New Zealand General Election November 2011
What do our political parties think of cooperatives and mutuals?
The Cooperatives Association posed the following questions to the principal political parties in the run-up to the November 2011 election. Answers to our questions from those parties which did respond can be found below.
- Larger cooperatives are often made up of smaller family businesses which are sizeable. Because they run a family business, the owners consider the detail of their businesses to be very personal. In past years there have been two attempts by MED to force these family businesses to publicly disclose their trading activity. Given that private information is personal property and so compulsory filing would be theft, do you believe this is a good or bad idea, and why?
ACT Party – ACT believes that current laws surrounding filing requirements for businesses are adequate, and does not support expanding them.
Green Party – Of course a balance must be struck between personal privacy and transparency. If we do not have good transparency rules around business disclosure we create uncertainty for investors and compound our lack of private savings and investment (outside of the property market) by making it harder for people to invest wisely. A cooperative doesn’t face these problems to the same extent. While it is still important for transparency and disclosure to members of the co-op and this is something we would support, full publicity of family businesses should not be a requirement.
Labour Party – This question raises concerns about how individual members of a cooperative could be forced to disclose to their competitor considerably more information than their competitor would have to disclose to them. For example an individual supermarket as a cooperative could be placed in a position of disclosing details of all of their individual financial information whereas a competing supermarket as part of a national chain would not have to do so. Naturally we would want to ensure that people were on a level playing field as far as disclosure goes. We are happy to talk to the New Zealand Cooperative Association about this issue.
Mana – Mana does not have enough knowledge of the details of this to be able to comment at this stage.
Maori Party – No response received.
National Party – We understand there were concerns over this and that is why it was decided to not introduce a filing requirement for larger non-issuer companies. This decision included cooperative companies. The concern was that such a filing requirement would, in some cases, reveal commercially confidential information and that there were also privacy issues in relation to closely held companies, especially family businesses.
New Zealand First – Providing these businesses are complying with the present law this is unnecessary bucreaucracy.
United Future – No response received.
- The UN International Year of Cooperatives 2012 is about to be celebrated in New Zealand. In terms both of a financial commitment and in assisting the New Zealand Cooperatives Association to showcase this important business event to the world, what would your party in Government be prepared to offer as a support package?
ACT Party – We don't see a strong case for government financial assistance for industry events of this kind.
Green Party – Supporting and encouraging cooperatives, credit unions and community banks is a key part of our community development policy. As an independent party we aim to work constructively with the government of the day to improve their legislative programme and enact as much of our policy as we are able to. Given this constraints it is hard to propose an exact support package, however hosting of the events at Parliament and research into contribution of cooperatives and mutuals to New Zealand would be a good start.
Labour Party – This provides an ideal opportunity to showcase New Zealand cooperatives and we would examine what support government can give and how we can make the most of this opportunity.
Mana – Mana is committed to supporting the principles and practice of cooperatives and mutuality, and believes Government should provide some support to the Cooperatives Association to enable it to make a valuable input locally and internationally in the 2012 UN Year of Cooperatives.
National Party – We understand that the Ministry of Economic Development has been in communication with the New Zealand Cooperatives Association regarding the UN International Year of Cooperatives 2012, and how the Government can assist the association in observing the Year of Cooperatives.
New Zealand First – Would prefer the Cooperatives Association to make a case for support.
- It is very noticeable that cooperative businesses did not fail during the recent recession. One — AMI Insurance — required and paid for a government guarantee, although not a single dollar has been drawn down. In light of this, does your party see the value in promoting the more stable cooperative and mutual business model, and if not why not?
ACT Party – ACT believes in competition and personal choice. We are comfortable with the cooperative model, but prefer to leave the choice of what model to work with to those directly involved. It should also be noted that, although AMI has not yet drawn down on its government guarantee, there is a significant chance that they will need to do so in the near future.
Green Party – Yes.
Labour Party – Yes, there is merit in the cooperative model. Cooperatives form some of the most innovative and dynamic businesses in the New Zealand economy, and we remain committed to providing an environment that supports their growth.
Mana – Yes, Mana supports Government playing an enabling role in backing the maintenance and development of cooperatives and mutuals in Aotearoa.
National Party – We recognise the contribution of cooperatives to the New Zealand economy. We believe an environment already exists that allows for cooperatives to be formed and prosper.
New Zealand First – NZ has a long history of stable cooperatives which should be encouraged.
- It is a sad fact that those involved in the governance and administration of cooperatives have reported to the Association that in many cases both Government and professional bodies aligned to business show a marked lack of awareness of cooperative and mutual enterprise, tending to dismiss the model as inferior when in fact worldwide evidence proves the contrary. What specific action can your party take to assist the New Zealand Cooperatives Association rectify this anomalous situation, particularly within Government departments and agencies?
ACT Party – ACT believes that all organisations and businesses should be treated with the same respect by government and its agencies. Government agencies and staff that work in the area should be well briefed about the nature of cooperative organisations.
Green Party – While we have limited ability to affect change within profession organisations, the culture of government departments and agencies is something that we could influence if we were a part of government. Even should we remain outside of government if there are specific instances of problems dealing with government departments or agencies your membership should feel welcome to contact their local Green MP and we will do what we can to address the situation.
Labour Party – This comes up most significantly within the Commerce portfolio and we would be more than happy to commit to the Minister of Commerce having a regular roundtable, three times a year, with key officials and to bring in other Ministers and their officials on an identified need basis when we are in government.
Mana – Mana is very stretched at the moment, with just one Member of Parliament. Should Mana return to the next Parliament with wider representation, I am sure we will be keen to work with the Cooperatives Association on ways to improve the political, legal and financial position for cooperatives and mutuals, including through raising consciousness of their worth within Government departments.
National Party – We are committed to ongoing engagement with your organisation and will continue to seek feedback on policies and regulations which affect small businesses through the Small Business Advisory Group and similar forums.
New Zealand First – Educate all arms of government including its agencies on the social history of cooperatives.
- Does your party see Government as having a role to play in developing successful businesses in New Zealand, or do you see that function as being outside the responsibilities of a Government? What kind of support would your party be prepared to offer those wishing to start a cooperative or mutual enterprise?
ACT Party – ACT believes that the Government's responsibility is to create an economic environment in which businesses can thrive. We support lowering taxes, reducing regulation and compliance costs and reducing the size of government so the private sector can grow and new business can start up. We believe such an environment would make it easier for everyone to start their own business, including those wanting to start a cooperative or a mutual.
Green Party –Excluding state owned enterprises Government’s role is to create a good environment such that successful sustainable businesses can develop and flourish. Part of developing a good environment could be to create funding and support mechanisms for start-up cooperatives or mutual enterprises. This would most likely be in the form of beneficial economic policy as opposed to grants.
Labour Party – We see government’s role as establishing the environment within which businesses can get established and can grow to their fullest potential. We believe government has a role in ensuring that people establishing businesses have access to the best quality of advice, support and training. We conducted the Quality Regulation Review in government and intend to pick that up where we left off – this means a focus on quality regulation that is fit for purpose and proportionate in terms of its impact. This will improve the business environment for all businesses. We will announce our policies designed to assist high growth potential companies (of any business model category) closer to the election
Mana – Mana’s policy currently states that we would like to improve access to grants and loan funding and facilitate an enabling legal environment for the development of community owned enterprises, cooperatives and ethical and community run finance and banking initiatives, We also support the establishment of a genuine community-owned banking network which could help support the development of community enterprises and cooperatives.
National Party – The National-led Government has taken a number of steps to help businesses of all sizes grow and prosper. We have introduced the biggest reform of the tax system in 25 years. We have tilted the economy in favour of productive investment, savings, and exports, and away from consumption, borrowing, and unsustainable government spending. This included reducing the company tax rate from 30 to 28 cents in the dollar, making it internationally competitive.
When we entered office, ACC was in crisis and making record losses. A boost in rehabilitation rates and better management of costs has been the major reasons for the turnaround. ACC is now on target to be fully funded. As a result, ACC is proposing levy reductions that will put half a billion dollars a year back into the New Zealand economy and contrinbute towards keeping the cost of living down. These levy reductions are good news for New Zealand businesses, significantly improving their cashflow.
We’ve taken steps to cut the unnecessary red tape which stands in the way of small businesses. And we’ll continue to use technology to improve the way government communicates with small businesses.
New Zealand First – Of course. Government has a role in encouragement, not ideological neglect or obstruction.
- If a seminar were to be arranged in Wellington by the New Zealand Cooperatives Association specifically for MPs would your party see value in this and send the relevant spokespeople?
ACT Party – ACT welcomes all opportunities to speak to community and business groups. We consider all invitations when we receive them and try to send an MP along, subject to availability.
Green Party – Yes.
Labour Party – Yes, both the Commerce and Consumer Affairs spokesperson would attend, subject of course to timing, but we would see it as a priority.
Mana – Yes, we would see value in such a seminar, and – circumstances permitting – would send our relevant spokesperson/people.
National Party – We are always open to invitations to meet with stakeholders, but obviously attendance will ultimately be subject to availability.
New Zealand First – Yes.
- Does your party believe that there is an increasing role for cooperatives in the Pacific Islands for which New Zealand has varying levels of responsibility? If so would your party consider involving the New Zealand Cooperatives Association in the regular discussions which are held with these island countries, the purpose being to assist them with good governance, promote goodwill and further our trade opportunities?
ACT Party – ACT believes that New Zealand, and in particular our Ministry of Foreign Affairs, does have an important role to play in the development of the Pacific Islands. ACT doesn’t believe it is our role to comment as to whether more cooperatives specifically help the development of island nations. In general, we believe that increased trade, better education and good governance are some of the keys to development.
Green Party – Yes, yes.
Labour Party – We agree there is likely to be a role for building, encouraging and supporting cooperatives in the Pacific islands in order to assist with the development of sustainable trading enterprises in particular. There could easily be a supportive role for the New Zealand Cooperatives Association there.
Cooperatives are an integral part of our economic landscape, however in order to meet today’s challenges co-operatives need to be able to expand internationally and to further develop their ability to export. This needs to be balanced with the need to maintain their special ownership structure and characteristics
Mana – Yes, Mana does see an increasing role for cooperatives in the Pacific Islands, and would support involving NZCA in developmental work there.
National Party – We will continue to engage with organisations and businesses to promote trade opportunity in the Pacific Islands.
New Zealand First – Cooperatives have an affinity with Pacific cultures with examples of success in many Island States. NZ Aid should have a role in assisting best business cooperative practice.
