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Maleny cooperatives:
Examples of small-scalecooperative enterprises
Maleny is situated 100 kilometrers north of Brisbane on the Sunshine CoastHinterland. It is surrounded by lush tropical vegitation, has stunning views of theGlass House Mountains, and overlooks the Pacific Ocean. It has a population of over7,000 people.Maleny has a long history of cooperative enterprise. On the 3rd May 1903, settlersstarted the first dairy cooperative in the region, the Maleny Cooperative DairyAssociation. During its lifetime, it built 3 butter factories. In the 1940's, thecommunity got together to build the Maleny Under 5's Centre Kindergarten in oneweekend.Today Maleny has 17 cooperatives which work in all areas of community life. Thesecooperatives include: a consumers' coop, a cooperative bank, a cooperative club, aworkers' coop, a cashless trading coop, a cooperative radio station, a cooperative filmsociety, 4 environmental coops, and several community settlement coops. All but 3 of these coops are legally incorporated.
What Is a Cooperative?
Cooperatives are formed when a group of like-minded individuals join together toaccomplish something that each acting alone would never be able to achieve.Successful coops are always born out of need. They cannot be imposed on acommunity -- they have to grow from the energy and commitment of the localpeople themselves.Coops are different to traditional private and public sector enterprises. Theyrepresent a third way that integrates economic and social objectives. Unlike theprivate sector, which tends to concentrate wealth and power in the hands of a few,coops spread wealth and power to each member equally. Unlike government, whichtends to be remote and unresponsive to the communities it is supposed to serve,coops are driven by their members and reflect their needs.Cooperatives have a tremendous competitive advantage over both privateenterprises and public enterprises: coop members have a personal interest in theircoop's success. The members own the coop, so they are more likely to buy thecoop's goods or use its services. Shares in cooperatives are not publically tradedbecause the shares are owned by the members. The members themselves decidehow to spend the coop's profits.
Maple Street Cooperative
Maple Street Cooperative opened its doors on January 14th 1980, nearly a year aftera small group of people met to discuss how to satisfy their need for whole-foods. Thecoop started by selling both whole-foods and produce grown by local farmers. TodayMaple Street Coop operates an organic health food retail outlet in the main street of Maleny, is open 7 days a week, and has 450 active members. Although it functionsas a consumers' cooperative, it still sells to the public.
 
The coop's policy is organic first, then local, then Australian. It does not stock anyproducts that contain genetically modified material, nor does it stock products fromcompanies that are regarded as exploiting people or the environment. It operates onthe principle of consensus decision making.For the last 6 years, the coop has made a profit. However, the coop is structured as anon-profit enterprise, meaning that the profits go back into the coop, to expand itsservices and develop its infrastructure, or into community activities.At first labour in the coop was voluntary, but as the coop prospered, the number of paid workers slowly increased. Today the coop employs 11 part time staff and onefull time manager. In the near future it will have paid off all its loans and own thecoop premises.The coop publishes a 16 page bimonthly newsletter that outlines current activitiesand brings information to members on subjects that are of special interest, such asthe irradiation of food, genetic engineering, and microwave emissions. It produces1,400 copies.The coop is registered as a trading coop. Active members are required to pay anannual membership fee of $11 and to spend at least $20 per year in the coop toretain their active membership status. Active members get a 5% discount off allpurchases.During its 22 years of operation, it has overcome several major hurdles. Onoccasions in the past, it had no business plan, operated at a loss, made poorinvestment decisions, lacked experienced financial management, and had to spend alot of time resolving differences of opinion among the members.Learning from experience, the coop gradually evolved a formulae for success. It nowhas a sound strategic and financial plan, regularly makes a profit, cultivates thesupport of both the members and the community at large, and ensures that the staff and management are honest, dedicated and competent.
Maleny Credit Union
The Maleny Credit Union was started in 1984 by several local people with the idea of setting up an ethical financial institution to foster regional financial autonomy.Initially the Credit Union was staffed by volunteers, worked from rented rooms, andentered deposits manually into a journal. On the first day of operations, local peopledeposited more than $50,000.Today the Credit Union has grown to have more than 6000 members, 14 paid staff,and $15 million in assets, and has purchased its own premises. People from all overAustralia invest their money with the Credit Union, and about half the Credit Union'sdeposits come from outside Maleny. It is one of only a handful of financial institutionsin the country that operate according to cooperative principles.The Credit Union offers savings, cheque, loans, and term deposit accounts, as well ascredit card facilities, and can arrange superannuation and various types of insurancefor members. In addition, the Credit Union contributes substantially to the localcommunity and leads its development.
 
Over the years the Credit Union has given out many small loans to local people whowould not be eligible for loans from the major banks. This has helped many peoplebuy land, build their own home, and start their own business. In dollar terms, 80%of the Credit Union's loans are housing loans.The Credit Union's ethical activities include:* allocating 10% of its profits to its Community Grants Scheme,* establishing a tax-deductible Charitable Fund,* paying an eco-tax to Barung Landcare based on every ream of paper used,* offering low fees to members and special arrangements to cooperatives andcommunity groups,* lending only to local people and projects to keep money circulating within theregion,* purchasing locally wherever possible,* providing loans for environmentally and socially beneficial projects,* creating a democratic workplace, and* conducting an annual social, environmental and financial audit of the coopsoperations and accounting in the annual report.During the course of the last year, grants from the Credit Union's Community GrantsScheme went to the Maleny Swimming Club, River School, Altair Youth Crisis Centre,Maleny High School, Sunshine Coast Environment Council, Maleny CommunityCentre, Booroobin School, and the Rural Fire Brigade.By the end of 2001, the Credit Union had provided finance for over 180 new jobs in78 new businesses. Since its was established, it has reinvested over $50 million backinto the local community.Like the Maple Street Coop, in its early years the Credit Union went through periodsof difficulty. However, improved planning and financial management overcame theseproblems. Today the Credit Union is extremely successful, principally because itdeveloped the right balance of financial expertise and cooperative spirit.
The Up Front Club
Late in 1993, a diverse group of Maleny residents got together to form a cooperativeclub. The aim was to establish a licensed venue to eat, drink, relax and socialize.Today it is a place where the food is wholesome and inexpensive, the coffee is great,and local musicians and entertainers can gain exposure.When the Club first started, instead of relying on voluntary labour it took on thefinancial challenge of paying wages to all its workers. But because it was under-capitalized, it was forced to take out a loan to pay for the lease. Although it had over1,000 members, each year it sustained a loss. At the beginning of 2000, threedirectors took over the voluntary management of the Club, enabling it to remain inexistence.Then, on the 15th January 2000, the Club turned a corner. Over 100 membersattended a special general meeting, talked of what the Club meant to them, andcommitted to regular voluntary work so that it could stay open. Since then, membersand visitors alike have commented on the changed atmosphere in the Club. Thefinancial position has improved markedly, and for the first time the Club has posted
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