§ 1. Tony Worthington (Clydebank and Milngavie)If she will make a statement about her visit to Clydebank to open the new premises of Dalmuir credit union. [32332]
§ The Secretary of State for Scotland (Mrs. Helen Liddell)Dalmuir credit union is an excellent example of the success of the credit union movement. Everyone has a right to financial services, which are a key tool in the fight against poverty. At Dalmuir, the Scottish principles of self-help and thrift are plainly to the fore in one of the most successful community credit unions ever.
§ Tony WorthingtonWe were grateful to the Secretary of State for coming to open the credit union, which marks the arrival of the credit union movement in a very different way. Since she came, 85 extra members a month have been added to the credit union's membership, which now totals 5,500, and it has share capital of £3.7 million. It is easily the largest community-based credit union in the United Kingdom. Does my right hon. Friend agree that, alongside the universal bank in the Post Office and 56 other Government measures, the credit union is a powerful means of tackling poverty and increasing social cohesion?
§ Mrs. LiddellI agree wholeheartedly. Of my many engagements, that visit was probably one of the more successful. I was able to meet people whom I had not seen for quite some time, and the warmth of the response was outstanding. With my hon. Friend, I pay tribute to Rose Dorman, the doyenne of the UK credit union movement. To a large extent, it is her vision that has made that credit union so successful.
The fight against financial exclusion is important. Most Members of Parliament can pay their utility bills by direct debit, thereby reducing their bills, but people who are very poor often do not have bank accounts, so access to financial services is often a guarantee of lower bills. Conservative Members may mock, but they have never had to deal with poverty to the extent that the Government have.
§ Mr. Archy Kirkwood (Roxburgh and Berwickshire)The Secretary of State is right to say that credit unions play a valuable role in protecting ordinary people who are financially disadvantaged from the likes of loan sharks. The hon. Member for Clydebank and Milngavie (Tony Worthington) is right to say that Dalmuir credit union is a model. As one of the biggest credit unions in the country, it should be used as an example for others.
The Financial Services Authority has done a lot to protect members, which should encourage people, but although the Scottish Executive have made some quite encouraging statements about developing and supporting credit unions in future, we have not yet seen much of substance. The people of Clydebank would probably benefit from the right hon. Lady's working with her partners in Edinburgh to get further action as soon as possible.
§ Mrs. LiddellI agree with the hon. Gentleman's general sentiments about the value of credit unions, but it was only a few months ago that, with Jackie Baillie, then the Scottish Minister for Social Justice, I opened another credit union in Edinburgh's Leith area. It is important to recognise that the Scottish Executive and the Government work hand in hand.
The FSA has now taken over responsibility for the regulation of credit unions, and a new wave of regulation comes in from 1 July 2002 to ensure that credit unions have the base of protection that other financial services sector companies have. In addition, the Treasury has just finished a consultation exercise on ways in which the credit union movement can be given further assistance; an announcement will be made shortly.
I take this opportunity to congratulate Scotland's banking sector, which has worked closely with the Government to ensure that we increase banking opportunities for all. The banks have been instrumental in giving a great deal of support to the credit union movement, despite the fact that some in their number regard credit unions as competitors.