Huw the co-operator
Labour leadership race — By Daran Hill on November 19, 2009 7:00 am
Huw stresses co-operatives as he visits two in Cardiff today
Explaining his plans, Huw said: “I am committed to establishing a credit union in every Welsh community as a matter of urgency. I want to change the way communities do business, keeping money and resources here at a street level – as opposed to seeing our spending power disappearing into the black hole of global finance. Under my leadership the Assembly Government will conduct a massive advertising campaign to explain to people what credit unions do, how they can help transform family finances and, in time, whole communities.
“I look to the credit union movement in the US and they are now in a position where they are offering student finance deals – that is the kind of ambition I want for Wales. I want communities investing in our young people and I want our brightest and best to be paying back that investment to the community that nurtured and educated them – not a faceless, rootless mulit-national organisation.”
Huw also will take head on the opposition which remains inside the Labour and trade union movement towards Co-operative solutions and politics: “There is still an old fashioned paternalistic, pernicious view in the fringes of the party and Labour movement towards mutualism and co-operative values – an inherent suspicion of anything that actually puts people in charge of their own destiny, creating and running their own services and businesses. That kind of ancient thinking needs to be swept away.”
Tags: Huw Lewis, Labour leadership race
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4 Comments
Promoting the introduction of US style Credit Unions is a very positive and intelligent thing to do. This is good for business and for helping communities at the grass roots level. As long as the scheme does not revert back to antiquated peny ante versions of the current UK credit unions and really does implement the US style then I am all for it and congratulate Huw Lewis on his initiative.
More importantly, this will definitely get votes from business. Why do I say this? Because I have lived in the US for many years and have firsthand experience of how the US system works and how small business relies on credit unions rather than high street banks for day to day financing. The credit union movement in the US is much more locality based/focused and contains no ‘masters of the universe’.
The co-operative approach is what is needed more than ever now as it helps to empower people in their communities and encourages innovation. Using the mutual model blows away the old thinking that you cannot let people show initiative and aspire to improve their locality, because they need to be helped and led. What’s wrong with giving them the tools to do the job themselves? That’s called empowerment and is what Labour future stands for.
It’s great to hear that as First Minister, Huw would strengthen financial structures at local level by setting up credit unions across our communities in Wales. With capital closer to home and not subject to the adverse impact of volatile international flows as we have seen in the recent past, this would help nurture growth in a reinvigorated social enterprise culture and encourage new entrepreneurs to develop their innovative ideas and capture new markets for their products.
It seems the days of continuous massive inward investment flows and reliance on big blocks of grants will soon be a distant memory, and if we are not to be left shivering in the cold, these new ways of thinking need to be embraced and urgently for the sake of communities the length and breadth of Wales.
Sounds very much like D.J Davies’ ‘decentralist socialism’, an idea which eventually became part of Plaid Cymru’s constitution.
I support Huw Lewis’ approach to these issues, and although I do not think he would be a good First Minister he has done well to raise awareness of mutualism and forms of mutual organising such as credit unions.
The Welsh Government has given unprecedented support to Credit Unions, funding them across Wales and developing the first Credit Union current account through the Llandudno & District Credit Union.
This has all happened since Plaid Cymru entered government- I feel there is a direct link there. It is ironic that Huw argued against such a deal! Importantly- the steps from the Welsh Government to support credit unions began implementation in 2007, before the financial crisis. So Plaid (which is part of the credit union movement itself, operating its own union) already knew that this form of finance was advantageous, without needing hindsight. Nonetheless, let’s not attack Huw on this because he has given the issue further exposure.
It would be interesting to know what Huw made of the UK Government’s attempt last year to use Credit Unions to administer the Social Crisis Fund loans (these are interest free loans from the benefits system to the poorest people in our society). The move was dressed up as supporting Credit Unions, but would have resulted in interest being paid on the loans to the most disadvantaged people in the UK including thousands in Wales. The credit union movement at a grassroots level deeply opposed the move (which was eventually dropped), as did Plaid Cymru.
It would be good if Huw expressed an opinion in those things as his support for the UK Government having more influence over Welsh affairs seems to contradict the policy agenda he is advocating.
i am a member at two credit unions – first technology and NC state employees. i started with 1st tech when i was 16, banking ‘online’ via picking up the barbell handset and putting it on the modem and dialing in to their direct server. i have used one of their ATMs on a trip to colorado but never been in a local office. my dad’s former company was based in oregon so we qualified for membership. i’ve had nothing but stellar service from them in 18 years.