LETS - Bantry Area Trading System

L.E.T.S. stands for Local Exchange Trading System - where a group of people agree to trade with each other, but with no exchange of money. Instead, they create their own unit of exchange - local currency - for which they choose a name.

The members of the association offer goods and services priced in these units in their Directory, which is circulated to all members and updated regularly. Transactions are recorded by means of 'cheques' written in the local 'currency', and the administration sends out regular statements, just like a bank. However, unlike a bank, balances are made known to all members. There is an annual subscription payable in money to cover postage and printing costs, but administration labour costs are usually paid in LETS.

LETS was first conceived in 1983 by Michael Linton, a Canadian, who designed the system as a response to high unemployment in his home town. Since then it has spread all over the world, and there are over twenty groups in Ireland.

Because they enable people to create spending units for themselves, LETSystems are generally set up by a group of people living in the same area who have time on their hands and who would like to trade locally for goods and services.

By 2002, Bantry LETS was operational for around seven years.

Bantry LETS has around 60 active members. On occasion, membership was as high as 200, however, this was a bit cumbersome.

Word-of-mouth has enlisted the membership of people interested in sustainable living practices in the wider Bantry area.

The group involves members trading services and goods for a notional currency with which they buy what they need and sell what products and services they provide within a local context. A high level of trust builds up among members over the years and the exchange of currency becomes less conscious and people simply engage in helping fellow LETS members with goods and services. The area covered includes Schull, Skibbereen, Dunmanway, Ballingeary, and Bantry.

Meetings are held monthly for members. There is a 'trading post' where goods can be traded - vegetables, plants, homemade clothes, art and craft, etc. In the past 'tea and trade' was held where people came together to meet, socialise, trade information and goods. Now the tea has gone and it is just trade.

A special feature of LETSystems is that the balances of all members are made known in the Trading Summary. Thus, everyone can see who has a plus balance and who has a minus balance. Debts are known as commitments, but no interest is charged. It's important to remember that some members have to be in commitment otherwise no one could be in credit.

Unlike the money system, being in credit is not rewarded by the payment of interest. It is therefore in the interest of members not to hold on to too many LETS, but to spend them quickly and allow others to be in credit!

LETSystems have great social potential. People get to meet each other during the course of trading and, of course, help each other by doing simple tasks such as baking, walking the dog or making curtains. More specialised jobs may be available as well, for example plumbing, decorating, carpentry, and various aspects of health care, such as reflexology. Examples of some services provided include co-ordination of work parties to decorate houses, do gardening, etc.

As far as community values are concerned, there is a spirit of helping each other as different needs arise, without having to worry about money.

The LETS is a powerful tool to create your own currency - taking trade and 'commerce' into your own hands and fostering local trade, with the benefits of trust, quality and high integrity of product and services that that entails.

A major achievement of the LETS is the sense of community, belonging and co-operation which has emerged among members, the goodwill to help others and to support local activities rather that trading further afield.

Bantry Area Trading System is very satisfied with its progress. It recognizes that, of its nature, the bank of 'credit' will have occasional highs and lows with varying levels of credit held at times. There is a need for ongoing evaluation to ensure that the bank of credit is kept in balance for the system to be sustainable in the long term.

There is a great diverse mix of skills, products and services available in the area and the group is very pleased with this. You get to know people through the LETS systems and trust builds up. You learn about the credibility of other people's work through other member's references and through the Trading Summary (printed ideally every 3 months along with directory).

It is sometimes felt by members that the geographical area involved is actually a bit big and there is scope for more local LETS to emerge.

The LETS focuses on developing around locally available services, products and skills. It promotes the principle of trading locally. It is a complementary part of a permaculture ethos, working for sustainable living practices, and seeking to simplify the complexities of life through relying on nature's own resources - both people and natural materials.

Among members of the LETS, an Eco-hamlet has been set up with members' own food being produced locally. The exchange of local produce is very rewarding for those involved - food of high quality and integrity. A farmers market is being developed to foster further local food production.

Meitheal Muskerry Resource Centre has lent some support to the project to help its development. The subscriptions of members have also enabled its development. The system is self-sufficient through the availability of goods and services provided by members.

LETS is seen by the group as part of a bigger approach to sustainable living practices - permaculture, whereby sustainable food production, waste management, energy generation practices are pursued insofar as practically possible. The Bantry Area Trading System has created a strong sense of community, trust and co-operation among the members in the area. The trading of currency has almost become of secondary importance to the spirit of mutual support and co-operation that has developed and the goodwill and rapport enjoyed among members.