Business of the House

Damian Hinds Excerpts

Thursday 13th June 2013 Commons Chamber

[Mr Lansley]

My hon. Friend perhaps invites Members to be in the Chamber for private Members’ Bills on Fridays, and it would be jolly good if they were to attend for that purpose. On the procedure for private Members’ Bills, I will, if I may, await the report by the Procedure Committee, which has been inquiring into the matter. I hope it will soon report on the issue and give us some guidance.

[Damian Hinds (East Hampshire) (Con)]

Following the earlier request from the hon. Member for St Helens North (Mr Watts) for a debate on payday loans, and given the welcome announcement from my right hon. Friend the Prime Minister yesterday about easing restrictions on credit unions in the short-term loans market and ongoing Government support for credit unions and the expansion project, may we have a debate that combines how to cut out predatory and excessive cost lenders with how to help the responsible alternative credit unions reach their full potential?

[Mr Lansley]

My hon. Friend makes a good point and in addition to the payday action plan that I referred to in response to an earlier question, it is important—as he says—that the Government have announced they will raise the credit union interest rate cap from 2% to 3%. That should reduce the losses made on loans, increase stability in the sector, and improve consumer access. The Government have also committed up to £38 million in additional investment in credit unions, which should increase access for at least 1 million more people. I hope that will do what my hon. Friend asks in promoting credit unions as an alternative.