Member News
Labour's Malcolm Wicks sets out the concerns behind his Co-Operative and Community Benefit Societies and Credit Unions Bill and sets out why co-operatives are so relevant in the 21st century.
Co-operatives have a long and distinguished history. Indeed, they date back to the latter decades of the 18th century and are associated, in particular, with the legendary Robert Owen.
But I believe that, in the very different circumstances of the 21st century, the co-operatives and mutuals have a new and even more important role to play.
My private member's bill, the Co-operative and Community Benefit Societies and Credit Unions Bill, is designed to further update and modernise the law on both co-operative societies, where much of the existing law dates back to the days of the Industrial and Provident Societies in the 19th century, and also to bring laws affecting credit unions up to scratch.
Through law reform of this kind, we bring greater integrity to these societies and therefore build confidence. Specifically the law seeks to:
- Apply the Company Directors’ Disqualification Act of 1986 to societies.
- Give the Treasury powers to apply Company Law to investigate societies when necessary. The Financial Services Authority will play a full role.
- Give the Treasury powers to make provisions for credit unions corresponding to those applying to building societies.
The Bill is debated at a particularly significant time. Many low-income families, too many debt-ridden, find credit unions a safe harbour and an alternative to wretched loan sharks who prey on the vulnerable and poor in our most deprived areas.
And consumers at large welcome the ethical stance adopted by the co-operative retail sector, given their sense of social responsibility, their commitment to fair trade, and local community sponsorship.
The Bill is also debated at a time when, after difficult decades for both co-operatives and the wider mutual sector, there are significant signs of a renaissance.
Co-operative societies have merged into a powerful new entity: the Co-op Group is taking over Somerfield to become a serious rival to the superstores and the Co-op Bank is merging with the Britainnia Building Society to form a super-mutual.
The Bill sponsors are Dr Vincent Cable, Adrian Bailey, Sir John Butterfill, John Bercow, Mark Lazarowicz, Don Touhig, Linda Gilroy, Meg Munn, Andrew Love, Andy Reed and Alun Michael.
Dods Parliamentary Communications Ltd