The First Minister of Wales has been asked why a credit union based in Newtown has been denied access to nearly £2 million pounds of new public funding earmarked to strengthen Welsh credit unions for the next three years.
Montgomeryshire Assembly Member, Russell George, took the opportunity to raise the plight of Hafren Credit Union with the head of the Welsh Government, Carwyn Jones AM, during the weekly round of First Minister’s Questions.
The issue had been brought to Mr George’s attention by Hafren CU, following inquiries they had made with the Welsh Government about its recent launch of a 1.9 million pound funding programme to support the credit union project in Wales until 2017.
Staff working for the credit union were told by government officials that this new funding pot would not be reaching Hafren CU but were given no clear explanation as to why the decision had been reached.
The Montgomeryshire AM asked Mr Jones why, given Welsh Government commitments to grow a sustainable, community-based network of credit unions across Wales, was Hafren being denied access to this new funding and whether he would examine this case in more detail.
Mr Jones said that Hafren CU was a recipient of direct Government support and that would continue until September but that he would examine the details of the case.
Commenting, Mr George said:
“I’m pleased the First Minister is going to personally look at this issue in more detail.
“When Hafren Credit Union heard the Welsh Government’s announcement on 6 May that it would be implementing a new programme of funding to strengthen credit unions, it was of course delighted.
“However, having made further enquiries with Welsh Government officials, they have been told that they won’t be entitled to bid for the funding but have been given no clear reason why that was the case.
“Hafren Credit Union has around 1,500 members covering the largest county in Wales with some of the highest levels of deprivation. It is an incredibly ambitious organisation, which was demonstrated by the move to its new premises less than 18 months ago.
“It wants to grow and develop and be financially self-sustaining but cannot do that without some form of public funding at this stage, while it continues to bed in some of the new initiatives and services that it is looking to deliver to the local community.
“The Government talks about developing a sustainable network of credit unions and growing the demand for community saving, so it needs to stand by those words and ensure Hafren CU is properly supported.”
Mr George also asked the Minister for Government Business, Lesley Griffiths AM, to bring forward a debate in government time allowing the whole Assembly the opportunity to discuss the future of credit unions in Wales.
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