The Tribune

AS THE Co-operative Movement in the Bahamas celebrates 40 years of existence, Agriculture and Local Government Minister Alfred Gray called on all Bahamians to join a cooperative or a credit union.

“I would suggest you become a member of one of these entities because it seems to me you cannot lose from being a member of a credit union from which you can borrow small loans and avoid the difficulties we face when we go to the larger commercial banking establishments,” said Minister Gray.

Established in 1975, the department has a membership of more than 40,000 and regulates and supervises seven financial co-operatives (credit unions), six producer and service co-operatives and nine school-based co-operatives.

A “Co-operatives Meet the Press” was held on March 13 at the British Colonial Hilton designed to inform media representatives about the movement. The theme for the 40th anniversary is “Accelerating Wealth Creation through Cooperatives”.

Cheryl Bowe-Moss, president of Bahamas Co-operative League; Rochelle Deleveaux, legal counsel at Central Bank of the Bahamas and Nathaniel Director, director of Societies were among the presenters at the event.

Recalling the genesis of credit unions in the Bahamas, Minister Gray said when Sir Lynden Pindling, first Prime Minister of the Bahamas, envisioned the start of co-operatives and credit unions he did it on the pretext that “small” Bahamians were not able to access commercial banks.

“There had to be a way that poor people could get financial assistance which the bank at that time might not have been willing to give because most of them could not and would not have qualified for a loan at Royal Bank, Scotia Bank and First Caribbean because they needed collateral. All, if not most of them, could not find collateral,” Minister Gray said.

“With the implementation of credit unions and cooperatives, members could pool their resources and from their own resources they would be able to borrow for high school fees, renovations to their houses and travel without coming up with the kind of collateral that would have been required for a small, soft loan from commercial banks.”

Holding almost $500m collectively in bank accounts, Minister Gray estimated that with credit unions/co-operatives operating in such good financial shape they are financially stronger in terms of cash and liquidity than any government.

“Governments are run basically on credit and borrowings,” he said. “Very seldom in the history of this country has the Bahamas government, PLP/FNM/BDP, been able to collect sufficient money to run this government without borrowing.”

He encouraged the Movement to ensure that school-based co-operatives grow one school at a time which will require the Government, the Co-operative League and members of the various credit unions and co-operatives working together to ensure they receive the necessary information. “I trust that this will be the impetus that will propel the further growth and development of credit unions operating in our country,” Minister Gray said.

Several events have been planned throughout the year to increase awareness of Cooperatives. They include a school co-operative development competition that began this week and continues until April 14 when finalists will present business plans to judges; an awards ceremony at Government House on June 19; a three-day exhibition at the Mall at Marathon on June 26-28; and a Fun/Run/Walk on July 5.