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Following the announcement of the Federal Government's Modern Manufacturing Strategy, Business Council of Co-Operatives and Mutuals (BCCM) CEO, Melina Morrison, writes that the co-op model can help deliver the innovation and growth that Australia needs by allowing SMEs to more safely scale and invest in research and development.
The plan recommends the establishment of two co-operative business development clusters around strong existing co-ops. The clusters will build business support infrastructure (investment finance, innovation support, professional services, labour sharing and other capacity building) that all co-ops and SMEs wanting to join them can benefit from.
International examples of this approach are found in manufacturing and industrial zones across Europe. Italy’s Emilia Romagna region in the north of the country, once an economic backwater, now boasts Italy’s most prosperous regional economy on the back of its agricultural co-operative cluster. In Spain’s Basque region, the Mondragon Corporation is a consortium of more than 264 industrial firms employing 81,000 workers. It’s Spain’s tenth largest industrial conglomerate with turnover of 12.2 billion Euro.
In Australia, the complexities of running a manufacturing business through bushfires, drought, floods and now COVID-19, are best understood by individual businesses at the coalface. In a co-op, this knowledge and experience does not get lost amongst competing shareholder concerns – it is the very purpose of their existence. They exist to co-operate for the benefit of the group.
A systems approach requires us to have a wider lens on the interconnectedness of our systems and act accordingly. For the clean-energy transition, at a minimum, that means recognising biodiversity is just as important to our climate as reducing emissions, and reducing emissions won’t be achieved without addressing inequity in our current systems, writes Professor Ingrid Burkett.
Read more Opinion article March 9, 2023Most economists predict that Australia will manage to avoid a recession this year. However, it will be a tough year financially for most households as costs blow out for non-discretionary items. CEDA analysis shows that for low-income households, rent or mortgage interest costs are set to exceed 40 per cent of average disposable income. These households will need to cut discretionary spending by over 10 per cent in order to absorb increases in the cost of essential items without their overall spending increasing more than income. The cost of living crunch will flatten Australia’s economic growth, as household consumption growth is set to significantly slow this year.
Read more Opinion article February 26, 2020Innovation and Science Australia Chair, Andrew Stevens, discusses the findings of Innovation and Science Australia's recent report, Stimulating Business Investment in Australia. He says that the innovation shortfall in Australian business is holding back the economy, and government needs to adjust its policy mix to support investment in the area.
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