Co-operative values and principles undermined

Simon Danczuk MP

The MP for Rochdale, the birthplace of the Co-operative movement, has accused the Government of riding roughshod over the town’s heritage following proposals that will allow any company to set up as a co-operative without the need to justify they are a genuine co-operative.

Simon Danczuk said the Government’s ‘red tape’ challenge was an attack on Co-operative values. Ministers are currently consulting on being able to remove the word ‘co-operative’ from the ‘sensitive words’ list for new businesses, which means new businesses registering cannot call themselves a co-operative unless they meet internationally agreed co-operative values and principles.

“The Rochdale Pioneers will be turning in their graves at this daft proposal,” said Mr Danczuk. “To say any business can now call itself a co-operative belittles years of tradition and undermines hard earned Co-operative values. I’ve no doubt some bogus companies will try and camouflage themselves as co-operatives to hide a multitude of sins and promote the perception that they hold mutual values.”

Ed Mayo, Secretary General of Co-operatives UK, said: "In 27 years of registering co-operatives, Co-operatives UK has never encountered the view that having the term ‘co-operative’ on the sensitive words list is an administrative burden. But we have challenged a number of rogue firms who want to pass themselves off as co-operatives.

"Because of the hard work of successful co-operatives across the UK, the public associate co-operatives with being trustworthy, business-like and fair – and we maintain this reputation because those businesses calling themselves co-operatives agree to some core values and principles. We are extremely concerned that without this protection, rogue businesses may trade off, and potentially ultimately, tarnish, this reputation.

"We are urging people to help protect the good name of co-operatives.”