Gordon Brown calls on credit unions to set the agenda
Gordon Brown has praised credit unions for their work to tackle inequality and called on them to set the agenda for the financial system based on the principles of fairness and responsibility.
The former Prime Minister was speaking at the World Credit Union Conference in Glasgow to an audience of 1,400 people from over 50 countries.
Gordon Brown said: “We have seen the biggest financial crisis of our history which was caused by the banks forgetting the basic values of fairness and responsibility which we all adhere to as a matter of course in our personal and professional lives. Credit unions, which have already seen fantastic growth in recent years, are faced with enormous opportunities because they are based on fundamental values of fairness and responsibility...
“We should build the financial system of the future based on principles of fairness and responsibility that have always been at the heart of the credit union movement. So there is a big agenda ahead and, from Glasgow this week, I hope that you can set that agenda.”
Mr Brown also remarked on the growth of credit unions in Britain which now provide services to over 900,000 people, including 5,000 in his own constituency. He observed how this has been helped by the Growth Fund, introduced by the last Labour Government, which provided over 400,000 affordable loans to the value of £175 million, mainly through credit unions, and saved borrowers a similar amount in interest payments.
ABCUL Chief Executive Mark Lyonette said: “I know that the credit union representatives around the world will have been very pleased to hear Gordon Brown express such respect and faith in both their work and their potential. Credit unions in Britain have benefitted greatly from Government investment in recent years and it is testament to the success of the Growth Fund and credit unions’ ability to change lives that the current Government is carrying out feasibility studies to examine the best way to carry forward this investment and continue growing the credit union sector.”
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Notes to Editor:
ABCUL is the main trade association for credit unions in England, Scotland and Wales. At the end of 2010, Britain’s credit unions were managing more than £650 million of members' savings on behalf of over 900,000 people, and had over £500 million out on loan.
ABCUL is the country’s largest development, information and training network for credit unions. It is a democratic, not-for-profit organisation and is improving day-to-day operations, legislation and regulation for all credit unions.
Credit unions in Britain
Credit unions are financial co-operatives owned and controlled by their members. They are licensed deposit takers, authorised and regulated by the Financial Services Authority and they are covered by the Financial Services Compensation Scheme, so the first £85,000 of a member’s savings are completely safe.
Members of the public can search for their local credit union in England, Scotland and Wales at www.findyourcreditunion.co.uk.
The Growth Fund
The Chancellor’s Pre-Budget Report, published in December 2004 outlined measures to promote financial inclusion one of which was to set up a Growth Fund of £36 million to increase the availability of affordable personal loans via third sector (not-for-profit) lenders such as credit unions and community development finance institutions.
Further funding meant that by 2009 almost £100m was made available. By the time the Growth Fund ended in March 2011, the total number of applications received for loans was 472,456. From these, 405,134 loans were approved and payment made to a total value of £175,351,44
Future investment in the credit union sector
In March 2011, the Government announced a new £73 million fund to help the modernisation and growth of credit unions so they can more effectively help those people who are financially excluded by giving them access to affordable bank and savings accounts and other financial services that meet their needs. Subject to successful feasibility studies, this could mean investment in a back office for credit unions which could enable credit union services to be made available through the Post Office network.
World Credit Union Conference
The World Credit Union Conference is the flagship event of the World Council of Credit Unions, the global trade association and development agency for credit unions. This year’s event in Glasgow is co-hosted by ABCUL.
WOCCU promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services.
More information can be found at http://www.woccu.org/events/wcuc and a full schedule can be found at http://www.woccu.org/events/wcuc/attendees/schedule.
For more information please contact Sean Bish at Ethos public relations:
Tel: 0161 830 7640
Email: sean.bish@ethos-pr.com
Website: www.ethos-pr.com
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