North Wales Assembly Member Mark Isherwood has called for Welsh Government action to ensure sustainability for Credit Unions in Wales.
With Welsh Government funding due to end in 2017, Mr Isherwood questioned the Minister for Communities and Tackling Poverty in the Assembly Chamber this week over the need for support beyond that date.
He said: “At last Saturday’s Annual General Meeting of the North Wales Credit Union, we heard that there are 52 million loan transactions annually in the UK and it is estimated that in over 35 million of them, people would save by using a Credit Union, yet only 2 per cent of people in Wales currently use Credit Unions. Given that the key issue facing Credit Unions in Wales and England is financial sustainability and that currently Welsh Government funding is due to end in 2017, how do you respond to the concern expressed by the Association of British Credit Unions Limited (ABCUL)—which represents 12 of the 20 Welsh Credit Unions and works with Credit Unions in Wales to develop a collaborative strategy—that we need the next Welsh Government to provide capacity building support for that transition beyond 2017?”
In her reply, the Minister Lesley Griffiths AM said: “I think we have provided that capacity support. I think they have done some fantastic work around building capacity.”
Mr Isherwood added: “I regret that this Minister made no commitment beyond 2017. Although North Wales Credit Union are to be commended for the work they have done to make themselves sustainable, the key issue for Credit Unions across Wales is financial sustainability and ABCUL have told me that they will need the Welsh Government’s support over the next five years in making the necessary changes. Successful credit unions are vital to promoting financial inclusion in Wales.”