The role of Maltese public sector co‐operatives and their financial implications

Abstract

Purpose: This dissertation will analyse the role of Maltese public sector co‐operatives and their financial implications. It will attempt to meet three objectives: establishing the number, characteristics and membership of the co‐operatives; assessing whether the cooperatives have contributed improvements to their mother department’s provision of services compared to when they formed part of the respective department; and evaluating the suitability of co‐operative structures to new public service areas. Design: These objectives were reached by means of semi‐structured interviews with representatives of the four public sector co‐operatives and fifteen co‐operative experts. Findings: The study presented evidence to show that the current public sector cooperatives have a capacity for economic survival and have improved on the service provision of their mother departments in a number of aspects. On the other hand, the study found that a number of barriers were impeding the co‐operatives from realising their full potential performance. Such barriers emanate from the set‐up of the co‐operatives, their operations, and from external perceptions in their regard. Furthermore, the study found that the majority of participants were receptive to ideas on the applicability of co‐operative structures to new public service areas. Conclusions: The study concluded that, basing on the operational model offered by the four co‐operatives, Government has a good base to build on when determining strategies to promote co‐operatives in the public sector and to encourage new ones in a range of service areas, possibly involving various stakeholders and also the private sector. There are, however, various priority areas to address, notably the provisional registration status of existing co‐operatives, revisiting and updating the public service schemes which govern their formation, recruitment issues, and specifically targeted support to such co‐operatives. Value: It is hoped that this study will be useful in throwing a new light on public sector cooperatives and the contribution they can offer to new ways of delivering public services, also in line with modern thinking in this area at the international level. A number of operational, promotional and legislative recommendations are proposed: a high‐level declaration of support and policy direction, setting up of a dedicated Support Unit, revamping Schemes A and B, improving eligibility of members, organising well‐publicised information campaigns, and amending various legislative instruments with a view to encouraging new modalities in co‐operative working within the public sector. Research areas that can offer a valid contribution are also identified.