November 2011 – January 2012www.nz.coop

Cooperatives

NEWSCo-ops have our fulland active supportby His Excellency Jim McLayPermanent Representative, New ZealandPermanent Mission to the United Nations

Mr President, New Zealand welcomes the

launch of the International Year of

Cooperatives, and supports the aim of promoting

cooperatives and raising awareness of their con-

tribution to social and economic development.

Compared with other countries, cooperatives

serve a relatively large part of the New Zealand

economy. They operate in many sectors, most

notably agriculture, but also in areas such as

banking, financial services, and retail.

The earliest record of a New Zealand coopera-

tive dates back to 1871 with the formation of the

Otago Cooperative Cheese Company. Just eight

dairy farmers purchased shares based on the

quantity of milk they would supply to the coop-

erative, with each share having a value of £1, and

representing the supply of ten quarts of milk.

The general principles adopted by that coop-

erative were typical of those that have prevailed

in cooperative societies and companies through

to the present time.

According to Bloomberg, New Zealand's

largest business, another co-op, Fonterra

Cooperative Group Limited, is, and I quote, “the

world's largest dairy exporter” and “accounts for

about 40 percent of the global trade in butter,

milk powder and cheese, selling products in 140

countries”.

That, to quote Dame Pauline Green, “is a

serious business model with scale”.

VALUESThe scale and diversity of New Zealand’s cooper-

ative sector means that cooperatives play a key

role in contributing to the achievement of the

Government’s economic objectives.

The values on which cooperatives are based —

as expressed by the International Cooperative

Alliance — are those of self-help, self-responsibil-

ity, democracy, equality, equity, and solidarity,

values that are demonstrated in New Zealand

cooperative businesses, with their commitment

TAKING OUR COOPERATIVESAND MUTUALS SERIOUSLY

ALSO IN THIS ISSUE

2 UN IYC 2012Australia’s co-opsat New York launch

3 Legal matters 9 month refreshcertificates

Financial MarketsConduct Bill

4 Leadership Freshblood

4 Co-op education2nd successfulseminar in Taieri

5 Guest editorialPlus4 InsuranceSolutions

6 Co-op educationSumming up theAugust seminar

7 Co-op Banking Success meansbeing a co-op

9 Election surveyHow our politicalparties view co-ops

13 Robb oncooperation IYC –what’s the point?

14 Cupcakes & ...Cooperating withina cooperative

15 Carbon creditsBrazilian co-opsand environmentalassets

16 Forestry seminar A great success

16 Electricity co-opHepburn Wind: a cooperative windfarm

with a focus on NewZealand cooperativeand mutual enterprise

UN IYC 2012

Published by New ZealandCooperatives

Association Inc.No. 78

ISSN 1175-3285 print1175-3293 digital

Level 3, 75 Ghuznee StTe Aro, Wellington 6011Phone +64 4 384 4595Email nzca@nz.coopWeb http://nz.coop

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

New ZealandCooperatives Association

ANNUAL GENERAL MEETING Friday 2 December 2011

10am – 12.30pmfollowed by a light lunch

Brentwood Hotel, Kemp StreetKilbirnie, Wellington

— Guest Speaker —

PETE RICKARDSDirector, Plus4 Insurance Solutions

Changes to ACC Legislation and theOpportunities for Cooperatives

2nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

to social and environmental goals.

Cooperatives have played a significant role in

the development of New Zealand communities,

promoting qualities of independence and coop-

eration, responding well to the needs of their

communities.

New Zealand recognises the importance of

providing an enabling environment for the estab-

lishment and operation of cooperatives.

A legal framework that facilitates the estab-

lishment and operation of cooperatives has exist-

ed for well over a century, presently largely

embodied in the Industrial and Provident

Societies Act of 1908 and the Co-operative

Companies Act of 1996, legislation with special

features relating to shareholdings that facilitate

the conduct of business on a mutual basis and

encourage continuous active participation by

members of the cooperative.

The legal framework provides the flexibility

for cooperative enterprises to prosper and struc-

tures that respond to the needs of cooperative

members.

Relevant Government websites promote

awareness of the cooperative form and offer

advice on how to register as a cooperative, thus

enabling those who search online for information

regarding New Zealand’s regulatory require-

ments to consider whether the cooperative busi-

ness model is appropriate for their particular

circumstances.

AID PROGRAMMEInternationally, New Zealand’s Aid Programmes

also recognises that, in appropriate circum-

stances, cooperatives in their various forms, can

promote economic and social development and

contribute to the eradication of poverty.

The programme works with, and accommo-

dates, different types of cooperative as found in

different countries, including the association of

pearl businesses in the Cook Islands and tourism

associations in Samoa.

New Zealand will play its part during the

International Year of Cooperatives, with the New

Zealand Cooperatives Association coordinating

our domestic programme.

Our planned involvement includes a coopera-

tive research conference in June 2012, the devel-

opment of education programmes for

professionals, such as lawyers and accountants,

and other public events as well.

Also, as part of its contribution to the

International Year of Cooperatives, the

Government has agreed to fund a statistical

project which aims to estimate the contribution

made by New Zealand cooperatives to the coun-

try’s GDP and employment.

The resulting statistics will provide a basis for

measuring the extent of cooperative activity, and

will provide better information for future policy

development.

In short, Mr President, cooperatives are an

important part of the New Zealand economy and

the International Year of Cooperatives has my

country’s full and active support.

Above all, we support the cooperative ideal

that motivates this year.•

Australia’s co-ops represented atNew York launchby Colin Heavyside

Atotal of of 52 countries sent 300 delegates to

the UN launch of the International Year of

Cooperatives 2012 in New York on 31 October and

1 November 2011.

Australia was represent-

ed by the Chair of the IYC

Secretariat and CEO of

Capricorn Society, Greg Wall,

IYC Steering Committee

member and Director of

Social Business Australia,

Suzanne Henderson, and

myself as Chairman of IYC Secretariat founding

sponsor and ICA member, Capricorn Society.

The impressive gathering at the UN in New

York in support of the International Year has sent

a clear message for anybody wise enough to hear.

This article is the textof the New Zealand

statement to the UNGeneral Assembly in

New York on 31 October2011 to celebrate the

global launch of the UNInternational Year of

Cooperatives 2012

The photo here showsH.E. Jim McLay reading

the statement

Photo: Laura-Lee Frings

Colin Heavyside isChairman of Capricorn

Society as well as beingChair of the Australian

UN IYC SteeringCommittee

Photo: Cooperatives News

The co-op movement was represented in force

at the launch and the beginnings of a global

renaissance is likely to be effective and irrepress-

ible.

2012 will likely mark the beginning of a new

age where the deployment of capital is not only

for the purposes of making a profit but also to

help add value to people's lives in a dignified

manner, where value will be measured in social

outcomes and not only by the dollars earned. 

If the show of support and enthusiasm by

cooperators in New York over the two days of the

global launch is any indication, the likelihood of

success is very high. The world is set to have an

interesting and challenging but fruitful

International Year of Cooperatives during 2012.•

Nine month refresh certificatesby Matthew FarringtonSenior Solicitor, Buddle Findlay

Cooperatives are entitled to wide-ranging

exemptions from the disclosure require-

ments of the Securities Act 1978 under the

Securities Act (Cooperative

Companies) Exemption

Notice 2011 and the

Securities Act (Industrial

and Provident Societies)

Exemption Notice 2011.

One of the key conditions

of these exemptions is a

requirement to include a refresh certifificate with

each cooperative investment statement distrib-

uted at certain times during the year.

This refresh certificate must include a state-

ment by the cooperative’s directors that (after

due enquiry) there has been no material adverse

change affecting the cooperative’s trading,

profitability, assets or solvency.

The certificate must also detail any material

matters that are not already disclosed in the

cooperative’s investment statement.

A refresh certificate must be attached to every

investment statement distributed nine months

after the cooperative’s balance date.

Refresh certificates must be included until

new financial statements are filed with the

Companies Office.

So, for example, a cooperative with a 30 June

2011 balance date must include refresh certifi-

cates from 1 April 2012 until around September

2012 when new financials are filed.

However the refresh certificates themselves

do not need to be filed with the Financial Markets

Authority or the Companies Office.•

Financial Markets Conduct Bill

The Government continues to progress the

Financial Markets Conduct Bill, the once-in-

a-generation rewrite of Securities Law. The

Cooperatives Association, together with our legal

advisers Buddle Findlay made a submission on

the aspects of the Bill affecting cooperatives.

Our key point of concern was the proposed

unsolicited offers regime, which would have

unfairly discriminated against cooperatives. This

regime essentially banned offers of securities

arising out of so-called unsolicited meetings.

We believe that this prohibition is targeted

(quite rightly) at what are known as boiler room

scams, where salespeople push questionable

financial products on unsuspecting customers —

however it would have also had the consequence

of banning co-op sales reps from approaching

potential new members of their cooperative.

UNCONSIDERED CONSEQUENCEThis would have caused significant disruptions

to cooperative businesses generally, but also put

co-ops at a significant disadvantage compared to

non-cooperative competitors.

A similar regime applies in Australia and we

understand that it causes our cooperative col-

leagues across the Tasman no end of problems.

We are very pleased to report that the MED

accepted our submission, and included excep-

tions in the unsolicited offers regime for both

offers made in the course of trade, and a further

specific exclusion for cooperatives when offering

member shares.

Co-op sales reps will now be free to approach

potential new members for their cooperative.•

3 http://nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

Legal matters

To get in touch withMatt Farrington phone04 462 0926 or emailmatthew.farrington@buddlefindlay.com

4

Cooperatives

NEWSnovember 2011 – january 2012

nzca@nz.coop

Fresh bloodby Blue Read

What is it that cooperatives require of our

leadership? How do we develop our

future leaders? I wonder how many of our co-ops

take leadership development among their mem-

bers seriously enough.

How many actively

encourage and facilitate

development opportunities

for those who may be inter-

ested, and is there a need for

the cooperative sector col-

lectively to do more?

Much leadership is based on behaviour and

values that are pre-existing — a solid set of good

values, integrity, intelligence, foresight and ener-

gy should be considered essential and deep-root-

ed as a prerequisite to leadership positions.

They are the foundations from which leaders

will develop; however leadership potential needs

to be nurtured.

I’m aware of a number of opportunities that

give rural New Zealand people a chance to grow

their capability, but I have to concede I’m not

very well informed on other sectors of our coop-

erative community.

OPPORTUNITIESWe need to do more to identify opportunities and

develop our future leaders so that we enhance

that which is specific — and special — about the

cooperative sector.

For the rural sector, with the availability of

the Kellogg Rural Leadership Programme,

Nuffield scholarships, Federated Farmers leader-

ship development etc., it has been argued there is

adequate opportunity.

But even with that abundance, is enough

cooperative knowledge being passed on?

For me, the first step is in identifying poten-

tial. Then we should ensure opportunity is avail-

able, accessible and relevant.

Each of us in positions of leadership and

responsibility has a duty to identify, encourage

and mentor future leaders about the cooperative

advantage.

The UN International Year of Cooperatives

2012 offers a unique opportunity. Co-ops and the

cooperative way of doing business will be fea-

tured in a way that has never been done before.

We will have the chance to raise the profile of

our individual co-ops, and the need and opportu-

nity they provide for leadership development.

The prospect of being able to promote co-ops

and excite the next generations of our future

leadership should be grasped with all our ener-

gy.  

Healthy and vibrant organisations have fresh

blood developing all the time. It’s good for our

organisations and it’s good for our community.•

Successful second governanceseminar in Taieri

Twenty-four co-op members and directors

spent two days together at AgResearch

Invermay at the beginning of November going

through The LEADing Board, at a co-op gover-

nance seminar facilitated by Professor Alan Robb.

It clearly was a great success. “You are filling a

void that has been present in New Zealand for

some time,” one participant wrote. Another told

the organisers it was “one of the best courses I

have attended. Great presenter and very high

quality after dinner speakers”.

The comments and criticisms received at the

end showed that participants got a lot out of it,

with almost all the criticisms pointing to the

need for a locally-developed course which has

specifically New Zealand content.

“We’ve got ten people on the waiting list for

the next one already,” said Robbie Burnside, a

trustee of the Burnside Hart Cooperative

Leadership

A governance coursedeveloped with

cooperatives in mind,The LEADing Board

was developed at theUniversity of Wisconsin

An Associate Memberof the Cooperatives

Association, Taranakidairy farmer Blue Read

is Chairperson of theAssociation’s UN IYC

2012 New ZealandSteering Group

Photo: FonterraShareholders’ Council

If your cooperativehas a leadership

developmentprogramme in place for

your members, pleasemake the CooperativesAssociation aware of it

GOVERNING ASUCCESSFUL COOPERATIVEBUSINESS

A two-day seminar for current

and potential directors of

cooperative and mutual businesses

Facilitator Professor Alan Robb

AgResearch Invermay, Taieri, March/April 2012

$250 per person

For more info and to secure your placecontact Robbie Burnside

burnside.hart.trust@gmail.com

Co-op education

continued on page 6 ≥

Cooperatives

NEWSnovember 2011 – january 2012

http://nz.coop5

Insurance co-op working wellby Grant UridgeChairman, Plus4 Insurance Solutions Ltd

Plus4 Insurance Solutions is a nationwide

cooperative of insurance and financial advis-

ers. Established in 2008, the Plus4 group now has

more than 25 advisers working from 10 locations

between Whangarei and

Invercargill.

With no affiliations to any

specific insurance or invest-

ment provider, group mem-

bers offer unbiased advice

tailored to their individual

and business clients’

requirements.

While Plus4’s primary focus is on providing

insurance solutions to help clients obtain the

best insurance cover for their particular risk

exposures, a number of the group’s members are

financial advisers and assist clients with their

investment portfolios.

Plus4 joined the New Zealand Cooperatives

Association in June 2011. Structuring Plus4 as a

cooperative — an association of equals — empha-

sises that each member has an equal sharehold-

ing, and ensures we have a rigorous new

membership process.

FINANCIAL ADVISERSThe last two years have seen major changes to

the regulatory regime for financial advisers.

Under the new legislation, advisers must be reg-

istered and have the option to become

Authorised Financial Advisers (AFAs). Plus4 has

worked hard to ensure our members are fully

compliant with the new regime and they are

either currently, or are working towards becom-

ing, AFAs.

Plus4 focuses predominantly on small to

medium sized enterprises (SMEs), their owners

and their accountants. The Ministry of Economic

Development has calculated that SMEs make up

more than 97% of all New Zealand businesses.

Plus4 identifies strongly with SME owners

and believes that they are overlooked or poorly

served by professional advisory firms. Given that

many of our members work in provincial centres,

and are themselves business owners, Plus4 is

well placed to work, and be actively involved,

with SMEs. 

ACC is one area where Plus4 sees potential for

SMEs to significantly improve their cover for lit-

tle, if any, additional cost. The Plus4 team has

several ACC specialists; we can review your files

to ensure you have appropriate cover in place.

Should a National-led government be re-

elected, selected ACC accounts are likely to

become open to competition from private sector

providers. This should provide premium savings

for businesses with robust health and safety

protocols.

The Canterbury earthquakes have put the

insurance industry under considerable scrutiny.

They have also made businesses more aware of

having up-to-date insurance policies, including

business interruption and income protection

cover.

Unfortunately, claims resulting from natural

disasters of this magnitude lead to increases in

premiums, especially for buildings that have not

been earthquake strengthened. You can also

expect to see your EQC levies move northwards.

ACKNOWLEDGING CO-OPSI have had a long association with cooperatives,

beginning my career with Colonial Mutual before

becoming manager of its unit trust company,

Joseph Banks Trusts Ltd. I then had seven years

working in senior management roles with leading

rural insurance mutual, FMG, before becoming a

financial adviser in Wellington.

While cooperatives include some of New

Zealand’s largest and most successful enterpris-

es, like SMEs, we fly somewhat under the radar

and the contribution we make in terms of

employment and the economy is largely unac-

knowledged.

This prompted the Plus4 directors to join the

Association and play our part to help raise aware-

ness of the contribution made by cooperative

enterprise.

We recently had the pleasure of having

Association Executive Director Ramsey Margolis

and Richard Briggs of Co-op Concepts talk at our

national conference.

Their presentations raised our members’

awareness of the value of cooperatives and how

we can be the difference in the market place.

Since then we have contracted Richard to help us

further develop our future direction with the co-

op model firmly in mind.

Plus4 is proud of the cooperative nature of

our business and we look forward to being active-

ly involved in the work of the Association.•

Guest Editorial

Grant Uridge,Chairman of Plus 4Insurance ServicesPhoto: Plus 4 InsuranceServices

Plus4 InsuranceServices can be foundat www.plus4.co.nz

6nzca@nz.coop

Education Trust which sponsored the seminar,

“so we’re hoping to run the next one in March or

April 2012 in Mosgiel. And there’s a possibility

the course might also be run in the North Island.”

For more information and to get on the

waiting list for upcoming seminars, write to

burnside.hart.trust@gmail.com. The Burnside

Hart Cooperative Education Trust receives sup-

port from Silver Fern Farms.•

Summing up the August seminarby Chris KnowlesChairperson, New Zealand Cooperatives

Association

What an interesting seminar we had over

these two days. Ramsey Margolis started

by outlining what your Association can do to help

you as members.

We then had Kim

DeGarnham from

Foodstuffs South Island

speak on responding to a

disaster and the impor-

tance of having your own

practiced crisis recovery

plan or disaster recover

plan in place, and making sure you continue to

update it and keep yourself prepared for some-

thing that may happen when you least expect it.

We had former Orb Communications CEO

Richard Briggs speak to us on how a small retail

business within a cooperative framework can

compete with large high street retailers. One of

the more interesting points he made was the

strange pressure on a cooperative CEO who at

times is almost the leader of a member’s business

and then has that member as his director telling

him what to do.

Desiree Reid showed us some of the results of

her studies as a Nuffield scholar, and reminded us

that all cooperatives can be successful when you

have the right people, the right purpose, strong

ownership and strong reinvestment in your

cooperative.

RIPE FOR EASY PICKINGPeter Harris spoke to us about effective gover-

nance through strong policy. He explained how

written policy creates ring fencing, how good

governance can be contained in that ring fenced

area with appropriate behaviours, and how it

highlights that when behaviours are inappropri-

ate they need to be attended to.

Coming to Wellington from Western

Australia, CBH deputy chair Wally Newman

spoke to us about turning the tide on demutuali-

sation tactics. He reminded us cooperatives are

seen by many as being like plums on a tree ready

for easy picking.

He reminded us of the need to be constantly

vigilant to protect our cooperatives and always

remember that members should be the sole

beneficiary of the services and profit from your

cooperatives.

THE TENSION OF SUCCESSMurray Jagger spoke to us on the evolution of

shares in a modern cooperative. He explained

how LIC are dealing with the tension of success

of the cooperative’s creating value and ways of

allowing shareholders to access that value of the

investment in the cooperative.

Then Jenny Morrison described how the LIC

Shareholders Council has evolved over the years

to cope with these changes in the cooperative

and how they bridge the knowledge gap between

their shareholder farmer owners’ perspective

and their board to ensure that all are striving for

the best value of the cooperative.

From Canadian software company LBMX, Jim

McMillan spoke to us about the competitive

Cooperatives

NEWSnovember 2011 – january 2012

Wally Newman ofCBH speaking at theAugust cooperativeeducation seminar

Photo: Cooperatives News

New Zealand Cooperatives

Association

Councillorselected

November 2010

ChairpersonChris Knowles

Christchurch

Arable &HorticultureAdrian Gault

EastpackOpotiki

CommunityKuki Green

Ngati PahauweraSection 30

RepresentativesCooperative Society

Wairoa

DairyChristine Burr

Fonterra CooperativeGroup

Auckland

Fertiliser & Top Dressing

Tony ReillyRavensdown Fertiliser

CooperativeTakaka

Financial ServicesGirol Karacaoglu

PSISWellington

Grocery WholesaleKim DeGarnham

Foodstuffs SouthIsland

Christchurch

Meat & FibreHerstall Ulrich

Silver Fern FarmsPleasant Point

Trading SocietiesLachie Johnstone

Farmlands TradingSociety

Pukekohe

Trades & Retail Services

Russell GreenCapricorn Society

Puhoi

Other MembersBruce McPherson

Electricity Ashburton Ashburton

ExecutiveDirector

Ramsey MargolisWellington

Councillors can becontacted through

the Association

Co-op education

TheCooperative

Advisory Group

Need help setting up a cooperative?

Perhaps you want to discuss what’shappening in your co-op or mutual?

Phone the NZCA office on 04 384 4595or write to nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

http://nz.coop7

The Co·operative Bankcan be found online atcooperativebank.co.nz

Abhy Maharaj andChristine Burr ofFonterra speaking atthe August seminar

strategy adopted by cooperatives in the North

American climate to ensure that they succeed.

Put simply what he said was “knowledge is

king” — if you know what your members are buy-

ing, or not buying, you can use that knowledge to

increase volume, reduce purchase price and gain

greater purchasing power.

And once you know what your co-op is capa-

ble of, you can see if the buying interest can be

merged with other cooperatives to go on and cre-

ate a greater buying power to further reduce your

prices so that your members make larger profits.

MEMBER CONTROLFrom Fonterra, Christine Burr and Abhy Maharaj

spoke about how dairy farmers will benefit from

trading shares amongst farmers. They explained

how it will work and what the next and final

steps will be on the journey to ensure that this

process is successful.

They have done this by designing a system

with 100 per cent farmer control, still linked to

milk supply, where voting is based on milk solid

supply, redemption risk has been removed, per-

manent funding to drive the success of the coop-

erative is available and the system can easily be

understood by shareholder farmers. I understood

it and I’ve never been a farmer.

We’ve been addressed by some very gifted

speakers. We’ve also heard over the last two days

about the International Year of Cooperatives, that

we have a committee preparing a celebratory

package of events but we need to recognise that

all this requires participation to be a success.

We hope you will remember this in the com-

ing months and fully embrace the opportunities

you are given to be part of it.

Finally I hope everyone enjoyed the two days,

getting something out of the papers presented,

that you gained from the networking opportuni-

ties you have had, and I hope you travel home

safely and that we see you at a future event.•

Success means being a co-op

On 26 October, PSIS was granted bank regis-

tration by the reserve Bank of New Zealand,

and immediately changed its name to The

Co·operative Bank. Cooperatives Association

Executive Director Ramsey Margolis spoke with

Chief Executive Officer Girol Karacaoğlu.

RM : Given the uncertain economic times withthe failure of so many non-bank deposit tak-ers, registration as a bank was clearly a goodthing to do, but why did you choose to call your-selves “The Co·operative Bank"?GK : We wanted to remove a couple of obstacles

people had in doing all their banking with us.

Some people didn’t know that we were actu-

ally providing full banking services, so register-

ing as a bank removed the obstacle in people’s

mind that PSIS’s name was associated with a pub-

lic service investment society.

We also wanted to remove the perception that

you had to be a public servant to bank with us.

Being a bank is a security warrant of fitness

demonstrating we are fit to become a bank but,

more importantly, we wanted to emphasise that

in becoming a bank we did not lose our coopera-

tive status.

The name was selected as a result of extensive

consultation with our members and our staff. It

was critical to give comfort to our members that

we’re still a cooperative.

We are a bank whose customers are automati-

cally our owners, it’s a cooperative so we don’t

have separate investor shareholders, and the

differentiation of this bank from the 20 others is

giving effect to the cooperative difference.

We want to do this firstly through two means

based on the research we’ve done overseas. One

is member rebates which reflects the profitable

business you’ve done with the cooperative — you

help us and we’ll help you. The other is giving

more voice to our members, giving them more

say, through social media and local councils.

Co-op banking

8nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

And the name The Co·operative Bank

removes any confusion about whether we’re a

finance company, especially for those who were

telling us we don’t do all our banking with you

because you’re not really a bank.

RM : What makes a cooperative bank differentfrom the regular investor-owned bank?GK : Our customers are our owners, it’s a cooper-

ative, it’s a mutual, and everything we do is for

the benefit of our member customers who are

our owners. That’s our differentiating factor.

But how do we we make this real for cus-

tomers who do not understand the history and

essence of cooperatives? By telling the story that

you’re a customer, you’re an owner, there are no

investor shareholders, and to give effect to that

we’ll give you a rebate in proportion to the busi-

ness you do with us.

RM : What is it about New Zealand that makescooperatives such a successful business model,and how do you plan to use this information?GK : Clearly the cooperative sector is very suc-

cessful in New Zealand. The Cooperatives

Association is measuring exactly what propor-

tion of our GDP and our employment comes

through cooperatives.

Now, while we don’t have any first hand evi-

dence of cooperatives being successful in New

Zealand banking, we do know that cooperatives

are very successful in the rural sector, and we

know that cooperative banks and mutuals

around the world have been extremely success-

ful, especially during the recent financial crisis.

Those cooperatives that are extremely suc-

cessful in New Zealand are either producer coop-

eratives or purchasing and shared services

cooperatives. We are a consumer coopera-

tive offering financial services, and

what we draw on is the global suc-

cess of cooperative banks that they

have demonstrated through the

global financial crisis.

Cooperative banks are prudent,

the business is run for members, they

are not chasing more and more profits

for investor shareholders, they can take

a long term view, they exist for

the benefit of members.

These appear to be the

factors that led them to be

cautious and careful.

If we can tell that story

in New Zealand not only for The Co·operative

Bank but also for mutuals at large, and use the

UN International Year of Cooperatives as a plat-

form for yelling about that, explaining it and edu-

cating people, we believe this is a very strong

message.

RM : There are several hundred thousand peo-ple in New Zealand who are members of coop-eratives. What's going to attract them to movetheir accounts to The Co·operative Bank?GK : The key issue is to tell these people who

have relationships with other cooperatives that

there is now a cooperative banking alternative

providing full personal banking services.

They may not have known that PSIS was a

cooperative which was providing banking servic-

es, so making that connection and telling people

about that will say to people who have been deal-

ing with cooperatives, maybe we should consider

these people as well.

RM : You mentioned that 2012 is going to be UNInternational Year of Cooperatives. How willThe Co·operative Bank be using this to engageyour existing members and grow your busi-ness?GK : First of all by being a major sponsor of the

initiatives in New Zealand, a Gold Sponsor in fact,

and secondly during the year as we talk about the

IYC we’ll keep talking about the fact that New

Zealand has a cooperative bank now, saying that

there is an alternative banking model that is not

profit driven but profit conscious.

You’re a customer and a member, and we can

provide all the products the major banks do for

the personal sector, inviting people to taste it and

see whether they want to switch to us.

There is one other final element: there is

a global movement of people who are

reconsidering their relationship with

traditional investor owned banks.

This is an additional huge opportunity

for us.

Our big focus is on the cooperative

difference, and by calling ourselves

explicitly The Co·operative Bank

we are saying there is

a cooperative in

New Zealand that

provides banking

services.•

The International

CooperativeAlliance’s seven

cooperative principles

• voluntary and openmembership

• democratic membercontrol

• member economicparticipation

• autonomy andindependence

• education, training and information

• cooperation amongcooperatives

• concern for community

Girol Karacaoğlu,Chief of Executive ofThe Co·operativeBank

Cooperatives

NEWSnovember 2011 – january 2012

http://nz.coop9

How our political parties viewcooperatives and mutuals

In the run up to the November general elec-

tion, the Cooperatives Association circulated a

series of questions to the major political parties

seeking their views on issues that are important

to cooperative and mutual enterprises.

Prepared with assistance from former NZ First

MP, Doug Woolerton, here is how they answered.

1 LARGER COOpERATIvES are often

made up of smaller family businesses

which are sizeable. Because they run a family

business, the owners consider the detail of their

businesses to be very personal. In past years

there have been two attempts by MED to force

these family businesses to publicly disclose

their trading activity. Given that private infor-

mation is personal property and so compulsory

filing would be theft, do you believe this is a

good or bad idea, and why?

ACT party – ACT believes that current laws

surrounding filing requirements for businesses

are adequate, and does not support expanding

them.

Green party – Of course a balance must be

struck between personal privacy and transparen-

cy. If we do not have good transparency rules

around business disclosure we create uncertainty

for investors and compound our lack of private

savings and investment (outside of the property

market) by making it harder for people to invest

wisely.

A cooperative doesn’t face these problems to

the same extent. While it is still important for

transparency and disclosure to members of the

co-op and this is something we would support,

full publicity of family businesses should not be a

requirement.

Labour party – This question raises concerns

about how individual members of a cooperative

could be forced to disclose to their competitor

considerably more information than their com-

petitor would have to disclose to them.

For example an individual supermarket as a

cooperative could be placed in a position of dis-

closing details of all of their individual financial

information whereas a competing supermarket

as part of a national chain wouldn’t have to do so.

Naturally we would want to ensure that peo-

ple were on a level playing field as far as disclo-

sure goes. We are happy to talk to the New

Zealand Cooperative Association about this

issue.

Mana – Mana does not have enough knowl-

edge of the details of this to be able to comment

at this stage.

Maori party – Response to come.National party – We understand there were

concerns over this and that is why it was decided

to not introduce a filing requirement for larger

non-issuer companies. This decision included

cooperative companies. The concern was that

such a filing requirement would, in some cases,

reveal commercially confidential information

and that there were also privacy issues in relation

to closely held companies, especially family busi-

nesses.

New Zealand First – Providing these business-

es are complying with the present law this is

unnecessary bucreaucracy.

United Future – Response to come.•

2 THE UN International Year of

Cooperatives 2012 is about to be celebrat-

ed in New Zealand. In terms both of a financial

commitment and in assisting the New Zealand

Cooperatives Association to showcase this

important business event to the world, what

would your party in Government be prepared to

offer as a support package?

ACT party – We don't see a strong case for

government financial assistance for industry

events of this kind.

Green party – Supporting and encouraging

cooperatives, credit unions and community

banks is a key part of our community develop-

ment policy.

Election survey

H.E. Jim McLay live onthe UN webcast – seehis speech on theAssociation’s YouTubepage which is atwww.youtube.com/user/NZdotCoop

10nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

As an independent party we aim to work con-

structively with the government of the day to

improve their legislative programme and enact as

much of our policy as we are able to.

Given these constraints it is hard to propose

an exact support package, however hosting of the

events at Parliament and research into contribu-

tion of cooperatives and mutuals to New Zealand

would be a good start.

Labour party – This provides an ideal oppor-

tunity to showcase New Zealand cooperatives

and we would examine what support govern-

ment can give and how we can make the most of

this opportunity.

Mana – Mana is committed to supporting the

principles and practice of cooperatives and

mutuality, and believes Government should pro-

vide some support to the Cooperatives

Association to enable it to make a valuable input

locally and internationally in the 2012 UN Year of

Cooperatives.

National party – We understand that the

Ministry of Economic Development has been in

communication with the New Zealand

Cooperatives Association regarding the UN

International Year of Cooperatives 2012, and how

the Government can assist the association in

observing the Year of Cooperatives.

New Zealand First – Would prefer the

Cooperatives Association to make a case for sup-

port.•

3 IT IS vERY noticeable that cooperative

businesses did not fail during the recent

recession. One – AMI Insurance – required and

paid for a government guarantee, although not a

single dollar has been drawn down. In light of

this, does your party see the value in promoting

the more stable cooperative and mutual busi-

ness model, and if not why not?

ACT party – ACT believes in competition and

personal choice. We are comfortable with the

cooperative model, but prefer to leave the choice

of what model to work with to those directly

involved. It should also be noted that, although

AMI has not yet drawn down on its government

guarantee, there is a significant chance that they

will need to do so in the near future.

Green party – Yes.

Labour party – Yes, there is merit in the coop-

erative model. Cooperatives form some of the

most innovative and dynamic businesses in the

New Zealand economy, and we remain commit-

ted to providing an environment that supports

their growth.

Mana – Yes, Mana supports Government play-

ing an enabling role in backing the maintenance

and development of cooperatives and mutuals in

Aotearoa.

National party – We recognise the contribu-

tion of cooperatives to the New Zealand econo-

my. We believe an environment already exists

that allows for cooperatives to be formed and

prosper.

New Zealand First – NZ has a long history of

stable cooperatives which should be encour-

aged.•

4 IT IS A SAD fact that those involved in

the governance and administration of

cooperatives have reported to the Association

that in many cases both Government and pro-

fessional bodies aligned to business show a

marked lack of awareness of cooperative and

mutual enterprise, tending to dismiss the model

as inferior when in fact worldwide evidence

proves the contrary. What specific action can

your party take to assist the NZ Cooperatives

Association rectify this anomalous situation,

particularly within Government departments

and agencies?

ACT party – ACT believes that all organisa-

tions and businesses should be treated with the

REINVENTING COOPERATIONA must read for cooperativedirectors and senior executives – for anyone hoping to run asuccessful cooperative business

This book dispels the myths andmisunderstandings that surround thecooperative business model, and sets out – in straightforward language –

the essentials ofunderstandingandorganising acooperative.

Paperback 300 pages ISBN 0-85042-136-5$80 inc. post & GSTfrom the NZCAoffice

Cooperatives

NEWSnovember 2011 – january 2012

http://nz.coop11

same respect by government and its agencies.

Government agencies and staff that work in the

area should be well briefed about the nature of

cooperative organisations.

Green party – While we have limited ability to

affect change within professional organisations,

the culture of government departments and

agencies is something that we could influence if

we were a part of government. Even should we

remain outside of government if there are

specific instances of problems dealing with gov-

ernment departments or agencies your member-

ship should feel welcome to contact their local

Green MP and we will do what we can to address

the situation.

Labour party – This comes up most signifi-

cantly within the Commerce portfolio and we

would be more than happy to commit to the

Minister of Commerce having a regular round-

table, three times a year, with key officials and to

bring in other Ministers and their officials on an

identified need basis when we are in govern-

ment.

Mana – Mana is very stretched at the moment,

with just one Member of Parliament. Should

Mana return to the next Parliament with wider

representation, I am sure we will be keen to work

with the Cooperatives Association on ways to

improve the political, legal and financial position

for cooperatives and mutuals, including through

raising consciousness of their worth within

Government departments.

National party – We are committed to ongoing

engagement with your organisation and will con-

tinue to seek feedback on policies and regula-

tions which affect small businesses through the

Small Business Advisory Group and similar

forums.

New Zealand First – Educate all arms of gov-

ernment including its agencies on the social his-

tory of cooperatives.•

5 DOES YOUR pARTY see Government as

having a role to play in developing suc-

cessful businesses in New Zealand, or do you see

that function as being outside the responsibili-

ties of a Government, and if you do what kind of

support would your party be prepared to offer

those wishing to start a cooperative or mutual

enterprise?

ACT party – ACT believes that the

Government's responsibility is to create an eco-

nomic environment in which businesses can

thrive. We support lowering taxes, reducing reg-

ulation and compliance costs and reducing the

size of government so the private sector can grow

and new business can start up. We believe such

an environment would make it easier for every-

one to start their own business, including those

wanting to start a cooperative or a mutual.

Green party – Excluding state owned enter-

prises Government’s role is to create a good envi-

ronment such that successful sustainable

businesses can develop and flourish. Part of

developing a good environment could be to cre-

ate funding and support mechanisms for start-up

cooperatives or mutual enterprises. This would

most likely be in the form of beneficial economic

policy as opposed to grants.

Labour party – We see government’s role as

establishing the environment within which busi-

nesses can get established and can grow to their

fullest potential. We believe government has a

role in ensuring that people establishing busi-

nesses have access to the best quality of advice,

support and training.

We conducted the Quality Regulation Review

in government and intend to pick that up where

we left off – this means a focus on quality regula-

tion that is fit for purpose and proportionate in

terms of its impact. This will improve the busi-

ness environment for all businesses.

We will announce our policies designed to

assist high growth potential companies (of any

business model category) closer to the election.

� How Australian farmer cooperatives originated

� How they came to occupy a unique position in theAustralian economy

� The challenges they met – and failed to meet

� Prospects for their future development

paperback • 440 pages • ISBN 0-64646-587-2$35 inc. post & GST from the Association office

The New ZealandCooperativesAssociation aims to:• encourage, promoteand advance NewZealand cooperatives

• act as a representa-tive association forthose engaged as coop-eratives

• promote discussionand cooperation withdecision-makers at all levels of government,designed to further theinterests of the cooperative movement

• provide services andexpertise to thoseengaged in the cooperative movementand to carry outresearch into all aspectsof the movement

• collect, verify and publish information relating to the cooperative movement

12nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

Mana – Mana’s policy currently states that we

would like to improve access to grants and loan

funding and facilitate an enabling legal environ-

ment for the development of community owned

enterprises, cooperatives and ethical and com-

munity run finance and banking initiatives.

We also support the establishment of a gen-

uine community-owned banking network which

could help support the development of commu-

nity enterprises and cooperatives.

National party – The National-led Govern-

ment has taken a number of steps to help busi-

nesses of all sizes grow and prosper.

We have introduced the biggest reform of the

tax system in 25 years. We have tilted the econo-

my in favour of productive investment, savings,

and exports, and away from consumption,

borrowing, and unsustainable government

spending.

This included reducing the company tax rate

from 30 to 28 cents in the dollar, making it inter-

nationally competitive.

When we entered office, ACC was in crisis and

making record losses. A boost in rehabilitation

rates and better management of costs has been

the major reasons for the turnaround. ACC is now

on target to be fully funded.

As a result, ACC is proposing levy reductions

that will put half a billion dollars a year back into

the New Zealand economy and contribute

towards keeping the cost of living down.

These levy reductions are good news for New

Zealand businesses, significantly improving their

cashflow.

We’ve taken steps to cut the unnecessary red

tape which stands in the way of small businesses.

And we’ll continue to use technology to improve

the way government communicates with small

businesses.

New Zealand First – Of course. Government

has a role in encouragement, not ideological neg-

lect or obstruction.•

6 IF A SEMINAR were to be arranged in

Wellington by the NZ Cooperatives

Association specifically for Mps would your

party see value in this and send the relevant

spokespeople?

ACT party – ACT welcomes all opportunities

to speak to community and business groups. We

consider all invitations when we receive them

and try to send an MP along, subject to availabil-

ity.

Green party – Yes.

Labour party – Yes, both the Commerce and

Consumer Affairs spokesperson would attend,

subject of course to timing, but we would see it as

a priority.

Mana – Yes, we would see value in such a sem-

inar, and – circumstances permitting – would

send our relevant spokesperson/people.

National party – We are always open to invita-

tions to meet with stakeholders, but obviously

attendance will ultimately be subject to availabil-

ity.

New Zealand First – Yes.•

7 DOES YOUR pARTY believe that there is

an increasing role for cooperatives in the

pacific Islands for which New Zealand has vary-

ing levels of responsibility? If so would your

party consider involving the New Zealand

Cooperatives Association in the regular discus-

sions which are held with these island coun-

tries, the purpose being to assist them with good

governance, promote goodwill and further our

trade opportunities?

ACT party – ACT believes that New Zealand,

and in particular our Ministry of Foreign Affairs,

does have an important role to play in the devel-

opment of the Pacific Islands. ACT doesn’t

believe it is our role to comment as to whether

more cooperatives specifically help the develop-

ment of island nations. In general, we believe

that increased trade, better education and good

To Beehive, home ofNew Zealand’s

Parliament

Dates for your diary• Friday 2 December

Annual General Meeting –Wellington

• Wednesday 15 February 2012UN International Year of Cooperatives

2012 Launch –Wellington

• Thursday 21 to Sunday 23 June 2012Building a Better World: cooperativeresearch conference – Wellington

Cooperatives

NEWSnovember 2011 – january 2012

http://nz.coop13

governance are some of the keys to development.

Green party – Yes, yes.

Labour party – We agree there is likely to be a

role for building, encouraging and supporting

cooperatives in the Pacific Islands in order to

assist with the development of sustainable trad-

ing enterprises in particular. There could easily

be a supportive role for the New Zealand

Cooperatives Association there.

Cooperatives are an integral part of our eco-

nomic landscape, however in order to meet

today’s challenges co-operatives need to be able

to expand internationally and to further develop

their ability to export.

This needs to be balanced with the need to

maintain their special ownership structure and

characteristics.

Mana – Yes, Mana does see an increasing role

for cooperatives in the Pacific Islands, and would

support involving the Cooperatives Association

in developmental work there.

National party – We will continue to engage

with organisations and businesses to promote

trade opportunity in the Pacific Islands.

New Zealand First – Cooperatives have an

affinity with Pacific cultures with examples of

success in many Island States. NZ Aid should

have a role in assisting best business cooperative

practice.

• As and when responses arrive from the Maori

and United First parties, they will be posted on

our website at http://nz.coop/2011-election.•

IYC — What’s the point?by Alan RobbAdjunct Professor, St. Mary’s University, Canada

On 31 October 2011, the UN and the

International Cooperative Alliance

launched the International Year of Cooperatives

2012 with the theme “Cooperative Enterprises

Build a Better World.”

The recent movements

around the world following

“Occupy Wall Street” in New

York are evidence that peo-

ple in many countries

believe there has to be a bet-

ter alternative than the pre-

dominant business model, which emphasizes the

maximization of profits, the minimization of

labour costs and the amoral (or immoral)

approach to the social impact of business

decisions.

Author of Agenda for a New Economy, David

Korten, says the basic question we need to

answer is: “Do people exist to serve the economy,

or should the economy exist to serve people?”.

CO-OP HISTORYThe study of the history of the nineteenth centu-

ry shows that cooperatives were initially set up

with the belief that the economy should exist to

serve people.

Cooperatives were formed to provide a better

world than that which the globalised free market

of Victorian times was producing.

The industrial revolution boosted the

Victorian economy but in doing so it condemned

large numbers to poor living and dangerous

working conditions, adulterated food and a life of

ignorance and poverty, while a small number of

their fellows gained all the benefits of economic

growth.

Cooperators knew that a better world

required many things – there was no simple solu-

tion. Key beliefs included:

• Only quality products should be produced

• Trading should be for cash, not credit

• Membership should be open to all

• Equitable contributions to the coopera-

tive’s capital should be made by members

• Only a limited return should be paid on

capital, and a fair day’s pay was due to labour

• All members should participate in the

decision making of the organization and voting

should be democratic, with one vote per person.

Contrast this with the way in which many

businesses (and even economies) operate today:

• Throwaway products of poor quality are

produced

• Consumers, households and economies

have been encouraged to borrow far beyond their

ability to pay

• Return on capital is to be maximized, with

labour a cost to be minimized

• Voting is in proportion to capital sub-

scribed; only investors participate in the decision

making.

STABILITYThose early cooperatives brought a degree of sta-

bility to the lives of their members and to the

economy. By contrast, our economies are now

marked by instability as financial capital flows

Robb on cooperation

Alan Robb is anindependentconsultant andcommentator onfinancial accounting,cooperatives, corporategovernance andbusiness ethics

Each Robb onCooperation column isnow being posted onwww.nz.coop as a blog,where your commentsare welcome

More of his writingscan be found atwww.alanrobb.coop

14nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

freely from one part of the world to another,

speculating against exchange rates and in fact

moving them in order to make a profit.

Cooperatives encouraged thrift and the ability

to live within one’s income. In our economies,

banks have recklessly extended credit and

hidden the extent of some of their borrowing by

creative accounting.

The people who ran the pioneer cooperatives

believed in the importance of ethical behaviour.

In our society, professionals who have set up tax

avoidance schemes which have been subse-

quently declared illegal appear able to continue

devising ethically repugnant schemes.

Cooperatives should step forward boldly and

tell the world in the International Year of

Cooperatives that we are building a better world.

Whether the International Year of

Cooperatives is a success will only be seen if

there is a significant increase in the number of

cooperatives.•

Cooperating within a cooperativeby Dee McQuillan

Agroup of administrative professionals work-

ing for a cooperative have taken the princi-

ples of cooperation to a whole new level by

establishing their own collaborative professional

development group.

Vanessa Adams, Joanna Batchelor, Cara Birch

and Margaret Walker and I all work for NZPM

Group, providing administrative support across

different levels and business areas of the co-op.

We meet quarterly for “cupcakes and collabo-

ration,” using our time together to share ideas,

knowledge and experiences to improve the level

and standard of support we provide.

Each meeting is hosted at the office of one of

the co-op’s subsidiaries, which gives our group a

better understanding of each other’s working

environment.

We take it in turns to research and present a

topic of interest, which not only adds to our skill

set but also develops each individual’s research

and presentation skills.

After attending the 2011 Roundtable for

Senior Executive Assistants I was motivated to

establish this collaborative group within NZPM

Group because I believe that sharing information

about what’s happening in our worlds will give

each of us a better view across the business as a

whole – by working together we can achieve

more.

As Vanessa Adams, EA to CEO at Patton Ltd

said, “we are able to work together by sharing

ideas to meet common needs, goals and aspira-

tions.

It also gives us the opportunity to consult

with each other when making difficult decisions.

We are able to share resources – not work in silos

– all working toward a common goal which is to

create value for our shareholding members.”

“It’s very valuable to have the chance to share

our combined knowledge, and develop a sup-

portive network within the business through our

similar roles” said Cara Birch, PA to the COO, CFO

and Administrator at NZPM Group.

CHALLENGESWorking in a cooperative is a quite different expe-

rience to working in an investor-owned business,

and of course presents its own unique challenges

and difficulties. However we strongly believe the

positives far outweigh the negatives.

According to Joanna Batchelor, EA to GM at

Plumbing World Ltd, “everyone is extremely

friendly and obliging” and Margaret Walker,

Receptionist at Patton Ltd said, “the culture at

Patton Ltd and NZPM Group is very inclusive and

I feel part of a forward looking team.”

“I like the humility that comes from working

in a cooperative,” added Cara Birch. “From the

CEO to the part-time warehouse stock assistant,

everyone is here for the members and that

NZPM is New Zealand’snational plumbing

cooperative witharound 1,000 members

Over the past forty plusyears, NZPM Group’s

vision, values,environmentalinitiatives and

increasingly globalfocus have seen the

co-op achieveextraordinary growth

with group sales now approximately

$NZ250 million

Front Row Left to Right:Joanna Batchelor, EA to

GM Plumbing WorldLtd, Cara Birch,

PA to COO and CFO/Administrator,

NZPM Group Ltd. Back Row Left to Right:

Margaret Walker,Receptionist, PattonLtd, Vanessa Adams,

EA to CEO, Patton Ltd,author Djarne (Dee)

McQuillan

Cupcakes & ...

Alan Robb can be contacted at:

alan@alanrobb.coopand on 021 061 6867

Cooperatives

NEWSnovember 2011 – january 2012

http://nz.coop15

creates an environment of collaboration and

openness that can sometimes be lacking in other

businesses.”

For me, the thing I love most about working

for a cooperative is the contrast in scale – NZPM

Group is a large organisation with global interests

in an exciting growth phase and yet it’s owned at

such a grassroots Kiwi level by our shareholding

members.

It’s our members who really bring the organi-

sation to life, giving meaning to what we do and

proving that working together really does

achieve more.•

Brazilian co-ops andenvironmental assetsby Gustavo Leonardo Simão

With concerns regarding the impact that

possible climate change could cause to

the planet, representatives of individual coun-

tries got together with international bodies to

promote action aimed at reducing the emission

of greenhouse gases, the

main causes of these

changes.

Out of this, multilateral

agreements have emerged to

enable developed countries

to control emission levels.

Aware that the reduction

in emissions in developed countries would be

enormously more expensive than if they were

made in developing countries, the so-called

Clean Development Mechanism (CDM) arose

through the Kyoto Protocol.

This consists of a process by which developed

countries committed to

reducing greenhouse gases

could negotiate Certified

Emission Reductions (CERs)

with developing countries,

so long as these were a result

of projects implemented in

developing countries.

In this context, the num-

ber of CDM projects regis-

tered and approved at the

UN by Brazil has been steadi-

ly increasing, and this coun-

try now currently occupies

third place in the world for

CDM projects.

Given that international enterprises have an

interest to encourage the inclusion of coopera-

tive ventures in this new market, I undertook

some research which sought to check the eco-

nomic and social impacts of the CERs generated

by Brazilian cooperatives.

QUESTIONNAIRESTo do this, questionnaires were sent to all the

cooperatives included in CDM projects which

were already approved.

From the results, it can be seen that most of

the cooperatives surveyed are owners of the

CDM, include third party participation, and pass

a percentage of CERs to the cooperatives.

In most cases, the Brazilian cooperatives

declared the existence of secondary benefits

resulting from the CDM, noting that for those

projects where there in which third parties par-

ticipate, the main economic activity of the coop-

erative has no direct connection with the carbon

credit mechanism.

Looking at the participation and support of

government agencies and representative of the

cooperative sector, there was no finding of partic-

ipation in most of these projects.

From this it is clear that Brazilian coopera-

tives may be able to offer a new business oppor-

tunity for foreign investment in issues related to

negotiable environmental assets.

With this in mind, I am looking for sponsor-

ship to present the results of my research at the

Wellington International Cooperative Research

Conference in June 2012.

The survey I developed was conducted

between August 2009 and July 2010, and was

supervised by Professor Nora Amodeo of the

Federal University of Viçosa, Brazil.•

The New ZealandAssociation for theStudy of Cooperativesand Mutuals can befound online atwww.nzascm.coop

Dee McQuillan isExecutive Assistant toNZPM Group CEOAlister Lawrence

Gustavo LeonardoSimão is a student ofCooperativeManagement at theFederal University ofViçosa, Brazil. Tocontact him write togustavo.simao@ufv.br.

Carbon credits

Wellington seminar a successby Hamish Levack

Aseminar was held in the Legislative

Chamber at Parliament, Wellington, on 30

September to exchange ideas that might lead to

better outcomes in commercial forestry for small

forest growers.

In particular the potential

of, and the impediments to,

getting forestry cooperatives

going were discussed.

These ideas will be need-

ed in New Zealand if we are

to convert the large timber

supply bulge that is that is coming on stream in

the 2020s to a sustainable yield and capture the

economies of scale.

Forest proprietors from Aquitaine, France,

described how they worked together with the

thousands of small scale forest owners to max-

imise individual profit and reduce risks from an

800,000 ha cooperative forest. 

This provided New Zealand small scale pri-

vate forest sector with a vision of where we could

be in a couple of decades. 

In the last Cooperative News it was explained

that forestry taxation reform would be necessary

to get forestry cooperatives going. Minister of

Revenue, Hon Peter Dunne MP, opened what had

been a firmly closed door to change by inviting

the forest industry to begin discussing this issue

with officials. 

Iain Cossar, Director, Sector Performance

Policy at MAF, opened another door when he said

that Government would be willing to work with,

and perhaps provide initial funding, to facilitate

the formation of cooperatives.

However, leadership has to come from the

sector, and much work remains to be done.•

Hepburn Wind: a cooperative windfarm

Hepburn Wind started with a simple, but

powerful idea — that our community could

own and operate its own wind farm for the

benefit of the entire community.

On 18 July 2007, 23 people came together and

voted to form the cooperative and vote in their

first board.

WORKING TOGETHERIn just four years, the co-op has grown to almost

1,900 members and is proud of its role in estab-

lishing the community renewable energy move-

ment in Australia.

Acknowledging all those who have believed

in and supported the project to get them to this

point, together they have:

• built a $13.5m wind farm, the first in the

country started and owned by a community

• almost completed commissioning and

already begun generating clean, safe energy for

their community

• raised more than $9.6m from the commu-

nity, been awarded $1.7m in state government

grants and secured a $3.1 financing facility with

Bendigo Bank

• joined up almost 1,900 members, mostly

local people

• entered into an innovative power off-take

agreement with Red Energy that will enable sup-

porters to purchase their locally generated

power, while at the same time delivering signifi-

cant financial benefits to our community

• applied a cooperative legal structure so

that members have equal voting rights (ensuring

democratic control) but share returns in propor-

tion to their investment

• developed the most generous benefit shar-

ing programme of any wind farm in the country,

which will give special benefits to those living

closest to the project as well as returning well in

excess of $1m to the Hepburn Wind Community

Fund over the next 25 years

• set a new standard set for community

engagement and support for a wind farm —

recognised with their recent honour of winning

the Victorian Premier’s Sustainability Award for

2011.

Following this example, might we perhaps

see a co-op wind farm in New Zealand?•

16nzca@nz.coop

Cooperatives

NEWSnovember 2011 – january 2012

Seminar organiser andWestern Farm

Cooperative ForestryCo Ltd director

Hamish Levack

Surrounded by NewZealand native timbers,Keynote speaker Inazio

Martínez de Arano,Executive President ofthe Union of Foresters

in Southern Europeand President of the

European Institute ofCultivated Forest

expresses himself in ananimated manner

Disclaimer

While all care has beentaken in compiling

information for theAssociation newsletter andit is provided in good faith,it is not to be relied on as asubstitute for professional

advice.

This Association acceptsno responsibility for the

accuracy, completeness ortimeliness of information.

The views expressedwithin the newsletter may

be those of the authorsand not necessarily those

of the New ZealandCooperatives Association.

If you wish to reproduceany information please

check first with theAssociation in case there

are any limitations on theavailability of the

information to be used.

Electricity co-opForestry seminar