CFV VCN Vol 2 Issue 3 1995

4 Pages·1995·0.29 MB·English

by  Co-operative Federation of Victoria Ltd

Bulletin of the Co-operative Federation of Victoria Ltd
Volume 2 Issue 3 Spring
ICA adopts new co-operative principles

Definition of a Co-operative Statement of the Co-operatives are autonomous,
self help organisations controlled
A co-operative is an autonomous Co-operative Identity
by their members. If they enter
association of persons united

voluntarily to meet their common The 1995 Centenial Congress into agreements with other
economic, social, and cultural of the International Co- organisations, including
needs and aspirations through a operative Alliance, held in governments, or raise capital from
jointly-owned and democratically- Manchester in September, has external sources, they do so on
controlled enterprise. adopted a “Statement of the terms that ensure democratic
Co-operative Identity”, which control by their members and
Values of Co-operatives
includes a definition of a co- maintain their co-operative

Co-operatives are based on the operative, the basic values of autonomy.
values of self-help, self- co-operatives and a new Education, Training & Information
responsibility, democracy, version of the Co-operative
Co-operatives provide education
equality, equity, and solidarity. In Principles.
and training for their members,
the tradition of their founders, co-
elected representatives,
operative members believe in the
operatives members have equal managers, and employees so they
ethical values of honesty,
voting rights (one member, one can contribute effectively to the
openness, social responsibility,
vote) and co-operatives at other development of their co-
and caring for others.
levels are organised in a operatives. They inform the
Co-operative Principles democratic manner. general public, particularly young

The co-operative principles are people and opinion leaders, about
Member Economic Participation
guidelines by which co-operatives the nature and benefits of co-
put their values into practice. Members contribute equitably to, operatives.
and democratically control, the
Voluntary and Open Membership Co-operation among Co-operatives
capital of their co-operative. At

Co-operatives are voluntary least part of that capital is usually Co-operatives serve their
organisations, open to all persons the common property of the co- members most effectively and
able to use their services and operative. They usually receive strengthen the co-operative
willing to accept the limited compensation, if any, on movement by working together
responsibilities of membership, capital subscribed as a condition through local, national, regional
without gender, social, racial, of membership. Members allocate and international structures.

political, or religious surpluses for any or all of the Concern for the Community
discrimination. following purposes: developing
While focusing on member needs,
the co-operative, possibly by
Democratic Member Control co-operatives work for the
setting up reserves, part of which
Co-operatives are democratic sustainable development of their
at least would be indivisible;
organisations controlled by their communities through policies
benefiting members in proportion
members, who actively participate accepted by their members. ž
to their transactions with the co-
in setting their policies and making
operative; and supporting other
decisions. Men and women
activities approved by the
serving as elected representatives
membership.
are accountable to the

membership. In primary co- Autonomy and Independence
inside... Differences between the Board and Management page 2
Annual General Meeting Report page 2
Co-operatives significant, says Minister page 3
Asia Pacific Co-operative Training Centre Annual General Meeting Report

MANAGEMENT COURSE
The Co-operative Federation of promotion programme; and

The next Victorian Course for the Victoria Ltd held its 1995 annual • Developing new services for
general meeting on 27 September,
Australian Certificate in members.
1995. The meeting was attended by
Co-operative Management Members approved a special
25 delegates and guests.
will be held at the Novotel Bayside resolution to amend the rules so

Hotel, St. Kilda, Melbourne on: The Chairperson, John Gill, that co-operatives cease to be
highlighted the main achievements members of the Federation for non
Thursday - Sunday, Oct 26 - 29
of the Federation over the last year; payment of the annual subscription.
Thursday - Sunday, Nov 23 - 26

Thursday - Sunday, Feb 1 - 4, 1996 • Making representations to the Following an election, the directors

Registration forms and other details Premier of Victoria and Ministers for the forthcoming year are:
can be obtained from the Centre seeking support for a new Act;
[phone], and the Secretary of • The announcement by the Ms Miriam Carlson
the Federation [phone]. Chelsea Bayside Rental Housing Co-op
Minister for Fair Trading of a
Mr Ken Chester

Director and Management review of the current Co- Consolidated HI Services Co-operative
operation Act; Ms Jean Evans
Development Skills

• Becoming the Australian agent Nth Geelong Rental Housing Co-operative
As the official training provider to the co- Mr John Gill
for the sale of co-operative books
operative sector in Australia, the Asia Victorian Producers’ Co-operative Co
from the U.K. Plunkett
Pacific Centre is happy to respond to co- Mr David Griffiths
Foundation;
operatives who have particular training Co-operative Energy
needs or wish to combine with other co- • Participating in the formation of Mr Bernie Harford
operatives to mount training events. the Co-operatives Council of Genetics Australia Co-operative

C ontact Tim Dyce to discuss your Australia; Mr Vern Hughes
Sth Kingsville Health Services Co-operative
training needs. Tel: [phone] • Implementing an education and
Mr Dan McMullan
Differences between the Board and Management
In the second of a series of articles on • Accountability - reporting to Another major responsibility of the
Directors duties, Corrs Cambers and
members; ensuring statutory and Board is to facilitate communication
Westgarth explain the main
regulatory compliance; and within the Co-operative. As Boards
differences between the Board and
reviewing audit reports. generally meet once a month,
Management. directors cannot be expected to have
• Policy Formulation - guidelines
Board, management and members the same detailed knowledge of the
and criteria for decision making;
are responsible for running a Co- Co-operative as management.
boundaries; approving budgets,
operative. While all parts are integral
and creating a corporate culture. A manager is employed by the Board
to the harmonious operation of a Co-
to manage staff, implement Board
operative, the roles of each are • Strategic Analysis - helicopter policies and make the Co-operative
separate and distinct. A director must view; positioning, trends, and perform to expectations within these
understand the role of the Board. To opportunities; setting corporate policies. Management is not
do this properly, a director must also direction; initiating and reviewing responsible to the members for their
understand the role and province of strategic analysis. actions, the Board is. Directors must
management and members. therefore be aware of those actions.
• Supervision - setting and
Directors are elected to a political
reviewing management The main responsibilities of
position by the members to guide and
performance criteria; reviewing management are:
plan the present and future of the Co-
business results; monitoring
operative. They are also responsible • To manage and direct daily
budgetary control and undertaking
for implementation and results. If and business activities;
corrective measures, if warranted.
when adjustments to policy directions • Set goals and make short-range
are needed, a director needs not only The major difference between Board
plans;
to be totally aware of the Co- and Management is that a director
• Employ and discharge employees;
operatives internal position and must be able to take an objective view
performance, but also where it sits in of the Co-operative, to look at the Co- • Organise and co-ordinate internal
the world around it and what impact operative as a legal entity with a life of activities of subordinates.
that business world is going to have its own, separate from the members
The responsibilities of members are:
on policies and direction (Nobel:1). and managers. This is the helicopter
view. Managers must be focused on • To adopt and amend rules;
The role of the Board can be
summarised in four key areas: operational matters such as specific • Selection of directors
functions or divisions.

PPaaggee 22 Page 2
Co-operatives significant says Minister Plunkett By Post

Co-operatives play a significant role The dairy industry was also affected by Mail order books
in Victoria’s economy, the Minister
demographic changes and the loss of on a range of topics
for Agriculture, Bill McGrath, told
market share by the policies of the for anyone working with
the Federation’s AGM dinner. European Community. With new people centred enterprises.

The Minister referred to a recent markets in Asia, there are now 8,500
Over 100 titles to chose from
Business Review Weekly survey of dairy farmers producing 5.5 billion
including
the top 500 Australian corporations. litres of milk, 30% more than in 1972.
“Nine Victorian agricultural co- The Victorian dairy industry today is • Developing Directors of Co-operatives
operatives were listed,” he said. very successful, with $1 billion of dairy • Outside Non-Executive Directors
“These co-operatives are very exports, being the highest value • Co-operative and Community Group
significant, employing over 5500 Dynamics
commodity of all commodities going
and most are major exporters”. • Financing Women’s Enterprises
out of the Port of Melbourne.
“Co-operatives give farmers • Co-op - The People’s Business
purchasing and marketing power, What is driving the export success is • Co-operative Principles - Today &
two major co-operatives, Murray Tomorrow
and makes farms more viable and
Goulburn and Bonlac Foods, with a • Marketing For Co-operatives
competitive in the market place”.
contribution from Tatura Milk and • Women in Agricultural Co-operatives

“For co-operatives to meet the Warrnambool Cheese and Butter.
Telephone [phone]
challenges of the future, they must for a
The co-operatives have been very
have a clear commercial focus,
significant in the management and
innovation, service to members and
direction of the dairy industry because
processing the product supplied by
Reinventing
in many cases, while they have
members to an increasing world
professional management they also the
quality standard,” he said.
have a majority of dairy farmers on the
Co-operative
Edited version of the Ministers speech Board’s of the co-operatives.
by Edgar Parnell

The population shift from country Success depends on a group of Director, Plunkett Foundation
=
regions to Melbourne over the past people working together with common Enterprises for the
100 years effected many small ideals. In smaller co-operatives, the twenty first century
communities throughout Victoria.
directors are volunteers, and if they an essential guide for the

In my home town of Minyip, the local lose their enthusiasm, the co-operative co-operative of the future
store was the danger of closing. Its could be in jeopardy.
closure would almost have been the Reinventing - What and Why ~ Focusing
Members and directors should ensure the Enterprise ~ Leadership - The Critical
death knell of the town. A public
a degree of professionalism in the Factor ~ Rethinking the Basics ~ The
meeting formed a co-operative to run Process of Change ~ Members in Control
executive and within the Board, and
the store until a buyer was found. ~ Directing ~ Managing ~ Financing ~
have directors that are not only Corporate Governance ~ Public Policy ~
The co-operative played a key role in committed to the co-operative, but Repositioning ~ Developing new Co-ops
keeping a facility in the community, encourage members with energy to be $40 incl postage
and therefore ultimately was a very a future director. (cid:1)
key factor in the survival of Minyip. Call [phone] now for an order
Top Nine Victorian Co-operatives
Source: Business Review Weekly 31 July 1995
BRW Rank BRW Rank CO-OPERATIVE NET REVENUE EMPLOYEES INDUSTRY
1995 1994 Amount ($m) % Change
11 14 Bonlac Foods 960.0 13.5 2005 Manufacture - Dairy Food
18 18 Murray Goulburn 790.9 19.8 1400 Manufacture - Dairy Food
29 27 Vic Producers’ Co-op 498.0 16.3 313 Pastoral Agency
43 39 Pivot Limited 334.7 14.9 700 Manufacture - Fertiliser
141 155 Tatura Milk Products 123.7 17.2 229 Manufacture - Dairy Food
144 148 Ardmona Fruit 121.5 14.4 450 Manufacture - Food
267 240 Warrnambool Cheese 79.5 4.0 125 Manufacture - Dairy Food
374 370 Mildura Co-op Fruit 54.5 9.5 280 Wholesale Trade
386 350 Egg Industry Co-op 53.3 3.5 80 Wholesale Trade
Page 3
Your Federation at Work
News in brief
Community Co-ops Seminar Victorian Regulator-General
New members

The seminar, held on 22 September, was The Federation has accepted an
The Board of Directors welcomes the following
a great success with 72 directors and invitation to be on a working party of the
new members of the Federation:
members from 39 co-operatives Office of the Regulator-General, the
Green Lands Co-operative Ltd attending. The topics covered the role of agency overseeing the restructure of
Municipal Association of Victoria
the Board, planning, budgeting and Victoria’s electricity industry.
Co-operative Purchasing Scheme Ltd
financial reporting and member relations.
Southern Energy Co-operative Ltd The Office has expressed interest in co-

The Federation wishes to thank Corrs operatives to achieve savings for small
Bonlac commendation Chambers Westgarth, Common Equity electricity consumers. The Federation has
Housing Finance Ltd and the following offered to assist the Office in exploring
Bonlac Foods, the largest Australia producer members of the Federation for their options for electric co-operatives.
of dairy products, has received a assistance; Asia Pacific Co-operative
commendation in the Ernst & Young Large Income Tax Act to be simplified
Training Centre, Community Enterprise
Manufactures Award. The award follows
another successful year for the co-operative, Network Co-operative and Urban Camp The Federation is now on the mailing list
with net revenue rising by 13.5% to $960 (Melbourne) Co-operative. of the Tax Office to receive Exposure
million in the 94/95 financial year. Drafts on proposed changes to tax law.
Telephone Savings Scheme

The Australian Government is currently
New Plants for Dairy Co-ops The Federation has enlisted the expertise undertaking a project to simplify the
and buying power of Advanced Long income tax law. The project aims to
Australia’s largest co-operatives, Bonlac
Distance (ALD) Communications to rewrite the law with a better structure and
Foods and Murray Goulburn have
announced plans for new plants to meet the provide savings to members and their make it easier to understand.
growing demand for Australian dairy products members on business and residential
The Federation will be able to comment
in Asia. telephone calls and business line rentals.
on the Exposure Draft affecting co-
Bonlac plans to build a $150 million ALD Communications has a track record operatives and mutual societies.
processing plant at Darnum, near Warragul, with other industry associations, and
which will feature advanced processing provides discounts from both Optus and Co-operative education in schools
methods and environmentally sustainable Telecom. The scheme is available to
waste management techniques. The Federation is looking into the extent
financial members of the Federation and
of information on co-operatives in the
Murray Goulburn Co-operative has signed a their members.
State’s education system. Funds have
joint venture with two leading Japanese
For an application form, contact Tony Gill been set aside to produce co-operative
companies to build a $44 million plant in
Cobram. The plant will create 100 new jobs on [phone]. resources for schools, if needed.
and will provide raw materials for the
manufacture and export of infant formulas to

Asia. aç=óçì==ÑáåÇ==áí==Ü~êÇ==íç=ã~âÉ=íÜÉ===íáãÉ== Before your current insurances fall due, talk
íç==Çç==íÜÉ==`çJçé∞ë===Äççâë\= to
Support for electric co-ops = Bruce W ickett of
^êÉ=óçìê=Ñáå~åÅá~ä=êÉéçêíë=íç=óçìê=_ç~êÇ= Wickett Insurance Broking,
The Treasurer of Victoria, Alan Stockdale, has
áå~ÇÉèì~íÉ=çê=e^oa==íç==ìåÇÉêëí~åÇ\=
assured the Federation that the Government the Federation’s approved insurance broker
has no policy objections to the formation of
it is time that you contacted Specialising in:
electricity buying co-operatives.

The Federation sought clarification from The Community •Directors and officers liability insurance
Treasurer following remarks on co-operatives •Fidelity guarantee insurance
attributed to his spokesperson in a recent Enterprise Network •Public liability insurance
edition of Electricity Week.
Co-operative Ltd •Business and domestic insurances

A new Act of the Way? for all your accounting Suite 3/1051 High Street, Armadale, Victoria

The Minister for Agriculture has told members and planning needs.
at the Federation’s Annual Dinner that a new second

Co-operatives Act may be introduced into Telephone: [phone]
State Parliament next year. The Federation commonground

understands that work on the act will begin
summer school
of social change
Victorian Co-operative News Advertising Policy

The Board of the Federation has adopted an Workshops include:
Opinions expressed in the Victorian Co-operative News
do not necessarily reflect those of the Co-operative advertising policy for the News.
dealing with conflict creative
F P erodderuacteido nfo orf tVhiec Ctoor-iao pLetrda. tive Federation of Victoria Ltd MNoenm mbeerms boef rtsh es hFaeldl pearayt iaotn a w riallt eg edte ftreerem aindevde rftrisoimng . reloautirosneslvheisp s w i t hp ecrhsioldnraeln e m tpaokwinegr mcaernet o f
b y T o n y Gill, Langs Road, Blampied, Victoria tInim teh eto e tvimenet. of the number or size of advertisements burn out prevention skills for admin
Printed by Ballarat Community Education Centre Co-op. exceeding space available, precedence will be given workers group facilitation skills and
to members advertisements. many more
Co-operative Federation of Victoria Ltd
The editor will have the discretion on the size of
RMB 1282, Blampied, Victoria 3364 advertisements, taking into account editorial space. Contact Commonground Co-operative for
Telephone: [phone] booklet on 20 workshops on offer
For advertising enquires, call [phone]
Facsimile: [phone]
Telephone: [phone]
Page 4