Credit Unions — Motion to Take Note

Part of the debate – in the House of Lords at 1:53 pm on 13 December 2012.

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Photo of Lord Kennedy of Southwark Lord Kennedy of Southwark Labour 1:53, 13 December 2012

My Lords, I thank all noble Lords and the right reverend Prelate for their contributions. It is encouraging that there is so much support across the House. I very much endorse the remarks of many noble Lords about putting the personal back into banking and getting the retail banking sector to step up to the mark. Not having access to bank accounts leaves people at the hands of high-cost payday lenders. This is a huge problem that has to be addressed. Getting the balance right between regulation and enterprise is so important to create the conditions for the sector to prosper. Many noble Lords spoke about the importance of ensuring that the credit unions have the management and professional governance structures in place. I fully support what was said.

We have to be ambitious for the movement and for the sector. I hope the Government will reflect on the debate and see the credit union movement as a key component in the financial marketplace. While some banks have provided support, I was delighted that many noble Lords supported my call for them to do more.

In conclusion, I thank all noble Lords for their contributions. I can assure all noble Lords that the development of credit unions is a matter I will return to again and again in this House. The noble Lord, Lord Cormack, said the banks could and should do more. It is our job to make sure the banks respond to that challenge as, "Yes, we will do more.".

Motion agreed.