Hansard

Some time ago—in 2002, I think—I was fortunate enough to secure a members' business debate on loan sharks. The Daily Record was running a campaign to expose the squalid activities of loan sharks in poor communities throughout Scotland and I was pleased to support that campaign, as others were. I am pleased that I am taking part in today's debate, in which we can get an overview of the progress that has been made since then.

We all have a duty to ensure that everyone has access to the social security housing benefits to which they are entitled. Welfare rights officers, citizens advice bureaux and independent advice centres play a vital role in the process, and action against illegal moneylenders is vital. The full weight of the law must be brought to bear on loan sharks. From what the minister said, it is clear that we are beginning to address the cycle of disadvantage and poverty and to promote financial and social inclusion.

I am sure that members agree that there should be a cap on excessive interest rates. Irresponsible lending by companies that have no intention of seeing debts paid off but want to keep people in debt for ever and a day must be eliminated.

We must rid ourselves of the disgraceful notion that the poor will always be with us. Our aim should be to change an environment of debt and poverty into an environment of civil rights and empowerment.

Credit unions, such as the excellent credit union in Port Glasgow in my constituency, form one of the strongest defences against illegal moneylending. They have a positive history of service in disadvantaged communities. I was pleased that the minister explained "Unlocking the Potential—An Action Plan for the Credit Union Movement in Scotland", which aims to help grow that movement and ensure that financial services are available to everyone. A partnership with local authorities, Scottish banks, voluntary organisations and Communities Scotland can only be good news.

In Renfrewshire, a pilot scheme links money advice with the pathways to work programme—that, too, can only be good. There are also money advice pilots for people with mental health problems, people with learning difficulties, young people, lone parents and ethnic minorities, all of whom have been identified as facing barriers to accessing mainstream money advice. We should consider one-stop shops in which local people in need can obtain local government, voluntary organisation, Scottish Parliament and Westminster Parliament services.

Often, education is the solution that we apply to deeply rooted social problems. That is the right thing to do—certain practical programmes ought to be woven into the curriculum to help young people understand money, debt, benefits and credit issues and how to handle resources.

Where do bankers, small businesspeople, trade unions and voluntary and community organisations that are not directly involved with money advice stand on debt and loan sharks? The minister is going some way towards creating structures that will allow those people and organisations to engage constructively in the process and ensure that we eliminate the cancer of crippling personal debt. Unfortunately, Scotland does not have the experience of Canada or Australia, where credit unions are significant financial institutions. Work-based and community-based credit unions have an important role to play in an annual summit in Australia that calls together all the financial institutions, moneylending companies, banks and credit unions. The minister should consider that experience.

It has been said that there is an obvious link between loan sharks and drug dealers in many constituencies. Indeed, a loan shark is often also a drug dealer. I would like more action to be taken against their supplying drugs and their arrangements to extort even more money from the communities that they assault.

The fundamental issue in this debate is the Executive's determination to tackle poverty and assist people to get out of the grip of debt. A holistic approach to the problem that involves assisting people back to work, such as appropriate child care facilities that enable women to return to work, and investing in education, housing and health is necessary. We must find ways to let people who are in the grip of illegal moneylenders, who are terrified of their debts and who do not know what to do or where to go know that help is available and that something can be done. We must create a climate in which victims can come forward without fear of reprisals and be confident that prosecutions will be undertaken and convictions obtained.

We have come some way since the debate in 2002, but there is still a long way to go. I still fear that people's unopened bills will sit behind clocks and that when they think that they can do nothing else, they will walk down the street, go up a close and knock on a loan shark's door. However, I am encouraged by what the minister said. Illegal moneylenders are a cancer in our communities. We have started to address the problem, but there is still some way to go.