Politics for People

The Co-operative Party today called on the Government to act decisively on the future of Northern Rock and announce that it would put the bank on the road towards re-mutualisation. Reports in today's Guardian suggest there is high-level Government support for this approach.

The Party has led the push for re-mutualisation for several months through its The Feeling's Mutual campaign, backed by organisations like Unite the Union and Progress. We are saying the Government would make a grave mistake if it missed this once-in-a-lifetime opportunity to put right one of the major economic disasters of our time.

General Secretary Michael Stephenson said:

Today's news from the European Commission is good news for Northern Rock. But if we want a financial institution that serves our needs as consumers rather than the greed of bankers - the Government must not be swayed by a quick fire-sale, but instead return Northern Rock to the sector from where it came.

As an independent report from the University of Oxford has shown, mutual ownership is the best solution for ensuring a stable long-term future for the bank and ensuring that the risk taken by taxpayers will deliver for consumers. We cannot miss this opportunity to learn from the mistakes of the past.

Labels: building societies, Northern Rock, The Feeling's Mutual

The Co-operative Party today became the first Labour Party affiliate to announce their backing for a candidate in the Welsh Labour leadership race, when the Wales Council officially endorsed Huw Lewis AM. The Co-operative Party is the largest non-trade union affiliate organisation in the electoral college.

Huw has been member of the Co-operative Party Group in the Assembly since 1999 and has made co-operative values a key feature of his 'Lewis For Labour' campaign.

Speaking outside Craft in the Bay, a Cardiff-based co-operative, Huw Lewis said:

"This endorsement means a huge amount to me and is a real boost for the campaign. Over the weekend, I said it was time for the tittle tattle to be replaced by the battle of ideas – there is no greater generator of ideas in Welsh politics than the Co-operative Party. Whether it be on housing, energy generation, agriculture, finance or football – co-operative values are underpinning some of the most successful enterprises in Wales."



Messages of support came from Alun Michael MP – a prominent voice inside the co-operative movement in Wales – and Karen Wilkie, the Deputy General Secretary of the Co-operative Party. In a video message of support, Alun Michael MP – the Welsh rep on the Co-operative Party's National Executive said:

"This leadership election is an enormously important opportunity for members of the Labour Party in Wales to discuss ideas and to make it clear that we are the party that still has vision for the future of the people of Wales. I believe the best way of getting that message across is to have a really strong debate about principles, about values and about how to put them in to practise, given the enormous challenges we now face.

"I’m delighted that over recent months Huw has been putting forward ideas about how the Co-operative ideal and co-operative principles can really make a difference to people’s lives in Wales – particularly in relation to issues like social housing.

"People in the media still regard co-operative ideas as a bit odd and a bit challenging. Actually we’ve got a track record for over 150 years of success and the co-operative idea is very much the idea for the 21st Century. That is what Huw has put across. That is what will make this leadership election an exciting opportunity. Indeed it is an opportunity to reach out to those who are perhaps reluctant, give the noise from the media, to engage directly with the Labour Party, that the Co-operative message is one they can support and engage with. Young people understand that, Huw is putting that message across and I congratulate him on the way he has launched his campaign."

Karen Wilkie, the Wales-based Deputy General Secretary of the Co-operative Party said:

"Although the list of candidates to replace Rhodri is strong, only Huw has shown that he really understands co-operative values. Crucially, he has also shown a commitment to implementing co-operative policies. This recession has shown us the value of putting people before profit, with the Co-op bank, credit unions and building societies largely coming through the banking crisis unscathed. Now is the time for Labour to truly embrace the ideas being offered by its sister party – Huw has the ambition, intelligence and leadership skills to make that happen."

Labels: Huw Lewis, Labour Party, Wales

The Co-operative Party has called on the Government to act decisively on an independent report from the University of Oxford urging Northern Rock and other failed former building societies to be returned to the mutual sector. In a packed set of fringes at last week's Labour Party Conference, the Party, Members of Parliament and figures from the financial sector led calls for re-mutualisation.

The Party, which has led the push for re-mutualisation for several months through our The Feeling's Mutual campaign, says the Government would make a grave mistake if it missed this once-in-a-lifetime opportunity to put right one of the major economic disasters of our time.

General Secretary Michael Stephenson said: "All of the former building societies that were encouraged to become banks under the previous Tory Government have gone under or been swallowed up by other banks. Northern Rock is being propped up by the taxpayer to the tune of hundreds of millions of pounds. This report shows there is a way to return it to the mutual sector where it belongs and give taxpayers back the money they have put in to keep it alive.

"The Government must not be swayed by a quick fire-sale. It is time to end the culture of bonuses for greedy banks and return them to the people. This report shows conclusively that the best deal for taxpayers is re-mutualisation of Northern Rock and a prudent long term repayment plan."

As the Observer reported at the weekend, the Government are giving serious consideration to the report and its findings.

So, in the past few days, we have seen mutuals supported by ministers, MPs and trade unions. And, over on the BBC, Robert Peston too joined the love-in: "In a world where capital requirements have gone through the roof, shouldn't we all just club together to form mutuals - so that the price of servicing all that additional capital is distributed between lenders and borrowers, rather than transferred to outside shareholders? Just a thought."

Nuff said.

Labels: building societies, The Feeling's Mutual

The Conservatives have today announced that they intend to rush through a return of the failed banks to the private sector, with a priority given to raising cash, not remodelling our economy into a fairer and safer system. The Co-operative Party said today that the Tories' announcement of a hasty sale of shares in the nationalised banks would be a grave error that would punish ordinary taxpayers.

General Secretary Michael Stephenson said "Thatcher-style privatisations don't give ordinary people a say in how their banks are run. They just concentrate power in the hands of a few wealthy investors, exactly the people who who got us into the credit crunch in the first place. George Osborne's plan would be as disastrous as the Thatcher Government's legislation that encouraged the former building societies to de-mutualise.

"The answer is to mutualise the failed banks. Mutual bodies, like building societies, put customers in control because they are run by and for their members, not for shareholder profit. The last Conservative Government did enormous damage to our economy when they encouraged building societies to de-mutualise. Not one of those new banks survived in its own right and some had to baled out by the taxpayer. The Tories want to make the same mistake again."

Join our campaign at www.thefeelingsmutual.org.uk

Labels: Conservatives, Northern Rock, The Feeling's Mutual

Word reaches us that the new National Youth Committee of the Co-operative Party has been elected by young members in their regions. The NYC oversees Co-operative Party Youth and is chaired by Kiran Mahil, the Youth NEC Member.

London: Luciana Berger @lucianaberger
Northern Ireland: Donal Lyons @DonalLyons
Yorkshire & the Humber: Emma Hoddinott @Emma_Hoddinott
West Midlands: Lucy Seymour-Smith
East Midlands: Jamie McMahon
East of England: Paul Schroder
North West: Kevin Peel @KevPeel
South West: Helen Eassom
North East: Joe Anderson @computerjoe
South East: David Taylor @DavidTaylor85
Wales: Ian Ross

Scotland's election has not been completed and will be announced soon.

Congratulations to the new committee who will serve for two years.

15.16 UPDATED with Twitter accounts

Labels: Co-op Party Youth, elections

Labels: health

The financial mutual sector in France holds 80% of the retail market. French banking has weathered the storm better than other European markets - perhaps not unrelated to mutuality - but it has not been immune. Today's Financial Times has a story on how the French government is supporting the mutual sector, without any hint of weakening their member-owned structure.

Labels: financial mutuals, Financial Times, France

Excellent news from Manchester today: Ed Mayo, champion of consumers and international development, has been named as the new Chief Executive of Co-operatives UK, the trade association for co-ops. Ed is replacing Dame Pauline Green, who is retiring in the Autumn.

Ed is incredibly well suited to the role. Having worked for the World Development Movement, organised Jubilee 2000 and helped to found the Fairtrade Mark, he has a long-standing commitment to international issues and trade justice. As head of the New Economics Foundation for almost a decade, Ed pioneered exciting new forms of economic organisation and public engagement and championed the co-operative movement. In his current role as Chief Executive of Consumer Focus, he speaks up for consumers and has worked closely with Gareth Thomas MP, Co-operative Party chair, in his recent role as consumer affairs minister.

International development, Fairtrade, new economics, consumer protection - key elements of the co-operative movement. We're really pleased for Ed and look forward to working with him in the years to come.

And it's testament to the transformation of the co-operative movement that Dame Pauline has overseen over the last decade that the role has attracted someone of such calibre. We wish Pauline a happy retirement.

Labels: Co-operatives UK, Ed Mayo, jobs, Pauline Green