HISTORY OF THE
DEPARTMENT
The Department of Co-operatives and Friendly
Societies 1950 - Present
The
Department of Co-operatives and Friendly
Societies (formerly know as the Co-operative
Department) was established in 1950, to
regulate Societies registered under the
Co-operative Societies Act. The Co-operative
Societies Act and its accompanying Regulations
were promulgated in October, 1950.
In the early 1940's a spate of Co-operative
Societies had been formed in various
communities throughout Jamaica, as vehicles to
combat poverty and other social defects
affecting the broad mass of native Jamaicans.
The most popular types were Buying Clubs,
Thrift Societies, Agricultural and Marketing
Co-operatives and Credit Unions.
During the era of the First World War most
countries experienced shortages and the
colonies, including Jamaica, were expected to
be as self sustaining as possible, while "The
Mother Country" fought for survival in Europe,
Africa and the Pacific. Consequently, the
Colonial Office enacted laws and the necessary
bureaucratic arrangements to recognize and
regulate the mushrooming Societies in several
parts of the empire, later the British
Commonwealth. The British Caribbean
territories were very much a part of this
arrangement, and most of what were to become
the West Indies Federation had legislation
similar to the Jamaica Co-operatives Societies
Law of 1950.
As the legislation drew nearer to becoming a
reality, some of the Credit Union leaders
lobbied for the exclusion of their Societies
from the jurisdiction of the Registrar of
Co-operative Societies, in preference to the
growing North American model. However in
keeping with the other Caribbean Territories,
Jamaica set up the Co-operative Department,
with the responsibility to register viable
Societies and groups as Co-operatives,
including Credit Unions. It was also required
to monitor their operations, with the
intention of securing the interests of members
of the Societies.
The Department was set up by an expatriate E.
A. Surridge who had been exposed to
co-operative development in India. Its first
task was the selection and training of staff
which was completed in approximately six (6)
months with the Registrar being assisted by
five (5) inspectors: R. T. Cousins, James
Kir1ew, Asfon Bailey, Orville White and Rupert
Gregory. In the late 1950's the Co-operative
Department was expanded to include two
Assistant Registrars, a number of Senior
Co-operative Officers and Co-operative
Officers.
In the eyes of the law it was the job of the
Department to audit the accounts of the
Societies. It reserved and exercised the right
to conduct audits by the means of its own
staff or to appoint external Auditors to audit
Societies’ accounting records. It became the
norm to handle the accounts of new Groups and
the more knotty cases, and to assign others to
external Auditors appointed by the registrar.
Visits to the Societies to undertake internal
audit were done and the staff submitted their
reports, to the Registrar with copies sent to
the relevant Societies, so that Societies
could take the necessary steps to improve
their operations.
The Department was also directly involved in
the promotion of new Societies and in training
of Co-operatives’ personnel, a function
critical to the success of the Co-operatives.
The training at that period was done in
conjunction with the promotional bodies – The
Jamaica Co-operative Credit Unions League,
Jamaica Welfare and the Jamaica Agricultural
Society (JAS).
By the mid 1950’s all newly registered
Societies, including Credit Unions were
registered under the Co-operative Societies
Law. Co-operative Societies which had been
formed prior to 1950 were registered under the
Industrial and Provident Societies Act. In the
years that followed, various agencies assisted
the promotion and development of Co-operative
groups, aided by subventions from Government.
In the mid 1960's Fifteen (15) persons were
added to the staff to undertake promotion
activities with entities wishing to be
registered as Co-operatives.
The Co-operative Development Centre was
established in 1972 as an arm of the
Department, with the following objectives:
-
Promotion
and development of co-operative groups and
Societies.
-
Research and planning.
-
Education and training of
committees, management and staff of
co-operative groups and Societies
In order to bring this
about, the government received technical
assistance from the Overseas Development
Ministry (UK), the Organisation of American
States, the Inter-American Fund and the Dutch
and Israel Governments. Efforts were
concentrated in the development of
Agricultural & other Producers Co-operatives
such as:
-
Land Settlement
Co-operatives
-
Marketing and Supplies
Co-operatives
-
Collective Farming
Co-operatives
-
Housing Co-operatives
-
Industrial & Craft
Co-operatives
The period of the 1970s was
characterized by massive state involvement in
the promotion of Co-operative and
Co-operative-like projects. The Socialist
Government under Prime Minister Michael Manley
embraced Co-operatives as a principal vehicle
for economic and social transformation of the
agricultural sector and other people of
limited means. Hence, the Government embarked
on a massive Agrarian Reform Project to
transfer land to the landless and providing
the settlers with the requisite financial and
capital resources to facilitate their
agricultural pursuits. However, that programme
was dogged by various deficiencies and so the
results did not live up to expectations.
That period also saw the exploration of
converting government owned Sugar Farms into
Sugar Workers Co-operatives. One pilot
Co-operative was established on each of the
Sugar Estates of Frome, Monymusk and Bernard
Lodge, with all categories of employees on
those farms acquiring shares and ownership of
the Co-operatives. All of the Pilot
Co-operatives were successful in the first
year of operation so the concept was
replicated throughout the rest of the Estates.
However, the support structure was unable to
meet the increased demands of the simultaneous
registration of 24 new Co-operatives on these
Estates. Consequently, most of those Societies
went into a general decline leading to an
Order of Inquiry into their affairs, which
resulted in the cancellation of their
registration and eventual Liquidation.
The negatives associated with the failed Sugar
Workers Co-operatives along with the
shortcomings of some Producers & Services
Co-operatives are among the major challenges
hindering the growth and vibrancy of the
Jamaican Co-operative Movement. Other factors
inhibiting the growth of the Movement are:
The structure of the
Department of Co-operatives was reconfigured
in 1980 following the full integration of the
Development Centre. Consequently, the
functions of the DCFS are discharged through
four (4) main Operational Centres (Sections),
inclusive of Administration. The others are
Research, training & Development; Audits &
Investigations and Inspectorate.
The period since the 1990s can be
characterized as the era of consolidation and
improved corporate governance. During this
period the DCFS embarked on a programme of
transformation of itself to transform the
Co-operative Movement to become more
professional and proactive in its approach
regarding the manner in which Societies
conduct their affairs. Consequently, the
Registrar of Co-operative Societies approved a
number of criteria and standards developed by
the Jamaican Co-operative Movement with
assistance from the World Bank, World Council
of Credit Unions, Inter-American Development
Bank and the DCFS for implementation. These
measures were designed to ensure safety and
soundness within Co-operatives and to enhance
transparency and accountability in Societies’
operations. Since then, the Movement has
become more sensitive to members’ needs and
the importance of protecting members’
investments.
The soundness of the Co-operative Movement was
tested during the Financial Sector’s melt down
of the 1990s. Not surprisingly, the Credit
Union Movement did not suffer any losses, due
largely to the monitoring systems that had
been enforced by the DCFS and the Jamaica
Co-operative Credit Union League Limited.
Friendly Societies’ administration was
assigned to the DCFS in 1990 and a human
resources audit undertaken into the
Department’s functions resulted in a
reclassification and upgrading of the posts on
the DCFS’ establishment. Presently, the DCFS
has forty-two (42) posts on the Civil Service
Establishment. These individuals are
responsible to discharge all the functions
pertaining to the registration and regulation
of Societies registered under the Co-operative
Societies act and the Friendly Societies Act.
Over the years the Department of Co-operatives
has been supervised by various Ministries:-
-
1950-1979 (March)
Ministry of
Agriculture
-
1979
Ministry of
Parliamentary and Regional Affairs
-
1980-1991
Ministry of Youth and
Community Development
-
1992-1995
Ministry of Local
Government, Youth and Community
Development
-
1995-1998
Ministry of Local
Government and Works
-
1998-present
Ministry of Commerce &
Technology (now Ministry of Industry,
Investment and
Commerce)
Roll call of
Registrars:-
-
1950-1951
E. A. Surridge
-
1951-1953
J. S. Elliott
-
1953-1956
R. T. Cousins
-
1957-1966
G. C. L. Gordon
-
1967-1974
James Kirlew
-
1975-1979
M. L. Goulbourne
-
1979-1983
V. P. Smart
-
1983-1986
V. B. McFarlane
-
1986-1988
R. I. McLeod
-
1988-2002
Milburn
B.
Corrie
-
2002-present
Norman
W. Gordon
Last Updated November 2007
