Hon Deputy Speaker, hon members, colleagues and compatriots, today, in this International Year of Co-operatives, we debate and consider the Co-operatives Amendment Bill [B 17B-2012]. This is one of the most important pieces of legislation this House has seen.
Yes, co-operatives can drive sustainable job creation where it is most needed; yes, co-operatives can expand the local economy; and yes, believe it or not, and I am sorry the Minister of Finance is not here, co- operatives can contribute significantly to the gross domestic product.
This democratic developmental institution harnesses the commitment and energies of its members for economic self-development. Cooperatives in both developed and developing countries have been used to overcome the twin scourges of unemployment and poverty. They target the youth, women and, particularly, the rural areas.
Hence, the purpose of this legislation is to support and promote the development and effective functioning of co-operatives as a unique business form. It is a business form that is determined to reduce poverty. It is determined to create jobs. It is also determined to be self-sufficient and work within the community.
The Bill therefore aims to enhance the developmental character of cooperative legislation by reducing the regulatory burden for co- operatives. At the same time, though, it enhances compliance, co- ordination, administration and sustainability of the co-operatives.
The committee questioned the department at length in this area and was satisfied that they were going to establish, if they had not done so already, the support structures that would not develop dependency but rather independence.
The Bill introduces additional regulations for the co-operative sector in order to encourage growth. As you know, they've had a poor track record, in the main because of two structures that the hon Mabasa, my compatriot, will be unpacking for us. They are the tribunal and the developmental agency.
One of the main characteristics of the new co-operatives and the Co- operatives Amendment Bill are the seven socioeconomic founding principles. These principles are there to establish a robust legislative architecture. They are not in a preamble. They are not in the memorandum alone. They are an intrinsic part of this Bill. So, you can't get away from them.
The leadership role of the Department of Trade and Industry, DTI, is evident in the decision to facilitate effective co-ordination and supervision, as well as reporting, by respective co-operatives to bring about good governance. I'll just list these seven principles, which are also available in the Announcements, Tablings and Committee Reports, ATC, for members to read and study.
The first one is voluntary and open membership. This is the sort of membership you can't buy your way into. Your pocket book or your credit card won't get you in here. There is democratic member control here. There's no domination by anyone because they have a bigger cheque book than you have.
Furthermore, elected representatives, we know, must be accountable and transparent.
We also all know about the issue of proxies - a proxy for this, a proxy for that. You don't even know who the new member is - let's hope that's not happening here in Parliament! [Laughter.] This Bill discourages all of that. It provides that if you want a proxy, you shouldn't pick up your cellphone to arrange it, but put it in writing. Not only should you put it in writing, but you should specify the decision you want that proxy to take. We all know what proxies do when they are in a booth - they do what they like! [Laughter.]
There's also member economic participation. As I've said, they are self- help institutions and not dependency institutions. There is a whole list of them, including clauses, but there are also autonomy and independence. There are many prohibitions with respect to what one would in the Companies Act call a King contract or governance, etc. In the co-operatives what we do ensure in the legislation is that you cannot accept any commission or remuneration because you learn of certain things in your position as a director or member.
Another vulnerable area, and the reason why some of the co-operatives have failed in the past, is the lack of education, training and information.
Again, there is the need to co-operate among co-operatives. As I said earlier, co-operatives are there to develop the individual, to develop the potential, to develop the local economy through concern for the community and, of course, to develop the GDP.
The principle behind the co-operative movement is to pool the financial and other resources of members. There's no such thing as sleeping partners. You get in there with your hands and you work! So, none of this sleeping! This is facilitated by focusing on the strengthening of the co-operative movement, corporate governance and access to markets, and on marketing efficiency.
The co-operatives are democratic. Do you remember that when we learnt about democracy, it was said they were run by the members for the members? That's the real sign of democracy. It's one of the few business institutions, if any, where this is seen. I know that not even the monasteries run in this democratic fashion ... [Laughter.] ... but the co-operatives do! [Interjections.] Yes, that's right.
With respect to intergovernmental relations I must agree with the Minister. For the first time we get the concretising of co-operative governance.