2010 Manifesto: A Co-operative Agenda for a Fourth Term

the co-operative party

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AGENDACO-OPERATIVE

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FOR AFOURTH TERM

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Contents

Foreword 4

OurPolicies–ASummary 6

ChangingtheWaywedoBusiness 11

ANewInternationalSettlement 2�

CreatingSustainableCommunities 28

DevelopingPeople-BasedPublicServices 42

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ACo-operativeAgendaforaFourthTermOureconomyandoursocietyhaveundergoneprofoundandunprecedentedchangeinrecenttimes.Themajorinstitutionsofourfinancialsystemhavebeenfoundwanting,atagreatcosttousall.Publicconfidenceintheparliamentaryprocesshasbeendamaged.Thereisafeelingacrossthepublicandtheprivatesectorthatlargeorganisationsthataffectourlivesarenotbeingruninourinterests.

Thismanifestoseekstodirectlyaddressthis.Acrosstheeconomy,thepublicsectorandsocietywearelookingtobuildinstitutionsthatdemonstrablyserveourcollectiveneedsaspeopleratherthan,ashashappenedtoooften,ourlivesandcircumstancesbeingalteredbybodiesoverwhichwehavetoolittlecontrol.

Ingovernment,Labourhasmadegreatstridestowardsocialjusticebutthechallengeforafourthtermisevengreater.Itisaboutbuildingorganisationswithvalues,accountabletothosewithastakeintheirsuccess,andwherelongtermsocialreturnsareputaheadofshorttermprivategain.

Asweseektorebuildtheeconomytherehasneverbeenatimeinwhichtheco-operativeandmutualidealhasbeenmoreimportant.Weneedtopioneeranewwayofdoingbusinessthatwillunderpinthelongtermstabilityofthiscountry’seconomyandensurethatall,notjustthefew,willbeabletoshareinitsrewards.

Co-operativesandmutuals,unlikeotherformsofbusiness,existtoprovidemutualself-helpformembersratherthantogenerateprofitsforinvestors.Thesecorevaluesdrivehighstandardsofbehaviourthroughthesectorandallowthemtotakealongtermviewoftheirmembers’interests.Aswecollectivelycountthecostsofshorttermthinkingbybusiness–astrongandvibrantmutualsectormustundoubtedlyplayasignificantroleintheneweconomy.

Yetfortheforeseeablefuture,itislikelythatmostsignificantenterpriseswillcontinuetobeownedbyshareholders.Buildingaprivatesectormoreintunewithco-operativevaluesisnecessaryifwearetoavoidrepeatingthemistakesofthepast.Throughreconnectingourfirmswiththeirstakeholdersandsocietywecantransformthenatureofbusinessinthiscountry–buildinganeconomythatactsinallofourinterests.

Perhapsthemostimportantthingthefinancialcrisishastaughtusisthatinthemodernworld,nocountryisabletosolveallofitsproblemsonitsown.Aswefacethegreatestchallengetotheworldeconomyinmoderntimes,theloomingcatastropheofclimatechangeandthecontinuedemergencyofglobalpoverty;co-operationbetweennationshasneverbeenmoreimportant.

Wealsoneedtofindnewwaystorebuildfaithinourpoliticalsystemanddemocraticlegiti-macy.Theparliamentaryexpensesissuehasturnedmanypeopleoffmainstreampoliticsbutintruththisdisengagementhasbeenoccurringoveramuchlongerperiodoftime.Theprob-lemisnotthatpeoplehavesimplydisengagedbutratherthattheyfeeldisempoweredbythewaythatthepoliticalsystemoperates.Whilerepresentativedemocraticinstitutionsweredesignedforthesupervisionofsmallscalegovernmentinaselfregulatingsociety,theworldweliveinnowisverydifferent.Ifwearetorebuildourpoliticalsystemandoureconomywewillneedtotakepeoplewithus.

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Thisrequiresustofindnewwaystoincreaseparticipationanddevolvepowerwithinoursociety.Participatorybudgetingandnewformsofe-participationcanplayasignificantroleinthisregard.Governmentalsoneedstodomuchmoretodeliverpowerandownershipofpublicservicestothecommunitiesthatdependonthem.Localcommunitiesmustbegiventherighttoparticipateindecisionsthataffecttheirlivesthroughpartnershipswithgovernment.

Fromfoundationtrusthospitalstoco-operativetrustschools,wearealreadyseeingthebenefitsthatnewmutualorganisationsarebringingtopublicservices.Thesecanprovidetheefficiencygainsoftheprivatesectorwhilstprovidingrealdemocraticaccountability,givingusers,employeesandotherstakeholdersarealsayinhowtheirorganisationsarerun.Thiswaythequalityofserviceisnotdependantonthecommandsofproducerinterestsorthewhimsofmarketforces,butonfrontlineexpertiseandtheneedsofthepeoplethattheyserve.Publicassetsarelockedintocom-munityownership,providingfurtherprotectionagainstprivatisationandassetstripping.Ifweareseriousaboutcreatinganewpolitics,thengivingordinarypeoplerealpowerovertheservicesthattheyrelyonisthebestwaytodoit.

Thismanifestoisaboutfosteringanew21stcenturycollectivism.Whetherit’saquestionofpeoplesavingtheirfootballclub,theirlocalpostofficeoreventheplanet,co-operativeandmutualorganisationscanprovideameansthroughwhichpeoplecancollectivelymeettheiraspirationsandhelpchangebehaviourforthebetter.

ThisdocumentsetsouthowtheGovernmentcandomoretocreateanenvironmentinwhichtheseorganisationscanthrive.Italsoprovidesgeneric,easilyworkablesolutionsalongtheselinesfortacklingproblemsasdiverseasfuelpoverty,theshortageofaffordablehousingorclimatechangethroughour‘collectivepower’and‘newfoundations’models.

InaneconomyshortoncreditandwithfutureGovernmentspendinglookingtighterthaneverwecannotaffordtoignorethepotentialforfurthercollectiveactionwithinourcommunities.Acrossthebreadthofhumanneed,therearefewissuesthatcannotbetackledbythegeniusoflocalpeo-ple,actingtogether.Withtherightsupport,guidanceandadvice,communitygroupsandorganisa-tionshaveahugecapacitytochangetheworldforthebetter.

Foroverninetyyears,theCo-operativePartyhasstoodforgivingeconomicandpoliticalpowertoeveryoneinoursociety.Co-operativevaluesandprinciplesaretrulyanideawhosetimehascomeback.Thetimeforactionisnow.

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OurPolicies-asummaryChangingthewaywedobusiness

Asweseektorebuildtheeconomytherehasneverbeenatimeinwhichtheco-operativeandmutualidealhasbeenmoreimportant.Astheglobaleconomyfacesdifficultchallenges,weneedtopioneeranewwayofdoingbusiness;thatwillunderpinthelongtermstabilityoftheUKeconomy,andensurethatallpeoplewillbeabletoshareinitsrewards.

• Supporting co-operative and mutual enterprise–Co-operativeandmutualsdifferfromtheirPLCcompetitorsinonecrucialrespect;theyexisttoprovideaservicefortheirmembersratherthantogenerateprofitsforexternalshareholders.AsakeypartofthepluralityoftheUKeconomy,theGovernmentshouldensurethateveryassistanceisgiventothepreservationandcreationofco-operativeandmutualbusinesses-> page 11

• Employee Ownership–Givingemployeesastakeintheirbusinessprovidesworkerswitheconomicgainsandcreatescompaniesthatareresponsivetotheirfrontlinestaff.Firmswherestaffhaveabigownershipstakeandasayindecisionsdonotjustcre-atehappierworkers,theyalsomakemoreproductivebusinesses.Webelievethattheachievementsoftheco-ownedsectorshouldberecognisedandbuiltupon-> page 12

• Fighting the Recession–Infaceofwhatcouldpotentiallybethemostseriousdown-turnsincethedepressionofthe19�0s,wemustutilisealltheresources,skillsandcapitalthatwehaveatourdisposal.Co-operativeandmutualenterprisescanplayakeyroleinrespondingtotherecession,mitigatingitsimpactandcreatingamoreresilienteconomy-> page 13

• Remutualisation–ThefinancialcrisishascomeataseriouscosttoeveryoneintheUK;whosesavingshavebeenrisked,whosetaxesmayhavetoriseandwhoselivelihoodsarethreatenedbytherecessionthathasfollowed.Itisvitalthatwelearnfromourmis-takesandbuildmorestablefoundationsforourfinancialsectorinthefuture.Thatiswhywebelieveallfullynationalisedbanksshouldbeconvertedintomutuals,asthisisthebestsolutionforensuringastable,long-termfutureforthesecompanies,andmakingsurethattherisktakenbytaxpayerswilldeliverforconsumers-> page 14

• Access to Finance-WeneedtodomoretoensurethatourfinancialservicesindustrymeetstheneedsofthewholeUKeconomy.Inthiscountryitisprimarilycreditunionsthatofferaffordablecreditandbankingservicestothousandswhowouldotherwisebeunbanked.ItisimportantthattheGovernmentcontinuestoassistcreditunionstoen-surethattheyarestrongandsustainable.Thiswillinvolveexpandingtherangeofserv-icesthatcreditunionsareabletooffersothattheycanofferthemaximumassistancetoordinarypeopleinthesetestingeconomictimes-> page 15

• A New Settlement Between Banks and Society–Giventheunprecedentedsupportourfinancialinstitutionshavereceivedinthepastyear,itisvitalthattheyrecognisetheobligationoftheirresponsibilitytosociety.WeshouldintroduceaFinancialInclusionAct,whichwouldensurethatallpeoplehaveequalaccesstoroutinefinancialservicesandcreditwithintheirmeans-> page 16

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• Land Reform–Asweseektobringstabilitytothefinancialsystem,itisonlyrightthatweaimtodothesameforthepropertymarkets.Akeypolicyconcernforthefuturehastobetokeepgrowthinhousepricesconsistentwithotherpartsoftheeconomy.Weshouldusetaxa-tiontochangeincentiveswithinthepropertymarket,ensuringthatweincentivisetheproduc-tiveuseoflandratherthanexpectedcapitalgainsinanupwardmarket-> page 17

• Investing in a co-operative future–Investmentneedstobenotonlyfocusedonwhatitcangenerateforindividualsbutalsowhatitcouldprovideforthecommunity.Theself-helpmodeloffundingcannotonlyofferasafeandrobustinvestmentforindividuals,butalsoprovideuswithservicesthatcancollectivelyimproveourlives-> page 17

• Public Infrastructure–Atatimewhenpublicsectorborrowingremainshighandprivatesec-torcapacitytoinvestremainslimited,weshouldexplorethecreationofnewmutualorganisa-tionstobuildtomorrow’sinfrastructure-> page 19

• An economy in all of our interests–Fortheforeseeablefuture,itislikelythatmostsignificantenterpriseswillcontinuetobeownedbyshareholders.Buildingaprivatesectormoreintunewithco-operativevaluesisnecessaryifwearetoavoidrepeatingthemistakesofthepast.Throughreconnectingourfirmswithalloftheirstakeholdersandsocietywecantransformthenatureofbusinessinthiscountry–buildinganeconomythatactsinallofourinterests-> page 20

ANewInternationalSettlement

Perhapsthemostimportantthingthefinancialcrisishastaughtusisthatinthemodernworld,nocountryisabletosolveallofitsproblemsonitsown.Aswefacethegreatestchallengetotheworldeconomyinmoderntimes,theloomingcatastropheofclimatechangeandthecontinuedemergencyofglobalpoverty;co-operationbetweennationshasneverbeenmoreimportant.Thisisessentialtocreatinganewworldeconomy–whichisdesignedtoprovideforallofourlongterminterests,ratherthanshorttermgainsforthefew.

• From speculation to long term investment–Thespeculativenatureofinvestmentwithintheglobaleconomyrewardsshorttermdecisionmakingandreducestheaccountabilityofbusinesstoitsowners,includingthemajorityofordinarycitizensthroughtheirpensions.Tohelpensureourfutureeconomicstability,weshouldcampaignfortheglobalintroductionoftaxesoncapitaltransfersintheinternationalstock,creditderivativeandcurrencymarketsthroughagreementattheG20groupofnationsandtheUN-> page 23

• Improving economic information–Theeventsleadinguptothefinancialcrisiswerecharac-terisedbyafailuretoprovidetherighteconomicinformation,andalackofindependencebythosewhodid.Tacklingtheagencyproblemsinherentinthesupplyofeconomicinformationisvitaltoensuringourfuturestability-> page 24

• Protecting the future of our planet–Ourcontinuingrelianceonfossilfuelsplacesanun-sustainableanddangerousburdenonourenvironment,aswellasaggravatinginternationaltensionsandjeopardisingprogresstowardssocialjustice.Weshouldcontinuetoadvanceinternationalactiononclimatechange,playingaleadingroleinpressingforanddeliveringinternationalagreement-> page 24

• Governing the Internet–TheUnitedKingdomhasledthewayintermsofdecisionsabouthowtogoverntheinternet.Theco-operativeapproachundertakenisvitalasitcontinuestoexpandexponentiallyintermsofindividualbusinessactivityandnewapplications-> page 25

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• Tackling Global Poverty–TheCo-operativeMovementisoneofthelargestorganisedsegmentsofcivilsocietywithover800millionmembers,andplaysacrucialroleacrossawidespectrumofhumanaspirationandneed.TheGovernmentshouldworkwiththeCo-operativeMovementanditsinternationalpartnerstosetupaco-operativeagencyforinternationaldevelopmenttohelpbuildmodernandeffectivemovementsinthedevelop-ingworld-> page 25

• Trade Justice–Webelievethattradeisthebesttoolinthefightagainstglobalpov-erty.Twoareasarekeytorebalancingtheglobaltradingsystem:fairtradeandtradejustice-> page 26

CreatingSustainableCommunities

Governmentcannotbuildsustainablecommunitiesalone.Doingsorequirestrustingpeopletomakedecisionsovertheservicesthattheyuse,aswellasthecontrolofpublicservices.Fromtacklingclimatechangetobuildingnewaffordablehomes,co-operativeandmutualorganisationscandelivernewandradicalchangestothesocietyinwhichwelive.Theroleoftheco-operativesectoriscrucialasweseektomovetoamoresustainablesociety.

• Opening up Participatory Democracy–Ifwearetorebuildourpoliticalsystemandoureconomy,wewillneedtofindnewwaystoincreaseparticipationanddevolvepowerwithinoursociety.Wecommendtheworkthathasbeendonetodevelopparticipatorybudgetinginthiscountryandbelievethatgreatermeasuresshouldbetakentoinvolveallofusinhowourmoneyisspent.Weshouldalsoexplorehownewtechnologiescouldcombinedelegationwithsocialnetworking–toensurethatthosewhotakepartinde-batesconstitutearepresentativesampleofthepopulation-> page 28

• Transferring Power to Communities–LocalGovernmentshoulddomuchmoretodeliverpowerandownershipoflocalservicestothecommunitiesthatdependonthem.Webelievethatcommunity-basedandnewmutualorganisationshaveavitalroletoplayinrunninglocalservices,tacklingcrimeandanti-socialbehaviour,engagingyoungpeopleandregeneratingrun-downneighbourhoods-> page 30

• Energy and Climate Change-Expertshaveatendencytoseesolutionstofuelpoverty,energysecurityandclimatechangeascompeting,conflictingandirresolvable.Yetamove-menttowardscommunitiescollectivelyowningtheirownenergyhasthepotentialtomeetallthreeofthesechallengesheadon.The‘collectivepower’modelprovidesablueprintforhowthiscanbedone–buildingabroadbasedsocialmovementbycombininganappealtoselfinterestwithacommitmenttocombatingclimatechange-> page 31

• Delivering High-Quality Affordable Housing–ThetectonicshiftthathasoccurredintheglobalfinancialmarketsmeansthatthehousinglandscapeintheUKwillneverbethesameagain.OneresultwillbethatmanythousandsofUKhouseholdswillbecaughtinthegapbetweenaffordablerentandhomeownership.The‘NewFoundations’modelisanewformofintermediatehomeownershipthatcanensurethesenewandemerginghouseholdshaveaccesstoadecenthomethattheycanafford,andallowsthemtoaccumulateafinancialstake-> page 32

• Building Stronger Communities–Throughhousingco-operativeandothermutualor-ganisations,tenantsandresidentshavetakenrealcontroloverdecisionsthataffecttheir

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livesandcreatedstrongandcohesivecommunities.Weshouldtakeactiontoembedco-opera-tiveandmutualhousingsolutionsattheheartofitsoverallstrategy.Localauthoritiesandotherparkprovidersshouldexploretheuseofcommunitylandtrustsforparksandopenspaces-> page 34

• Food, Farming and Rural Communities-Thedeclineintheavailabilityofruralserviceshasbeenwelldocumented,withpubs,shopsandotherservicesclosingatafasterratethaneverbefore.Ruralco-operativesandsocialenterprisesareoftentheonlyviablealternativeforruralcommunitieslookingtoretainorre-introduceaserviceinareasofprivateorpublicmarketfailure.Weshouldestablisha‘communityrighttotry’inruralcommunities,whichwouldgivethemtheoptionandtimeframeofsixmonthstoconsidertakingoveraservice-> page 35

• Tackling Crime and Disorder-Theroleoflocalcrimefightingpartnershipshasbeencrucialinmakingthereductionofcrimeakeypriorityforlocalauthoritiesandotherpartnersaswellasforthepolice.Introducingabroadbasedandopenmembershiptothesebodiescanmakearealdifferenceintheireffectiveness,anddrivefurtherreductionofthelevelofcrimewithinourcommunities-> page 36

• Animal Rights–Throughoutitshistory,theCo-operativeMovementhashadaproudrecordonanimalrights.WecommendtheworkthatthisGovernmenthasdoneoverthelasttenyearsinthisregard,andcallforthefullimplementationoflegislationtoextendandimprovetheprotectionofanimals-> page 37

• Public Transport and Promoting Sustainable Travel–Foroverayear,theCo-operativePartyhasfoughtthe‘People’sRail’campaigntogivetheBritishpublicrealpoweroverNetworkRail.Yetitisnotjusttherailnetworkwherethereisanaccountabilitygap.TherecentforcednationalisationoftheEastCoastmainlinedemonstratesthedegreetowhichprivatesectoroperatorscanoftenseektosocialiseriskandprivatisereward.TheGovernmentshouldusetheopportunitycreatedbynationalisationtocreateanewmutualproviderasapublicsectorcomparatortotheothertrainoperatingcompanies-> page 38

• Culture and Sport-Culturalandsportingbodiesplayapowerfulroleinthelifeofthenationandoftenreceivelargesubsidies.Moreneedstobedonetoensurethattheyputtheneedsandinterestsoftheirfansandenthusiastsfirst.Givingordinarypeopleasayoverthewaythattheseorganisationsarerunisthebestwaytoensurethatthisoccurs-> page 39

Developingpeople-basedpublicservices

Publicownershipdoesnothavetomeantop-downmanagementfromWhitehallorTownHalls.Localcommunitiesmustbegiventherighttoparticipateindecisionsthataffecttheirlivesthroughpartnershipswithgovernment.Webelievethatco-operativeandmutualmodelsofferthebestmodelforthereformofpublicservicedelivery.Theseprovidetheefficiencygainsoftheprivatesectorwhilstprovidingrealdemocraticaccountability,givingusers,employeesandotherstake-holderswitharealsayinhowtheirorganisationsarerun.

• Making Healthcare Mutual-Throughthegreaterinvolvementofstaff,usersandlocalcommu-nitiesintheNHS,ithasbeendemonstratedthatwecannotonlystrengthencitizenship,butalsobuildservicesbasedonthefrontlineexpertiseofstaffaswellastheneedstothepeoplethattheyserve.Movingtoamutualmodelhastransformedthewayinwhichservicesaredelivered,makingthemmoreresponsivetolocalpeopleandfocusedontheneedsofpatients-> page 42

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• Transforming Social Care-Throughcomingtogethercollectively,directpaymentandin-dividualbudgetrecipientscanimprovethequantityandqualityoftheservicesthattheyreceive,andensureadecentworkingenvironmentforthecarerswhichtheyrelyon.Weshouldensurethatallservice-usersandcarerswillhaveaccesstoadirectpaymentsmutualintheirlocalcommunity-> page 43

• Children, Schools and Families–Co-operativetrustschoolsprovideaframeworkinwhicheverybodywithastakeintheschool’ssuccess–parents,teachersandsup-portstaff,localcommunityorganisationsandevenpupils–havetheopportunitytobeinvolvedinrunningit.Theseprinciplescanalsobeappliedacrosschildren’sservic-es.BygivingcommunitiesasenseofownershipoverSureStartservices,wecandomoretohelpcentresdelivertoallthoseinneedoftheirservices,particularly‘hardtoreachgroups.’Co-operativestructuresalsocanplayaroleinencouragingworkingacrossdifferentproviders,andhavethepotentialtoactaslocaldeliveryagentsfortheChildren’sPlan-> page 44

• Broadcasting–TheBBCisthelargestbroadcastingcorporationintheworldandapillarofBritain’sculturallife.Yetwithhugesumsofmoneyspentannuallyonservices,thepublicdeservestohavemoreofasayinthepackageofprogramsandservicesthataredelivered.FortheBBCtobecometrulyaccountable,alltelevisionlicenseholdersshouldbegivenrealsayoverhowtheBBCTrustisrun-> page 46

• Public Sector Procurement -Inbothnationalandlocalgovernment,moreneedstobedonetosupportsmarterandmorestrategiccommissioningandprocurementofbothgoodsandservices.Thecurrentandfuturefinancialpressuresonthepublicsectorandthedesireforefficiencysavingsmakegettingthemostfrompublicresourcesessential.Mutualandsocialenterprisestendtoprovideprocurerswithservicesthataremorefocusedontheenduserandprovideaddedvalueintermsofmeetingwidersocialandenvironmentalgoals-> page 47

• Open Source Software-Opensourcetechnologyissoftwaredevelopmentmethodol-ogycreatedbyacommunityofpeoplededicatedtoworkingtogetherinaco-operativemanner.BylevellingtheplayingfieldandallowingopensourcetobeascompetitiveaspossiblewecanensurethattaxpayersgetmaximumvalueformoneyfromGovernmentIT,somethingthatismoreimportantthaneverduringtheworldwidefinancialclimate.TheGovernmentshouldensurethat,wherepossible,opensourcesoftwareisusedaspartofaneffectiveprocurementstrategy-> page 47

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ChangingthewaywedobusinessAsweseektorebuildtheeconomytherehasneverbeenatimeinwhichtheco-operativeandmutualidealhasbeenmoreimportant.Thebankshavefailed,confidenceislow,andunemploy-mentisnowrising.WhilewecanberightlyproudoftheactionthatthisLabourGovernmenthastakentopreventussufferingfromtheworstoftheglobalrecession,weneedtodomoretoen-sureourreturntoahighgrowthandstableeconomy.

For1�0years,theCo-operativeMovementhasbeenonthesideofordinaryfamilies.Theoriginalco-operativeandmutualsocietieswereformedasavehicleforordinarypeopletohaveaccesstogoodqualityfoodatafairprice,purchasetheirownhomesandinsurethemselvesagainstsick-nessandunemployment.Incontrasttootherbusinessesofthatera,theyweredesignedtopro-videmutualself-helpfortheirmembers,ratherthancreatewealthforinvestors.

Thisisstilltheircorepurposetoday.

Astheglobaleconomyfacesdifficultchallenges,weneedtopioneeranewwayofdoingbusi-ness:anapproachthatwillunderpinthelongtermstabilityofthiscountry’seconomy,andensurethatallpeople,notjustthefew,willbeabletoshareinitsrewards.Asthefailingsofthemarkethaveledusintorecession,wearestartingtoseearenaissanceofmutualorganisations,whoarecontinuingtoextendmarketshareanddeliverprofits,puttingpeopleratherthanshareholdersatthecentreoftheiroperations.

ThemonthsaheadwillnotbeeasyforanyoneintheUK.Butthelengthanddepthofthedownturnwilldependlargelyonthesolutionsthatweputforward.Remakingtheeconomyintheco-opera-tiveimagenotonlyhasalottoofferinthedownturn,butwillenableustogointothefuturewithsustainablebusinessesthatactintheinterestsoftheiremployeesandconsumers.

Supportingco-operativeandmutualenterprise

TheMutualSectorplaysavitalroleinBritishsociety.Over19millionBritishindividuals,oroneinthreeofthepopulation,aremembersofoneormoremutualsociety.Co-operativesandmutualor-ganisationsdifferfromtheirPLCcompetitorsinonecrucialrespect,theyexisttoprovideaservicefortheirmembersratherthantogenerateprofitsforexternalshareholders.Thismeansthattherearenoconflictsofinterestbetweentheclaimsofconsumersandowners,andnoincentivetoexploitcustomersforshorttermgain.

AsakeypartofthepluralityoftheUKeconomy,theGovernmentshouldensurethateveryassist-anceisgiventothepreservationofco-operativeandsocialenterprisebusinessstructures,andtothecreationofnewmutualbusinesses.Thismeansthattheco-operativeandmutualmodelshouldreceivethesamelevelofsupportasotherformsofenterprise.

WewelcomethesupportthattheGovernmenthasgiventobothprimaryandsecondarylegisla-tionwhichhasdonemuchtoleveltheplayingfieldbetweenmutualsandotherbusinessmodels.TheCo-operativePartyendorsestherecommendationsmadeintheReviewofIndustrialandProvi-dentSocietyLegislationin2008,andurgestheimplementationoftheoutstandinglegislativere-formordersattheearliestopportunity.YetmutualsocietieshavenotseenthesamesortofreviewintotheirfunctionasdoneforthePublicLimitedCompanyin2006,norhavereviewslookedatthesectorasawhole,asopposedthediscreetbuildingsociety,friendlysociety,co-operativeand

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mutualinsurancesectors.Afurtherreviewcouldcontinuetoconcentrateongovernance,legislationandtaxtreatmentthatwouldenablethemutualsectortothriveinthefuture.

Mutualformsofbusinessincorporationstillsufferfromalackofsupport,despitebeingrobustandprovenbusinessstructures.Asitstands,themajorityofmainstreambusinesssupportprovidersdonothavethecapacityorexpertisetoprovideservicesforthoseseekingtosetupco-operativesorsocialenterprises.

Webelievethatco-operativesandmutualenterprisesshouldbegivenbetterbusinesssup-portandtrainingthroughBusinessLinkinEngland,recognisingandsupportingthewealthofexperienceandexpertisethathasbeenbuiltoverthelastthirtyyearswithinsmallerindependentagenciesacrossthecountry.Existingco-operativebusinessesalreadyinvestconsiderablefinancialandhumanresourcesinsupportingthedevelopmentofnewandexist-ingco-operatives,andGovernmentshouldlookformoreopportunitiestomatchfundthissupport.

RegionalDevelopmentAgencies(RDAs)andotherarmsofGovernmentshouldbeobligedtoplacethedevelopmentofco-operativeandmutualformsofenterpriseatthecoreoftheireconomicdevelopmentstrategies.TheGovernmentshouldensurethateachRDAincludesatleastonerepresentativefromaco-operativeorothermutualonitsboard,toensurethattheneedsofthesectorarefullyrepresentedtothosebodies.

Co-operativesandtradeunions,foundedonthesamevaluesandprinciples,bothhavelong,proudandsharedhistoriesoffightingforandpreservingworkersrights.Withrapidandglobaleconomicchangeitisjustasvitalthatwecontinuetohavemodernandgrowingtradeunionsinourcountryasagenuinevoicefightingagainstdiscriminationandabuse.

EmployeeOwnership

Givingemployeesastakeintheirbusinessprovidesworkerswitheconomicgainsandcreatescompaniesthatareresponsivetotheirfrontlinestaff.Evidencefromtheindustryshowsthatfirmswherestaffhaveabigownershipstakeandasayindecisionsdonotjustcreatehappierworkers,theyalsomakemoreproductivebusinesses.

Thedegreetowhichemployeeownershipboostsproductivitycanbeseenintheperform-anceofco-ownedcompanies,whichhaveconsistentlyoutperformedtheirPLCrivals.Incashterms,aninvestmentof£100intheEOI(IndexofEmployeeOwnedCompanies)inJune1992wouldhavebeenworth£4��attheendofDecember2008;thesameamountinvestedintheFTSEAll-sharewouldhavebeenworth£1�2.Thissuperiorfinancialperformanceisthelittleknownstoryofasectorworthacombinedturnoverof£20-2�billionannually,andgoingfromstrengthtostrength.

TheCo-operativePartybelievesthattheachievementsoftheco-ownedsectorshouldberecognisedandbuiltupon.Webelievethatbothemployeesandemployerscouldequallybenefitfromamoreparticipativeformofemployeeshareownershipandthatthereisaneedtoextendemployeeshareownershipschemes,particularlythosethatgiveemployeesacol-lective,democraticvoice.

Inordertodothis,theGovernmentshoulddevelopandpromoteaframeworkofadviceandlegalguidancetoincentiviseandenableemployeesandemployerstoworktogethertoreal-isethis,basedonthesuccessfulSupportersDirectmodelforfootballclubs.

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Thereisalsoaneedtoincreaseknowledgeandawarenessofthisimportantsector.Governmentshouldconductaresearchreviewoftheco-ownedsector,withaspecificfocusonfirmlevelfinan-cialperformance.Professionalbodiesandgovernmentagenciesshouldincludeknowledgeofco-ownershipstructuresintheirtrainingandaccreditationschemes,oraspartoftheirbrieftoadviselocalcompanies.

FightingtheRecession

Inthefaceofwhatcouldbepotentiallythemostseriousdownturnsincethedepressionofthe19�0s,theLabourGovernmentmustutilisealltheresources,skillsandcapitalithasatitsdis-posal.Largescaleunemploymentandeconomicdeclinewillhavevastimplicationsonourabilitytorecover,aswellashavingwiderramificationsforhealthandwellbeing,socialmobilityandcom-munitycohesion.Inrespondingtothefinancialcrisisandtherecessionthathasfollowed,Labourhasshownitselftobethepartyofaction.Itisimportantthatthiscontinuesaswemovetowardsgrowingourwayoutofthedownturn.

Co-operativeandmutualenterprisescanplayakeyroleinrespondingtotherecession,inmitigat-ingitsimpactandcreatingamoreresilienteconomy.Socialenterprisesplayakeyroleinensuringsupportforthemostdisadvantagedbackintothelabourmarket.WewelcometheintentionoftheFutureJobsFundforsocialenterprisestodeliver10%ofthe1�0,000newjobstobecreated,astheseorganisationshaveexperienceofprovidingapeoplecentredandsustainableservice.Withselfemploymentprovidingonerouteoutofunemployment,webelievetheGovernmentshouldalsoprovidesupportforpeopletoestablishmicrosocialenterprisesandprovideanavenueforthemtobeconnectedwithexistingsocialenterprisenetworks.

Employeeorconsumerownershiphasaroletoplayinsavingviablebusinessesfromneedlessinsolvencyordisposal.TheGovernmentshouldsupportthecreationofan‘earlywarning’resourcecapableofinformingworkforcesinadvanceofaninsolvencyordisposalofaviablebusiness,andhelpingthemassessthescopeforacquisitionbyamanagementandemployeebuy-out.Whereabuy-outisjudgedfeasible,sucharesourcewouldhelpwiththepreparationofamanagementandemployeebidforthecompany,withorwithouttheparticipationofexternalstakeholders.Govern-mentshouldactivelyreviewthescopeforallowingemployeestodivertaportionofpossiblere-dundancycompensation,inataxadvantagedway,iftheychoosetotakeacollectiveequitystakeinareconstitutedbusiness.

Asacreditor,HerMajesty’sRevenueandCustomswillnormallyhavearoleininsolvencyproceed-ings.Whereamutualoremployeebuyoutisagreed,theGovernmentshouldensurethatHMRCagreestowaivetheirdebts.WhilethismaybeawriteofffortheExchequer,thebenefitsofpro-vidingalongtermsustainablefutureforbusinessesfacedwiththeprospectofinsolvencyshouldoutweighthecost.

FinancialServices

Theeventsofthelast12monthshavedemonstratedseriousflawsinhowtheUK’sshareholderownedbanksoperate.InApril200�,ninebanksoccupiedplacesintheFTSE100allshareindex.Ofthese,fivearenowsubstantiallyorwhollyinpublicownership.Noneofthefourdemutualisedbuildingsocieties,AllianceandLeicester,BradfordandBingley,HBOSorNorthernRockstillexistasastand-alonebank.

ThishashadatremendousimpactontherestoftheUKeconomy.Themassivecontractionof

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credithashadahugelydamagingeffectonotherbusinesses–aneffectthatwearestillyettoseeinfull.Itishardtoestimatewhattheeventualcostsofthefinancialcrisiswillbeonpublicfunds,butitislikelythatthesewillbesignificantandlongterm.Hundredsofthou-sandsofjobshavebeenlost.ThefailureofourbankingsectorwillcomeataseriouscosttoeveryoneintheUK;whosesavingshavebeenrisked,whosetaxesmayhavetoriseandwhoselivelihoodsarethreatenedbytherecessionthathasfollowed.Itisvitalthatwelearnfromourmistakesandbuildmorestablefoundationsforourfinancialsectorinthefuture.

Financialmutualshaveweatheredtheglobalcrisismuchbetterthantheirshareholdercoun-terparts.Whiletheyhavenotbeenimmunetothecrisis,theyhaveonthewholeshownthemselvestotakefewerriskswithsavers’money;andhavenotrequiredthesamelevelofassistancefromGovernmentasrequiredbytheprivatesector.

Thereisonefundamentaldifferencebetweenco-operativeandmutualfinancialorganisationsandtheirPLCcompetitors;thattheyexisttoprovideaservicefortheirmembersratherthancreatewealthforexternalshareholders.

Thismeansthatprofitsaresharedamongstthemembers(consumers),ratherthanexter-nalshareholders.AstheBuildingSocieties’Associationhasestimated,thisprovidesthemwithacostsavingofapproximately��%,whichisdistributedstraightbacktothemembers-throughtheprovisionoflowcostborrowing,highreturnsonsavingsanddividends.

Inaddition,thefactthattheseorganisationsoperateusingdemocraticvotingsystems,onaone-member-one-votebasis,allowsthemtotakealongtermviewoftheirmembers’in-terests.Aswecollectivelycountthecostsofourfinancialinstitutions’previousshort-termthinking,thisapproachtobusinessshouldunquestionablybethefuturedirectionthatwearelookingfor.

Remutualisation

Astrongandvibrantmutualsectormustbeakeyfeatureofoureconomyorwearedoomedtorepeatthemistakesofthepast.OurGovernmentwasrighttotaketheactionitdidinen-suringthesurvivalofthebanksintheshorttermbutwhentheyreturntoahealthypositiontheyshouldbesentbacktothesectorfromwhichtheycame.

AstartingpointwillbethefutureofNorthernRock.WhiletheGovernmentisabsolutelyrighttotakeanyownershipmeasuresitseesfitintheshort-term;anylongtermsolutionshouldbebasedonsomekeyprinciples:

• Taxpayersmustnotbeoutofpocketasaresultofthechange.

• Hardworkingfamiliesandsmallbusinessesmustbeprotected.Thismeansthehousingmarketshouldnotbeclosedtofirsttimebuyers,creditlinestosmallbusinessshouldbeextendedandrepossessionsshouldonlyoccurasalastresort.

• Theinstitutionsthatemergemustbesecure,responsibleandaddtothefinancialstabil-ityoftheUKeconomy.

• Andfinally,theseneworganisationsmustcontinuetoactinthelongterminterestsoftheirconsumers.

Thatiswhywebelievethatallfullynationalisedbanksshouldbeconvertedintomutuals.Mutualownershipisthebestsolutionforensuringastablelong-termfutureforthesecom-

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panies,andensuringthattherisktakenbytaxpayerswilldeliverforconsumersinthelongterm.Atatimewhenpeopleareanxiousaboutthesecurityoftheirsavingsandfindingitdifficulttogetontothehousingladder–itisonlyrightthattaxpayerinvestmentisrewardedwithareturntocustomerownership.

Thesameprinciplescouldalsobeappliedtothosefailedbanksinwhichthepublichasaconsider-ablestake.Itwouldbeundesirableforinstitutionsthathavefailedtoadequatelyprotecttheirsav-erstobeallowedtoriskdepositstakenonthe‘casino’functionsofthemarketforasecondtime.TheCo-operativePartythereforebelievesthatwhendeterminingthelongtermfutureofthesecompanies,theGovernmentshouldexploreallpossibleownershipstructures–includingsplittingthemintoretailandinvestmentarmsandplacingtheretailbanksintomutualownership.

Itisalsoimportantforustostrengthenexistingfinancialmutuals.TheCo-operativePartycom-mendsthesupporttheGovernmenthasgiventoanumberofpiecesoflegislationthathavemodernisedthemutualbusinessmodelandachievedalevelofparitywiththecompanyform.Inaddition,wewelcomethesupportgiventothefuturedevelopmentoftheMutualSectorintheTreasuryWhitePaper‘ReformingFinancialMarkets,’andcallforthespeedyimplementationofallproposalsmade.

Wemustalsoensurethattheburdenoffailuredoesnotfallonthosewholeastdeserveit.UnderthecurrentsetupoftheFinancialServicesCompensationScheme,theproportioncontributedbyinstitutionsisbaseduponthedepositsthattheyhold.Inpracticethishasmeantthatfinancialmutualshavebeenpunishedforasaferbusinessmodelinwhichtheyarefundedthroughahigherproportionofdeposits,payingonaveragethreetimesasmuchproportionatelyastheshareholderownedinstitutions.WethereforecallontheGovernmenttointroduceamoreequitableschemeforfundingtheinsuranceofdepositsoffailedbanks.

AccesstoFinance

WeneedtodomoretoensurethatourfinancialservicesindustrymeetstheneedofthewholeoftheUKeconomy.Financialmutualshavemuchtoofferinthisregardastheirstructureofgovern-ancehastraditionallyallowedthemtoleadthewayinprovidingservicestomanycitizenswhoareoftenexcludedfrommainstreamproducts.

IntheUK,itisprimarilycreditunionsthatofferaffordablecreditandbankingservicestothousandswhowouldotherwisebeunbanked.Thelasttenyearshaveseentremendousgrowthinthecreditunionmovement.Between199�and2006,thenumberofcreditunionmembersintheUKmorethantripledtoapproximately�00,000,withdepositsgrowingalmostninetimestojustover£�00million.WewelcomethesupporttheUKGovernmenthasgiventhecreditunionmovement,bothinimprovingthelegislativeframeworkinwhichtheyoperate,aswellasthesignificantfinancialas-sistancethattheyhavegiventhesector.

ItisimportantthattheGovernmentcontinuestoassistcreditunionstoensurethattheyarestrongandsustainable.Thiswillrequireittohelpthemexpandtheirrangeofservicestomakecertainthattheycanofferthemaximumassistancetoordinarypeopleinthesetestingeconomictimes.

Onewaywhichthiscanbedoneisthroughthecreationofacentralfinancefacility.Mostcreditunionsaroundtheworldwhichprovideawiderangeofservicestosignificantproportionsofthepopulationhaveanorganisationofthiskind,whichisownedandcontrolledbythecreditunionswhichusethem.Suchabodywouldprovidearangeofservicesincludingliquiditymanagement,

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treasurymanagementandpaymentservices,andassistcreditunionstoprovideotherprod-uctswhereeconomiesofscaleandbackofficefunctionsarecrucial.Thiswillbeessentialinenablingthecreditunionmovementtoscaleupandreachouttomorepeople.

GuidanceshouldalsobeissuedtoallpublicsectoremployersintheUKadvisingthemtoestablishpayrolldeductionfacilitiesforcreditunionsandtopromoteittotheirstaff.Thereshouldbeastandardclauseinallcontracts,servicelevelagreementsandgrantagreementsbetweentheUKGovernmentandpublic,privateorvoluntaryorganizationsemploying�0ormorepeoplerequiringthemtoofferpayrolldeductionfacilitiesforcreditunionsasacondi-tionofcontractingwiththeGovernment.

CommunityDevelopmentFinanceInstitutions(CDFIs)alsoprovidevitalconsumercreditandfinanceforsmallbusinesses,includingsocialenterprises,usingthepersonal,supportiveandadvisoryapproachthatbanksonceprovided.Theyhelpthosewhocannotaccessfinancefrombanks,providingsustainableeconomicprosperitytosomeofthemostdisadvantagedareasoftheUK.

ChangesinthegovernmentbackedguaranteefacilityforloanstosmallbusinesseshavemeantthatCDFIshaveseentheirprimaryguaranteefacilityremoved,andarefindingitdifficulttoaccesstheEnterpriseFinanceGuaranteeScheme(EFG)thathasbeenputinitsplace.TheCo-operativePartyadvocateseitherthemodificationoftheEFGorthecreationofanewschemetoensurethatCDFIsareabletoaccessguaranteefacilitiesassuitablefortheirneedsastheirmainstreamcounterparts.

Anewsettlementbetweenbanksandsociety

Giventheunprecedentedsupportourfinancialinstitutionshavereceivedinthepastyear,itisvitaltheyrecognisetheobligationoftheirresponsibilitytosociety–whosetaxes,jobsandlivelihoodshavebeenputatriskbytheirfailure.Allpeopleshouldhaveequalaccesstorou-tinefinancialservicesandcreditwithintheirmeans.Banksshouldnolongermerelybeabletocherrypickthemostprofitablecustomers,butensurethattheiroperationsserveeverypartofthecommunityequally.

AfourthLabourtermshouldseetheintroductionofaFinancialInclusionAct,similartotheCommunityReinvestmentActintheUSA.Thiswouldensurethatallfinancialorganisationsmustengagewith,designservicesfor,andinvestinpeoplefromallgeographicalareasandincomelevels.Thiswouldrequirebankstoreportthat:

• Alltheirdeliverysystemsarereadilyaccessibletogeographicareasandindividualsofdifferentincomelevelswithintheirareaofbusiness

• Changeshavebeenmadethathaveimprovedtheaccessibilityofitsdeliverysystemstolowtomoderateincomeareasandindividuals

• Servicesaretailoredtotheconvenienceandneedsofthosethatitisrequiredtoserve

IntheUSA,financialinstitutionshaveoftenchosentorouteasubstantialportionoftheirengagementinalternativefinancialinstitutionssuchascreditunionsorCDFIs.MainstreamfinancialinstitutionswouldbefreetochooseasimilarpartnershiprouteintheUK.

Vulnerablehouseholdshavebeendisproportionatelyaffectedbyrisinghouseholdutilityandfoodbills,makingitdifficulttobuildupasavingscushiontoprotectthemselvesagainstthe

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recession.Manylowerincomehouseholdsdonothavetheoptionofsavingforthefutureandhavenochoicebuttoborrowtomaintainanacceptablestandardofliving.Thisisnotaquestionofmakingcheapandeasycreditavailabletofuelaconsumersociety;financiallyexcludedhouseholdsneedaccesstofair,affordablecredittosurvive.

LandReform

Itisnotonlythefailureofthebanksthathasbroughtusintothesedifficulttimes.Inthetwelveyearsprecedingthecreditcrunch,theunprecedentedgrowththatoccurredintheUKhousingmar-kethashadadramaticeffectinthedownturn.

Asignificantcauseofthishasbeentherisingcostofresidentialland.Aseconomicgrowthhasoccurred,thishasledtoinflationarypressuresonthepricesofresidentiallandinscarcesupply,orrestrictedintheplaceswhereeveryonewantsorneedstobe.Thereisnothingnewinallofthis.Thelast200yearshaveseenregular1�-20-yearcyclesofeconomicgrowthandrecessionthathavebroughtrapidupliftinlandvalues,andendedintheirimplosion.

Asweseektobringstabilitytothefinancialsystem,itisonlyrightthatweaimtodothesameforthepropertymarkets.Instabilityherehasbeenakeydeterminantofeveryrecessionthatwehavefacedoverthelast�0years.Giventhis,akeypolicyconcernforthefuturemustbetokeepgrowthinhousepricesconsistentwithotherpartsoftheeconomy.

ExpandingthesupplyofhomesintheUKwillbecrucial.TheGovernmentshouldensureitmeetsthetargetofanadditional�millionhomesbefore2020,asthiswillbecrucialtomakingsurewedonotbeginthesamecycleintheupturn.CommunityLandTrustsandMutualHomeOwnershipcanplayavitalroleinbuildingthehomesthatareneededtomeetdemand(seeCreatingSustain-ableCommunitiesformoredetail).

Yettacklingtheproblemofinflatedlandvaluesisalsoimportant.ThereissignificantevidencetosuggestthattheshortageofhomesintheUKhasbeenartificiallycreatedbyapoorlyfunctioningpropertymarket.Thishashadtheeffectofsubstantialgrowthinhouseprices,withthemarketrewardingthosewithpropertyassetsattheexpenseofpeopleseekingplacestolive.

Inordertopreventsimilarproblemsemergingintheupturn,theGovernmentshouldusetaxationtochangeincentiveswithinthepropertymarket,ensuringthatitincentivisestheproductiveuseoflandratherthanexpectedcapitalgainsinanupwardmarket.TheGovernmentshouldreplacecoun-ciltaxandnationalnon-domesticrateswithalandvaluetax.WhilethiswouldbeanewmethodoftaxationintheUK,countriessuchasDenmark,HongKongandTaiwanutiliselandvaluestohelptheireconomies.LocalAuthoritiesinpartsofAustralia,NewZealandandNorthAmericahavealladoptedlocalformsoflandvaluetaxation.ThisislikelytonotonlyimproveeconomicstabilitybutalsostimulateinvestmentinmoreproductiveelementsoftheUKeconomyoverthemediumtolongterm.

Investinginaco-operativefuture

OneoftheweaknessesofthemutualmodelcomparedwithPLCsistheirabilitytoaccesscapital.Duetotheirverynature,mutualsocietiesarenotfundedbyequitycapitalprovidedbyexternalinvestors.Traditionallythishasledthemtoonlyexpandthroughretainingprofitswithsomeaccesstodebtcapital.

Creatingnewandinnovativefinancialinstrumentswhichwillallowco-operativeandmutualor-

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ganisationstohavegreateraccesstocapital,whileatthesametimeretainingtheircorpo-ratepurposeisasignificantchallengebothfortheCo-operativeMovementandtheUKasawhole.Whetherbuildingastrongerandmorediversefinancialsector,anewenergyinfra-structure,newtransportlinksornextgenerationbroadband–theCo-operativeMovementisinauniquepositiontobuildpublicassetsthatareheldandoperatedforapublicpurpose.

Clearlyraisingcapitalfromcommunitiescanplayalargepartinthis.Inthenineteenthcentu-rytheCo-operativeMovementwasbuiltthroughaself-helpmodeloffunding,whereinvest-mentwasnotonlyfocusedonwhatitcouldgenerateforindividualsbutalsofortheservicethatitcouldprovideforthecommunity.Asweseektobuildthenextgenerationofpublicassets,itisperhapstimetoreturntotheseself-helpprinciples.Mutualsocietieswouldnotonlyofferasafeandrobustinvestmentforindividuals,butalsoprovideuswithservicesthatcancollectivelyimproveourlives.

Onewayinwhichco-operativesocietieshavetraditionallyfundedtheirbusinessesisthroughthesharecapitalofindividualmembers.WewelcometheGovernment’scommitmenttore-movingthe£20,000limitonindividualinvestmentintransferableco-operativesharecapital.

Wealsoproposethatanewfundingmodelforco-operativesisdeveloped,basedonthepermanentinterestbearingshares(PIBs)pioneeredbybuildingsocieties.

Thisfinancemodelwasdevelopedinthe1980s,bybuildingsocietiesthatwantedtoraisesubstantialfundsinordertocompetewiththehighstreetbanks.Beforeitsexistence,theonlywaytodothiswouldhavebeentodemutualise,tradingtofulfilaprivatepurposeratherthanexistingtoprovideaservicetoitscustomers.Manyinstitutionsdidnotwanttogodownthisrouteandtheylookedforanalternativewayofraisingexternalcapital.Permanentinterestbearingshareswereinventedtoprovideanalternativewayofraisingcapitalandenablinglegislationwasbroughtforward.

PIBSappearstoprovideanattractiveoptionforfundingcommunityinfrastructurebecause:

• Theycanprovidecorefundingthatistreatedforaccountingpurposesasequity,notdebt

• Inamembershipbasedorganisationseekingtoprovideaserviceforthepublicbenefit,theyprovideamethodforfundingthebusiness,atalowercost,wheretheincentiveforthelocalcommunitytosubscribeistoprovidethelocalservice

• Membershipofthecorporateentitygivesthelocalcommunitycontroloverwhatitisdoing,prevents‘capture’byinvestorinterests,andthroughitsdemocraticgovernancestructurecanmonitormanagementtoensurethatitseekstominimiserisk.Manage-ment’sjobisnottomaximiseprofitability,buttoprovidetheserviceasefficientlyaspossibleinthelongterm

• Theywillprovideareasonableandsafereturnforsubscribersandsubjecttocertainrestrictionsorgovernancearrangements(topreventdemutualisation)aretradable.

Insomecasesitmaynotbepossibletoraisesufficientcapitalfromcommunitiesalone.TheCo-operativePartysupportsthedevelopmentofasocialinvestmentwholesalertocapitaliseanddeveloptheexistingsocialmarket.Thiscouldutilisetheexpertiseanddiversityofexist-ingsocialinvestorsandlenderstotakeadvantageofeconomiesofscaletoprovideliquiditytoinstitutionslendingtoco-operativeandsocialenterprises.

Itisalsoimportantthatcollectiveorganisations,whetherconsumer,employeeorstake-

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holderownedshouldhavethesameaccesstotheincentiveschemesthathavebeenprovidedtootherbusinessmodels.LabourshouldensurethatcommunitysharesinindustrialandprovidentsocietiesareeligibletoreceivethesametaxincentivesasshareholdercompaniesandthatSelfInvestedPersonalPensionsSchemesareallowedtoinvestinco-operativeandsocialenterprise.Whereco-operativesallocateprofitstowardsfurtherco-operativedevelopment,thisshouldbeal-lowableagainstcorporationtax.

PublicInfrastructure

Atatimewhenpublicsectorborrowingremainshighandprivatesectorcapacitytoinvestremainslimited,theGovernmentshouldexplorethecreationofnewmutualorganisationstobuildtomor-row’sinfrastructure.Becausetheyareownedbytheirmembers,ratherthanshareholders,mutualorganisationshavethecapacitytofinanceinvestmentoverthelifeoftheassetanddosoatasignificantlylowercostthaninfrastructureinvestmentfunds.Thewaytheyareownedalsomeansthatthereisnoincentiveforthemtohaveanexploitativerelationshipwiththeircustomers,andthatconsumersarelikelytoreceivereducedpricesandbettercustomerservice.

ThemosthighprofileexampleofprivatelyownedinfrastructurereturningtosocialownershipcanbeseeninthecreationofGlasCymru(WelshWater).Itwasbroughtintocustomerownershipthroughraising£1.9billiononthebondmarkets,thelargesteversinglebondissuethatwasnotguaranteedbyGovernment.

GlasCymruisasinglepurposecompanyformedtoown,financeandmanageWelshWater.Itisa‘companylimitedbyguarantee’andfitsintothebroaderfamilyofmutuallyownedbusinesses.Be-causeithasnoshareholders,anyfinancialsurplusesareretainedforthebenefitofWelshWater’scustomers.

FinancingefficiencysavingstodatehavelargelybeenusedtobuildupreservestoinsulateWelshWateranditscustomersfromanyunexpectedcostsandtoimprovecreditqualitysothatWelshWater’scostfinancecanbekeptaslowaspossibleintheyearsahead.Thesesavingshavealsofundedsomeadditionaldiscretionaryinvestmentinserviceimprovementsandtheannual‘cus-tomerdividend’.

ThiscanbedirectlycontrastedwiththeexperienceofconsumersinrelationtotheprivatelyownedwatercompaniesinEngland.WelshWaterdemonstratesthedifferencemutualownershipmakesintermsofbothpriceandservicedelivery.

TheGovernmentshouldpursueeveryopportunitytoenabletheconversionofutilitymonopoliestomutualorganisationsownedandcontrolledbytheirstakeholders,andtoencouragetheco-opera-tiveownershipofthosethatwerepreviouslyprivatised.Itshouldalsoensurethatwhenbuildingfutureinfrastructure,fullconsiderationisgiventothedevelopmentofmutualmodelsasamethodofdelivery.

Anexampleofthisistheshifttonextgenerationbroadband.Thisisessentialtoourcompetitivefuture,andthatrequiresbuildingdependablesystemsforallurbanandruralcommunities.WecommendtheGovernment’sambitious‘DigitalBritain’initiative,whichiscentraltodrivingsocialandeconomicsuccessintheUK.

AcrosstheUK,therearelocally-ledprojectstoexperimentandbuildFTTPnetworks,whichvaryinsizebetweenlocalprojectsandthosethathavethepotentialtobelargescale.MostofthemareOpenNetworks–utility-stylenetworksthatcanbeusedbymultiplebusinessestosupplyservices

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tocustomersincompetitionwitheachother.Theseprojectsofteninvolvepublicfunding,buttheirbiggeststrengthisthattheyhelpbuildtheconfidenceandframeworktounderpinotherformsoffunding.

ExperienceinScandinavia,theNetherlandsandtheUSAshowsthatmutualandco-operativeownershipformsareideallysuitedtothisutility-styleinvestment.Andtheyofferaperfectplatformforopencompetitionandinnovationbetweentechnicalsuppliersandserviceprovid-ers.Theexistenceofmultipleprojects–formingapatchworkquilt–isastrengthnotaweak-ness,offeringscopeformaximuminnovationbysmallandlargerbusinessesintheUK.

TheCo-operativePartywelcomesthesupportgiventothedevelopmentofcommunitybasedandmutualenterprisesinthedeliveryofnextgenerationbroadband,throughthean-nouncementofthecreationoftheIndependentNetworksCooperativeAssociation(INCA)intheGovernment’s‘DigitalBritain’report.Thiswilllaunchinitiativesthatensurenotjusttechnicalinteroperability,butalsobusinessinteroperabilitysothatlargeserviceproviderslikeSkycaninterfacewithone“virtual”operator.

ThiswouldallowpublicserviceproviderssuchastheBBCortheNHStoprovideservicesatalocalleveldirectlytoanycustomersofalocalnetworkcompanyratherthanhavingtotran-sitacrossindividualInternetServiceProviders.Thiswouldmeanthatthesepublicserviceproviderswouldbeabletoprovidehighspeedservicestoordinarymembersofthepublicatnoadditionalbandwidthcost.

AnEconomyinallofourInterests

Anexpandedroleforco-operativesandmutualswillplayasignificantroleincreatingthenewapproachtobusinesswesobadlyneed.Yetfortheforeseeablefuture,itislikelythatmostsignificantenterpriseswillcontinuetobeownedbyshareholders.Buildingaprivatesectormoreintunewithco-operativevaluesisnecessaryifwearetoavoidrepeatingthemistakesofthepast.ForBritaintohaveasuccessfuleconomyandsocietyweneedanen-terpriseculturethatactsinallofourinterestsoverthelongterm.Thisrequiresafundamen-talchangeinthewaywedobusiness.

Oneoftheprincipalcausesoftheeconomicandsocialproblemswefacecanbeputdowntoalackofaccountabilityinourlargestbusinesses,bothtotheirownersandwiderstake-holders.Ithasbeenacatastrophicfailureofgovernanceateverylevel,goingwaybeyond,althoughnotexcusing,thefailuresofcorporategovernanceinourbanks.Addressingthewaythatourbiggestcompaniesarerunwillbenecessarytoputoureconomyonasustain-ablefooting.

Akeyconcernisensuringthatbroaderinterestsarerepresentedintheboardroom.Thefinancialcrisisanditsaftermathhaveclearlyshownthatitisnotonlytheownersofabusi-nessthatloseoutwhenitfails.Customersandemployeeshavealsosufferedduetothefail-ureofbusinesses,ananguishthatwouldhaveonlybeenworsewereitnotforthecollectiveburdenthatwebearastaxpayersfortheboldGovernmentactionthatpreventedcrisisfromturningintocatastrophe.Thecultureoftheboardroomseemsunchanged,despitethe2006changeincompanylawwhichrequiresbusinessestofocusonthelong-termprofitabilityofthecompanyandconsidertheirimpactontheirwiderstakeholders.Giventheirclearfailureofboardsinthisregard,itisonlyrightthatotherstakeholdersaregivenasayintheboard-room.TheGovernmentshouldmodifycompanylawtoensurethatrepresentationisgivento

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employees,customersandotheridentifiedstakeholdersforallpubliclyquotedcompanies.Compa-niesshouldalsoberequiredtoseektoensurethattheirboardsareasrepresentativeaspossibleintermsofgenderandrace.

Morealsoneedstobedonetoimprovetheabilityofnon-executivedirectorstochallengeanoverdependenceonmanagers.Keytothisistheindependenceoftheinformationtheyreceive.TheCompanySecretaryisresponsibleforthis,yetinthemajorityofFTSE100companiestheyareappointed,remuneratedandline-managedbytheChiefExecutive.Iftheyaretofulfilanoversightfunctionitisvitalthatnon-executivedirectorsareabletohaveconfidencethattheyarereceivingindependentinformation.TheGovernmentshouldmodifytheCombinedCodesuchthatCompanySecretariesareappointedbythenon-executivedirectors,reportingtotheChair.Non-Executivedirectorsofpubliclyquotedcompaniesshouldalsohavetheirownindependentresearchbudgetsandstaff.

Itisimportanttoimprovetheaccountabilityoftheprofessionalindustriesthatprovideinformationtoboardmembersandshareholders.Thewayinwhichfirmsarecurrentlyauditedhasbeenshowntohavecompletelyfailed,asexemplifiedbythefailureofbankswhichcouldnotgiveanaccuratepictureoftheirbalancesheet.TheGovernmentshouldtakenewmeasurestoensurethatthecosyworldofauditingreflectsnewexpectationsoftransparency,prudenceandresponsibility.Theseshouldimproveauditorself-governanceandredefinethelegalreportingdutiesofthesector.TheGovernmentshouldcreateanewindependentbodytoappointauditorstopubliclyquotedfirms.ThiscouldbebasedonthesuccessfulAuditCommission,astatebody,whichappointsandremu-neratesauditorsforlocalauthoritiesandtheNHS.Thesamebodyshouldalsoberesponsibleforadvisingonremuneration,whereagencyproblemsaremuchthesame.

Moreshouldalsobedonetoensurethatbusinessaddressesitsenvironmentalandsocialim-pact.TheCo-operativePartywelcomestherequirement,introducedinthelastParliament,forlistedcompaniestoreportontheirenvironmentalandsocialimpactsasprogress.However,theabsenceofstatutoryreportingstandardsmakesitdifficulttohaveconfidenceintheinformationprovided.Thesestandardsshouldbedevelopedandimposed,withanoverallfourbandratingofacompany’ssocialandenvironmentalperformance.Itisalsoimportantthatconsumershaveac-cesstothisinformation,andtheGovernmentshouldplaceadutyoncompaniestoprovidetheirfourbandratingontheproductstheyproduce,orinthecaseoftheservicesector,inallcommu-nicationswithclients.

Yetthemostimportantchangethatneedstobemadeisinensuringthatcompanyboardsareheldproperlytoaccountbytheirowners.ItwillcomeasagreatsurprisetomanypeopleinBritainthatthebiggestownersofUKcompaniesarenotforeignoligarchsorwealthyindividuals,butordinarymembersofthepublic,indirectlythroughtheirprivatepensionsandotherlong-termsavings.Thisrepresentsover20millionpeople,whobetweenthemownalmosthalfofUKequitiesthroughtheircontributionstoinstitutionalfunds.

Themajorityofinstitutionalinvestorsdonotexercisetheirroleasowners.Insteadoftakingaresponsiblelong-termapproachtoownership,inwhichtheyacttoensureastablelongtermfutureforthebusiness,theyinsteadfailtotakeanactiverole–relyinginsteadontheirabilitytotradeoutwhenpriceschangeintheshortterm.Thisisself-defeatingforthosechargedwithdeliveringpen-sionsovermanydecadesintothefuturebutitremainsthepredominantformofbehaviour.

Theeffectofthishasbeendisastrous.Theshorttermapproachtoinvestmentmanagementhas

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resultedinashorttermapproachtobusinessmanagement–forwhichweareallnowpay-ingtheprice.Thechronicunderperformanceofour‘ownerless’corporationscanbeseenintheperformanceoftheFTSE100overthelasttenyears–whichis�0%lowerthanitwasadecadeago,despitethefactthattheBritisheconomyhasgrownbysome4�%inthemean-time(attimeofwriting).

Ensuringthatinstitutionalinvestorsexercisetheirrightsandresponsibilitiesasshareholdersandlongterminvestorsiscrucial.TheGovernmentshouldlegislatetoensurethatpensionfundtrusteesandtheiragentsarerequiredunderlawtodesignandfollowanexplicitstrat-egyfordischargingthedutiesofownershipandpromotinggoodgovernance.Failuretodosowouldbesubjecttolegalaction.Thepracticeofsigningoverproxyvotes,withoutdirection,toeitherintermediaryagentsortheBoardofDirectorsshouldbeforbiddenbylaw.

Yetcreatinganeconomythatactsinallofourinterestswillrequirefurtherreform.Pensionfundbeneficiariesshouldhaveagreatersayinhowthecompaniestheyindirectlyownarerun.TheGovernmentshouldplaceadutyonpensionfundtrusteesandtheiragentstocol-lectthegeneralisedviewoftheirclientsandbeneficiariesonoverarchingissuesofcorporategovernance,suchasdirectorpay.Theywouldthenberequiredtovotetheirviewsatcom-panymeetings.

Itisnotonlyaroundcorporategovernanceissueswherepensionfundbeneficiarieshaveaninterest.ApollundertakenbyYouGovfortheCo-operativePartyhasshownthatmembersofthepublicfeelthatthethreebiggestprioritiesforanycompanyshouldbetotreatitscustom-ers(91%)andemployees(84%)fairlyandactinasociallyresponsibleway(��%).Yetfewerthan�0%oftherespondentsfeltthatbigBritishcompaniessharedthesepriorities.Giventhismismatch,adutyshouldalsobeplacedtocollecttheviewofbeneficiariesonissuesaroundtherelationshipofcompanieswiththeircustomers,employeesandwiderstakeholders–andbringforwardtheviewsoftheirbeneficiariesthroughengagementwiththecompany.

Takentogether,theseproposalscouldcreateasignificantculturechangeinBritain’sbiggestcompanies.Byreconnectingourbusinesseswiththeirownersandwiderstakeholderswecantransformthenatureofcapitalisminthiscountry–buildinganeconomythatactsinallofourlongterminterests.

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ANewInternationalSettlementPerhapsthemostimportantthingthefinancialcrisishastaughtusisthatinthemodernworld,nocountryisabletosolveallofitsproblemsonitsown.Aswefacethegreatestchallengetotheworldeconomyinmoderntimes,theloomingcatastropheofclimatechangeandthecontinuedemergencyofglobalpoverty;co-operationbetweennationshasneverbeenmoreimportant.

ThemeetingofG20leadersinLondonwasanimportantstepchangeinthisprocess.Theagree-mentsreachedconstituteaglobalplanforrecoveryonanunprecedentedscale.Commitmentshavebeenmadetoexpansionaryfiscalandmonetarypolicy,atighteningoffinancialsupervisionandregulation,strengtheningourglobalfinancialinstitutions,promotingglobaltradeandmitigat-ingtheimpactontheworld’spoorestcountries.Itisvitalthataswemovetowardtheupturn,weshouldnotsimplytrytogetbacktothewaythingswerebefore,whichwasunsustainableformanyreasons.Globalco-operationisessentialtocreatinganewworldeconomy-whichisde-signedtoprovideforallofourlongtermsinterests,ratherthanshorttermgainsforthefew.

Fromspeculationtolongterminvestment

Financialflowsplayavitalroleinlocal,nationalandinternationaleconomies,buttoolittleofthear-chitecturetosupportthembearsanyrelationtotherealeconomy.Ratherthanameanstoanend,financehasbecometheendinitself,withshortterm,high-frequencytradingstrategiesturningovertrillionsofdollarseverydayinglobalmarkets.Aswehaveseeninrecentevents,thesecanhavetremendouslydestabilisingeffectsonindividualcompanies,sectorsorcountries.Insomecases,thishasevenoccurredwhentheireconomicfundamentalsarelargelysound.

Thespeculativenatureofinvestmentwithintheglobaleconomyrewardsshorttermdecisionmak-ingandreducestheaccountabilityofbusinesstoitsowners.IntheUK,almosthalfofthisinvest-mentisprovidednotbyasmallnumberofrichindividuals,namelessorfacelesscorporations,butcomesfrompensionfundsthatpoolthesavingsthatwe,asindividuals,investforourfuture.

TheaverageUKpensionfundturnsovermorethan100percentofitssecuritieseveryyear,whichmeanstheyaretradersratherthanlongterminvestors.Sincetheyseektoavoidriskthroughtrad-ing,theydonotworryabouttryingtopreventdisastersbybeingresponsibleownersorlenders.Thiscreatespoorgovernanceandinstabilitythroughouttheentireeconomicsystem.

TheprevioussectionhasoutlinedanumberofmeasuresthatcanbetakenwithintheUKtocreateanewtypeofmarket,onewhichdiscouragestheshort-termspeculativemovingofelectronicas-setsandencourageslong-term,sustainableinvestment.Yetinternationalactionisalsorequiredinthisregard.

Anumberofcountriesalreadycollecttaxesoncertainfinancialtransactions.Yetifthesearetobesetataratethatencouragescompaniestobehaveinasustainablemanner,thesewillneedtobeagreedinternationally.Tohelpensureourfutureeconomicstability,theGovernmentshouldcam-paignfortheglobalintroductionoftaxesoncapitaltransfersintheinternationalstock,credit,de-rivativeandcurrencymarketsthroughagreementattheG20groupofnationsandtheUN.Thesecouldraisetensofbillionsofpounds,whilealsochangingtheincentivesbehindinvestmentdeci-sions.Thesecouldstillallowforsubstantialnationalsovereigntyoverthecollectionanddistributionoftaxrevenues,butcouldalsoprovideforinvestmentintacklingglobalpovertyandtheworkofinternationalagencies.

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Improvingeconomicinformation

Asstatedpreviously,theeventsleadinguptotheFinancialCrisiswerelargelycausedbyafailureofresponsibilityandaccountabilityinoureconomicsystem.Partofthiswasafailuretoprovidetherightinformationandalackofindependencebythosewhodid.Tacklingtheagencyproblemsinherentinthesupplyofeconomicinformationisvitalifwearetoensurethatwedonotreturntothemistakesofthepast.

Thebusinessmodelcurrentlyinexistenceforcreditratingsagencies(CRAs)isacauseforseriousconcern.UnderthepresentsystemCRAsareemployedbythemanagementofafirm,governmentorotherbodytogiveacreditratingeithertoparticularfinancialinstru-ments,aparticulardebtissueorforthecompanyasawhole.Theyarealsoengagedinconsultancyworkforfirms,advisingthemoftheratingtheywouldgivetoparticularformsofstructureddebtandhowthedesigncouldbealteredtomaximisetheircreditratings.Thefinancialcrisishasseenthespectacularfailureoftheseagenciestoassesstheriskofcollat-eraliseddebtobligationsortheinstitutionsholdingthem.

TheproblemisthewayinwhichCRAsarefunded.Theircorebusinessinvolvesthemreceiv-ingpaymentfrominstitutionsthatissuedebt,ratherthantheinvestorsthattheyaresup-posedtoprotect.Thiscreatesaclearconflictofinterest,whichrendersthemincapableofproducinganddeliveringratingsthataccuratelyreflectthecredit-worthinessofinvestmentsandinstitutionsandwashighlysignificantinthe‘ratingsinflation’thatprecededthecrash.

TheGovernmentshouldworkwithintheG20groupofnationsandtheUNforwholesalereformofthewayinwhichCRAsoperate.Asamatterofpriority,itshouldseekinternationalagreementonaregulatoryregimethatwillensurethat:

• Thelevelofinformationregardingstructuredfinanceinstrumentsavailabletothemarketandpublicbodiesisraisedtothesameleveloftransparencyasexistsonthecorporateratingsside;

• CRAsshouldbeprohibitedfromissuingaratingforanyassetwhoseconstructionordesigntheyhavebeenconsultedon.

TheGovernmentshouldalsoworkwithintheG20andUNtocreateanewmutualCRA,ownedandcontrolledbyprivateandinstitutionalinvestors.Thiscouldnotonlyassessriskacrossanumberoffinancialinstrumentsandinstitutions,butwouldalsohavetheexpressdutyofpredictinglargemarketdisturbancesandrecessions.Thiswouldbeaninvaluablesourceofeconomicadvicefornationalgovernments,informthepositionofregulators,actasanearlywarningsystemforrecessionandprovideassistancewithmodellingandrespondingtothesephenomena.

ProtectingtheFutureofOurPlanet

Ourcontinuingrelianceonfossilfuelsplacesanunsustainableanddangerousburdenonourenvironment,aswellasaggravatinginternationaltensionsandjeopardisingprogressto-wardssocialjustice.Weallknowthatthelong-termfutureofourplanetisatstake,andthatsustainedincreasesinthelevelsofcarbondioxideandothergreenhousegasescouldhavegraveconsequencesforourglobalclimate.

InBaliinDecember200�,ahistoricbreakthroughtowardsachievingacomprehensiveglobalclimatedealwasreached.Forthefirsttime,alldevelopedanddevelopingcountrieshave

2�

signeduptobringtogetheralltheworld’snationstonegotiateonaclimatetreatygoingbeyond2012.Ithasbeenagreedthattheworldneedsalong-termglobalgoalforreducingemissionsandthatactionneedstobeguidedbyscience.

TheGovernmentshouldcontinuetoadvanceinternationalactiononclimatechange,playingalead-ingroleinpressingforanddeliveringinternationalagreement.ThenegotiationsthatwilltakeplaceinDecemberthisyearinCopenhagenwilldecidewhetherornotweheadtowardsafutureofasafeclimateforourselves,andforfuturegenerations.TheGovernmentmustworktoensurethatadealismadeinCopenhagenthatwillradicallycutglobalemissions,andwillprovidethesupportneededbypoorcountriesthatarealreadystrugglingtocopewithachangingclimate.

GoverningtheInternet

TheUnitedKingdomhasledthewayintermsofdecisionsabouthowtogoverntheInternet.AttheWorldSummitontheInformationSocietyinTunisin200�,therewasadecisiontouse‘dy-namiccoalitions’and‘enhancedcooperation’asameansoftacklinggovernanceandinternet-re-latedproblems,ratherthanworkingthroughthetraditionalapproachofinternationaltreatiesandbureaucraticagencies.Thisapproachworksthroughanannualevent,whichprovidesa“space”forthedifferencestakeholders-includinggovernments,industryparliamentariansandNGOs-toexchangeviews,discussgoodpracticeandexplorewaysofdealingwithdifficulties.

Duringthefirstfiveyearsofitsmandate,theInternetGovernanceForumhascontinuedtoworkonthismodel,whiletheUKInternetGovernanceForumhasprovidedamodelforco-operativeen-gagementswiththeseissuesataUKlevel,whichthereforegivesauthoritytotheUKvoiceataninternationallevel.ThatisbeingmatchedinotherpartsoftheworldwiththeEastAfricanInternetGovernanceForumbeinganexemplarforlessdevelopedcountries.

Webelievethatthistypeofco-operativeapproachisessentialfordealingwiththeInternetasitcontinuestoexpandexponentiallyintermsofindividualbusinessactivityandnewapplications.WecommendthesupportoftheUKgovernmentforthisco-operativeinitiativeandbelievethatitshouldbeattheheartoftheapproachforanyfuturegovernment.

TacklingGlobalPoverty

TheCo-operativePartybelievesthateveryonehastherighttoearnadecentlivingandprovidefortheirfamily.PovertyispoliticalandtheCo-operativeMovementhasaproudrecordofhelpingtotackleglobalpovertythroughsupportforinternationaldevelopmentandtheestablishmentofself-helpinitiatives.

Concertedactiontotacklepovertyisevenmoreimportantinthesetestingeconomicconditions.Thecurrentcrisishashadadisproportionateimpactonthevulnerableinthepoorestcountries.Itisthecollectiveresponsibilityofmoreeconomicallydevelopedcountriestomitigatethesocialimpactofacrisisthatwasofthedevelopedworld’smaking.TheGovernmentshouldcontinuetoactandprovideleadershiptoensurethattheMillenniumDevelopmentGoalsaremet.

TheCo-operativeMovementisoneofthelargestorganisedsegmentsofcivilsocietywithover800millionmembers,andplaysacrucialroleacrossawidespectrumofhumanaspirationandneed.Co-operativesprovidevitalhealth,housingandbankingservices;theypromoteeducationandgenderequality;theyprotecttheenvironmentandworkersrights.Theyplayavitalroleintheempowermentoftheeconomicallydisadvantaged,andwewillworktosupportthemacrosstheglobe.Theseachievementsshouldberecognisedandbuiltuponbytheinternationalcommunity.

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TheGovernmentshouldjointheSecretary-GeneraloftheUnitedNationsinsupportingtheproposaltoinitiateaninternationalyearoftheco-operative.

Globally,thefamiliesofsmallholderfarmerscomprisethevastmajorityoftheworld’spoor,withover2billionpeople,orathirdoftheglobalpopulation,dependantontheirincome.Despitethis,donorsupportforsmallholderfamilieshasdeclinedconsiderablyoverthelast20years.Whilerecentactiontoreversethistrendshouldbecommended,thefinancialcrisishasledtothembeinghitbyatriplewhammyoffallingcommodityprices,reductioninremit-tancesanddifficultyinaccessingcredit.

Agriculturalco-operativesplayavitalroleinallowingfarmerstoaccessservicesandmar-kets,andareinvolvedinover�0%ofglobalagriculturalproduction,enablingsmallproducerstostayontheirownland,andretainownership.Theyprovideamechanismthroughwhichproducerscancometogetherandbuycapital,thusallowingthemtomaximisegainsfromeconomiesofscale.Theyalsoprovideanaturalframeworkforcommunityinvestment,giventhatproducerco-operativesoftencoverentireneighbourhoods.

Expertsagreethatthepoorthemselvesmustbecentrallyinvolvedintheglobalcampaignagainstpoverty.Co-operativesdothis,puttingpeopleatthecentreofdevelopment,empow-eringcommunitiestobringthemselvesoutofpoverty.TheGovernmentshouldrecognisethestrengthsoftheco-operativemodelwhich,aftersomedifficulttimes,innowundergoingarevivalbothgloballyandintheUK.

Inmoreeconomicallydevelopedcountries,individualco-operativeshavebeenabletobuildsecondaryco-operativestructures-ownedandcontrolledbytheirmemberorganisations.Theseallowthemtotakeadvantageofincreasedeconomiesofscaleandpowerinnationalandinternationalmarkets.Supportingco-operativesinthedevelopingworldtobuildthiscapacityisvital.TheGovernmentshouldworkwiththeCo-operativeMovementanditsin-ternationalpartnerstosetupaco-operativeagencyforinternationaldevelopment,whichwillprovidesupportandbuildcapacityforco-operativesacrosstheglobe.ThisagencycanworkinpartnershipwiththeGovernmentanddrawontheexperience,expertiseandresourcesoftheUKCo-operativeMovementtohelpbuildeffectiveandmodernmovementsinthedevel-opingworld.

TradeJustice

TheCo-operativePartybelievesthattradeisthebesttoolinthefightagainstglobalpoverty.Twoareasarekeytorebalancingtheglobaltradingsystem:fairtradeandtradejustice.

Internationaltraderulesfavourthemostpowerfulcountries,puttingpoorfamiliesandde-velopingcountriesatadisadvantage.TheCo-operativePartywillworkwithgovernmentstoreplacefreetradewithjustandequitabletrade.ProgressontheDohatraderoundiscrucialinthisregard,andLabourshouldworktowardsadealwherefairtraderulesanddevelop-mentconcernsmustbecentraltothenegotiations.

TheGovernmentshouldcontinuetochampionanendtotradedistortingsubsidiesandtar-iffswhichstopdevelopingcountriesbeingabletoselltheirgoodsatfairpricesinEurope,theUnitedStatesandothermoreeconomicallydevelopedmarkets.

Thereshouldalsobearecognitionthatpoorcountriesneedtimetomanagethetransitiontomoreopenmarketsandshouldnotbeforcedtoliberaliseattheexpenseoftheirdevelop-

2�

ment.LabourshouldcontinuetofightforflexibilityintheEUEconomicPartnershipAgreementsandstronglysupporttradepoliciesbasedonresearchandanalysisoftheirlikelysocial,economicandenvironmentalimpacts.

Fairtradeensuresbetterpricesanddecentworkingconditionsforfarmersandworkersinthede-velopingworld.Itrebalancesconventionaltrade,withfairlytradedproductsbenefitingtheirproduc-ers.However,productsproducedunderfairtradeconditionsneedtobeavailabletotheconsumeratcomparativeprices.TheGovernmentshouldcampaignforlower,orno,EUtariffsforfairlytradedproductsandachangeininternationaltraderulestocreatefavourabletariffregimesforsustainablyproducedproducts.ItshouldendVATforallfairlytradedproductsasanintermediatemeasure.

WecommendtheDepartmentforInternationalDevelopmentonthevaluableworkthathasal-readybeendonetopromotefairtrade.Labourshouldcontinuetosupportandexpandtherolethatfairandethicaltradecanplayinhelpingtheworld’spoorestfamilies.Itshouldprovidemoresup-porttoenablesmallholderstoformsecondaryco-operativeswhichwillenablethemtoaccessfairtrademarkets.

Therealsoneedstobeafundamentalreassessmentofthefuturedirectionoffairtrade.Sofar,thestrategicintentoffairtradehasbeentoestablishalong-termpriceandasocialpremium,inordertohelpthemmovefromapositionofvulnerabilitytosecurityandeconomicself-sufficiency.Thishasmadeadifferenceinthelivesoftensofthousandsoffarmersacrosstheworld.

Thetimehascomeforthenextstageintheprocess–amovetoownership.Throughassistingfairtradeproducerstoownanincreasingportionoftheirsupplychain,wecanallowprimaryproducerstocreatemorehighlyprocessedproducts,andcaptureagreaterpercentageoftheprofitsgener-atedthroughtheirsale.Thiswouldalsoallowsomeoftheworld’spoorestfamiliestocollectivelyownsophisticatedinternationalbusinesses.TheGovernmentshouldthereforesupportashiftininternationaldevelopmentfundingtosupporttargetedaidallowingproducerco-operativestocap-turemoreofthesupplychainfortheirproducts.

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CreatingSustainableCommunitiesTheCo-operativePartybelievesinbuildingstrongcommunities,wherepeoplecanlivetogetherinmutualtoleranceandrespect,wherefamiliescanthriveandfeelsecure.Wewantmoreaffordablehomesbuilttoahighstandardofdesignandenvironmentalsustain-ability.Wewantimprovedtransportlinkssopeoplecantravelspeedilyandeasily.Wearecommittedtoensuringthat,asBritaingrows,itdoessowithintheboundsofenvironmen-talsustainability.

Governmentcannotbuildsustainablecommunitiesalone.Doingsorequirestrustingpeopletomakedecisionsovertheservicestheyuse,aswellasoverthecontrolofpublicservices.Itisaboutthetransferofpowerfromgovernmenttothegoverned,powerforpeopleineveryareaoftheirlives;fromtheirplaceofemployment,tothehousesinwhichtheyliveandthelocalservicesuponwhichtheyrely.

Co-operativestructures,valuesandprinciplesarethereforeattheheartofcreatingthesus-tainablecommunitiesofthefuture.Fromtacklingclimatechangetobuildingnewaffordablehomes,co-operativeandmutualorganisationscandelivernewandradicalchangestothesocietythatwelivein.TheGovernmentshouldrecognisethepotentialoftheco-operativesectorasweseektomovetowardsamoresustainablesociety.

OpeningupParticipatoryDemocracy

Theeventsofthepreviousyearhavehighlightedtheneedtofindnewwaystorebuildfaithinourpoliticalsystemanddemocraticlegitimacy.Thisisnotaproblemthatshouldbetakenlightly.Socialcohesionandfaithinourpoliticalsystemhasdeclinedmarkedly.Thisisnotjustaproblemthathasafflictedourownsociety,butoneoccurringtoagreaterorlesserdegreeacrossall‘developed’nations.

Theproblemisnotthatpeoplehavedisengagedfrompolitics,butratherthattheyfeeldisempoweredbythecurrentwaythatthepoliticalsystemoperates.Whilstrepresentativedemocraticinstitutionsweredesignedforthesupervisionofsmallscalegovernmentinaselfregulatingsociety,theworldweliveinnowisverydifferent.

Asitstands,peoplecansometimesfeelthatgovernmentissomethingthatisdonetothem,notsomethingthatcanbeshapedthroughconventionalpoliticalmeansandthepartypoliti-calprocess.Thislackoflegitimacy,whilstcatastrophicinitself,isalsofataltotheambitionsofanyprogressivegovernment.Itmakestheabilitytocreateconsensusforourpoliciesmoreremote,meaningthatbuildingamoreequitableandjustsocietybecomesincreasinglydifficult.Ifwearetorebuildourpoliticalsystemandoureconomy,wewillneedthebackingofthepeople.Thisrequiresustofindnewwaystoincreaseparticipationanddevolvepowerwithinoursociety.

Participatorybudgetingisamechanismdesignedtobringlocalcommunitiesclosertothedecisionmakingprocessaroundthepublicbudget.Itreliesonaflexiblesetofcom-munityengagementtechniques,adaptabletolocalcircumstances,butwhichshareacommonprinciple–thatpowerlieswiththosewhodecidehownewmoneyistobespent.PioneeredinPortoAlegreinthelate1980s,itisnowpracticedinover�00citiesaroundtheworld,involvingmorethan12millionpeople.Commonpracticethroughoutall

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ofthesecitieshasincluded:

• Holdingcitywideforumstoinvolvelocalcommunitiesindiscussionoftheirprioritiesandtar-

gets,aswellastoevaluateandmonitorongoingactivity;

• Clearlysettingouttheannualcycleofdialogueanddecisionmaking,linkedtothecouncil’s

internalbudgetsettingprocesses;

• Supportingordinarycitizensthroughtheprovisionofinformationandadvice,includingbudget-

aryliteracyworkshops.

TheCo-operativePartycommendstheDepartmentofCommunitiesandLocalGovernment’s

pilotprogrammesforparticipatorybudgeting,andbelievesthattheGovernmentshouldcontinue

toencouragealllocalauthoritiestotakegreatermeasurestoinvolvecitizensinhowtheirmoney

isspent.

WiththeadventoftheInternetandthepervasivenessofcomputersinnearlyeveryhomeand

institution,itisalsolikelythatsoftwaretoolscanbecreatedthatgivemembersofthepublicthe

rightsandresponsibilitiestotakepartinsomeofthedecisionstraditionallydealtwiththrough

representativedemocracy.

Existingtechnologyalreadyprovidesuswithmanyofthenecessarytools.Surveytoolssuchas

LimeSurveyarematureplatformsthatallowthecastingnotonlyofsimpleyes/novotesbutalso

providethefacilitiestorequestarbitrarilycomplexandstructureddecisionsfromagivensetof

thepopulation.UbiquitousForumtoolssuchasXMBwouldgrantthespaceforpeopletodebate

agivendecisionbeforeitismade.PowerfulcollaborativetoolssuchasMediaWikiwouldprovide

asharedblankcanvasforinstitutionstoprovideofficialinformationrelatedtoadecisionandfor

peopletoenhancethatinformationandcoordinateanycorollaryactivity.AndRSS-awaretools

andemailcanbeusedtosendtimelynotificationsofchangestoanyinterestedparty.Withthese

toolsisnotdifficulttoenvisioninstitutionsgivingbacktotheirconstituenciesaprogressivelylarger

shareofthedecisionstobemade.

Thebiggestchallengeishowtoensurethatthosewhoareinterestedinagivenissueconstitute

arepresentativesampleofthepopulation.Oneanswercouldbecombiningdelegationwithsocial

networking.Thiswouldallowforapersontodelegatetoanother,fordecisionsassmallasindi-

vidualissuesorforentiresectorsofhumanactivity.Keytothisistransparencyandaccountability:

apersonwhodelegatestoanothermustbeable,atanytime,toinvestigatehowsheisbeing

representedonagivensetofissuesandifnecessarypartiallyorcompletelyrevokethedelegation.

TheOpenSourcemovement,withitswellknowntransparencyandreliability,notonlyalready

providesmuchoftherequiredexistingtechnology,butitisuniquelypositionedtotacklethelast

obstaclesthatneedtobeovercome.AnOpenSourcecommunitytaskedwithsolvingthechal-

lengesenumeratedabovecouldnotonlyintegrateexistingtechnology,createnewtoolsfrom

scratchandatleastinpartmaintaintheresultingsolution;butalsostructureitsworktoguarantee

thatthesolutionisdesignedfromtheonsettobeextensible,sothatcurrentlyunforeseenneeds

canbecateredforwithoutsystemicchanges.

TheGovernmentshoulddevelopanopensourceproject,centredonthedevelopmentofaflexible

softwaresolutionallowingfine-grained,scalable,participatorydecision-making,tobemadedeploy-

ablebypublicinstitutions.

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TransferringPowertoCommunities

LocalGovernmentshoulddomuchmoretodeliverpowerandownershipoflocalservicestothecommunitiesthatdependonthem.Webelievethatcommunity-basedandnewmutualorganisationshaveavitalroletoplayinrunninglocalservices,tacklingcrimeandanti-socialbehaviour,supportingfamilies,engagingyoungpeopleandregeneratingrun-downneighbourhoods.

WeendorsetherecommendationsoftheQuirkReview,andbelievethatlocalauthoritiesshouldacceleratetheprocessofassettransfer.Thiswillenablecommunitygroupstoownandrunanythingfromswimmingpools,markets,disusedshopsandpubs,tomajorleisurefacilitiesandland.

Yetitisimportantthatanyassetstransferredbylocalauthoritiesremaininthepublicinter-est,andaccountabletothecommunitythattheyserve.Itisthereforesuggestedthatcom-munitybenefitsocietieswouldprovidethebestlegalstructuretoenablesuchatransferas:

• Theyaredemocraticallyaccountabletoawidelydefinedandopenmembership,thusensuringthatcommunity-basedorganisationsactinthepublicinterest.

• Theyhavean‘assetlock’whichcanguardagainstdissolutionandensurethatresourcescanonlybetransferredtootherorganisationswithasimilarcommitmenttoservingthecommunity.

Inruralcommunities,however,thereareveryfewpubliclyownedassetsthatareabletobetransferredtoruralco-operativesandsocialenterprises.Thishasledtocommunityassettransferbeinganunachievableambitionforthemajorityofruralcommunities.TheGovern-mentshouldprovidespecialistsupportforruralcommunitiestoempowerthemthroughassetownership.

Aswefindourselvesindifficulttimes,wealsofaceaonceinagenerationopportunityforcommunityassetacquisition.Themarketconditionsarerighttotakeonredundantlandandbuildings,andtransformthemfrompotentialliabilitiesintoincomegeneratingassetsforsocialgood.Assetacquisitioncouldcreateafoundationforaself-helpenterprisingapproachthatwillenhanceresilienceinourcommunities,generatelocalmultipliereffectsindis-tressedeconomiesandcreatethefoundationsofamuchstrengthenedcommunityenter-prisesectoraswecomeoutoftherecession.

Insomecases,assetacquisitionintherecessionwillfacilitateinformalsocialandculturalusesforredundanthighstreetofficesandshops,therebyavoidingboardeduppremisesandaspiralofdecline.WewelcomethecommitmentoftheDepartmentofCommunitiesandLo-calGovernmenttoexplorethis,andbelievethattheGovernmentshouldassistthisandotherschemesthroughthecreationofaCommunityAssetAcquisitionFund.

OverthecourseofthenextParliament,theGovernmentshouldundertakeanumberofmeasurestosupportfurthercommunityownershipofassets.AnumberoflocalauthoritieshavealreadyusedCompulsoryPurchaseOrderstoacquireunder-utilisedlandorotherassetsinpartnershipwithcommunityorganisations.TheGovernmentshouldencouragealllocalauthoritiestousetheircompulsorypurchasepowerswhererealgainscanbebroughttoresi-dentsandlocalbusinesses.

In200�,theLabourScottishExecutiveintroducedtheLandReform(Scotland)Act,providing

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aCommunityRighttoBuyforruralcommunitiesinScotland.Thisenablesruralcommunitieswithapopulationoflessthan10,000toestablishacommunitybodyandregisteraninterestinlandandbuildings,providingtheoptiontobuywhenthelandorbuildingscomeupforsale,followingacommunityballot.TheGovernmentshouldextendtheCommunityRighttoBuytoEnglandinbothurbanandruralareas,tocreateanopportunityforcommunitygroupstobidforlandandbuildingsofstrategicsignificancetoacommunity.

EnergyandClimateChange

Ourcontinuingrelianceonfossilfuelsplacesanunsustainableanddangerousburdenonourenvironment,aswellasaggravatinginternationaltensionsandjeopardisingprogresstowardssocialjustice.

Atthesametime,itisestimatedthattherearecurrentlycloseto�.4millionpeopleinBritain(1in�households)whoareofficiallyclassedas‘fuelpoor’–whichthegovernmentdescribesasthosehouseholdshavingtospendover10%oftheirannualincomeinordertoheattheirhome

Wearealsofullyawarethatthegeopoliticallandscaperequiresustoreduceourrelianceonfor-eignreserves.Despitethefallingpriceofoil,itisunlikelytostabiliseatitscurrentlevels.

Expertshaveatendencytoseesolutionstofuelpoverty,energysecurityandclimatechangeascompeting,conflictingandirresolvable.Yetamovementtowardscommunitiescollectivelyowningtheirownenergyhasthepotentialtomeetallthreeofthesechallengesheadon.

Evidencefrompioneeringenergymarkets,suchasCalifornia,DenmarkorSweden,suggeststhatthesetechnologiesarebestdeployedwherepoliciesandmeasuresaredirectedatbringingto-gethercommunitiesofhouseholdsandbusinesses.IntheUKtherearealsoagrowingnumberofinstanceswhereco-operativeenergyschemeshaveprovidedthescopeforengagement,genuinecommunitybenefitandeconomicparticipation.

The‘CollectivePower’modelallowsresidents,localbusinessesandpublicsectororganisationstocometogethertosavemoneyandhelptacklethethreatofclimatechangethroughcollectivelypoolingtheirpurchasingpower.Bandingtogetherinthisway,energyco-operativesareabletopurchasetheirownenergyonthewholesalemarketsandnegotiateaffordabledealsforstateoftheartsmartmeteringtechnology.Thisshouldallowhouseholdstorealisesavingsof10%-20%onaverageontheirbills.

Whiletheseorganisationsmaybeginasapracticalexpressionofself-help,theyhavethecapacitytorevolutionisethewayinwhichwepurchaseandproduceenergy.Onceestablished,theco-op-erativeformsaframeworkthroughwhichordinarypeoplecanbuildandownaninfrastructurethatwillreducetheirlong-termenergycostsandmanagethereductionoftheircarbonemissions.

Establishinganewgenerationofenergyco-operativeswillrequirearangeofstart-upsupportmechanisms.Thesewouldincludebusinessplanning,energymarket,communityengagementandlegalsupport.Governmentactionisurgentlyneededtojoinupdepartmentalexpertiseandthink-ingoncommunitydrivenrenewableenergy.WesuggestthattheGovernmentcreateacommunityenergyandclimatechangeunit,basedonthesuccessfulSupportersDirectmodel.Thecorefunc-tionsoftheunitwouldbeto:

• actasadeliveryagenttojoinupthevariousdepartmentalinterestsaroundcommunityenergyandclimatechangesolutions;

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• activelyengagewithexistingexpertiseonlocallevelrenewableenergyandclimatechangesolutions(includingresearchandpracticalexperience)toidentifydevelopmentopportunitiesandavoidduplicationofeffort

• provideasupporthubforthevariousdevelopmentneedsofcommunity-basedenergyandclimatechangesolutions,includingadviceonlegalstructures,financialassistance,businessplanningandtheregulatoryframework;

• encouragethedevelopmentoflocallevelorganisationsthatnotonlydeliveraffordablecleanenergybutprovidearoutethroughwhichcommunitiescantakeactiononenergyusereductionandthecollectivepurchasingofenergysavingproducts.

Thisnewunitshouldbeamutualinstructure,ownedandcontrolledbyenergyco-operatives,perhapswithstakeholdersfromcentralandlocalgovernment,keydeliveryagents(suchasfinancial,planningandlegalprofessionals),industryspecialists(suchasthedesignersanddevelopersoftechnologye.g.windturbines),localgroupsandenterprisesandemployeesoftheunititself.

TheGovernmentshouldalsoensurethattheestablishmentofenergyco-operativesisnotdefeatedbyideologicalopposition.DuringDavidCameron’sfirst18monthsasOp-positionLeader,Conservative-ledauthoritiesturneddown80percentofplanningappli-cationsforwindfarms.TheseplanningproblemsremaindespitenewplanningguidancefromGovernment.

Localauthoritiesshouldbeencouragedtoviewtheofferofcommunityownershipasabenefitintermsofplanningconsent.Thiswouldreducetheupfrontcostsofdevelopmentforcommunityenergygroups.Itwouldalsohavetheknockonbenefitofencouragingdevelop-erstoofferlocalcommunitiesashareorpart-ownershipofschemesinreturnforafast-trackplanningprocess.

TheGovernmentshouldalsomakeinvestmentinco-operativeenergyschemeseasierandmoreattractive,throughraisingtheEnterpriseInvestmentSchemelimitforrenewableenergyprojectsto£10million,asthiswouldgreatlyassistthedevelopmentofcommunityscaleprojects.

Overall,itisnecessaryfortheGovernmenttotakealeadinmakingthishappen,actingasasupporter,cheerleaderandfacilitator.WhileGovernmentscannotcreatesocialmovements;throughhelpandencouragementtheycanallowthemtothrive.

DeliveringHigh-QualityAffordableHousing

TheCo-operativePartybelievesthateveryoneshouldhaveaccesstoadecentandattractivehome,atanaffordableprice,whethertorentortobuyinruralandurbanareas.Wecom-mendtheGovernment’scommitmenttobuildthreemillionnewhomesby2020–homeswhicharedesperatelyneededbyyoungfamilies,olderpeople,keyworkersandfirsttimebuyersacrossthecountry.

Thetectonicshiftthathasoccurredintheglobalfinancialmarketsmeansthatthehous-inglandscapeintheUKwillneverbethesameagain.Themajoroutcomewillbeanewriskaverse,resilientandmoreregulatedapproachtolending.ThiswillmeanthatmanythousandsofUKhouseholdswillbecaughtinthegapbetweenaffordablerentandhomeownership.

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Intheaftermathofthefinancialcrisis,ensuringthatthesenewandemerginghouseholdshaveaccesstoadecenthometheycanaffordisamajorpoliticalandelectoralchallenge.Inaddition,increasingthesupplyofhomesisvitaltoensurethelongtermstabilityofthehousingmarket,ensuringthatitdoesnotcontinuetodrivevolatilityintherestoftheeconomy.

Thepostcrisislandscapepresentsallconcernedwithaffordablehousingsupplywithnewchal-lenges:newchallengesthatdemandnewsolutions.

TheroleofCommunityLandTrusts(CLTs)iscrucial.Theyworkinruralandurbanareas,andareaflexibletooltomeetavarietyofcommunityneeds.Theynotonlyofferanumberofoptionsforrentandlowcosthomeownership,butcanalsoprovideamechanismforgeneratinganincomestreamforreinvestmentbythecommunity.Inareaswherearisingpopulation,economicinvestmentandlimitedstocksofaffordablehomesthreatentoexcludelocalpeoplefromtheareasinwhichtheyliveandwork,CLTsareabletoensureasupplyofaffordablehousingthroughthecontrolofhous-ingcostsandresaleprices.

Inparticular,the‘NewFoundations’modelcanmakeasignificantcontributioninthesupplyofhomes.Itseparatesthecostofthelandfromthepurchaseprice,bytakingitoutofthemarket-placethroughaCommunityLandTrust.Itensuresaffordabilitythroughflexiblemonthlypaymentsthatarebasedonanaffordablepercentageofincome.Anypublicsubsidyislockedinandpre-servedforfuturegenerations,duetothestructureofequityarrangements.

Unlikeindividualhomeownership,whereresidentshaveapersonalmortgageloantobuyahome,thehomesarefinancedbyacorporateloanborrowedbytheco-operative.Thevalueofthebuild-ingsisdividedintosharesandwhenmembersleavetheco-operative,theyareentitledtotaketheequitythattheyhavebuiltupwiththem.Thenetvalueofthesharesiscalculatedbyreferencetoafairvaluationformulasetoutinthedepartingmember’soccupancyagreementorlease,whichisthesameforallmembers.Therentisgearedtobeaffordableat��%ofnethouseholdincome,sothemoreresidentsearnthemoretheypayandthemoreequitysharestheyareabletoownandfinance.

Thevaluationformulaintheleaserequiresresidentmemberstolookonpropertyownershipinanewanddifferentway.Ratherthanviewingahomeasaspeculativecapitalinvestment,thevalueofwhichrisesandfallsinlinewithunpredictablehousingmarketcycles,itwillseeahomeasaconsumerdurable,justlikeacar,orafridge.Thisformulawillnotgivemutualhomeownershighriskspeculativehousepricegrowthwhenitmayhappenagain,ifever.Howevermutualhomeownerswillalsobeatfarlessriskoffallingintonegativeequitywheretheirhousesareworthlessthantheoutstandingmortgageloan.Theywillalsohavethebenefitoflowertransactioncostswhentheymoveintoandoutoftheirhome.

‘NewFoundations’housingschemescanbedevelopedwithintheexistinglegislativeandadminis-trativearrangements,butcanbesupportedbyactionfromtheGovernment.Inparticular,itshould:

• ExcludeallhomesbuiltonlandownedbyCLTsfromtheleaseholdenfranchisementprovisionsoftheLeaseholdReformAct196�.

• AmendtheCommonholdAct2000toenableco-operativestoregisterasCommonholdAsso-ciationsanddevelopCo-operativeCommonholdhousingschemesonlandownedbyaCLT.

• Establishastart-upfundandrevolvingtechnicalassistanceloanfundtostimulatethedevelop-mentofCLTsandMutualHomeOwnershipprojects.

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• EnsurethatHMTreasuryandtheFinancialServicesAuthorityworkwithCHFSandtheco-operativehousingsectortocreatecollateraliseddebtstructuresandcreatearegu-latedbondmarketthatisattractivetopensionfundandlifeassuranceinvestors

BuildingStrongerCommunities

Throughhousingco-operativesandothermutualorganisations,tenantsandresidentshavetakenrealcontroloverdecisionsthataffecttheirlivesandcreatedstrongandcohesivecom-munities.Alltheavailableevidenceshowsthatco-operativeformsofhousingperformwellonvalueformoneytermsincomparisontohousingassociationandlocalauthorityprovisionofhousing.Additionally,theyhaveprovedthemselvestobeasuccessfulmodelofgenuinecommunityempowerment;providingarangeofsocialandcommunitybenefitsduetothelocalframeworksofmutualsupportthattheycreate.

TheGovernmentshouldtakeactiontoembedco-operativeandmutualhousingsolutionsattheheartofitsoverallhousingstrategy.ThenewlyestablishedHomesandCommunitiesAgencyshouldincludeco-operativeandcommunitymembershipandownershipormanage-mentaspartofitsqualitystandardsforapprovalfornewhousing.

TheCo-operativePartyviewsthenationwideprogrammeofvoluntarystocktransferinEnglandasanopportunitytoextendco-operativeprinciples,empoweringtenantsacrossthesocialhousingsector.TheGovernmentshouldensurethatwherelocalauthoritiesdoholdballotsonstocktransfer,residentshavetheoptiontovoteforcommunity-ledstocktransfers,underthefollowingmodels:

• CommunityMutual–developedbythethinktankMutuoandendorsedbytheWelshAssembly,theCommunityMutualoffersactivemembershipopportunitiestoalltenants.TherearecurrentlyCommunityMutualsinthreeWelshlocalauthorities.

• CommunityGateway–developedbytheConfederationofCo-operativeHousingandCo-operativesUK,theCommunityGatewayisameansofdevelopingtenantdemoc-racyinhousing,offeringcommunitiesarangeofempowermentopportunities.TherearecurrentlyCommunityGatewayhousingmutualsinPreston,Watford,LewishamandBraintree.

Localauthorities,housingassociationsandhousingmutualscouldalsoconverttoamixedtenureversionofthe‘NewFoundations’model.ResidentsinthistypeofMutualHomeOwnershipdevelopmentwouldbeabletostartonastandardrentedtenancywiththerighttobuyequitysharesasandwhentheirincomepermittedthemtodoso.Theywouldnotbesecondclasscitizenseither.Theywouldhavetherighttoparticipateinthedemocraticgovernanceoftheirhomejustasanyothermemberofthemutual.The‘RighttoBuyEquity’wouldnotmeanthatthehomewouldbecomeunaffordableforfuturegenerationsofoccu-pantsorthatitwouldmovetotheopenhousingmarket.

Asa‘NewFoundations’communitybecomeswealthier(ascanbeexpectedinanystablesustainablecommunity),initialcapitalsubsidyisreleasedovertimeasmember’sincomesriseandtheybuymoreequityshares.ThiscapitalsubsidycouldbeusedbytheCommu-nityLandTrusttoprovidemoreaffordablehomes,therebyincreasingthesupplyofsociallyrentedhomes.

Insomeareastenantswillprefertheirhousingtoremainunderlocalauthoritycontrol.Where

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thisisthecase,tenantsshouldbeencouragedandassistedtoformtenantmanagementco-op-erativestotakeoverthecontrolofmanagementofthecouncil-ownedhousingintheirneighbour-hood.Therighttomanageshouldalsobeextendedtohousingassociationtenants,whoshouldalsobegivensupportandencouragementtotakeoverthecontrolandmanagementoftheirhomesthroughmanagementco-operatives.

Inthelasttenyearsthelandscapeofsocialhousinghasbeentransformed;withmorearms-lengthmanagementorganisations(ALMOs)responsibleformanagingsocialhousing,aswellaschangestothenumberandoperationsofregisteredsociallandlords(RSLs).WewelcomethecreationoftheTenantServicesAuthority,andthedutythatitplacesonregisteredprovidersofsocialhousingtoensurethattenantshavetheopportunitytobeinvolvedtheirmanagement.ThereiscurrentlyawidevariationinhowRSLsareinterpretingthis.Aspartoftheworkthatitisdoingonbehalfofresidents,theTenantServicesAuthorityshouldlaunchareviewofgovernanceintheRSLsector,toensurethatallRSLsareabletolearnfrombestpracticeacrossthesector.

Parksandopenspacesareafocalpointforcommunities,yetwerarelyhaveasayinhowtheyarerun.Researchindicatesthatthisisasourceofdissatisfactionformany,withmorethanhalfofthepopulationwantasayinthewaythatparksandopenspacesarerunintheircommunities.

TheGovernmentshouldencouragelocalauthoritiesandotherparkproviderstoexploretheuseofcommunitylandtrustsforparksandopenspaces.Thiswillnotonlygivethecommunitygreaterownershipovertheirparksandopenspacesbutalsoensurethatthelandremainsintheirhandsforperpetuity.TheGovernmentshouldalsoreviewthewayinwhichtheUK’sNationalParksaregoverned,toensurethattheyareaccountabletothepeoplewhousethem.

Wemustensurethattheincreasedlevelofhousebuildingisdoneinanenvironmentallysustain-ablemanner.In200�,overaquarterofourcarbonemissionscamefromourhomes.TheHouseofCommonsEnvironmentalAuditCommitteehasestimatedthatthisfigurecouldrisetoasmuchas��%unlessdrasticchangesaremadetothewayinwhichhomesarebuiltanddesigned.

Asignificantcontributiontotheseemissionswillbetheconstructionprocess.UnderthecurrentVATregime,constructionofnewbuildpropertyattractsazerorateofVATwhereasrefurbishment,repairandretrofitofexistingbuildingsarechargedatthefullVATrateof1�.�%.ThishigherVATrateforrefurbishmentofbuildingsactsasadisincentivetothereuseofemptyproperty,abar-riertoregenerationandanobstacletomakingbuildingsenergyefficient.TheGovernmentshouldlowertherateto�%totackletheseproblemsandincreaseconsumerprotection.

Food,FarmingandRuralCommunities

InGovernment,Labourhasshownitselftobecommittedtotacklingruralsocialexclusionandeconomicunderperformance.Lookingbeyondthetraditionalboundariesoftheprivateandpublicsectors,ministersareincreasinglyawareofthepotentialroleofmutualsinhelpingdeliverasoci-etythatisbothentrepreneurialandsociallyinclusive.

Thedeclineintheavailabilityofruralserviceshasbeenwelldocumented,withpubs,shopsandotherservicesclosingatafasterratethaneverbefore.Ruralco-operativesandsocialenterprises,suchascommunity-ownedruralshopsorpostoffices,areoftentheonlyviablealternativeforruralcommunitieslookingtoretainorre-introduceaserviceinareasofprivateorpublicmarketfailure.Inmanyruralareasmutualsocialenterprisesarefillingthevoidleftbyretreatingpublicandprivatesec-torproviders,andofferthebestavailablesolutiontosocialexclusionandserviceaccessproblems.

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Oftenessentialruralservicesarerunasprivatebusinesses.Whentheproprietordecidestoretire,closethebusinessormovefromthecommunity–theavailabilityoftheseservicesisoftenatrisk.Whetherservicesareclosedbythepublicorprivatesector,ruralcommunitiesshouldbeempoweredtotakecontroloftheservicesthatimpactontheireverydaylives.

TheGovernmentshouldestablisha‘communityrighttotry’inruralcommunities,whichwouldgivethemtheoptionandatimeframeofsixmonthstoconsidertakingoveraservicethroughthecreationofaco-operativeorsocialenterprise.Itshouldalsoensurethatappro-priatefinanceisgiventotheseschemesthroughcreatingadedicatedfundingblockforruralservicesthroughRegionalDevelopmentAgencies.Localauthoritiesshouldalsobeencour-agedtoprovidesupportandpilotgrantstopotentialprojects.

Morealsoneedtobedonetoensurethevitalityandvibrancyoflocalhighstreets,whichcanoftenbecentraltothevitalityandvibrancyofcommunitiesthemselves.Itisimportantthat,wherepossible,communitieshavelocalaccesstoadiverseofferingofretailgoodsandservices.TheGovernmentshouldencouragelocalauthoritiestoprovideamoreconsistentapplicationofPlanningPolicyStatement6toensurethatthisoccurs.

Muchoftheproducethatisavailabletoconsumershastravelledunnecessarydistancestothepointofretail,drivingupcosts,impactingnegativelyontheenvironmentandthreateningthelivelihoodofsmall-scaleproducers.Co-operativeandsocialenterprisesarealsoattheforefrontofthedevelopmentofrobustandsustainablefoodsystems,analternativetotheglobalsupplymodel.Theseincludefarmersmarkets,whichareenablingproducerstoselldirecttoconsumers,takingbacktheirroleinthesupplychain.

TheGovernmentshouldrecognisetheachievementsoftheselocalfoodsystemsandfur-thersupporttheirdevelopment.Whereverpossible,localproductionshouldbeencouragedthroughadditionalfinancialsupportforfarmersthatdemonstratehighstandardsofenviron-mentalstewardship.

WebelievethatakeystrandofanypolicyaimedatregeneratingruralBritainshouldbethedevel-opmentandpromotionofpractical,self-helpmutualsolutionstoproblemsfacingruralpeople.

Tacklingcrimeanddisorder

Theroleoflocalcrimefightingpartnerships,knownasCrimeandDisorderReductionPart-nerships(CDRPs)inEnglandandCommunitySafetyPartnerships(CSPs)inWales,hasbeencrucialinmakingthereductionofcrimeakeypriorityforlocalauthoritiesandotherpartnersaswellasforthepolice.Manypartnershipshavebeeneffectiveinrepresentingthecom-munity’sintereststothepoliceandenablingthemtorespondtopublicconcerns.Byengag-ingtheircommunities,understandingtheircrimeconcerns,sharingintelligence,informationandtaskingtodealwithlocalissues,andgivingfeed-backtothepublic,thesepartnershipshaveoftensucceededinmakingarealdifferencetohowthepublicfeelsaboutcrimeandtheagencieswhotackleit.

ThesepartnershipsformoneoftheunsungsuccessesoftheLabourgovernmentandareconsideredtohaveplayedamajorpartinreducingcrimegenerallyacrossthecountry.How-ever,aswithmostgoodnewsstories–theyrarelyhaveahighpublicprofile.

Yetwearestillalongwayfromfullyengagingcommunitiesinthefightagainstcrimeandfromgivingthemownershipoverthelocalstrategy.Insomecasesthecommunityisuna-

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wareoftheworkofthepartnership;accountabilitymechanismscanbefragile,andthemethodol-ogythatshouldhelpmaketheirareasaferforeveryoneisnotalwaysappliedconsistently.“Bestpractice”hasshownexcellentresultsbutperformancevariesacrossEnglandandWales.

Moreneedstobedoneinordertoensurethat“bestpractice”principlesarespreadthroughoutCDRPsacrossthecountry,makinguseoftheexperienceof“co-operativegovernance.”Theseshouldberevisedtotakeaccountofthewiderpartnershipapproachatalocallevel,withanem-phasisonthetriennial“baselineaudit”andthedevelopmentofascientificapproachtoanalysingboth“crimeandthecausesofcrime”inordertobringaboutchange.

TheCardiffViolenceReductionProgrammeisanoutstandingexampleofthevalueofco-opera-tion.Fewerfacialinjurieswerebeingcausedbymotoraccidentsbutmorewerebeingcausedbyviolenceinthecity–sothelessonsfromimprovingroadsafetywereappliedtoviolence.Policeandmedicalstaffshared(non-personal)datatoanalyseviolentincidentsanddesignstrategiesforprevention.Over10yearsthisresultedina40%dropinthenumberofpeoplepresentingatAccident&Emergencyfortreatmentfollowingviolence.Applyingtheprinciplesofco-operativegovernancetoamuchwiderrangeofcriminalactivityhasthepotentialtomakeeverycommunityasafe,co-operativecommunity.

Thereisalsomuchmorethatcanbedonetoensuretheactiveengagementofthecommunityandtheapplicationofawelldesignedmethodologytocrimereduction.Theintroductionofmutualstructures,withbroadbasedandopenmembershipcanmakearealdifferenceintheeffectivenessoflocalcrimeanddisorderreductionpartnerships,anddrivefurtherreductionsinthelevelsofcrimewithinourcommunities.

AnimalRights

Throughoutitshistory,theCo-operativeMovementhashadaproudrecordonanimalrights.WecommendtheworktheLabourGovernmenthasdoneinthisregardoverthelasttenyears;ban-ningpracticessuchasdriftnetfishingandfurfarming,settingminimumstandardsforanimalwel-fare,banningthetestingofcosmetics,alcoholandtobaccoonanimals,settingtoughersentencesforcrueltyagainstanimalsandbanninghuntingwithhounds.

WewelcometheintroductionoftheAnimalWelfareActin2006,andcallforthefullimplemen-tationofallsecondarylegislationtoextendandimprovetheprotectionofanimals.Wecallforacompletebanonanimalsperformingincircusesasamatterofpriority.

TheCo-operativePartyisopposedtotheCanadiansealhunt.TheGovernmentshouldsupportEUactiontoseekabanontheimportofandtradeinsealproducts.ItshouldalsocontinuetosupportanunconditionalEU-widebanonthecommercialimportoflistedproductsofharpandhoodedseals.Itshouldalsocontinuetosupportatotalbanonwhalingandcontinuetopushforaglobalbanonthisunnecessaryactivity.

TheGovernmentshouldalsoextendwelfarelabellingandintroduceclearfurlabellingtoshowconsumersifitemsforsalearemadewithrealfurorhavefurtrimmings.Itshouldalsobancagesforlayingbirds,suchthatonlyfreerangeeggsareavailablewithinUKoutlets.

Itshouldalsocontinuetosupportresearchintonewwaystoreduceandeventuallyabolishtheneedforanimaltesting.

Webelievethatensuringclean,safeandbiologicallydiverseoceansandseasarekeytoourwiderenvironmentalobjectives.Overfishingoftargetspecies,destructivefishingtechniquesandhigh

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ratesofby-catchanddiscardsareposingaseriousthreattothesustainabilityoffishstocksandthemarineenvironmentasawhole.Toensurethemarineenvironmentrecoversandflourishesintothefuture,awidescalenetworkofmarinereservesarerequiredtoimprovethemanagementofhumanimpacts.

WewelcomethepassingoftheMarineActasanimportantfirststepinthisregard.Ad-ditionally,theGovernmentshoulddesignate�0percentofUKwatersashighlyprotectedmarinereservesby2020,withintermediatetargetsof10percentby2012and1�percentby201�.Thiswouldmakeasignificantcontributiontoensuring‘GoodEnvironmentalStatus’isachievedforUKwatersby2020,asrequiredbytheEUMarineStrategyDirective.Itwouldalsogosomewaytoimplementingotherinternationalobligations,suchasthe2002WorldSummitonSustainableDevelopmentagreementtodevelopacoherentnetworkofmarineprotectedareasby2012.

PublicTransportandPromotingSustainableTravel

TransportiscentraltoBritain’seconomicandsocialsuccessandwellbeing.Itrequirescon-stantinvestmentandrenewalatgreatcosttobothtaxpayersandpassengers.TheCo-opera-tivePartybelievesthatinorderforustomeetthechallengesofthefuture,wewillneedanenvironmentallysustainableandintegratedtransportsystemthatdeliversforourneedsnowandinthefuture.

Sinceitscreationin2002,NetworkRailhasreduceddelaysandimprovedsafetycomparedwiththeRailtrackdisaster.Yetitisstillalongwayfromtheservicethatwedeserve.Evi-dencefromacrossthesectorhasdemonstratedthatthereareseriousfailingsinNetwork’sRail’scorporategovernancearrangements,andthattheseareimpactingontheservicesprovidedtopassengersandthepublic.

WhenNetworkRailwascreated,itwasrecognisedthatthecompanyneededtoprovideapublicservice,wouldbedependentonstatefinancialsupport,andoughttoberunintheinterestsofrailusers–bothpassengersandtrainoperators.Thiswaswhyanon-profitstruc-turewasadopted,withappointed“Members”tooverseetheorganisation.

ForNetworkRailtobecometrulyaccountable,allcitizensmustbegiventherighttobecomeindividualmembers.Asagenuinemutualventure,NetworkRailwouldthengiveallofitsmemberstherighttoelectgovernorrepresentativestoaMembers’Council,whichwouldreplacetherolecurrentlyfulfilledbyitsexistingmembership.Industrymemberscouldcon-tinuetobenominatedbytheirrespectiveinterestgroups,betheytrainoperatingcompaniesortradeunions.

NetworkRailwouldbestructuredsothatallofitsmembershaveavoice.Asagenuinecommunitymutualitwillgiverightstoallstakeholdersandguaranteethattheorganisationactsintheirinterests.ThiswillcreateagenuinetwowaydialoguebetweenNetworkRail’smanagement,itspassengersandthepublic;ensuringthatthefutureoftherailnetworkpro-ceedsonthebasisofmutualtrustandtransparency.

Itisnotonlyintherailnetworkwherethereisanaccountabilitygap.Theprivatelyruntrainoperatingcompaniesalsoprovideavitalpublicserviceandreceivelargesumsofpublicmoney,yettoooftenalsofailtoberesponsivetotheneedsofpassengersandthepublic.

Inordertomovetheindustryforwardandprovidethebestvaluetoboththetaxpayerand

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passenger,itisimportanttoprovidecompetitionthroughadiversityofproviders.Acrossthema-jorityofthenetworkthereislittleornocompetition,andtheprivatesectoristakingonlyasmallamountoftheriskinvolvedinrunningandinvestingininfrastructure.Therecentforcednationalisa-tionoftheEastCoastMainlinedemonstratesthedegreetowhichprivatesectoroperatorscanoftenseektosocialiseriskandprivatisereward.

Asweseektofurtherimproveourrailways,itisimportanttoensurethattaxpayersandpassen-gersgetbestvalueformoneyandgreaterpublicaccountability.GiventheproblemsassociatedwiththeEastCoastMainlinefranchise,theGovernmentshouldusetheopportunitycreatedbynationalisationtocreateanewmutualproviderasapublicsectorcomparatortotheothertrainoperatingcompanies.

Morealsoneedstobedonetoensureastrongpassengerfocusinlocaltransportservices.Alltoooftencommunitiessufferfromhavingpoorlyintegratedorinsufficientservices.Acrossthecoun-try,communitytransportorganisations(CTOs)haveplayedaroleinrespondingtobothindividualandcollectiveneedsanddrivingforwardsocialregeneration.ThesevaryinsizeandfocusfromsmalloperatorstomainstreamproviderssuchasHackneyCommunityTransport.Yettheyareoftenatadisadvantagetomostcommercialtenderprojectsastheytendtolacktheupfrontcapacitytodealwithtenderedcontracts.

TheCo-operativePartycommendsthepassingoftheLocalTransportAct–whichhasendedmanyofthelegislativeobstaclesthatCTOsface.ResearchindicatesthatCTOsaremorethancapableofcoveringtheiroperationalcoststhroughtradereturn,andaccessinglocalrouteswouldputtheminanevenstrongerfinancialposition,withallsurplusesreinvestedintotheservicesthattheypro-vide.Yettheycurrentlyfaceproceduralandfinancialobstaclestobreakingthestrangleholdofthemainstreamserviceproviders.

TheGovernmentshouldgivefirmerguidancetolocaltransportauthoritiestomakeuseofqual-itycontractstotieprofitablemainstreambusrouteswithunprofitablepublicserviceroutes.Thiswouldensurethatoperatorsprovidegreatercoverageforthosedependentonpublictransport.ThiswouldhelptoleveltheplayingfieldforCTOs,whichatthemomentarelargelyrestrictedtoprovidingtheunprofitableservicesinwhichthemainstreamoperatorshavenointerest.

LocalTransportAuthoritiesshouldalsobeencouragedtobuildcapacityinthecommunitytransportsector.Thiscanbedonethroughthepurchaseoffacilitiesandrollingstock,andleasingthemtoCTOsunderaVoluntaryPartnershipAgreement.Thiswouldreducetheirneedforupfrontcapital,andallowthemtoprovideamoreintegratedserviceforpassengers.

CultureandSport

Culturalandsportingbodiesplayapowerfulroleinthelifeofthenationandoftenreceivelargesubsidies.Moreneedstobedonetoensurethattheyputtheneedsandinterestsoftheirfansandenthusiastsfirst.Givingordinarypeopleasayoverthewaythattheseorganisationsarerunisthebestwaytoensurethatthisoccurs.

Sportsclubsareoftenregardedascommunityassets,yettoooftentheyareownedbyeitherprivateindividualswhoseektopromotetheirowninterestsorcontrolledbywellmeaning,butdistantcommittees.

TheCo-operativePartybelievesthatsportshouldbeaccessibletoallandthatitshouldbecontrolledintheinterestsofthosewhoparticipateinitsenjoyment.Citizenscantakeactiontohelpbringthisabout.

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Throughthepoolingofindividuallyheldsharesinsupporters’trusts,manyfootballfanshavecollectivelywonarealsayoverthemannerinwhichtheirclubsarerun.Sofarover140trustshavebeenestablished,ofwhich4�haverepresentativesontheboardoftheirclub.TheGovernmentshouldworkwiththeFAandtheSFAtoensurethat,wheresupporters’trustshavebeenestablished,theyshouldbegivenadirectsayintherunningoftheclubthroughbeingabletoelectamemberoftheclub’sboardorequivalentbody.

Wenowwishtoextendthisconcepttothe2012Olympics.TheessenceoftheOlympicGamesisthefellowshipofcitizens.

TheLondon2012Olympicsshouldbebuiltonpartnershipanddemocraticparticipation.Thiswouldinvolvethenationalsportingcommunity,thecitizensofLondonandthewiderpublicshouldbeenabledtoplayapartnershiproleintherunningofthe2012OlympicGames.Inordertodoso,Labourshouldestablishamembershipbasedcommunitygroup,unitingthesharedambitionsofthekeybidpartners,thepeopleofLondon,andbeyond;namedthePeople’sGames.

Asagenuinecommunitymutual,ThePeople’sGameswouldgiveLondonersandUKcitizenstherighttobecomeindividualmembers.Itwillbestructuredsothatallstakeholdershaveavoice,inadditiontothekeyGamespartners:Government,theGreaterLondonAuthority,LOCOGandtheODA.

ThePeople’sGameswouldprovideagenuineforumforinformingandwhereappropriate,consultingwithcitizens,andafocusforensuringthatthelinkwithUKcitizensremainsstrong.ItwillalsogiverightstoallstakeholdersandguaranteethattheGameswillreflecttheirinterests,andhaverepresentationonthedecision-makingbodiesthatareorganisinganddevelopingtheGames.

Morealsoneedstobedonetoensurethatparticipationinsportisaccessibletoall.Theroleoflocalsportsclubs,manyofwhicharerunasco-operatives,iscrucialinencouragingthedevelopmentofteamsportthatbringsmanytoleadhealthier,moreactivelives.Yetalltoooften,thereiscompetitionbetweendifferentsportingclubsforthesameresources.TheGovernmentshouldexploretheestablishmentoflocalsportingco-operatives,whichwouldenableclubsinanareatocometogetherwithajointagendaforencouragingparticipation.

AsimilarapproachshouldbetakentowardstheUK’sculturalinstitutions,whereitisvitalthatthosewhoinvestpassion,energyandcommitmentshouldbeinvolvedinrunningthem.TheCo-operativePartywelcomesthe‘dutytoinvolve’thathasbeenplacedontheArtsCouncil,EnglishHeritage,andTheMuseums,LibrariesandArchivesCouncil.Yetitisasimportantforindividualinstitutionstoensurethattheopinionsofpeoplewhocareaboutthemareheardatthepointwheredecisionsaremade.TheGovernmentshouldworkwiththeseorganisa-tionstoensurethatordinarymembersofthepublicplayagreaterroleinrunningthenation’smuseums,theatres,librariesandotherculturalinstitutions.

LocalsocialandculturalclubsandassociationsperformavaluablefunctioninUKsociety,fosteringacultureoflifelongeducationandlearning.TheGovernmentshouldenableclubstocometogethertoformcommunitylearningco-operativesthatwouldbeableto:

• formpartnershipswithlocalHigherEducationInstitutionsthatwouldresultinmoreHigherEducationadultlearningwithincommunities;

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• makeiteasierforclubstonegotiateforaccesstolocalcivicfacilitieswherethislearningcouldtakeplace;

• actasavehiclethatmightbefundablewithrelativelysmallsupportgrantsfromHEFCE,todevelopcapacity;

• makeiteasierforHigherEducationInstitutionstoaccreditsmall-scalelearningthathappensinthecommunity;

• helppeopletofindroutesofaccessintomoresubstantialHEprogrammes.

SafetyandSecurityintheInternetCommunity

Theroleoflocalcrimefightingpartnerships,knownasCrimeandDisorderReductionPartner-ships(CDRPs)inEnglandandCommunitySafetyPartnerships(CSPs)inWales,hasbeencrucialinmakingthereductionofcrimeakeypriorityforlocalauthoritiesandotherpartnersaswellasforthepolice.Manypartnershipshavebeeneffectiveinrepresentingthecommunity’sintereststothepoliceandenablingthemtorespondtopublicconcerns.Byengagingtheircommunities,understandingtheircrimeconcerns,sharingintelligence,informationandtaskingtodealwithlocalissues,andgivingfeed-backtothepublic,thesepartnershipshaveoftensucceededinmakingarealdifferencetohowthepublicfeelsaboutcrimeandtheagencieswhotackleit.

ThesepartnershipsformoneoftheunsungsuccessesoftheLabourgovernmentandareconsid-eredtohaveplayedamajorpartinreducingcrimegenerallyacrossthecountry.Yet–aswithmostgoodnewsstories–theyrarelyhaveahighpublicprofile.

Yetwearestillalongwayfromfullyengagingcommunitiesinthefightagainstcrimeandfromgiv-ingthemownershipoverthelocalstrategy.Insomecasesthecommunityisunawareoftheworkofthepartnership;accountabilitymechanismscanbefragile,andthemethodologythatshouldhelpmaketheirareasaferforeveryoneisnotalwaysappliedconsistently.“Bestpractice”hasshownexcellentresults–butperformancevariesacrossEnglandandWales.

Moreneedstobedoneinordertoensurethat“bestpractice”principlesarespreadthroughoutCDRPsacrossthecountry,makinguseoftheexperienceof“co-operativegovernance.”Theseshouldberevisedtotakeaccountofthewiderpartnershipapproachatalocallevel,withanem-phasisonthetriennial“baselineaudit”andthedevelopmentofascientificapproachtoanalysingboth“crimeandthecausesofcrime”inordertobringaboutchange.

TheCardiffViolenceReductionProgrammeisanoutstandingexampleofthevalueofco-opera-tion.Fewerfacialinjurieswerebeingcausedbymotoraccidentsbutmorewerebeingcausedbyviolenceinthecity–sothelessonsfromimprovingroadsafetywereappliedtoviolence.Policeandmedicalstaffshared(non-personal)datatoanalyseviolentincidentsanddesignstrategiesforprevention.Over10yearsthisresultedina40%dropinthenumberofpeoplepresentingatAccident&Emergencyfortreatmentfollowingviolence.Applyingtheprinciplesofco-operativegovernancetoamuchwiderrangeofcriminalactivityhasthepotentialtomakeeverycommunityasafe,co-operativecommunity.

Thereisalsomuchmorethatcanbedonetoensuretheactiveengagementofthecommunityandtheapplicationofawelldesignedmethodologytocrimereduction.Theintroductionofmutualstructures,withbroadbasedandopenmembershipcanmakearealdifferenceintheeffectivenessoflocalcrimeanddisorderreductionpartnerships,anddrivefurtherreductionsinthelevelsofcrimewithinourcommunities.

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DevelopingPeople-BasedPublicServicesPublicownershipdoesnothavetomeantop-downmanagementfromWhitehallorTownHalls.Localcommunitiesmustbegiventherighttoparticipateindecisionsthataffecttheirlivesthroughpartnershipswithgovernment.

Webelievethatco-operativeandmutualmodelsofferthebestmodelforthereformofpublicservicedelivery.Theseprovidetheefficiencygainsoftheprivatesectorwhilstprovidingrealdemocraticaccountability,givingusers,employeesandotherstakeholderswitharealsayinhowtheirorganisationsarerun.

Thiswaythequalityofserviceisnotdependantonthecommandsofproducerinterestsorthewhimsofmarketforces,butonfrontlineexpertiseandtheneedsofthepeoplethattheyserve.Publicassetsarelockedintocommunityownership,providingfurtherprotectionagainstprivatisationandassetstripping.

TheGovernmentcancontinuetoimprovepublicservicesthroughbetterinvolvingstaff(atalllevels),usersandlocalcommunitiesinthedeliveryofthoseservices.

MakingHealthcareMutual

TheNHSisLabour’sgreatestachievement.Butitisnotgreatbecauseofitslong-standingmanagementstructuresorgovernancearrangements–ratherbecauseitdelivershealthcarefreeatthepointofneed,irrespectiveoftheabilitytopay.

Thereformofhealthinstitutionsofferstheprospectofmaintainingthiscorevalue,whilstbringinghealthservicesclosertotheirstakeholders.NHSFoundationTrusts,CommunityFoundationTrustsandSocialEnterprisesinprimarycareallholdouttheprospectofgreateraccountabilitytothepublicandstaff.

Wecommendtheworkdonesofartopromotecommunity-basedmutualitywithintheNHS,includingthecreationof122foundationtrustsinEngland,withwelloveramillionmembers.Foundationtrustsaremutuallyownedbodies,regulatedatarm’slengthfromtheDepartmentofHealthandaccountabletoawidelydefinedmembership.Thishasenabledanewmodelofhealthcarethatiscontrolledandrunlocally;givingstaff,localcommunitiesandotherstakeholdersafargreatervoiceinhowhospitalsarerun.

Throughthegreaterinvolvementofstaff,usersandlocalcommunities,ithasbeendem-onstratedthatwecannotonlystrengthencitizenship,butalsobuildservicesbasedonthefrontlineexpertiseofstaffaswellastheneedstothepeoplethattheyserve.EvidencefromanindependentreportcommissionedbytheDepartmentofHealthhasshownthattheunprec-edentedlevelofpatientandpublicinvolvementinhealthcareismakingarealdifference.Mov-ingtothemutualmodelhaschangedthewaythatthesehospitalsarerun,makingthemmoreresponsivetolocalpeopleandmorefocusedonpatients’needs.Yetthetransitiontomutualityispartofaprocessandfoundationtrustsarestillinanearlystageoftheirdevelopment.TheGovernmentshouldmakecertainthatMonitorfulfilsitsroleasregulatorfully,ensuringthatap-proachestakentomembershipandgovernancecomplyfullywiththeirmutualstatus.

WethereforecallontheGovernmenttocontinuetopresstowardsitsobjectiveofensuringthatallEnglishhospitalsattainfoundationstatus,avoidingatwo-tiersystem.

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Yetitisnotonlyinsecondarycarethatmutualityhasalottooffer.Co-operativeideasalreadyhaveastrongbaseinprimarycare.ManyGPsareinvolvedinoutofhoursco-operativesandotherGPpractices.AsGPledhealthcentresaredeveloped,theCo-operativePartybelievesthatmutualmodels,alongsimilarlinestotheoutofhoursmodel,canputhealthcareprofessionalsattheheartofanimprovedserviceproposition.

Asmoreresponsibilitiesaredevolvedtoserviceusersandthepublic,wealsoneedtoexplorewaysofimprovingthelegitimacyandaccountabilityofprimarycaretrusts(PCTs)andofthecom-missioningdecisionsthattheymakeonbehalfoftheirlocalcommunities.WewelcomethefactthattheNHSConstitutionensurestherightofpatientsandthepublictobeinvolvedintheplan-ningofhealthcareservices.Itisimportantthatstructuresaredevelopedwhichgivepeoplearealsayoverwhichhealthservicesarecommissioned.TheGovernmentshouldensurethisthroughanindependentreviewofPCTgovernanceandaccountability,whichshouldbeinformedbytheexpe-rienceofmutualandsocialenterpriseproviderswithintheNHSandinnovationalreadyoccurringinPCTsacrossthecountry.

InEngland,thesplitinprimarycarebetweencommissionersandprovidersoffersafurtheroppor-tunitytocreateanewwaveofstaff-led,patient-centredsocialenterprises.Thesehavethepoten-tialtofreeNHSstafftoinnovateandmeettheneedsoftheirlocalpopulations,whileatthesametimeensuringmoredirectaccountabilityforserviceusers.

TheCo-operativePartywelcomesthefactthatallEnglishNHSstaffhavebeengiventhe‘righttorequest’movingtheservicesthattheyprovideintosocialenterpriseorganisations.TheGovern-mentshouldensurethatPCTshaveacommissioningstrategythatensuresafutureroleformutualandsocialenterpriseandthattheyarepreparedtoencouragethedevelopmentof‘righttorequestproposals.Fundingshouldbeprovidedforthedevelopmentofbusinesscasesandbusinessplans,toensurealevelplayingfieldwithotherpotentialproviders.

Wealsobelievethatitisimportantthatclarityisintroducedtoensurethatthe‘righttorequest’optionislimitedtothoseorganisationsthatarelegallycommittedtotradingforapublicorcommu-nitypurpose.Whileexactstructuresarelikelytovarydependinguponthenatureofthedifferingservicesprovided;itisvitalthatstaff,patients,carersandthegeneralpublicownandcontroltheneworganisations.

Thisgoestotheveryheartofwhatwebelievein.Reformedhealthinstitutionscanbeareflectionofourco-operativebeliefs.Butthisisnotaby-productofanewconstitution;citizenengagementrequiresnewskillsandwaysofworking.ThisiswhytheCo-operativePartyisworkingcloselywithhealthprofessionalstodesignlocallyowned,mutualbodiesthatcanmeetpeople’sneeds.

TransformingSocialCare

TheCo-operativePartyfullysupportstheprinciplethatusersandcarersshouldbegivenasmuchcontrolastheywantovertheservicesthattheyrequire.Wewelcomethemovementtowardsdirectpaymentsandindividualbudgets,whichhavebeenextremelysuccessfulinchangingthequalityofcareandqualityoflifeofthepeoplereceivingthem.

Throughcomingtogethercollectively,directpaymentandindividualbudgetrecipientscanim-provethequantityandqualityoftheservicesthattheyreceive,andensureadecentworkingenvironmentforthecarerswhichtheyrelyon.TheCo-operativePartywelcomestheDepartmentofHealth’spilotprogrammeofdirectpaymentsmutuals.Thesehavebroughttogetherservice

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users,informalcarersandpersonalcareassistantstoensurethatbothusersandem-ployeescanbenefitfromamoreformalisedsystemofcareandeconomiesofscale.Thismeansthatrecipientsareabletoremainincontrolofthedaytodayprovisionofhowtheircareisprovided,whilepersonalcareassistantsoftheco-operativeareabletoensurethattheyarereceiveappropriateemploymentconditions.Serviceusersinreceiptofindividualbudgetsandtheiremployeescouldreceivethesimilarbenefitsfromjoiningasimilarorexistingmutualorganisation.

TheGovernmentshouldensurethatinitsfourthterm,allserviceusersandcarerswillhaveaccesstoadirect-paymentsmutualwithintheirlocalcommunity.Inordertobringuniversalcoverage,itshould:

• Encouragelocalauthoritiestousetheirorganisationalcapacitytohelpdevelopdirectpaymentsmutuals

• Developatechnicalassistancefundfordirectpaymentsmutualstocoverstartupcapitalcosts

• Ensurethatlocalauthoritiesdonotusedirectpaymentsandindividualbudgetsasameansofreducingoverallbudgets,andpayaratethatreflectsthecostofbeingare-sponsibleemployertohighqualitystaff.

Children,SchoolsandFamilies

Tobeeffectiveinamodernglobaleconomy,youngpeopleneedtobeequippednotonlywithindividualskills,buttheknowledgeandunderstandingtoeffectivelyworkinteams–tolearntoco-operate.Inordertogiveyoungpeopleawell-roundededucation,itisequallyimportantthateducationalsofocusesondevelopingethicalvaluesandsocialresponsibility.Throughitsinvolvementineducation,theCo-operativeMovementhasdemonstratedthatitcanprovideavalues-led,faith-neutralenvironmentandcurriculumforthefuturecitizensoftomorrow’sglobaleconomy.

ReportsfromOFSTED,andtheresultsofpupilshaveshownthebenefitsofusingco-opera-tivevaluesasaframeworktodeliverthebreadthofcurriculumareasandpersonaldevelop-mentundertakeninschools.Co-operativevaluesandskillscanempoweryoungpeopleasactivecitizens,andembedcivilsocietyskills.Theseshouldbeembeddedinthecurriculumacrossearlyyears,primaryandsecondaryeducation.

ItisalsoimportanttoensurethatyoungpeopledevelopanunderstandingofthedepthandbreadthoftheCo-operativeMovement,bothintheUKandacrosstheworld.Asitstands,averysmallproportionofyoungpeopleleaveschoolwithanunderstandingofco-operativesandmutuals,asopposedtoothereconomicmodels.TheGovernmentshouldensurethatknowledgeofco-operativepracticeandprinciplesarefullyincorporatedintothenationalcur-riculumforeconomics,enterprise,geographyandcitizenship,aswellasinothersubjects,whereappropriate.

TheCo-operativePartywelcomestheDepartmentforChildren,SchoolsandFamiliespilotprogrammeof100co-operativetrustschools.Movingtoaco-operativemodelprovidesaframeworkinwhicheverybodywithastakeintheschool’ssuccess-parents,teachersandsupportstaff,localcommunityorganisationsandevenpupils-havetheopportunitytobeinvolvedinrunningit.

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Toanincreasingnumberofschools,itprovidesastrongmutual‘root’andaclearmechanismforinvolvingparentsmoreeffectivelyintheirchildren’seducation.

Theco-operativemodelalsoensuresthattheschoolbecomesmoreaccountable.Thestructureisdesignedtoensurethatthoseinpositionsofresponsibilitywillhavetoremainsensitivetotheneeds,viewsandaspirationsofthedifferentgroupsofinterestedpeople,andthattherespectiveviewsofstakeholderscanbebalancedinanappropriatewaytosuittheneedsoftheorganisation.

Thereissignificantpotentialforco-operativetrustschoolstoprovideanimportantcontributiontotheoveralldiversityofstateeducation.Anationalnetworkofco-operativetrustsisdeveloping,activelysupportedbyandengagingwiththehugeanddiverseco-operativeandmutualsector.Yetthiscurrentlyoperatesinformally.TheGovernmentshouldworkwiththeCo-operativeMovementtocreateaformallyconstitutednationalsupportmechanismforco-operativetrustschools,ownedandcontrolledbytheexistingco-operativetrustschools.

Wewelcometheinitiativetodevelopaco-operativemodelforNationalChallengeTruststhaten-suresrepresentationfromkeystakeholdergroups.Webelievethattheco-operativemodelshouldbeappliedtoallNationalChallengeschools,asitprovidesabalancebetweentheneedforstrongpartnerstodriveforwardschoolimprovementwithactiveparticipationfromthecommunity.

Existingcharitylawshouldalsobereviewedtoensurethattheco-operativetrustmodelisabletodevelopinasdemocraticandparticipativeamanneraspossible,aswellasenablingschoolstobenefitfrominternationalassociations.

Existinglegislationshouldbeamendedsothatallmainstreamstatefundedschools,whethercommunity,trust,faith-basedschoolsoracademiescanestablishco-operativegovernancestruc-tures,shouldtheywishtodoso.Theyshouldalsobecomemoreaccountabletoparents,pupils,staffandtheirlocalcommunities.ParentandteacherassociationsshouldbecomemandatoryinallmainstreamschoolsbySeptember2011,andshouldeachhaveresponsibilityforappointingatleastoneschoolgovernor.Everyschoolshouldalsoberequiredtohaveanelectedbodyforstudents,whichwillplayanimportantroleinsettingitsethosandoveralldirection.

SureStartChildren’sCentresareoneofLabour’sfinestachievements,andremainattheforefrontofendeavourstotransformthewayservicesaredeliveredforyoungchildrenandtheirfamilies.Wecantakemuchprideinthefactthatalmost�,000centresareupandrunning,withover�00moreinthepipeline.

YetmorecanbedonetoensurethatSureStartdeliverstoallthoseinneedofitsservices,par-ticularly‘hardtoreach’groups.Formanypeople,engagingwithstatutorybodiesandagenciesisproblematic.Tothem,stateorlocalauthorityrunorganisationscanseemintimidating,remoteandmakelittleornoconnectionwiththematapersonallevel.

GivingcommunitiesasenseofownershipandinvolvementoverSureStartservicescanplayasignificantroleineitheraddressing‘usandthem’attitudesorsimplealienationfromauthority.Wewelcomethewayinwhichthishasbeenaddressedthroughthedevelopmentofa‘communitymutual’SureStartcentreatMillmeadinKent.

Throughinvolvinglocalresidentsinitsmembershipstructures,thecentrehasbeenabletodesignservicesaroundtheneedsofitsusers,aswellasdevelopingincreasedsatisfaction,supportandloyalty.Communityownershipcanhelpremovebarriersanddeveloptrust,sothattheorganisationisaccessibletopeoplewhootherwisewouldbelesslikelytousetheservices.

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TheGovernmentshouldrecognisetheadvantagesofthe‘communitymutual’modelforSureStart,andworktoensurethedevelopmentofthemodel,bothintheprovisionofnewcentresandtheconversionofexistingones.Inparticular,itshould:

• CreateanationalbodytosupportthedevelopmentofnewSureStartMutuals,basedonthesuccessful‘SupportersDirect’Model.

• EncouragelocalauthoritiestoconsiderconvertingexistingSureStartcentrestothe‘com-munitymutual’model,aswellasusingitasamodelfortheprovisionofnewservices.

Co-operativetrustshavenotonlytransformedtherelationshipsofschoolswithparents,staff,pupilsandotherstakeholders,buttheyhavealsoformedaframeworkforco-operationbetweenanumberofdifferentschoolsinthesamearea.Aswemovetowardsamoreinte-gratedserviceforyoungpeople,fromearlyyearsthroughtofurthereducation,itisimportanttoidentifystructuresthatencouragecollaborativeworkingacrossdifferentproviders.

Onesolutiontothiswouldbethecreationofsocialco-operatives,whichcouldactasthelocaldeliveryagentfortheChildren’sPlan.ThesecouldbecommissionedbyChildrenandYoungPerson’sTrusts(CYPTs)toprovidearangeofserviceswithintheirappropriatecommunities,particularlyinrelationshiptotheEveryChildMattersandExtendedSchoolagendas.TheGov-ernmentshouldensurethattheregulationsandaccompanyingguidancearoundtheemergingCYPTsbeeasedtoallowthedevelopmentofpilot‘mini’co-operativeCYPTs,workingacrossdefinedgeographicallocalitiesandneighbourhoodstoalocallydevelopedChildren’sPlan.

Broadcasting

TheBBCisthelargestbroadcastingcorporationintheworldandapillarofBritain’sculturallife.WearecommittedtotheBBCandensuringthatitremainsanexcellentandgreatlyval-uedpublicservicebroadcaster.

YettheaftermathofaseriesofscandalstherehasledmanytoquestionhowresponsivetheBBCistomembersofthepublic.ThereplacementoftheboardofgovernorswiththeBBCTrustinJanuary2009wasthefirststeptoincreasingitscredentialsasthevoiceofthelicensepayer.Unfortunately,thishasnotgonefarenough.TheTrusthashadamixedbegin-ningwithmanycommentatorsquestioningthedegreetowhichitsgovernanceisworkinginprovidinganeffectivechallengetotheBBCexecutive.

Puttingallargumentsregardingthecurrentarrangementstooneside,theBBCshouldbeac-countabletolicenseholdersforonesimplereasonalone–becausewepayforit.Withhugesumsofmoneyspentannuallythepublicdeservestohavemoreofasayonthepackageofservicesandprogramsthataredelivered.

FortheBBCtobecometrulyaccountable,alltelevisionlicenseholdersmustbegiventherighttobecomeindividualmembersoftheBBCTrust.Asagenuinemutualventure,theTrustwouldthengiveallofitsmemberstherighttoelectrepresentativestotheTrustboard.BBCstaff,theGovernmentandotherstakeholderswouldalsoberepresentedtoensureallinter-estsaretakenintoaccount.

TheBBCTrustwouldbestructuredsothatallofitsmembershaveavoice.Thiscouldprovideagenuineforumforinforming,andwhereappropriate,consultingwithcitizens.Itwouldpro-videamediumthroughwhichTVlicenseholderscouldexpresstheirviewsontheservicesthattheBBCprovidesandafocusforensuringthatitslinkswithviewersremainstrong.

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PublicSectorProcurement

Inbothnationalandlocalgovernment,moreneedstobedonetosupportsmarterandmorestra-tegiccommissioningandprocurementofbothgoodsandservices.Thecurrentandfuturefinancialpressuresonthepublicsectorandthedesireforefficiencysavingsmakegettingthemostfrompublicresourcesessential.

Mutualandsocialenterprisesprovideprocurerswithservicesthattendtobemorefocusedontheenduser.Theirstructuresaregenerallyestablishedinordertobalancetheappropriateimportanceofdifferentstakeholdergroups.Thisiswhymanyco-operativeandsocialenterprisescanright-fullyclaimtobepopularwithendusersbecausetheirservicesareinfluencedbythoseindividuals.Theyalsotendtoprovideaddedvalueintermsofmeetingwidersocialandenvironmentalgoals,andoftendeliverservicestohard-to-reachgroupsandworkinareasofmarketfailure.

Theseownershipconsiderationsarerarelytakenintoaccountwhentendersforpublicservicesarebeingoffered.Yettheycanhaveaprofoundeffectonthemannerinwhichservicesareprovided.Ul-timately,itsurelyhastobeimportantthatpublicservicesoperateinthebestinterestsofthepublic.Thismustbedemonstratedbytheoutcomesachievedforusersandcommissioners,ratherthananydogmaticviewofthestateorprivateownershipofservices.

Whencontractstoprovideservicesareputouttotender,thereshouldbealevelplayingfieldamongpotentialbidders.Theentirevalueofacontractor’soffershouldbetakenintoaccountinthebiddingprocess,aspartofthejudgementinadditiontotheprice.Suchadditionalfactorsmightincludeitstrackrecordandinherentexpertise,itscustomersatisfactionoritslikelysocialandenvi-ronmentalimpact.

OpenSourceSoftware

Opensourcetechnologyissoftwaredevelopmentmethodologycreatedbyacommunityofpeoplededicatedtoworkingtogetherinaco-operativemanner.

Themostimportantdifferencebetweensoftwarecreatedbyopensourcecommunitiesandthatsoldbyvendorsisthatitispublishedunderlicensesthatensurethatthesourcecode(thekeytounderstandingthesoftware)isavailabletoeveryonewiththerightskillstoinspect,change,down-load,andexploreastheywish.

Someofthebestandmostrelevantprogrammeshavealreadyevolvedthroughtheseco-operativeefforts.TheseincludeprogramssuchasLinux,ApacheandMozillaFirefoxwhichhavehadthou-sandsofcontributors.

Lookingatcostsavingsthathavebeenachievedbycompaniesandgovernmentsallovertheworld,itisestimatedthattheUKGovernmentcouldreduceitsannualITbillbyatleast£600mperyearbymovingtoopensource.BylevellingtheplayingfieldandallowingopensourcetobeascompetitiveaspossiblewecanensurethattaxpayersgetmaximumvalueformoneyfromGovern-mentIT,somethingthatismoreimportantthaneverduringtheworldwidefinancialclimate.TheGovernmentshouldensurethat,wherepossible,opensourcesoftwareisusedaspartofaneffec-tiveprocurementstrategy.

TheGovernmentshouldalsoempowermembersofthepublictobenefitfromopensourcesoft-ware.Allstatefundededucationininformationtechnology,fromschoolagetoadulteducation,shouldincludetrainingintheuseofexistingdesktopopensourceprograms.

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2010 Manifesto: A Co-operative Agenda for a Fourth Term

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