PRESS RELEASE
Welsh Conservatives have condemned Welsh Labour’s ‘desperately slow’ progress on the allocation of funding for credit union expansion in Wales.
1.2 million pounds is available for use but has yet to be allocated by Labour Ministers.
In a response to a written question from the Shadow Minister for Local Government, the Minister for Communities and Tackling Poverty could only claim that an announcement would be ‘made shortly’.
1.9 million pounds was announced for credit unions by the Labour government last June. 1.25 million remains dependent on a business case setting out how credit unions will use the money.
The Conservative-led UK Government has taken a lead on credit union support.
Funding for an expansion project is being delivered by the Association of British Credit Unions Limited in Wales, as well as in England, and Welsh Conservatives have consistently called on Welsh Labour to explain how its own support will correlate with this scheme – and not just repeat it.
Credit unions can provide an alternative to doorstep lenders and their often extortionate interest rates.
Welsh Conservative Shadow Minister for Local Government, Janet Finch-Saunders AM, said:
“Welsh Labour’s progress on the allocation of this money is desperately slow.
“While the UK Government continues to lead the way on support for credit unions – Welsh Labour continues to dither and drag its feet.
“Credit unions can offer a real alternative to payday lenders. They are a way for people on low incomes to save and borrow money, instead of turning to loan sharks. Yet because of Welsh Labour – funding and support remains in limbo.
“This cash could go towards projects that make a real difference and if Labour is serious about supporting credit unions, it’s about time they properly allocated this money.”
Shadow Minister for Communities and North Wales Assembly Member, Mark Isherwood, said:
“The North Wales Credit Union has over 10,000 adult members and 1,500 junior savers.
“This is just one example of a not-for-profit financial organisation in Wales that could be developing further projects with this money and providing affordable loans to people denied finance by mainstream lenders.
“The time it has taken to allocate this funding is inexcusable.
“The Conservative-led coalition has led the way with its own credit union expansion scheme. Rather than sitting on a large pot of money – Labour Ministers should be doing the same.
“Carwyn Jones must see through on his promise and make sure this money is easily available to credit unions as soon as possible.”
Notes to Editors:
Janet Finch-Saunders (Aberconwy): Will the Minister provide an update on the progress of the £1.9m of funding, announced in June 2013, to support credit union expansion in Wales, and a date from which individual credit unions will be able to obtain funding? (WAQ66177)
Jeff Cuthbert: I will make an announcement on this funding shortly.
ENDS