Davey backs protection for Mutuals

23.4.02

Edward Davey, Liberal Democrat MP for Kingston and Surbiton, has backed new legislation to enhance the status of co-operatives and mutual societies. The new law should help protect the future of a range of mutual organisations.

Speaking in the House of Commons, Mr.Davey said that "mutuals play a strong and important role for many of our constituents. They play an active role in making our communities that much richer, so it is important to bring the legislation that applies to them up to date".

The Industrial and Provident Societies Bill passed its Third Reading in the House of Commons on Friday 19th April. One of its measures will make "carpet-bagging" much more difficult.

"There have been some well publicised cases where carpet-baggers have voted to demutualise a society," said Mr.Davey. "This bill will ensure a more rigorous democratic process in such cases."

"That means that the position of mutuals will not be so easily compromised by opportunistic entrepreneurs, but have a better chance to continue to represent the interests of their members," he explained. "This legislation is very welcome and I am happy to offer it my full support."