# = pounds sterling

HM Treasury News Release
155/98                                   22 September 1998
--------------------------------------------------------------
      BANKS/CREDIT UNIONS TASKFORCE: MEMBERSHIP ANNOUNCED
                                
The membership of the Taskforce which aims to help people on low
incomes gain access to financial services was announced today by
the Economic Secretary, Patricia Hewitt.

The Taskforce, chaired by Fred Goodwin, Deputy Group Chief
Executive at the Royal Bank of Scotland, will look at ways banks
can help credit unions expand their business and so assist more
people on low incomes who have difficulty gaining access to
financial services.

The membership of the Taskforce is:

Andrew Blessley, NatWest
Pat Conaty, Aston Reinvestment Trust
Ray Donnelly, Heriot-Watt University
Rose Dorman, Dalmuir Credit Union
Paul Duffin, Halifax plc
Gillian Ford, Clydesdale Bank
Rosalind Gilmore, former Chief Registrar of Friendly Societies
Gerald Gregory, Britannia Building Society
Roger Hollick, Derbyshire Building Society
Geoff Rutland, Midland Bank
Christopher Smith, Coop Bank
Ralph Swoboda, Association of British Credit Unions

Ms Hewitt today met Fred Goodwin to discuss the programme of work
of the Taskforce. She said:

     "I am delighted that we have managed to bring together such
     high calibre people who have very good experience in this
     area.

     "Access to financial services to those on low incomes is
     crucial if we are to prevent social exclusion. What we want
     to see is more banks, helping more credit unions, helping
     more people get access to savings and credit facilities.

     "Too many people living on low incomes in communities
     without banks fall into the hands of loan sharks charging
     100 per cent interest or more. Credit unions have an
     important role to play helping people to get a fair deal
     from financial services."

The Taskforce chairman, Fred Goodwin said:

     "Nobody benefits from financial exclusion, and it is clear
     that both credit unions and banks have important roles to
     play in its eradication. By working together greater
     inroads into the problem can be made, and the Taskforce
     will be concentrating on how such collaboration can best be
     achieved."

The Taskforce's remit is to:

     explore ways in which banks and building societies can work
     more closely with credit unions to increase their
     effectiveness;

     look at ways to widen the range of services that are
     provided to credit union customers; and

     encourage the continued expansion of the movement.

Its role will be to identify best practice and how his can be
promoted more widely as well as proposing new areas for
cooperation.

The first meeting of the Taskforce will be on the 28 September
in London. It will produce its first report by the turn of the
year and a final report by the middle of next year. The Treasury
will provide the secretariat.


NOTES TO EDITORS

1.   Some banks already cooperate with credit unions through:

     access to payments systems;
     free or low cost banking;
     favourable rates on credit union deposits;
     gifts of premises or equipment;
     staff training; and
     bank staff secondments.

2.   There are over 600 credit unions registered in Great
     Britain with membership of over 200,000. In 1997 credit
     unions had share capital of around œ104 million.

3.   The Treasury's work on credit unions is part of its wider
     work with the Cabinet Office's Social Exclusion Unit on
     tackling financial exclusion.

4.   If you have access to the Internet, you can find this news
     release and other Treasury information at http://www.hm-
     treasury.gov.uk