Ethos Public Relations Manchester

Spending Review offers co-operative opportunity

by Ethos public relations

Wednesday’s Spending Review is the biggest opportunity yet for the Government to put its Manifesto commitments to co-operatives into practice says Ed Mayo, Secretary General of Co-operatives UK.

“If the Spending Review includes reference to public sector staff bidding to run services as mutuals or social enterprises,” says Ed, “then I want to see the co-operative route seen as the solution to public service delivery.”

Speaking ahead of the Spending Review, when George Osborne will deliver the government’s comprehensive four-year public spending plans, Ed said: “Amid the cuts and uncertainty, it is even more important to recognise the co-operative approach of staff consent and the business case in setting clear contracts that can offer stability over time.

“I hope the spending review doesn’t waste the opportunity to harness the creativity and expertise of our public servants.

“I am hoping to see direct mention of public sector staff bidding to run public services and would urge government to see the co-operative model as the way forward. Co-operatives are three times more trusted than PLCs and thanks to their unique membership ethos, they are more accountable and enshrine democratic participation.”

Ed says: “Overseas, health service in Japan, social care in Italy and further education in Portugal are all delivered by co-operatives. But, the whole point of co-operatives is that they are owned and run by members as independent businesses – they will work best as ‘bottom up enterprises’ and not imposed from the top.

“Real co-operatives have to live up to certain conditions to earn that classification. Whilst we think that all business can benefit from being more co?operative, to be recognised as a co?operative business means signing up to certain principles such as equality, autonomy and open membership.”

Co-operatives UK, the national trade association for co-operative enterprises, has already developed a referral service in answer to a growing number of public service enquiries.

Ed says: “We know that there is an urgent need for this government to start with staff onside by giving hard-pressed workers practical and balanced information and advice.”

For anyone looking into setting up a co-operative as an alternative way to deliver public services, Co-operatives UK provides an online resource and business support referral service at www.uk.coop/publicservices.

Posted at 20^th October 2010