PRESS RELEASE
31 March 2015
Mutuals’ business model highlighted in Harper Review
The Business Council of Co-operatives and Mutuals (BCCM) has today called on government to heed
the findings of the Final Review into competition policy to recognise a third way to deliver public
services traditionally assumed by governments, by expanding the role already played by co-operative
and mutual enterprises in delivering public services (Public Service Mutuals).
“Public Service Mutuals (PSMs) are an alternative way to deliver social services that is cost efficient,
human scale and deliver real choice and control into the hands of users,” said BCCM chief executive,
Melina Morrison. “The Harper Review has recognised the potential for PSMs to play a greater role in
meeting individual and community needs, possibly in conjunction with other significant government
initiatives including the National Disability Insurance Scheme (NDIS).
“As businesses owned by or on behalf of members rather than shareholders, PSMs address many of
the concerns raised about a race to the bottom on price and quality that might occur in markets
dominated by for-profit bidders.”
The recommendation in the Harper Review is based on the findings of the BCCM’s White Paper on
Public Service Mutuals published in late 2014.
“The Competition review has picked up on our concerns about systemic risk to diversity and
competition if for-profit providers ‘cherry pick’ lower risk markets or more profitable consumers.
“Co-operatives and mutuals are already widely used in delivering human services. They deliver a
range of services from childcare to health care, aged care, disability employment, affordable housing,
education, health insurance, motorist care and home assistance to an estimated 13.5 million
memberships across Australia. They deserve a greater focus of government attention given the
benefits they offer to communities, individuals and taxpayers”.
The BCCM has convened a national Public Service Mutuals Taskforce, chaired by Gillian McFee and
supported by prominent mutuals including NRMA, HCF, RAC WA and Australian Unity, to oversee its
campaign for greater recognition of the role of mutual providers of public services. The upcoming
Senate inquiry into the role of co-operatives and mutuals (CMEs) in the Australian economy will
examine the benefits of mutual ownership of public services.
The report also recommends raising awareness of co-operatives will promote their use and potentially
strengthen the bargaining position of small businesses dealing with large businesses.
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For further information, please contact:
- Melina Morrison, BCCM CEO (04 109 026 56 or [email protected])
- Padraic Varley, Communications and Media Officer (04 565 586 80 or [email protected])
You can also receive the BCCM’s news and press releases by following us on Twitter @BCCM_AU or
signing up to our newsletters at www.bccm.coop
The Business Council of Co-operatives and Mutuals (BCCM) is the national peak body representing the
co-operative and mutual models of enterprise in Australia. Formed in 2013, the BCCM is led by the chief
executives of Australia’s leading co-operative and mutual businesses and is the only organisation
uniting the entire, diverse range of member owned business.
GPO Box 5166
Sydney, NSW, 2001
ACN 148863932
02 9239 5915
[email protected]
www.bccm.coop