. Network Rail is still a long way from being accountable to passengers and the public. We will continue this campaign until it is."

If you want a better run rail network in which companies are responsbile for their failings, and the users of the service have a say in what that service should provide then you should learn more about the People's Rail campaign and I would strongly recommend that you consider joining the Co-operative Party.

The best way to progress as people, and as a nation, and as an international community, is through mutual co-operation and making sure that those with large degrees of power are accountable to the majority who don't

A Co-op Solution

Some of the readers of this blog might know that I am a member of the 2 great left of centre political parties in this great nation of ours.

They are the Labour Party, well it is a labour club blog, as well as the Co-operative Party a party that was founded in 1917 and has been working since then to advocate the Co-operative and Mutual agenda at the heart of the political agenda.

As part of that process last week the General Secretary of the Co-operative Party Michael Stephenson had the following article in the Guardian making the case for the mutualisation of the banking sector.

Of all the numerous and painful lessons of the recent collapse in the financial markets, one has been conspicuously missing from the flood of media analysis and commentary.

Bradford & Bingley's taxpayer-funded rescue ended all arguments about the potential benefits of demutualisation. As the last of the ex-building societies loses its independence, it joins other recent arrivals such as Northern Rock and Halifax as the latest addition to this run of corporate failure.

When the last Conservative government encouraged societies to demutualise through the 1986 Building Societies Act, it plundered generations of assets from mutual societies, replacing prudent mortgage providers with some of the worst culprits of casino capitalism.

Today we have a unique and unmissable opportunity to put that right. By recognising the enormous benefits of mutuality and taking action to allow societies to remutualise, we can return those institutions to their rightful position and bring stability and sustainability to the important work they can do for our economy and the millions of Britons who rely on them.

Cooperatives and mutual financial organisations differ from their plc competitors in one crucial respect: they exist to provide mutual self-help for their members rather than to generate profits for investors. These core values drive high standards of behaviour throughout the sector. The absence of external shareholders means there are no conflicts of interest between the claims of consumers and owners, leaving mutuals no incentive to exploit their customers for short-term gain.

In addition, the fact that these organisations operate democratic voting systems, on a one member one vote basis, allows them to take a long-term view of their members' interests. As we collectively count the costs of our financial institutions' previous short-term thinking, this approach to business should unquestionably be the future direction that we are looking for.

A starting point will be the future of Northern Rock and Bradford & Bingley. While the government was absolutely right to nationalise these as a short-term measure, any long-term solution for these companies should be based on some key principles.

• Taxpayers must not be out of pocket as a result of the change.

• Hard-working families and small businesses must be protected. This means the housing market should not be closed to first-time buyers, credit lines to small business should be extended and repossessions should only occur as a last resort.

• The institutions that emerge must be secure, responsible and add to the financial stability of the UK economy.

• And finally, these new organisations must continue to act in the long-term interests of their consumers.

That is why the Co-operative party is calling for the newly nationalised banks to be converted into mutuals. Mutual ownership is the best solution for ensuring a stable long-term future for these companies, and making sure that the risk taken by taxpayers will deliver for consumers in the long-term.

Building societies were founded with one purpose in mind – that of building houses for hard-working families and providing a safe place for them to deposit their savings. It is only fitting that the chief purpose of these businesses should be to do the same, particularly at a time when people are anxious about the security of their savings and will find it increasingly hard to get on the housing ladder.

This could be achieved in two ways. The government could give existing financial mutuals the right of first refusal when it decides to put the institutions it nationalised up for sale. This would maximise the opportunity for a strengthening of the existing mutual sector and help ensure a stability and continuity in the market.

Alternatively, the government could consolidate Northern Rock and its holding in Bradford & Bingley into one institution. When all debts are paid back, the institution could be converted into a building society. This should be straightforward, as the government already owns the share capital. The new body would operate in the same manner as any other building society.

Regardless of which option is chosen, the opportunity is there to rectify the mistakes of the past and deal with one of the major economic and social challenges of our time.