|
|||||||||||||||||||||||||||||||||||||||||||||
 |
|||||||||||||||||
 This article first appeared in the 2002 - 2003 AFS (Association of Friendly Societies) YearbookAs President of the Association of Friendly Societies, COLIN PASKELL (Cheif Executive of the Druids Sheffield Friendly Society) believes that compassion and principles still have a role to play in business Diversity and generosity of spirit I first became involved with friendly societies more than 30 years ago as a lodge secretary in Sheffield for the Druids. The journey from that modest beginning to President of the Association of Friendly Societies has been a matter of great pride to me. Yet, delighted as I am to have been chosen for this role, I believe that my election demonstrates the rich diversity and generosity of spirit which is alive in the friendly society movement today. As lodge secretary I was on hand to offer advice and help to members in our local community and to provide financial and social benefits which were rarely available from commercial organisations. We made discretionary health payments and grants from our surpluses, echoing the principles of friendly societies - to return any "profits" to help those who are less fortunate financially. And we provided support if there was a mishap in the family. I was then elected to the committee of the Sheffield district of the Druids, became a trustee, secretary and then chief executive. But I have never lost sight of my roots. Although my Society has grown, and launched new products targeted at the younger generation, we have done it in such a way as to remain true to our principles and to keep faith with our older members, some of whom want to save from just £1 per four weeks. Although I talk of my Society, the same approach and ethos holds true for many friendly societies in Britain today. Yet, that is not to say we have stood still. As a movement we have embraced change and responded to market pressures. Last year's relaxation of the so-called "polarisation" rules - the way in which financial products are sold - has given friendly societies the freedom to offer each other's products and also use alternative routes to market. This welcome relaxation of the rules signals the opportunity to develop a closer relationship between friendly societies and well known companies which are not necessarily involved in finance. As small society we have to remain extremely careful over how we develop the business and what sort of products we offer - to ensure we stay in step with our loyal membership and do not overstretch ourselves. However, for the larger societies, such as Liverpool Victoria, Royal Liver and Family, the ability to develop a wide range of financial products is important. Through their professionalism and huge customer base, the larger friendly societies can keep strict control of their costs while meeting a wide range of financial needs for individuals and families. But no matter how large a friendly society grows it is important that the mutual basis remains the foundation of all the activities. When surpluses arise it is the members - and only the members - who benefit, not a group of faceless shareholders. With this in mind I was disappointed that the association's recent Budget submission to increase the tax-free savings limit from £270 - at which it has been stuck for a number of years now - was unsuccessful. However, I believe that the government remains aware of the tremendous partnership opportunities which we can offer. We are now concentrating on communicating the message that friendly societies can provide a neat answer to the problem of the "missing millions" - those children who will not benefit from the government's proposed plans for a children's trust fund, which will probably be introduced in a couple of year's time. The children who are born before the new trust fund is introduced will miss out on the benefits. The easiest way for the government to help these children would be to allow friendly societies to adapt and extend the existing tax-free limit on childrens' schemes we already offer from £270 to £1,000 a year. It would take a simple stroke of the pen to bring this new idea into reality - because all the regulatory requirements are already in place. And it seems a shame not to take advantage of our experience in successfully running savings schemes for young people. Friendly societies continue to have a major financial planning role to play for most families. Once a person joins a friendly society and sees the benefits they receive we gain from the loyalty factor - a strong and long-staying membership who encourage their children and their grandchildren to save with us. What is important is the way that we can still offer savings schemes from as low as £1 a month, which for some people is the maximum they can save. And for people who do not have access to a bank account, saving a regular amount each month with a lodge secretary is the only route open to them. But to return to where I started. The fact that I have been elected President of our association, although I represent one of the smaller and more traditional societies, demonstrates the generosity of spirit which exists in the movement today. With so many faceless commercial organisations providing me-too products for the better off, the rich diversity of friendly societies in Britain offers individuals and families an affordable, tax free and mutual way of saving. Personal contact and caring about our members were two of the principles under which many friendly societies were set up a century or more ago. We may have become larger and more professional in our business life but we have never lost sight of our roots. And I hope we never will. << back |
|||||||||||||||||
 |
|||||||||||||||||
|
|||||||||||||||||