Mark Isherwood
North Wales Assembly Member Mark Isherwood has challenged the Welsh Government over future funding for credit unions after concerns were raised with him by credit unions in North Wales.
Questioning the Minister for Communities and Tackling Poverty, Jeff Cuthbert, in the Assembly Chamber, Mr Isherwood said that North Wales Credit Union Ltd, which currently has an adult membership of roughly 11,500 members and 1,500 junior savers, is concerned about the Welsh Government funding forecast for next year.
He said:
“At the recent Annual General Meeting of the very impressive North Wales Credit Union Ltd, the Assembly Members present were asked to raise with you their concern over the forecast budget next year, which is for core operational funding, as opposed to the £1.2 million you referred to. It is also concerned about the short time it has to put together the delivery on that. The union states that their core funding from Welsh Government has been £200,000 a year and that the £650,000 across Wales, indicated by the Finance Minister, will represent a 50% cut.
“It accepts that in the current budgetary environment, it will have to take its share of cuts, but feels that 50% may damage the objectives that it and we all seek.”
The Minister said the £1.2 million was a one-off payment aimed at making all credit unions, including the North Wales Credit Union, far more sustainable so that it needs to rely less on core funding from the Welsh Government.
Mr Isherwood also questioned the First Minister over the merger and amalgamation of credit unions in Wales.
He said:
“Although local independent credit unions, such as the All Flintshire Credit Union, play a vital role, we heard at the recent North Wales Credit Union Ltd Annual General Meeting that they had to come together through merger and amalgamation to deliver sustainability, and to broaden the customer base and the range of services. What discussions, therefore, has the Welsh Government had with the Association of British Credit Unions Ltd—to which North Wales Credit Union belongs, as do most of the others—regarding perhaps driving forward fewer credit unions, but larger, and with broader reach, through voluntary mergers and amalgamations?”
The First Minister said it is important for their sustainability that such a process is considered wherever possible.
