Child Poverty Slammed as McConnell Rules out Santa Visit

In the last First Minister's Questions before Christmas, the opportunity was taken by Rosie Kane to raise the issues of child poverty and exploitative lending practices. After her festively good humoured and well-reported initial question was dismissed in a seemingly rather grumpy manner by Jack McConnell, Rosie got stuck into hammering home the point that Christmas is a time when the pressure to spend is greater than at any other time of the year.

Reproduced from the Scottish Parliament Official Report 23rd December 2004:-

"Official Visits

3. Rosie Kane (Glasgow) (SSP): To ask the First Minister whether he will be receiving any official visitors from Lapland over the Christmas period. (S2F-1318)

The First Minister (Mr Jack McConnell): No.

Rosie Kane: The First Minister must have been a bad boy then, but I thank him for his reply anyway.

Does the First Minister agree that, at this time of year, poorer families come under even more pressure? Is he concerned that high-street stores and lending companies exploit the situation by offering a way out that throws families into debt turmoil? Will the First Minister listen to an example of a low-wage worker who borrowed £3,000 from a high-street lender? Optional cover and an annual

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percentage rate of 44.6 per cent meant that the low-paid worker paid back £6,630. Will the First Minister condemn those practices, and will he promise to lift the burden of child poverty?

The First Minister: I can absolutely assure Rosie Kane that in 2005 we will continue the progress that we have made in reducing the number of children in poverty in Scotland. I can also assure her that I share the concerns expressed by many members in all parties about the burden of debt being suffered by poorer families in Scotland, in particular at Christmas time. The way to ensure that we tackle the issue is, first of all, to have greater controls on those who lend. We must also ensure that we lift more and more people out of poverty with decent wages, good jobs, a strong Scottish economy, better education and skills for the people of Scotland and all the other improvements that we are working hard to achieve, on which we have made great progress in 2004 and on which we will make further progress in 2005.

Rosie Kane: Is the First Minister aware of companies such as Brighthouse Ltd, which have a policy of lending money for goods to customers and charging extortionate rates? If a customer misses a payment, the companies call the customer's family, friends and, often, their employer. Is the First Minister as concerned as I am that such intimidating and shaming activity breaches the Data Protection Act 1998? Does he agree that trading standards officers should open an investigation into such companies with a view to revoking the licences of those who exploit and intimidate poor and low-paid workers who are in debt? Will the First Minister promise to protect the poor from those vultures?

The First Minister: I share those concerns and I hope that Rosie Kane will raise them with the appropriate authorities."

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