BCCM referenced in Indo-Pacific region report

26 June 2015

On Wednesday, the Joint Standing Committee on Foreign Affairs, Defence and Trade tabled its report into the role of the private sector in promoting economic growth and reducing poverty in the Indo-Pacific region. Following a submission made by the BCCM, the report references the values of co-operatives in this field which greatly aid in promoting economic growth while reducing poverty.

In Section 3.28 (page 34), the report references the Council’s submission and the example of Rabobank which has moved from a charitable foundation to a farmers’ bank. The report states ‘BCCM reiterated the principles of self-reliance over charitable aid remain the same, and espoused the advantages of the co-operative model of business… It is based on principles of democracy, transparency, ethical values and economic participation. It builds the community skills of resilience and economic management over time.’

Seperately, in the section referring to women as producers and small business operators, the report refers to the BCCM’s submission and ‘…the power of collective business initiatives to jump-start women’s empowerment.’ Highlighting the equality which is built into the co-operative model, the report quotes our submission:

‘Since democratic member control lies at the heart of the cooperative model of enterprise, the formation of cooperatives can play a very important part in working towards the economic and social inclusion and empowerment of women.’

The inquiry was announced by Minister for Foreign Affairs, Julie Bishop in February 2014. The report recommends 37 recommendations including Recommendation 3 which states that the Australian Government:

• review, and amend as necessary, relevant Australian company legislation to fully accommodate social enterprises, including cooperatives and B corporations;
• ensure aid initiatives support:
  • the establishment of in-country company legislation that accommodates social enterprises and other community and village corporate forms to reduce costs and the complexity of business formalisation; and
  • promotion and assistance, particularly for women, to help them engage in the business registration process and ongoing requirements of operating a formal business

The decision on which recommendations to accept and how they will be implemented will be approved later in the year. The BCCM urges government to look at co-operatives and their role in building community skills such as reslience and economic management meaning communities become less dependent on grant funding over time.