Co-operate to grow North-East economy

THE North-East's economy would grow significantly if there were more co-operative and employee owned companies, according to Co-operative Development Scotland.

The Scottish Enterprise subsidiary, which works in partnership with Highlands & Islands Enterprise, is urging local entrepreneurs throughout Aberdeen and the North-East to explore co-ownership as part of the UK's first Co-operatives Fortnight from 19 June to 3 July.

Co-operative and employee owned business models are attracting increasing interest from businesses and policymakers across the UK seeking more productive and profitable ways of working. Research suggests a combination of shared ownership and employee participation delivers superior business performance and sustainability.

Local success stories include Woollard & Henry, DWP Harvesting and Boyndie Wind Farm Co-operative.

Dyce-based engineering firm Woollard & Henry has seen turnover climb four-fold since specialist funder The Baxi Partnership financed a £1.3 million employee buyout in 2002. The company is a renowned manufacturer of dandy rolls - a cylindrical mechanism for putting watermarks and designs on paper. It has now diversified into currency-making equipment, which is sold around the world, and the design and supply of fabricated steel people carriers known as 'frogs', used to transport offshore personnel between ships and rigs.

"By involving people in the development and implementation of strategic options for growth, we have enhanced our skills, identified new markets, and diversified into different product offerings," says Managing Director Fred Bowden.

DWP Harvesting, based in Aboyne, is a co-operative of 36 forest owners across the North and North East of Scotland from Perthshire to Morayshire. The group was formed in 1987 to help the members harvest and market 25,000 tonnes a year of wood products, including sawlogs, chipwood and biomass for the UK market and pulpwood for export to papermills in Sweden and Finland.

"Our members are able to achieve more working together than they would on their own," explains DWP's managing and marketing agent Andrew Nicol. "The benefits include economies of scale and the ability to build long-term relationships with harvesting contractors and hauliers. The co-operative also benefits our customers and suppliers because we provide security of supply and work. That is increasingly important as the UK wood fibre supply balance tightens"

Boyndie Wind Farm Co-operative was set up in 2005 to allow the community in Banffshire to own a share in the first wind farm co-operative in Scotland.

More than 700 local people in Aberdeenshire and Moray have a share in the project, which is located at the previously derelict site of an old WW2 airfield at Boyndie Airfield in Banffshire. Last year the members received a share interest payout of 10.3% for the electricity produced by the wind farm in 2008.

"Whoever owns the wind turbines receives the benefits from the sale of the electricity that is produced," explained Andrew King, Chair of Energy4All, the company behind Boyndie and several other renewable energy co-operatives across the UK.

"Local and community ownership of wind projects, ranging from 100% ownership of small projects to minor participation in larger schemes, can bring significant benefits to the local community and economy."

CDS promotes co-operative and employee owned enterprise across Scotland and is widely supporting Co-operatives Fortnight.

The initiative is organised by Co-operatives UK, the membership organisation for co-operative enterprise, and will promote co-operative business models with the theme – There is an Alternative – and a website – http://www.thereisanalternative.coop/

For more information, please contact Victoria Masterson on 07733 301715 or Ian Spinney on 07973 671773.

About CDS

CDS is a wholly-owned subsidiary of Scottish Enterprise. The organisation was established by the Scottish Government to promote and support the development of co-operative and employee owned business models throughout Scotland. CDS supports the remit of Scottish Enterprise, Highlands & Islands Enterprise and Business Gateway. A specific focus is on growth industries, including food and drink, renewable energy, forestry and tourism. Co-operative business models have a major role to play in the growth of these sectors. 

CDS has its own Advisory Board comprising industry representatives and co-operative experts.  By working closely with key partners, CDS aims to demonstrate the improved productivity, sustainability and community benefits that co-operative models can offer. Its remit is to:

• Raise awareness of co-operative business models

• Help new and existing co-operatives to grow
• Develop markets for co-operative businesses

Some of Scotland's best-known co-operative and employee owned businesses include Tullis Russell, Loch Fyne Oysters, Highland Home Carers, First Milk, John Lewis Partnership, The Co-operative Group and Scotmid.

www.cdscotland.co.uk/