Co-operatives welcome first wave of pathfinders

CO-OPERATIVES UK has welcomed a move by the government to approve the first wave of Pathfinder mutuals – parts of the public sector who want to take control of their own service delivery by forming not-for-profit companies.

The government announced its proposals for the first 12 Pathfinder mutual societies yesterday. These included Newton Rigg Agricultural College in Cumbria, a new business in Mansfield being set up to deliver housing services to vulnerable people and a new qualifications awards body set up by a group of 157 colleges.

Co-operatives UK, the Manchester-based trade body set up to promote co-operative and mutual enterprises, described the move by the Cabinet office as “a welcome step”.

“As the representative body for co-operatives in this country, Co-operatives UK has been pleased to see the growing interest from government in this empowering and successful way of doing business,” said the organisation’s secretary-general Ed Mayo.

The new mutuals will also be given mentoring and support by existing partnership organisations, including accountancy firms KPMG and PwC, retailer John Lewis and Preston-based Baxi Partnership.

“We are delighted that several of our members have volunteered as mentors for the pathfinders, helping to ensure that these core principles are implemented,” said Mayo.

“Alongside our members we are committed to enabling government – both national and local – to draw on the expertise and experience of Co-operatives UK and our members so welcome enquires from public sector bodies interested in exploring the co-operative model.”

Launching the scheme yesterday, cabinet office minister Francis Maude said: “I know that across the country there are literally thousands of frontline employees who can see how things can be done better, but at the moment, with the existing constraints, they just can’t get it done.  Now this is going to change.

“The potential for public sector staff to spin out is enormously exciting.”