Co-op takeover: Our Party’s ideas are more vital than ever

By Gareth Thomas MP

The Co-operative Party truly has gone from strength to strength in recent years. Our membership is increasing; our parliamentary representation remains very strong (29 Labour Co-operative MPs) and our policies are resonating – more than twenty five were included in the 2010 Labour manifesto. We even have a great new website.

The reasons for this success are multiple but, crucially, our ideas are more vital than ever. As chair of the Co-operative Party, I would like to set out our case and encourage you to join our movement.

Economic recovery can only be built on a new way of doing business, one that recognises that the interests of people should trump the interests of pure profit. As the co-operative and mutual movement remains resilient to the wider economic situation, for example the Co-operative Group and John Lewis have seen great success in recent years; we must recognise that successful businesses can also be good businesses.

If there was one clear lesson from the financial crisis, it was that constraints must be placed on individual greed. Whilst some of the answer to this crisis comes from the state, our movement offers a tried and tested practical solution – co-operative ownership. Financial mutuals – such as building societies – were much more resilient through the financial crisis than shareholder owned banks. We need an economy in all our interests, built on mutuality, not one that privileges the few at the expense of the rest.

It is not just a financial crisis that we face though. We are also facing an onslaught from a regressive government who slyly use our language of co-operation in a bare-faced attempt to soften their image. The Coalition is cutting faster and deeper than Thatcher ever dreamed, whilst whispering sweet-nothings about the value of co-operatives.

We must ensure that the public recognise that the Tories and Lib Dems are no friends of the co-operative movement. We must reclaim our language and use the opportunity of opposition to put forward our ideas to strengthen society.

The Tory-led government’s lack of commitment to mutuality has been shown by their approach to Northern Rock, the state owned bank. The government have not properly considered the Co-operative Party’s proposals for customer-led ownership of the bank, which would also raise significant amounts for taxpayers over the long term. The advantage of our model is that it helps bring stability to financial services, reducing the chances of a future taxpayer funded bailout. We are petitioning George Osborne to halt the sale here.

It is not just the future of Northern Rock that has shown the true colours of the Coalition on co-operatives. The fantastic initiative of co-operative trust schools, championed by our very own Co-operative MP and now Shadow Chancellor, has been attacked by the Tory education Secretary.

Schools that wanted to become co-operative trusts were traditionally funded to the tune of £5000 to help with the process and thanks to this commitment from Labour Co-operative Ministers, there are now over 100 such co-operative schools. Given the success of that programme, it is very disappointing that the Coalition has cut that funding and is instead pursuing a school programme that advantages wealthy areas and may encourage carpetbaggers, in just the same way as the Tories did with the demutualised building societies.

Other betrayals, from the failure to mutualise British Waterways to the Department of International Development’s reversal of funding commitments to co-operatives in Africa, show the reality of Tory and Lib Dem views on co-operation. The Coalition’s record on co-operatives: warm words, but no action.

Whilst the Coalition’s attack on parts of our movement is cause for concern, I am confident in the strength of the Co-operative Party to meet the challenge. This weekend, we are launching our London manifesto for the 2012 Mayor and Assembly elections. We have many valuable ideas to contribute; ideas that will benefit Londoners and help relieve the crisis in the cost of living. No doubt you will read about many of these ideas on these pages over the next few days.

At a time when the co-operative movement has little real support from the government and the British people are being squeezed by draconian spending cuts, the Co-operative Party must stand up for people power. Our ideas are more vital than ever.