V863 - Worker Cooperative Grants Bill 2015 (Third Reading)

Birchington

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Worker Cooperative Grants Bill 2015, TSR Labour

Worker Cooperative Grants Bill 2015
An act to encourage the creation of Worker Cooperatives through the use of government grants.

BE IT ENACTED by the Queen's most excellent Majesty, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:-

SECTION 1: DEFINITIONS
(1) “Worker Cooperative” is defined as a business entity which is owned and controlled by the employees/members of the business.
(2) "Additional Instalment" is defined as an instalment of a Worker Cooperative Grant given after the original instalment.

SECTION 2: WORKER COOPERATIVE GRANT FUND
(1) £50 million shall be made available in grants for new Worker Cooperatives.
i. This shall be called the 'Worker Cooperative Grant Fund'.
The Secretary of State with responsibility for business shall be able to increase the Worker Cooperative Grant Fund to up to £100 million at their discretion.
(2) The maximum grant available to each firm shall be capped at £750,000.

SECTION 3: WORKER COOPERATIVE GRANT BOARD
(1) A 'Worker Cooperative Grant Board' (WCGB) headed by the Minister of State with responsibility for business shall be created to handle applications for the Grants and organise the distribution of the Worker Cooperative Grant Fund.
i. The Minister of State with responsibility for business shall be on the Worker Cooperative Grant Board.
ii. New grants must be approved by a minimum of two-thirds of the Worker Cooperative Grant Board.
iii. Decisions will take into account the business plan of a Worker Cooperative which must be presented as well as the potential risk of fraudulent activities by members.
iv. Responsibility for appointing members of the Worker Cooperative Grant Board will be made by the Secretary of State with responsibility for Business.
v. A position on the Worker Cooperative Grant Board shall be salaried under a performance related pay scheme by the Government Corporate Finance Initiative.
vi. Worker Cooperative Grant Board member salaries will be subject to review and amendment by HM Treasury every year.
vii. Any Minister of State (including the Minister of State with responsibility for business) appointed to the WCGB will not be eligible for additional salary to their Ministerial salary under this Act.
(2) Both the Secretary of State with responsibility for business and the Prime Minister shall be able to replace members of the board should there be sufficient evidence of malpractice.

SECTION 4: ELIGIBILITY FOR GRANTS
(1) To be eligible for any grant under the provisions of this Act a firm must register or be registered as "a co-operative society" under the Co-operative and Community Benefits Act 2014.
i. To receive a grant of over £100,000 a Cooperative must have a minimum of 10 members.
ii. To receive a grant of over £200,000 a cooperative must have a minimum of 20 members.
iii. To receive a grant of over £300,000 a cooperative must have a minimum of 30 members.
(2) To be eligible for any grant under the provisions of this Act a firm must not have members who
i. have previously been declared bankrupt
ii. have been found guilty under the Fraud Act 2006
iii. are on the Worker Cooperative Grant Board or are immediate family members of individuals on the Worker Cooperative Grant Board.

SECTION 5: DISTRIBUTION OF GRANTS
(1) Grants of over £100,000 shall be distributed in a minimum of 2 instalments as decided by the Worker Cooperative Grant Board.
(2) Before the distribution of an additional instalment a review shall be carried out by the Worker Cooperative Grant Board to decide whether to continue giving instalments to a Worker Cooperative.
(i) This decision shall be based on whether the performance of a Worker Cooperative has been satisfactory and whether there is any risk of potential fraudulent behaviour by members.

SECTION 6: COMMENCEMENT, SHORT TITLE AND EXTENT
(1) This Act may be cited as the Worker Cooperative Grant Act 2015.
(2) This Act shall extend to the United Kingdom; and
(3) Shall come into force on 1st April 2016.

Notes Worker Cooperatives are a method of offering employees more control over decision making within their business and an effective way of increasing productivity as each worker owns a portion of the business. This will also aid the economic recovery by encouraging the creation of sustainable businesses.

Useful Links:
http://www.legislation.gov.uk/ukpga/2014/14/contents

Changes made for Division

Changes to spelling/wording/grammar that do not affect the substance of the bill.
Section 3 expanded to salary board members under a performance related pay scheme.
Prime Minister given power to change members of the board.

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RayApparently

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Aye!

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username1524603

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I am not against the principle of this bill but I voted no because I believe it is ridiculous to pass a law saying £100m shall be dealt between new cooperatives. This bill should be a non-legislative scheme from the Department of Business, Innovation and Skills that does not require a vote.

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Saracen's Fez

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(Original post by Nigel Farage MEP)
I am not against the principles of this bill but I voted no because I believe it is ridiculous to pass a law saying £100m shall be dealt between new cooperatives. This bill should be a non-legislative, scheme from the Department of Business, Innovation and Skills that does not require a vote.

Unfortunately there's no Secretary of State at the Department of BIS.

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RayApparently

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(Original post by Nigel Farage MEP)
I am not against the principles of this bill but I voted no because I believe it is ridiculous to pass a law saying £100m shall be dealt between new cooperatives. This bill should be a non-legislative, scheme from the Department of Business, Innovation and Skills that does not require a vote.

There probably would have been if we were in government to do it... The absence of a government is no reason to suspend the policy.

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Birchington

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Ayes to the right: 27
Noes to the left: 12
Abstain: 5

The Ayes have it! The Ayes have it. Unlock.

Turnout: 88%

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