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Consumer Credit Bill

I wish to respond to the comments made by my hon. Friend the Member for Hornchurch (James Brokenshire) and the hon. Member for North-West Leicestershire (David Taylor) about credit unions. Credit unions were set up to bridge the gap between loan sharks and genuine lenders. The growth of credit unions reflects the failure to regulate the industry properly in this country. I put two questions to the Minister about credit unions. If a new credit union is set up, will a new licence be needed? All credit unions, as the Minister knows, are individual credit unions. They are not part of one group. They are set up by local people and therefore use local resources. If each has to apply to the Office of Fair Trading for a licence and the applicant, under amendment No. 3, is deemed not to be worthy, how would the credit union continue to survive? One of the problems that credit unions face is that people can give 50p a week. No doubt the Minister will correct me if that is wrong. They therefore receive and give out tiny amounts, but they stop people falling into the hands of loan sharks. I am sure that all hon. Members have had a chance to visit credit unions. If they have not, they should. Credit unions give people an opportunity. I would hate to see enforcement, regulation or any form of licensing that could affect them. The OFT is being given sweeping powers to carry out the functions set out in the Bill. It is a statutory body dealing with an organisation run by local people, who have neither the ability nor the expertise, unlike my hon. Friend the Member for Hornchurch, who is a solicitor—