Adam explained what had been discussed at the first meeting – the group wanted to organise an event to discuss if and how a local currency could be set up in Edinburgh. That Eva has explained our plans to the Council and they have offered to sponsor the group to run and event in the City Chambers.
Eva described her conversation with Alexis Rowell – it is important not to give the Council the impression that this is going to be a massive success straight away, it is more like a community experiment and have to see where it goes. He thinks that most traders will stick with a local currency for 3 months and then lose interest. So his advice is to start small with committed organisations such as social enterprises that ideally trade with each other.
Jonathan Dawson who set up the Eko local currency at the Findhorn Foundation (FH) spoke to the meeting. Most community currencies do not involve a paper currency but are LETS or TimeBanking schemes. The real question is what are a community’s needs and what is its spare capacity, and how to link them up. There are currently lots of young unemployed that the market system says have no value but there is lots to do – help the old, young, mothers etc. TimeBanking is a mechanism to bring the time rich but financially poor together. Community supported agriculture (CSA) schemes are also good, where the community tell a farmer what they want and commit to buying it then the farmer provides it.
Findhorn had a LETS scheme but there was a lack of practical skills and moved onto the Eko. Money needs no ethical motivation as people can just spend it. On third issue of the Eko and fourth will be out later in 2011. FH have been thinking about delinking from sterling. BerkShares has a plan to delink from the dollar on the day the dollar collapses. There are 18,000 Ekos in circulation. They guessed at the amount to lubricate the local economy and got it about right. The Eko is backed by Sterling, but not in Ithaca in the US, which is on trust. The Sterling in the bank is used to make no interest loans to local businesses. For the tax man, if Jonathan spends 100 Ekos then puts on his tax return that he spent £100.
Benefits of the Eko:
1. Creates a loan fund for community enterprises
2. Businesses now pay each other with the Eko rather than bank transfers so savings of several thousands in bank charges
3. Dividend from leakage (Eko notes falling out of circulation) – are area reissue of the Eko 10% of the notes don’t come back
4. It increases business and community resilience
Even in FH people forget to use the Eko notes. The next issue will have a 5% discount for shoppers to encourage them to use it – based on the Berkshares incentive. FH produces its own electricity so people that live on the park can use Ekos to buy electricity. The Holy Grail is when the local government start receiving and issuing the local currency.
Local currencies are also a real statement to people that have busy lives, they take notice. It is also a flag to rally the troop around and give them pride. Anyone can use a local currency, they don’t need convictions.
This working group is planning on organising a Local Economy Day in the spring and Jonathan was asked for advice on how to run the day. He thinks it is really important that we identify people that share our interests in strengthen the local economy/setting up a local currency, in the different communities we want to work with on this, such as the shop keeping community and also at the Council, and work with them to promote the idea. He suggested a friendly chat with those sympathetic to our ideas in the Council.
FH has a Local Economy Day on February 8th (details here http://www.cifalfindhorn.org/index.php?option=com_content&view=article&id=164:revitalising-local-economies&catid=1:training-programmes) and Jonathan invited someone from the group to attend and offered accommodation.
Justin suggested that once we have identified the business we want to bring into the local currency scheme that we have a link person to keep them informed. Will suggested we work with the traders associations and could invite them to have a market place at the beginning of our event so they sell goods on the day and find out about the idea.
Eva clarified that Jonathan was talking about two ideas – one to identify all the needs and spare capacity in Edinburgh and try to link up or try to strengthen the local economy with LETS, TimeBanking or a local currency. She thought that the first idea was a big project and probably needs to be done by local groups in their area.
Another idea was that we have one Edinburgh currency but each area have notes specific to their area with local photos etc.
The group agreed that it would be really useful to map those organisations that might be interested in the local currency idea. Benny explained that the SEED group have made a start on this. Someone thought that Lucus Layman has already done this.
ACTION: Eva/Benny will contact Lucas to find out.
ACTION: the group agreed to think about relevant organisations and either fill in the google map or send ideas to Benny/Adam.
The group discussed other groups that should be involved: rotary clubs; Scottish Community Enterprise; ethnic communities; cafes/coffee shops; housing associations.
The group discussed what kind of event to run with the Council but nothing was agreed.
NEXT MEETING DATE:
Thursday 27th January 1900-2100, Edinburgh Uni Library Cafe
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