CREDIT UNION FOR SMALL AND MEDIUM-SIZED BUSINESSES

That this House calls for the establishment of a credit union for small and medium-sized enterprises in local communities to help sustain such businesses as economic recovery begins; notes that such a credit union would help free-up access to borrowing for companies with any cash flow problems; recognises that the aim of this would be to provide a financial instrument that could assist these companies to survive until better times; further calls for the establishment of locally-funded and locally-managed investment banks to spread the risk of each company's cash flow needs; further calls for such a resource to be run and managed in the way that existing credit unions tackle doorstep debt with the aim of protecting jobs; urges the Government to back such an initiative in support of the existing help it has provided for companies like the Enterprise Finance Guarantee and the Capital for Enterprise Fund; and suggests that such a model could be tested out in selected communities including Halifax and if it proves to be successful rolled out to other parts of the country.