Alternative bank promotion
The alternative life-style and the world of money, traditionally at odds with each other, have found common ground with Mr Bevin Fitzsimons. Mr Fitzsimons, an Auck-land-based chartered accountant, became desenchanted with the narrow paths that his profession offered, and became a co-operative farmer. Later, however, he returned to "things financial" to form, with others, an alternative bank to support co-operative workers' ventures.
Mr Fitzsimons is one of nine trustees of the Community Enterprise Loan Trust, which was established in December. 1979. and nowboasts $100,090 in deposits.
He was in Christchurch yesterday to promote the concept. The trust's mode of operation is a mixture of hardnosed business practice and soft-bellied idealism. It pays up to 7 per cent interest for money on call and up to 12 per cent on deposits invested for two years, with various rates in between.
Most depositors, who can choose the rate they wish to receive, take less than they are entitled to because they believe in the enterprises the Community Enterprises Loan Trust supports.
The trust’s overheads are small because it relies largely on voluntary labour and because it does not have independent withdrawal and
deposit outlets. Its policy has been to establish branches in shops and offices sympathetic to its goals and to pay a small commission to cover costs.
The trust has between 100 and 110 accounts, the largest, that of a church, containing $lO,OOO. The smallest, at $5. belongs to Mr Fitzsimon’s son. The bulk of the accounts. range from $3O to $5OO.
An Auckland inner-city newspaper, a Wellington vegetarian restaurant, and a Nelson opossum tannery are among firms which have been advanced funds.
The trust lends at 14 per cent. The applicants are checked for viability but personal guarantees are usual as security.
Although not a matter of policy, the loans are made on 18-month or two-year terms. The trust has not provided mortgage money and the largest advance’ has been $5OOO.
The trust had been run as a co-operative and has offered a fillip to its depositors not available at other banks. Members are
able to participate in Decisions to the allocation of funds by attending the trust's regular meetings. Mr Fitzsimons said that many people deposited with the trust to "get a leg in" on the co-operative movement. They felt that they were doing something concrete to help and could learn something of the internal workings of ventures through it.
Members who have borrowed from the trust have accepted trustees assigned by it. who will work with the co-operative for the course of the loan to give its members on-site training in budgeting and administration.
Mr Fitzsimons said that this was the “real gutsy work", of the trust, because it was important that co-opera-tives survived and were seen to survive.
"We want to share the idea that co-operatives work because for some people that is a new thought," he said. With rising unemployment and an increasing demand for part-time work, the role of small, self-starting ventures in the economy was expanding, he said.
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Press, 19 February 1983, Page 7
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507Alternative bank promotion Press, 19 February 1983, Page 7
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