The Minister of Economy and Labour has put forward a proposal to introduce legislation overseeing co-operatives.

Speaking in the House of Assembly on Friday morning, Jason Hayward, said that while Bermuda had a long history of co-operatives, noting friendly societies and the Bermuda Credit Union, the island lacks a modern legal framework to support and regulate them.

He said that the lack of such legislation has limited the potential growth and development of co-operatives.

Mr Hayward told the House: “This initiative is not simply about creating a new legal structure.

“It is about expanding economic participation. It is about empowering communities. It is about providing Bermudians with another tool to build wealth, create jobs and strengthen economic resilience.

“The Government's vision is to position Bermuda as a leading small island jurisdiction in the development of co-operative enterprises.

“By establishing a modern legislative and institutional framework, we can foster a culture of shared ownership, democratic participation and sustainable development.”

The policy paper, Proposed Introduction of Co-operative Legislation in Bermuda, states that the island’s economy is concentrated in a small number of sectors, which leaves Bermuda exposed to external economic shocks, global market changes and international disruptions.

The paper adds that while co-operatives could help to address such issues, a lack of dedicated legislative framework means that co-operatives must operate under laws not designed for them.

The paper states: “This creates uncertainty around governance, financing and accountability and discourages new co-operative ventures.

“A modern co-operative framework would address these gaps by introducing a legally recognised business form that balances commercial viability with social purpose.

“It would ensure that co-operatives are properly capitalised, governed democratically and protected from misuse. Importantly, it would support start-ups and community-led initiatives that might otherwise struggle to access traditional business structures.”

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The paper said the proposed legislation would address organisational structure, membership rights and responsibilities, governance arrangements, financial requirements and reporting obligations.

The legislation would also establish and define a dedicated Registrar of Co-operative Societies, which would be responsible for registration, supervision and dispute resolution.

The paper added: “The intent is not to over regulate, but to provide oversight that protects members, maintains public confidence and prevents abuse.

“A central feature of the framework is the protection of democratic control. Co-operative operate on the principle of ‘one member, one vote’, ensuring that decision making power cannot be concentrated in the hands of a few.”

The policy paper also said that investments needed to be made in education, training and public awareness about the co-operative model, with government support to be coordinated through the Bermuda Economic Development Company.

Mr Hayward said in the House that co-operatives could play a “significant role” in building a more resilient and diversified economy, creating opportunities for communities to pool resources, share ownership and participate in economic development.

He said: “The legislation will be grounded in internationally recognised co-operative principles and best practices while being tailored to Bermuda's unique economic circumstances.

“The policy also outlines opportunities for co-operative development in sectors such as agriculture and fisheries, housing, renewable energy, technology and sports organisations.

“These sectors present opportunities to strengthen local ownership, reduce dependency on imports, promote innovation and create new economic opportunities for Bermudians.”