Corbyn focusses on decentralisation: localising energy and transport

corbyn-eee-manifestoJeremy Corbyn has launched an environmental manifesto that outlines plans for the UK to achieve 65% of energy from renewable sources by 2030 – without fracking.

Corbyn proposes to put cities, councils, devolved governments and communities at the heart of an efficient, decentralised energy system by promoting a shift to electric and hydrogen buses and cars; a network of low-emission zones and cycling with safe cycle lanes and hire schemes in every town and city.

The manifesto places social enterprises, including not-for-profits and co-ops at the heart of Corbyn’s plans for a “publicly run, locally accountable energy system”.

A “publicly run, locally accountable energy system”.

In a speech in Nottingham, the Labour leader said, “We want Britain to be the world’s leading producer of renewable technology. To achieve this, we will accelerate the transition to a low-carbon economy, and drive the expansion of the green industries and jobs of the future, using our National Investment Bank to invest in public and community-owned renewable energy. This will deliver clean energy and curb energy bill rises for households; an energy policy for the 60 million, not the Big 6 energy companies.”

He has promised to promote over a thousand local energy companies in the next parliament and legislate to give community energy co-operatives the right to sell energy directly to the communities they serve.

Housing

It would launch a National Home Insulation plan to insulate at least 4 million homes and phase out coal-fired power by 2025. The Labour leader estimates over 300,000 jobs would be created in the renewables sector as a result of these measures.

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Labour would reinstate the department for energy and climate change in its first month of going back into government, as part of its plan to rebuild and transform Britain, “so that no-one and no community is left behind,” he said at the event in Nottingham.

Jeremy Corbyn also encourages the British public to take action as individuals to help to meet the Paris climate agreement. He proposes to use the precautionary principle to protect the environment and people from harm – not a pay-to-pollute approach allowing the richest corporations and individuals to wreck our planet.

 

 

 

Syriza MPs help to promote the social economy by donating 10-20% of their wage

anca voinea co-opIn a Co-operative News article, Anca Voinea notes that  Syriza has highlighted the importance of reviving the co-op movement, seeing it as a distinct economic model that would be part of their movement for a broader social and solidarity economy.

Syriza had shown interest in the movement over the last two years and is preparing for new legislation to support co-operative principles, promote co-operative education, transfer of companies to the workers and establish co-operatives of similar standards to those in Latin America and France.

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When incoming prime minister Alexis Tsipras (above) presented his agenda to parliament, he made a commitment to growing the social economy, including co-ops. Syriza has now launched a public consultation to gather opinions about the promotion of the social economy.

VioMe in Thessaloniki went bankrupt and the workers, who had not been paid for over a year, occupied the building to prevent the owner from taking away the machinery and products in stock. The factory is now in public administration and the workers are fighting a legal battle for ownership of the enterprise. They are also calling for a change in the legal framework to allow workers to take over enterprises. Mr Tsipras promised to support this effort with legal reforms. He has also spoken about the importance of co-operative banks as a vehicle for development.

Reading about this venture reminded the writer about an Argentinian workers’ initiative recorded here.

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An online platform, Solidarity4all, first mooted by the late Tony Benn, showcases different examples of informal co-operation, from social pharmacies to grocery stores or free lessons, including newly formed co-ops. Syriza has helped the Solidarity4All initiative, with each MP donating 10-20% of their wage to promote the social economy. People have taken matters into their own hands through grassroots activism and local collective action. The many and varied social solidarity initiatives include social pharmacies, social medical clinics, social kitchens, social groceries, Okmarkets without middlemen, a social collective of mental health professionals, social solidarity drop in centres, time banks (sharing skills and time), olive oil producers sharing olive oil, the ‘potato movement’ where farmers trade direct with consumers cutting out the supermarkets. Read more about Solidarity4All here.

Co-operatives: raising and developing the weakest part of our local communities and civil society?

The roots of the co-operative movement in Italy go back to 19th century workers’ associations, with credit services, agricultural and building co-ops forming an important part of the overall economy. There are more than 20, 000 cooperatives, including housing and banking movements, with over 3 million members.

In 2011 Jeffrey Hollander asserted that the success of worker cooperative models in Italy and Spain presents US & UK with a compelling model for building a new, sustainable economy: 

italian co-ops text pics

An alternative to the “throw-away culture created by the powers that control the economic and financial policies of the globalized world”

Reuters reports that Pope Francis, speaking to members of the Confederation of Italian Co-operatives, condemned economic systems that “suffocate hope” and a globalised culture that treated its employees as disposable. New models and methods are needed that offer an alternative to the “throw-away culture created by the powers that control the economic and financial policies of the globalized world.”

He adds:

“Co-operatives should continue to be the motor that raises and develops the weakest part of our local communities and civil society”

The Pope said that the establishment of more co-operatives could help to solve crises of unemployment among young people and offer women jobs with a work-life balance that enabled them to care for their families.

Finally he called for money to be ‘at the service of life, managed in the right way by real co-operatives where capital does not command men but men command capital.

Preston: building a new local economics

new start logoNew Start magazine, which champions urban regeneration that is inclusive, sustainable and socially just, has reported on the work of CLES (Centre for Local Economic Strategies) with Preston City Council. Innovative Quinton councillor John Clancy, who has been to Preston to meet councillors there at a CLES conference, has already tweeted the New Start article.

CLES is exploring how anchor institutions based in the city can bring benefits for the local economy and community.

Anchor institutions are those that – once established – tend not to move location, anchoring the local economy. They may be not-for-personal profit social enterprises, co-operatives, employee-owned and run companies,  or simply local firms with a determined loyalty to their community and workforce ‘family’ (some 2nd generation) – like Professional Polishing in 2007, which refused a highly profitable offshoring opportunity for this reason – resigning from BCC because of their promotion of these policies – and has gone from strength to strength.

cles logoThe starting point was ‘procurement spend’ – seeking to create a collective vision across institutions for undertaking procurement in a way which benefits the local economy. The supply chains of each of the anchor institutions (worth £750m pa) were analysed by CLES in order to identify particular sectors where there are gaps in expenditure in the local economy and where there is scope to influence that ‘spend’ in the future.

There were two broad objectives:

  • to analyse the extent to which anchor institutions already spend with suppliers based in the Preston and Lancashire economies and whether there is potential to repatriate some of that spend;
  • to identify whether there are any particular services used by anchor institutions which would lend themselves to future delivery by local worker-led co-operatives.

Analysing the procurement spend of six anchor institutions with their top 300 suppliers – some £750m – the research found that only 5% of their collective spend was with Preston organisations and 39% was spent with organisations based in Lancashire. £488m was effectively leaking out of Lancashire each year.

Preston skyline
Preston skyline

The findings of the supply chain analysis have prompted anchor institutions to ensure procurement spending reaps greater local economic and community reward. Local organisation Community Gateway, for instance, now asks suppliers to show the local economic multiplier effect of the delivery of its capital and maintenance projects.

Preston Council has identified local organisations in those sectors which could bid for and deliver those services in the future.

Lancashire Council has reframed its procurement practices so that there is greater emphasis on economic and social value.

Postscript: other initiatives

  • Living Wage – Preston City Council has been a Living Wage employer since 2009. It seeks to ensure other organisations across the public, commercial and social economies pay their own employees. The principle of the activity links to community wealth in that it seeks to provide a fair level of pay for Preston residents and also ensure the circulation of income within the local economy.
  • Move your Money – Preston City Council has become part of the Move your Money campaign. This seeks to encourage communities to bank in a more ethical way. The Council has also helped establish a new credit union (‘Guildmoney).

• Guild co-operative network – the council and its Social Forum supports worker led co-operatives and encourages other anchor institutions to utilise local co-operatives, most of which are engaged in front line provision.

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Community energy: co-operative, citizen-centred, decentralised

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Although a couple of weeks ago the government agreed to ban all fracking in protected areas, they are now reported as saying this may ‘unduly constrain the industry’ and fracking will be allowed to take place under National Parks and other protected areas if the wells start outside their boundaries. The passing of the government’s bill was welcomed by Ken Cronin, the chief executive of trade body, UK Onshore Oil and Gas. MP Caroline Lucas, on the other hand, said:What a mockery this is making of legitimate public concerns on fracking, and indeed of the democratic process.”

On 27th January, the government’s Community Energy Strategy report praised the way “communities are coming together to take more control of the energy they use”.

balcombe residents

There are a growing number of community energy organisations in the UK, giving communities more control over production and provision and opportunities to alleviate fuel poverty and increase local employment.

Co-operatives UK, Community Energy England, The Co-operative Energy, Social Enterprise UK, 10:10 and Regen SW have united to call for fair treatment for energy co-ops: a sensible approach to share capital and an optional asset lock for co-ops. They have produced a briefing setting out the main actions required to get community energy back on track. Click here to read the briefing in full.

repower balcombe header

REPOWERBalcombe is the latest initiative: a pro-community and pro-renewables co-operative social enterprise run for the good of the local community. Recognising that Cuadrilla’s drilling back in 2013 divided opinion in the community, they aspire to move on and unite around something positive – clean energy.

In 2015 they aim to raise funds for around 300kw of solar PV, the equivalent of 10% of Balcombe’s current electricity usage – or enough to power 60 of the village’s 760 homes. REPOWERBalcombe will sell investment in the form of shares to the community.

grange farm balcombe solar69 panels were installed on Grange Farm at the end of January

Their first site to sign up was the third-generation family-run Grange Farm on Crawley Down, who will host 18kW of solar panels on their cowshed in exchange for 33% discounted energy for the next 25 years. Local co-op members provided £27,300 for these panels. They are now raising funds to install solar panels on the rooftops of three schools.

As the briefing says:

“The UK needs to move from an economy based on fossil fuels, towards one based on renewable energy; from a market dominated by a handful of suppliers, to one where thousands of communities meet their energy needs locally.

“We need an approach to ownership and innovation that is more co-operative, citizen-centred and decentralised. One that enables people to work together to generate, distribute and supply their own sustainable energy. One that taps the emergence of new crowdfunding mechanisms that have the ability to leverage large sums of money into clean energy investment, and at the same time bolster energy-democracy and the social economy.”

Models for doing this already exist across Europe, where co-operatives and social enterprises deliver clean, low-carbon energy, offer local employment opportunities, community development funds and fuel poverty alleviation.

Useful links:

http://www.theguardian.com/environment/shale-gas

http://www.thenews.coop/93323/news/co-operatives/getting-the-uks-community-energy-sector-back-on-track/

http://www.repowerbalcombe.com/

http://www.bbc.co.uk/news/uk-england-sussex-31027128

http://www.energyshare.com/pages/8304/

Responsible localised leadership in Bristol

Mayor George Ferguson BristolMayor George Ferguson’s pledge to make Bristol “happier, healthier and more sustainable” was the cornerstone of his election campaign.

Soon after his election he announced his decision to take his salary in the UK’s first city-wide local currency – Bristol Pounds.

This local currency is run as a not-for-profit social enterprise by the Bristol Pound Community Interest Company and Bristol Credit Union.

Bristol Pounds are purchased with sterling and can be spent with any of the more than 500 businesses that have signed up. The scheme operates online banking and a text message payment system, and traders are even able to buy supplies in the currency, helping to create a “virtuous economic cycle.”

 

bristol pound 2

 

The Bristol Pound was launched in September last year in order to:

* support Bristol’s independent businesses,

* strengthen its economy

* and keep the city’s high streets diverse and distinctive.

Ferguson said: “I am a very strong advocate for our independent traders and businesses and as mayor, am committed to helping them flourish and grow. A strong independent retail sector is good for the local supply chain, helps boost new business growth and boosts the city’s economy.”

Bristol Pound director Chris Sunderland explains that “Most of the money spent in a city, leaves almost as soon as it’s spent. It goes up to the financial institutions and gets lost. What people can be sure of with Bristol Pounds is that they’re circulating in the city and that’s where they’ll stay.”

Julian Rose comments: “Compare that with the spirit of some politicians currently in the news and one begins to get a sense of what responsible localised leadership could achieve: not only a total turnaround in the fortunes of communities all over the UK – but a turn around in the entire outlook on the future.

“The future might actually look more promising than the present! A future where more and more areas declare themselves “Politician Free Zones” and set about managing their destinies with a distinct spring in their step”.

 

Exploring the systems by which we organise our livelihoods

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 barrow cadbury karen

 

In this Barrow Cadbury Trust blog, the co-ordinator of Localise West Midlands gives feedback on the opportunity to research the assumption at the heart of Localise West Midlands’ mission offered by the Trust.

The assumption is: “. . .that in a more localised economy, more people have a stake, which redistributes economic power and resilience, reducing disconnection and inequality . . . in need of exploration in the face of growing inequality and economic failure”. She continues:

“There are plentiful ideas around what we have been calling community economic development: social inclusion as CSR, community-led job creation, co-ops and social enterprises, local procurement initiatives. To many economic development practitioners these are very nice projects that go into a little box labelled “voluntary sector” and have little to do with the real economy, which is about big sites, tax breaks for multinational corporations – “prostituting ourselves for inward investment” as the Centre for Local Economic Strategies‘ Neil McInroy colourfully puts it.

“Our project, Mainstreaming Community Economic Development, is an attempt to take localised economies out of this little box. Firstly, to see the social potential not only of voluntary sector initiatives with social objectives, but also of private sector activity that is locally controlled and based, where the community’s participation is as owners, investors, purchasers and networkers . . . ”.

To read the whole article go to the Barrow Cadbury Trust blog

 

Community Supported Industry


SCNEconomics USA header
Community Supported Agriculture (flourishing in Stroud) started in the USA in 1986 at Indian Line Farm in South Egremont, Massaschusetts, just a couple of miles down Jug End Road from the Library and offices of the Schumacher Center for a New Economics, a partner of the British New Economics Foundation.

berksharesTheir projects have included the BerkShares Local Currency Program and a SHARE Micro-Credit Program – The Self-Help Association for a Regional Economy (SHARE), a model community-based nonprofit that offers a simple way for citizens to create a sustainable local economy by supporting businesses that provide products or services needed in the region.

Community Supported Industry would be built on a strategy of import replacement, with more labour intensive, smaller batch production, transported over shorter distances. The goal would be to create more jobs, but not more “stuff,” with a smaller carbon footprint overall. The Schumacher Center asks:

Schumacher Centre library
Schumacher Centre library

“Can the Berkshires also model an ethos that would support a Berkshire furniture factory, a wool products industry, an applesauce cannery, a humane slaughterhouse, a water-powered electric generation plant, or that small-scale business that a resident of the Berkshires has already imagined?

“Can the Berkshires embrace “Community Supported Industry”? Can it build the “import-replacement” businesses that provide well-paid jobs for its youth and keep the Berkshires vibrant with a diversity of production, skills, and people while maintaining a commitment to a healthy ecology?”

Build a culture of citizen support

Meetings of business owners, retired persons, youth, investors, organizational leaders, public officials, and concerned citizens would be needed, to consider:

1. What products might be produced in the Berkshires that are not here yet?

2. How can citizens help create conditions to ensure the success of new enterprises?

3. What skills can be offered to help in the process? Development or review of business plans; market research; site selection; equipment identification; mentoring; financing; permitting; skill development?

4. How can the Berkshires leverage the wealth of community resources to support the budding entrepreneurs who will in turn run the new, appropriately scaled and environmentally sound businesses that are the foundation stones of a socially and environmentally responsible economy?

It will not be enough to only imagine the new green, fair, sustainable, slow, resilient businesses; not enough to build a library of good business plans; not enough to whet the appetite for regionally made goods and locally grown food.

To implement the new industries identified and fostered under the umbrella of Community Supported Industry will take securing affordable access to land, identifying (or training) skilled workers, and accessing appropriate capital.

It will mean maintaining an ongoing national dialogue about imaginative land tenure options, distributed ownership, and the democratized issuing of currency.

 

Visit our website:
http://centerforneweconomics.org/
Follow us on Twitter (@Center4NewEcon)

 

 

The Financial Times reports a co-operative revival

Andrew Bounds has reported ‘a co-operative revival’ in the Financial Times – a trend first noted in this blog in 2010. He notes that the number of share offers and co-operative members in new societies doubled between 2009 and 2012 as the economic downturn has continued, according to figures from Co-operatives UK, the umbrella group for mutual societies.

Unlike most of the large retail co-operative societies, smaller co-ops are democratically controlled by their members, have low income differentials and some offer training for job rotation.

The Daily Bread Co-operative

A fine example is Daily Bread in Northampton – above. News of other worker co-operatives may be seen here.

Wind farms, hydroelectric projects, book shops, village stores and pubs,are among assets now owned by their communities. Of the 114 funded (2009-2012), there were 28 shops and 35 power schemes (see the LWM blog), raising in all £20.9m from 23,700 members.

An earlier article noted that Oliver Letwin, at the cabinet office, works four hours a month behind the counter in Thorncombe village shop, in his Dorset constituency. He is a founder member of a co-operative that took over the store in 2009 when it was threatened with closure.

William Hague joined 150 members of his constituency to reopen a pub, buying shares in a co-op that took over the George and Dragon in Hudswell, North Yorkshire.

The co-operative renaissance, kick-started by the 1976 Common Ownership Act and its revolving fund, led to a boom with worker co-ops opening every week, which slowed down to a trickle as recession set in. Now, as banks are reluctant to lend and are offering very low interest rates for savers, local investment opportunities which serve the community are attracting more people.

The Resilience imperative – Cooperative Transitions to a Steady State Economy

resilience imperative conatyLocalise West Midland’s co-founder, Patrick Conaty, has just published a book co-authored with Mike Lewis: The Resilience imperative – Cooperative Transitions to a Steady State Economy. It examines many elements of a resilient local economy, collating and critiquing many examples of how this has been achieved all over the world over the last 150 years.

The term ‘resilience ‘ is coming to the fore; the American organisation of that name focusses on building community resilience in a world of multiple emerging challenges: “the decline of cheap energy, the depletion of critical resources like water, complex environmental crises like climate change and biodiversity loss, and the social and economic issues which are linked to these”.

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Extracted from Pat’s interview with Naresh Giangrande from the Transition Network:

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NG: Why should someone involved in a Transition Initiative read this book?

PC: Mike and I were aware that although there have been many social and environmental change solutions developed, there has been a lack of strategic thinking. How can we join these partial solutions up? Through co-researching and co-writing the book over three years, we felt that we could clarify a Great Transition strategy for going forward by bringing together different fragments of positive change strategically and practically. We saw a need to bring ecological and cooperative economics together. Kenneth Boulding, a founder of ecological economics was the first to call for a Great Transition in the mid 60s, and saw the need to link cooperative and ecological economics together. . .

NG: You were involved in the 1990’s in The Real World Coalition seeking to bring together the third world development, green movement, social justice movement, small business, and micro credit movement.   Is this book in some way an expression of that impulse?

PC: The Real World Coalition united over 30 NGOs in the UK from these sectors and was led by Jonathan Porritt, Sara Parkin and Mike Jacobs. It was unique in that it spent three years developing a common manifesto among the NGOS. We need something like this again. How do we unite the fragments of change, to tackle the big issues? We have to come together .Yes this book is looking at the intervening years and what are the practical, tried and tested ways that people have been cooperating and  been successful in creating the pieces of local resilience . . .

NG: If you were to synthesize ecological and cooperative economics what would you come up with?

To root the integrated theory with practice, we looked at basic needs – food, shelter, finance, and energy services – and how could we meet human needs  co-operatively and what are the practical ways that have been pioneered to satisfy these needs and build a sustainable society  . . .

NG: I loved your tables at the end of chapter showing the costs to an average family.

PC: Yes we took a family of four and looked at what if we were addressing their needs in the new economics way and what would be the impact on their household budget.

NG: And the result?

PC:  We substituted usury based on high rates of compound interest with mutual fee based money and private energy and food monopolies with energy and food coops. We also show savings by converting housing to Community Land Trusts to take the land cost out of the market. The result we found is that there are significant savings to be made in each instance and the cumulative results show the practical potential for a steady state economy.

For an average family of four, you make a savings on energy and financing of over $360,000 over 25 years. Local organic food would be more expensive, but the net savings including food are still $280,000 over 25 years. We converted this to life hours which translated into saving 10 hours a week per household. This is significant . . .

NG: You have a keen sense of how there is nothing new. The REconomy project, need for land access, and social justice. Others have been over this ground many times before.

PC: We have lost sight of the historic and international struggles over that past 170 years for achieving land reform, economic democracy and for a co-operative economy.

As a result each generation typically starts with a blank page which is tragic because we lose sight of what these struggles can tell us so we can move forward faster and more effectively.

I am convinced that cooperative solutions lie at the heart of the new economy. We explore in diverse chapters the growing social solidarity economy internationally – which is generally below the radar – but none the less a powerful force. It is often unaware of its power, despite the fact that co-ops globally employ more people than multinationals . . . Some exciting work we show is going on with La Via Campesina uniting small farmers globally, in Quebec with co-op federations in Montreal and in the social co-ops in Northern Italy.

 

The Resilience Imperative Michael Lewis and Pat Conaty New Society Publishers 2012. Paperback: ISBN: 978-0-86571-707-7; ebook ISBN: 978-1-55092-505-0

Read this interview in full on the Resilience website and an interview with Mike Lewis here.