§ Mr. FormanTo ask the Chancellor of the Exchequer whether the Chief Registrar of Friendly Societies has yet considered the representations made to him for an increase in the financial limits set in the Credit Unions Act 1979; and if he will make a statement.
§ Mr. RyderThe Chief Registrar of Friendly Societies has held discussions on the representations with the representative bodies. He told them last year that he accepted in principle the case for increases, but that he needed further confirmation that the work which the bodies had done to ensure that their member societies were properly run was bearing fruit. He is now satisfied on the basis of improvements since then that the increase in limits can be made without running risks to members' funds.
The Chief Registrar accordingly sought Treasury consent to an order under the Credit Unions Act 1979 increasing the limit on the size of loans to £5,000, with similar increases in other limits. I gave that consent. The order has been laid today, and will take effect on 1 February 1990.
I hope that these increases will help the credit union movement at this relatively early stage in its development, immediately by enabling unions to give an enhanced service to their members, and thereafter by encouraging more groups to form such unions.