Co-operatives: why not in all sectors of the economy?

Submitted by Bill Kerry on 16 February 2010

It is pleasing yet baffling that the Conservatives wish to promote the use of co-operatives in the public sector. Pleasing because it recognises the economic and social benefits co-operatives can bring to employees and service-users alike - baffling because nothing was said about promoting them in the private sector. I cannot see that co-operation is a divisible principle - if its superiority is conceded in one sector of the economy why not in all sectors?

I sincerely hope this is the Conservatives "toe-dipping" into new and progressive policy areas and, if so, that is to be welcomed. However, if it is more about a circuitous route to reduce levels of pay and conditions in the public sector, justified by warm sounding sound words such as "autonomy", "empowerment" and "choice", then it will be a massive missed opportunity. One key point to focus on will be whether the new public sector co-operatives have an effective asset-lock that prevents onward sale to private interests. The trade unions are already suspicious that this initiative is purely ideological and is really about the break up of the public sector.

The Equality Trust calls on all political parties to develop policies to extend all forms of economic democracy including mutuals, co-operatives and employee-owned businesses throughout our society. We need to transform our competitive economy into a co-operative economy. 
 

If we place our economic activity under the democratic control of the people who work in, use, or are affected by the institutions, companies and organisations that make up our economic and social life we can tackle, at source, the gross pay disparities that fuel the UK’s huge gap between rich and poor. By doing so we will be tackling the social and environmental problems that face us all in a truly fundamental and deep-rooted manner - one that goes far beyond timid and easily reversible government policies based on traditional tax and spend. 

The Conservative proposals may be limited and leave many questions open but it is now up to the other parties to respond with far-reaching policies of their own rather than with ritual denunciations.