These alternatives to banks are now beginning to gain a higher profile within the UK. In many countries including Ireland, the USA and The West Indies they are a major player in the mainstream banking service.
Ian Moseley was involved with the 'start-up' of the Tower Hamlets Community Credit Union, Tower Hamlets being an East London administrative borough. In his 'spare time' Ian is the Chair the Management Committee as he is currently the Hon. President.
In 2002 the Tower Hamlets Community Credit Union won the £1,000 prize for best run and fastest growing credit union in England and Wales. This was awarded by ABCUL (the Association of British Credit Unions Limited: www.abcul.coop) although Scotland does have slightly different regulations governing these organisations.
Below is a picture of Ian Moseley (on the left), the Hon Chair of the Tower Hamlets Community Credit Union, and a director of the London Biorhythm Company, taken at the presentation of the ABCUL award.
Ian believes that no-one should be at the mercy of credit-sharks ...
and he really wants others to appreciate the good that well run credit unions can do.
Here is his explanation of just what a Credit Union is:
"I could tell you ‘what’ a Credit Union is in one sentence.
I could also define cricket in one sentence, but you would still have no idea how to play the game, although, to their credit, our cousins in the USA are now taking to it!
So, what exactly is a Credit Union?
A credit union is a mutually owned organisation, which provides a facility for savings, and provides rate-capped loans to its members from those savings.
Credit Unions are often seen in Britain as providing access to financial services for the financially excluded. Ian has some objection to this view as it conjures up, by association, the phrase 'poor man's bank'.
If we think in global terms 25% of Americans, and 50% of the Irish population are credit union members. In these countries, and many others, banking with a credit union is seen as a central part of community life.
A credit union is a group of people with a "common bond". This might be the workplace; the geographical work area; the area lived-in; a social group, etc. In formal terms those within that "common bond" form an industrial and provident society which is subject to a number of rules and financial regulations such as the Credit Union Act.
Anyone within the "common bond" can become a member of the credit union, and the organisation is owned and controlled by its members.
The Credit Union encourages members to save, and these savings provide the funds from which members can obtain loans. The maximum charge for these loans is 1% per month or 12.68% APR. It can be, and sometimes is, less.
The income from the loans is used to finance the day to day running of the credit union, and any surplus is distributed in whatever way the members decide at the AGM. Surpluses are usually paid out as a dividend.
Now, you might think that there are main stream banks and building societies offering cheaper loans that this, but these cheaper loans are usually restricted to larger amounts of money, or to people with equity or good credit records.
Those who do not fit the criteria for these cheaper loans are thus left dealing with doorstep lenders; high street cheque-cashers and other high rate money providers. By contrast, loans from a credit union are based on shares held in the credit union and/or the ability to repay, and any surplus that is made at the end of the year is retained within the local community.
Saving encouragement and loans to members are the core business of a credit union, but it might also provide facilities such as cheque cashing, bill-paying etc.
Setting up a credit union can be hard work!
The potential size of 'New Model Credit Unions' means that the day to day running of them needs to be done by professional staff. Before you can form and register a credit union in England and Wales a number of criteria as set down by the Financial Services Authority (FSA) must be met, and it is the responsibility of the Steering Group (those on the committee who helped set it up), and later the directors, to ensure that the credit union is, at all times, a financially viable organisation, and that it continues to act in a responsible and legal manner - even when 'they' keep changing the rules on you!. This means that any new credit union needs members who are prepared to see the formation process through from start to finish.
This is hard work, but it is very rewarding. As a committee member of a credit union you have the opportunity take a part in the formation, and watch the growth of what will be a major influence on the prosperity of your community. There is a part to play for everybody, so I live in hope that some of you reading this will consider volunteering in your local area.
or the co-operative movement. If you want to become involved in "the real supermarket debate" www.tescopoly.org. is a useful site.
Social Enterprise London (SEL) is the regional agency tasked with the job of promoting Social Enterprise in London and increasing the scale of the Social Economy. On 7th December 2006, SEL launched a new finance guide aimed at social enterprises at all stages of development. The guide called "Climbing the Ladder" is supported by Triodos Bank, Europe’s leading social banking specialist. It was produced to help organisations that want access to easy to understand, up to date information to help them establish and run successful social enterprises.
Gregory can be contacted at The Business Development Centre, 9-16, Greatorex Street, London E1 5NF. tel: 020 7247 1050: mobile: 07770 7652250: fax 020 7247 1426.
Local Exchange Trading Schemes (LETS) and Freecycle
are support networks which have now been set up in many countries to help people to exchange goods and services on a pooled system of credits and debits. There is usually a joining fee to offset the administration costs, and each scheme has its own application form, so you could easily join more than one at. For this reason the advisory service Lets Link-UK was set up in 1991. Lets Link-UK has a list of groups is sent out on receipt of a large ssae. A pack for new organisers, which includes a start-up guide and information booklets, costs £10 + p&p, while a small introductory booklet is available for 6 loose stamps from
Within Wales you can contact LetsLink through: Mr. Nick Davies, Teifi Taf Lets, Maes-y-Morfa, Llangrannog, SA44 6RU. tel: 01239 654561. maesymorfa@hotmail.com
In France you go through the VESS (Village Economie Social et Solidaire) system.
India: The KASAM (Kandhamal Apex Spices Association for Marketing), Co-operative
was set up to trade fairly with, and help to educate, the Kuttia Kondh tribe, who have, for some time, grown and exported high quality organic turmeric, The turmeric has now been certified as organic by SKAL, the Dutch equivalent of the British Soil Association. Trading turmeric is vital to the welfare of more than 12,000 subsistence farmers in a region where the average family plot is only around one third of a hectare. The Khandamal region of Orissa, in Eastern India, is the poorest region of the second poorest state of India (after Bihar). The high quality, sundried turmeric is processed and graded within a co-op-owned factory, and is exported worldwide. The original co-operative expanded rapidly to include further items, and is now known as
October 2007: In an edition of the "Food Programme" on BBC Radio 4, the tea co-operative run by the Kilimanjaro Native Co-operative Union, was featured. The KNCU, founded in 1924 is Africa's oldest Coffee Co-operative. Tea growers are now included.
Calon Wen is a diary Co-op owned by over 20 farming families from across Wales. It was the first dairy in the UK to achieve the Soil Association Ethical Trade Symbol.
U.S. For the first time ever Honey is being made in the White House. Right hand side: direct link unavailable.
Zambia: the 2,000 beekeepers who work in the tropical miombo forests in N.W. Zambia joined together to form a co-operative. Now their organic honey is marketed in the UK by David Wainwright.
Not a co-op but Campaign is the first overseas trade title / international business magazine in Bangladesh.
Fair Trade Expansion in the UK
16th February 2010: 1,200 Fair Trade bananas sold every minute leads Sainsburys to claims it is now the world's largest retailer of Fairtrade products. In the UK almost one in every four pounds spent on Fairtrade is spent at Sainsburys.
The first London Borough (administrative district) to achieve Fair Trade status was Croydon, in the South, and there are regular fair trade markets held there throughout the year. Details of these can be found on the Fair Trade , and serve Fair Trade coffee and tea at its meetings and in offices and canteens.
A range of Fair Trade products must be readily available in the shops in the area, and served in local cafés and catering establishments.
Fair Trade products must be used by a number of local work places (e.g. estate agents, hairdressers etc.) and community organisations (e.g.churches, schools etc).
The council must attract popular support for the campaign.
A local Fair Trade steering group must be convened to ensure continued commitment to Fair Trade Borough status.
The above commitments take about a year to achieve.
Kingston-upon-Thames, in the west of London received Fair Trade status in April 2005. As well as being a London Borough, Kingston is the administrative centre for the county of Surrey.
The postcard reproduced below shows the Coronation Stone used by the Saxon Kings who ruled the South of England before the Norman Conquest of 1066. This Coronation Stone stone is still in situ, although the new location has been slightly moved. The Coronation Stone is signposted within Kingston.
1911 hand-tinted image of Kingston-upon-Thames is in the archives of Ki Cards.
Fair Trade Fortnight is now an annual event on March in the UK
Green and Black's dark chocolate was the first 'Fair Trade' product to be launched.
In January 2006 Janet Tibble, the editor of the government funded Overseas Trade magazine gave her views on Fair Trade .
Many colleges, including Morley College in South London, where Kevin Crawley, taught tai chi for some years, hold major Fair Trade promotions throughout Fair Trade Fortnight.
All major UK supermarkets arrange numerous, prestigious, in-store promotions.
Sadly, there are still ironic anomalies ... 'Fair Trade' roses (and even Organic Fair Trade roses!) are flown into British supermarkets from Kenya.
The Co-operative Supermarket chain were pledged to have all their own brand products as fair-trade items by the end of 2005.
In June 2004 the Co-operative supermarket group also said that they would ban nitro and polycyclic musks and phthalates from their own brand product ranges. These chemicals have been shown to be linked to cancers; loss of fertility and environmental damage.
Bananas, Coffee, and the RSPB
Bananas
16th February 2010: 1,200 Fair Trade bananas sold every minute leads Sainsburys to claims it is now the world's largest retailer of Fairtrade products. In the UK almost one in every four pounds spent on Fairtrade is spent at Sainsburys.
If you can afford to, please do try and buy the slightly smaller and slightly more expensive bananas from the Winward Islands. These are of a superior quality, and the small-scale growers depend on us, for their future.
Huge-multinational conglomerates own the banana plantations in South America. They can undercut the Winward Island bananas on price, but they abuse their workers and keep them in conditions which are almost 'slavery'. They also rely on the unregulated and indiscriminant use of pesticides and other chemicals to grow bigger crops.
Well-produced, good quality bananas are an excellent food for those who suffer from tinnitus. And, no, ... we don't suggest they are stuffed into the ears!
The UK University of Nottingham, Institute for the Study of Slavery seeks to pursue and develop research on contemporary, as well as historical slavery in all parts of the world. ...
6th-9th September, 2010: Conference on Slave, Forced and 'Free' Labour will include a PUBLIC evening session on Tuesday 7th September. Talks by Anti-Slavery International and the International Labour Organisation, plus a Q&A panel session. It is hoped to video the event and make it publicly available. More details in due course.
Coffee
Article on fair trade coffee in Nicaragua: USA Today. Written by a friend of Jacyntha's with an M.Sc. who initially took a year out to actively promote the project.
September 2007: Local Fair Trade Coffee debate: "In Defence of Fair Trade" Chiswick Churches for Justice and Peace discussion on "Coffee Bean Wars".
Rwanda: The Abahuzamugumbi Co-operative consists of smallholder farmers in the South of that country. They grow, and now process, high-grade coffee that is sold worldwide under the trade name of Roasters Co-operative. There is an excellent Roasters Co-operative Coffee shop near Mile End Underground station in East London, situated under the "green" bridge.
Union Coffee Roasters Co-operative, The New Roastery, Unit 2, 7a, South Crescent, E16 4TL. tel: 020 7474 8990.
Most Oxfam shops sell fair trade coffees and teas. Often, additional fair trade groceries such as chocolates, snack bars and sweets; dried fruits, jams, marmalades and honeys; nuts, rice, sugar and Christmas items in season are stocked. Jacyntha can recommend Oxfam organic cashew nuts (unsalted) from Ecuador. The availability is seasonal. Cashew nuts contain minerals that can help re-balance female mood swings! The Oxfam cashew nuts Jacyntha feels taste particularly wonderful.
Oxfam shops are the largest retailer of second-hand books in Europe.
The Royal Society for the Protection of Birds, RSPB are producing coffee on bird-friendly plantations, and cocoa in El Salvador and Brazil through their BirdLife Partners. The cocoa production benefits and supports rainforest conservation.
Royal Society for the Protection of Birds products
The RSPB had branded its own wild-life friendly, organic rice. This rice won best new food product at the Natural Products and Organic Industry Awards in 2005. It is grown in north-east Spain, in collaboration with SEO , the RSPB's BirdLife Partner in Spain. SEO has a farm in the Ebro Delta, in north-east Spain, and the wetlands on which the rice grows are a major source of food for thousands of migrating birds.
Wheat for Pasta: Wildlife-friendly Penne Pasta, and white and brown spaghetti, are produced by the RSPB from organic durum wheat. This rice is grown in the steppes, in Aragon, in north-east Spain, and the farms are important to birds like the calandra lark and the pin-tailed sand grouse.
Rather sadly our internet searches did not produce any 2010 references to these products. We e.mailed the RSPB to confirm they are still on sale, and are awaiting their reply.
is one of the remotest islands in the UK. it is situated between Shetland and Orkney in the North Sea. Over the centuries the Norwegians, the Scots and then the English, have all claimed soverenity there. Now, the island claims it was the first RSPB island within the UK!
Fair Isle has been owned by the National Trust for Scotland for over 50 years. Conservation groups from the London Intervarsity Club, including the group led by Jacyntha and Ian have volunteered here. The 2 light-houses, one at each end of the very tiny island have been automated, so a major source of outside income into Fair Isle has ceased, and the local economy depends on mostly on earnings from the world famous bird observatory, and Fair Isle knitwear.
Fascinated by the Scottish Islands? Scottish Islands Explorer is produced in Fair Isle. It is the only magazine in the UK to specialise in The Scottish islands.
is the largest of the Channel Islands. These are situated between England and France.
Jersey became a became a Fair Trade island through the efforts of the Fair Trade island group. Sister Hilary Brown , a friend of Jacyntha 's, then the CAFOD representative for the island of Jersey, was an original member. If you visit Jersey do pick up the free booklet "Fairtrade island Jersey". This lists the enterprises who supported the campaign.
CAFOD is the Catholic Agency for Overseas Development, the English and Welsh arm of one of the largest relief networks in the world.
