Lord Myners calls for radical Co-operative overhaul

Former City minister Lord Myners has laid out his plans for saving the Co-operative Group with a final broadside to traditionalists "still stuck in denial" over its failings. He admits he is "less confident" the group will choose his reforms.

Report highlights 'deplorable governance failures'

In a scathing report into the governance of the Co-operative Group, former City minister Lord Myners today said radical changes were necessary to return the group to profitability.

Read: Myners: 'No short cut to recover for the Co-op'

The report said the Group's present governance structure was "not fit for purpose" and highlights "deplorable governance failures" that led to the near collapse of the group. Lord Myners calls for:

  • A new "highly competent and qualified" Group Board with independent non-executive directors to lead and oversea the executive management teams.
  • Genuine co-operative values and principles to be protected in the future governance structure.
  • Member benefits should no longer be "deliberately restricted to a tiny and potentially quite unrepresentative body", but should be felt by the whole customer-owned organisation.

More: Former City minister lays out radical plans to save Co-op

Myners: 'No short cut to recovery' for Co-op

Lord Myners has called for the Co-operative Group to make radical changes to restore group profitability, in a damning report in which he blasts some elements of the company for being "struck in denial" over its failings."

Read: Lord Myners lays out radical plans to save Co-op

I have no doubt that the Co-operative Group can over the next five years reverse a decline that started over 50 years ago. But I am less confident that it will choose to do so.

There is no short cut to recovery from its present weakened state. It will require retrenchment and some painful choices.

Financial health can only be restored through steady, step by step, rebuilding of the group's profitability and repayment of its excessive debt."

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