Proposed by Councillor Adrian Jones

Seconded by Councillor Joe Walsh

(1)  Council notes that the Conservative Party is heavily funded by City of London finance businesses.

(2)  Council further notes that since the world-wide bank and hedge-fund crash of 2008 just 1000 of the richest UK residents own wealth that has increased by £155billion. Simultaneously, councils, the NHS, low-wage families, and pensioners, are hit by the Government’s cuts whilst the Tories’ super-rich funders are granted breathtaking tax reductions.

(3)  In hideous contrast, as many as a million UK residents have now been victims of “Payday loans” whilst 7.8 million are struggling to keep a roof over their families’ heads. As many as 2.8 million householders have overdrawn in their banks to meet their mortgage or rent bills. Some of the most desperate victims of Government “austerity” policies, designed to pay off the bankers’ gambling losses, quickly become sucked into never-ending debt through “Payday loans” as lenders are allowed to charge as much as 4,000% in annual interest rates. Council calls on this government to legislate urgently to end this immoral exploitation of its most vulnerable victims.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor Christopher Blakeley

Seconded by Councillor Jeff Green

Delete all and replace with:

(1)  Council notes that the Government is taking steps to tackle the problems associated with high cost credit.

(2)  Council further notes the Government is giving financial regulators the powers to impose restrictions on the total cost of credit. Additionally, the Government is also giving the Office of Fair Trading (OFT) a new power to suspend consumer credit licences immediately where there is an urgent need to protect consumers.

(3)  Alongside its publication of a progress report in November 2012, the OFT announced it has opened formal investigations into several payday lenders. These investigations are targeting aggressive debt collection practices and the OFT has written to all 240 payday lenders about poor practices in the sector. The OFT has also published revised Debt Collection Guidance. This guidance focuses on a specific repayment mechanism to ensure that traders with a consumer credit licence do not misuse it.

(4)  Beyond this, the Government has taken action to make sure consumers are better protected. Following discussions with the Government, 90 per cent of the payday and short-term loan industry agreed to improve their codes of practice to increase transparency and provide better protection for consumers. Commitments include: a good practice customer charter, more help for those in financial difficulty and effective monitoring by the Trade Association to root out poor practices.

(5)  The Government has also provided a £27 million grant to provide face-to-face debt advice and the funding contribution of £1 million to the National Debtline to support telephone debt advice has been maintained for 2012/13. This is in addition to the Money Advice Service which offers free national financial advice, helping to increase levels of financial literacy and empowering consumers to take charge of their finances.

(6)  Council puts on record its thanks to the Government for the action it has taken and continues to take to deal with this problem and urges it to continue to work with the OFT to bring about continuing improvements.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor Pat Williams

Seconded by Councillor Stuart Kelly

Delete paragraphs (1) and (2).

Renumber paragraph (3) as paragraph (1) and delete “In hideous contrast,” and replace with “Council is concerned that”.

Insert:

(2)  Council welcomes the fact that the Financial Services Act 2012 gives the new Financial Conduct Authority powers to cap the total amount charged by the high-cost credit industry and acknowledges the contribution made in achieving this by Stella Creasy MP and The Most Reverend Justin Welby and calls on MPs to monitor the work of the FCA to ensure that credit customers are properly protected against extortion.

(3)  Council further agrees to write to Wirral Members of Parliament, raising its concerns that high cost credit companies should also be controlled under the Ofcom Broadcasting Code and only be allowed to advertise after the 2100hrs ‘watershed’; Council considers high credit commercials are wholly inappropriate during children’s programmes.

Having applied the guillotine in accordance with Standing Order 7(8) the Council did not debate this matter.

The amendment proposed by Councillor Blakeley was put and lost (27:35) (One abstention)

The amendment proposed by Councillor Williams was put and lost (27:35) (One abstention)

The Motion was put and carried (35:27) (One abstention)

Resolved (35:27) (One abstention) –

(1)  Council notes that the Conservative Party is heavily funded by City of London finance businesses.

(2)  Council further notes that since the world-wide bank and hedge-fund crash of 2008 just 1000 of the richest UK residents own wealth that has increased by £155billion. Simultaneously, councils, the NHS, low-wage families, and pensioners, are hit by the Government’s cuts whilst the Tories’ super-rich funders are granted breathtaking tax reductions.

(3)  In hideous contrast, as many as a million UK residents have now been victims of “Payday loans” whilst 7.8 million are struggling to keep a roof over their families’ heads. As many as 2.8 million householders have overdrawn in their banks to meet their mortgage or rent bills. Some of the most desperate victims of Government “austerity” policies, designed to pay off the bankers’ gambling losses, quickly become sucked into never-ending debt through “Payday loans” as lenders are allowed to charge as much as 4,000% in annual interest rates. Council calls on this government to legislate urgently to end this immoral exploitation of its most vulnerable victims.