Welsh Assembly's new drive to set up more co-operatives and credit unions

Wales needs more co-operatives and mutual societies to help people through the recession, the chairman of a new cross-party group said last night.

The group - intended to promote the benefits of credit unions, agricultural co-operatives and mutual investment funds - will be chaired by Conservative AM David Melding. Several Labour Assembly Members have also signed up, together with two Plaid Cymru AMs and former Welsh Lib Dem leader Mike German.

The group will try to encourage greater use of credit unions as a credit-crunch alternative to traditional banks.

Mr Melding denied the co-operative movement – formed by Welshman Robert Owen in the 19th century – was unfamiliar ground for a Conservative.

He said: “It seeks to enhance the forces of captialism... it’s a very fruitful option for those who produce goods and gives an awful lot of power to those directly involved.

“We want to encourage the take-up of co-operative models. One of the first things we will be looking at will be credit unions; in fairness the Assembly Government have often encouraged the use of credit unions, but we need to be much more radical given the financial meltdown we’ve seen, to get people to ownership of these sorts of models.

“Certainly for those financially marginalised, the notion of a credit union is absolutely empowering.”

Plaid Cymru AM Chris Franks, who has also joined the new cross-party group, said: “In this era of credit confusion, the credit union is at an advantage, with secure deposits and loans at competitive rates.

“It is time to think differently about the way we use our money. Plaid sees alternative ways of using local financial services to help businesses as well as individuals.

Ed Mayo, secretary general of umbrella group Co-operativesUK, said: “There could not be a better time to harness the potential of co-operatives.

“Across the world, there is a resurgence of financial co-operatives, businesses that instead of failing are being bought out by staff and community-level co-operatives providing lifeline services, from rural villages to inner cities.

“Wales has long been a pioneer in the field of community and co-operative action, and the launch of the All Party Group for the Welsh Assembly is both timely and welcome.”

Article from Wales Online