co-operatives policy and bill
DESCRIPTION
CO-OPERATIVES POLICY AND BILL. By: Nweti Maluleke. TABLE OF CONTENTS. Problem statement The Co-operatives Policy The Co-operatives Bill Policy instruments to Support Objectives. PROBLEM STATEMENT. - PowerPoint PPT PresentationTRANSCRIPT
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CO-OPERATIVES CO-OPERATIVES POLICY AND BILLPOLICY AND BILL
By: Nweti Maluleke
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TABLE OF CONTENTSTABLE OF CONTENTS
1. Problem statement
2. The Co-operatives Policy
3. The Co-operatives Bill
4. Policy instruments to Support Objectives
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• Co-operative development and promotion has for a long time focused in the agricultural sector.
• Development progressed rapidly due to the 1981 Co-operatives Act support and government subsidies.
• The support enjoyed resulted in the development of a large commercial agricultural co-operative sector.
PROBLEM STATEMENTPROBLEM STATEMENT
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PROBLEM STATEMENT CONT.
• co-existence of a dual co-operative sector with highly developed white-owned co-operatives and weak black-owned co-operatives.
• The 1981 Co-operatives Act still caters for registration of Agricultural co-operatives
• Agricultural sector Still provided with formal support and other incentives
• Emerging, majority blacks lacks formal support, operate outside of the Act
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Cont.
• The need to review 1981 co-operatives Act came due to a need to:
– Provide an enabling environment for all co-operative enterprises in all sectors of the economy to flourish
– Diversify growth of all enterprise types to contribute to economic growth
– Provide simpler registration processes
– Ensure accessibility to the grassroots through decentralization of registration
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Cont.
• Co-operatives as effective vehicles for broad-based empowerment
• emerging Black cooperative enterprises compete successfully on a national and global scale.
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THE NEW CO-OPERATIVES POLICYTHE NEW CO-OPERATIVES POLICY
• new policy outlines government’s broad guideline to develop and support co-operatives
• outlines the government’s approach to defining the co-operative enterprises as well as the policy instruments that will be utilized to achieve the objectives
• policy statement deals with an important variant of economic enterprise, namely co-operatives
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Policy cont.
• promotes the development of economic enterprises and diversifies the ownership, size and geographic location of those enterprises.
• A self-sustaining co-operative movement that can play a major role in the economic, social and cultural development of South Africa
• policy statement should be read in conjunction with those on Small, Medium and Micro-enterprises and the Strategy on Broad Based Black Economic Empowerment.
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• Policy document resulted through an intense consultation process, which was initiated in 1997 with the establishment of a Co-operative Policy Task Team.
• The Policy Task Team consisted of the main stakeholders in South Africa’s co-operative movement at the time.
• Nine regional workshops and one national co-operative conference was organized to discuss main policy issues.
Consultative processConsultative process
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Cont.
• Cabinet recommended to move the function to the dti
• A National Co-operatives Workshop was held last year March for input from all stakeholders
• Consultation continued at NEDLAC to discuss both policy and Bill
• Report will be adopted by Co-operatives Task Team and taken through other relevant structures
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Policy objectives and purpose
Create an enabling environment for co-operative
enterprises which reduces the disparities between urban and rural businesses, and is conducive to entrepreneurship
Promote the development of economically sustainable co-operatives that will significantly contribute to the country’s economic growth
Increase the number and variety of economic enterprises operating in the formal economy;
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Policy objectives and purpose
Increase the competitiveness of the co-operative sector Encourage persons and groups who subscribe to values of
self-reliance and self-help to formalise
Enable such co-operative enterprises to register and acquire a legal status/legal persona separate from their members;
• Defines genuine co-operatives for targeted support purposes
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Policy objectives and purpose
Promote greater participation by black persons, especially those in rural areas, women, persons with disability and youth in the formation of and management of co-operatives.
Establish a legislative framework that will preserve the co-operative as a distinct legal entity.
Facilitate the provision of support programmes that target co-operatives that will create employment or benefit disadvantaged groups.
establishes a code of conduct for co-operative promoters for basic principles to be respected
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Definitions, co-operative values and core principles of co-operation
• Policy provides definitions of:
• primary• Secondary• Tertiary
• For purposes of registration their functions are different.
• A (primary) co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
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Other kinds of co-operatives
Other kinds and types of co-operatives include:
1. housing co-operative;2. workers’ co-operative;3. social co-operative;4. agricultural co-operative;5. financial services co-operative;6. consumer co-operative7. marketing and supply co-operative.8. Transport co-operatives/ services
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Two characteristics distinguish co-operatives from other types of enterprises: a) they are associations of people who agree to be
the owners, the makers of democratic decisions and users of their joint enterprise;
b) their main purpose as an economic unit is to promote their members by rendering services, rather than to maximize profits.
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Scope of policy for support purposes
Applies to established co-operatives but the emphasis is on supporting emerging co-operative enterprises:
Emerging co-operatives: These co-operatives have been identified as struggling for survival and lacking training, skills, markets.
Established co-operatives: These are co-operatives that are mainly operating in agriculture and controlled by the white minority, although they do exist even in other sectors.
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Core principles of co-operation:
• Voluntary and open membership• Democratic member control • Member economic participation• Autonomy and independence • Education, training and information • Co-operation among co-operatives • Concern for community
THE CO-OPERATIVES BILLTHE CO-OPERATIVES BILL
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Policy instruments to support co-operative enterprises includes:
• Legislation
• Establishing a Co-operatives Development Fund for technical assistance and capacity building.
• Special incentives and support measures for Co-operatives enterprises (the dti)
• NEF designed a special product for co-operatives
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Policy instruments to support co-operative enterprises includes:
• Alignment by all COTTI programmes and other dti programmes to support co-operatives
• New Enterprise Agency,
• APEF FUND
• Partnerships
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CONT.
• Availing access to Infrastructure through incubation programmes
• Acess to SMME tax incentives as businesses
• Preferential procurement
• Institutional support and the Co-operative Advisory Board
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Functions of the CAB
The functions of the Advisory Board are to advise the Minister generally, and to make recommendations, with regard to –
(a) co-operative development policy in the Republic; (b) the application of any of the provisions of this Act or any other
law on matters affecting co-operatives; (c) the publication of any regulations in terms of this Act that may be
necessary or desirable; (d) the provision of support programmes targeting co-operatives that
create employment, benefit disadvantaged groups or lead to greater participation in the economy by women and black people;
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(e) the establishment of guidelines for co-operative audits;
(f) any matter referred to the Advisory Board that relates to promoting the development of co-operatives; and
(g) any decision the Minister is required to take in terms of
this Act, on the request of the Minister.
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THE CO-OPERATIVES BILL 2004THE CO-OPERATIVES BILL 2004• To provide for the formation and registration of co-operatives, the
establishment of a Co-operatives Advisory Board, the winding up of co-operatives and to provide for matters connected therewith.
• DTI as the central department
• Registrar to move to dti’s cipro
• Establishment of a Unit in the dti/role of the dti
• Accommodate other co-operatives kinds and type provisions
• Onerous sections removed
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Conclusion
THANX