Oral Answers to Questions

Simon Hughes Excerpts

Thursday 4th July 2013 Commons Chamber

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

5. What support the Church Commissioners plan to give to the Archbishop of Canterbury’s initiative to promote credit unions; and if he will make a statement.

[Sir Tony Baldry]

Archbishop Justin wants to see a more flourishing community finance sector, and he has asked those responsible at Church House to explore how the Church of England can support the credit union movement. The Church Commissioners have agreed to provide support for that initiative.

[Simon Hughes]

Following the welcome summit called by the Government on payday loan companies, and given the view of many in this House that there should be a cap on the interest that such companies can charge, will my hon. Friend suggest that an all-party group goes to see Ministers in the Department for Business, Innovation and Skills to encourage support for the Church’s credit union initiative and to persuade the Government that we need to cap the interest on payday loans?

[Sir Tony Baldry]

I agree with my right hon. Friend. The Anglican Mutual credit union is raising capital from a number of sources to increase its capacity. I have been checking, and I think that practically every book in the Old and New Testaments exhorts against usury. In the other place, the Archbishop of Canterbury wisely stated:

“The Financial Services Act provides for a study of the consequences of a cap to be looked at and then for the cap to be brought in at an appropriate level. Caps are needed at a sensible level that does not choke off supply and send people into the hands of loan sharks…Caps are there to prevent usurious lending…We need to…cut out legal usury from our high streets.”—[Official Report, House of Lords, 20 June 2013; Vol. 746, c. 485.]

I entirely agree that we need to work out how we can prevent legal usury from continuing in this country.