Australia’s Business Council for Cooperatives and Mutuals (BCCM) has proposed a three-year scheme to support new co-ops, attract investment and innovation, and build on existing collaborations in the sector.
The Thriving Regions region co-operatives activation programme is detailed in BCCM’s Budget submission to the Treasury. BCCM argues that a greater focus on the mutual and co-op sector would have both short and long-term benefits.
In the submission, it calls on the federal government to:
• build regional clusters for economic development around groups of strong co-operatives and mutuals
• grow medium and larger-sized co-ops, particularly in manufacturing and finance
• help SMEs become more profitable and competitive through existing and new co-operatives
• facilitate access to investment finance
Chief executive Melina Morrison said: “People and businesses have been moving to the regions as a result of the pandemic, generating economic and social value.
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“It will be important to lock that value in for the benefit of the regions where the growth is taking place.”
According to BBCM, Australia’s co-ops and mutuals have a joint turnover of AU$35bn. Ms Morrison says the sector can also boost the country’s manufacturing businesses.
“We should be growing existing manufacturing businesses and re-establishing a larger mid-sized business sector to produce more finished goods onshore,” she added.
“Filling in the missing middle of Australian manufacturing can be achieved through co-operatives,” she said. “By working together in co-operatives, individuals and SMEs can accelerate expansion, build capacity in regional supply chains while also contributing to local economic recovery.
“Co-operatives would support growth and resilience in a range of sectors including food and beverage manufacturing, as well as renewable energy, retail, banking, housing and community services.”
Another sector where co-ops and mutuals can help is agriculture.
“Co-operatives recycle value within regions at a significantly higher rate,” said Ms Morrison. “This efficient local multiplier effect amplifies stimulus efforts.
“The co-operative model is an under-utilised economic development strategy that allows communities and business owners in the regions to pool their resources, knowledge and market access.”