A new report by the Senate’s Economics References Committee in Australia includes 17 recommendations to help grow co-operatives and mutuals. The research highlights different barriers to innovation, growth and free competition faced by the sector, suggesting a set of reforms that the Federal government could make to address these.
Melina Morrison, chief executive of the Australian Business Council of Co-operatives and Mutuals (BCCM), said: “The report’s recommendations will help take the shackles off the sector and allow it to step up and fulfil its potential in both the economy and Australian communities. Co-operatives and mutuals have grown through the recent economic downturn, with one hand tied behind their back.
“The recommendation to examine proposals to amend the Corporations Act to allow greater flexibility in the way that they can raise capital is particularly significant. Giving mutuals a way to raise equity without demutualising is an opportunity to achieve parity for the sector with other types of businesses and potentially unlock billions of dollars of investment.”
The report also recommends harmonising state regulations governing co-operatives across the country.
Andrew Crane, chair of BCCM and chief executive of CBH Group, Australia’s largest co-operative, added: “The bipartisan support for the report is welcomed by the co-op and mutuals sector, and the BCCM will engage with all political parties for the implementation of the recommendations in full.” The full report and recommendations are available on BCCM’s website.
