Ms Annmarie O'Connor:

On social lending, we would hope that within the legislation there would specific provision within a lending class for social lending so that it would be specifically addressed and permitted. We see it as being vitally important to those with whom we work. Of course, against that one must balance the risk involved in social lending but it goes without saying that it is essential that people, particularly those living on a low income, have access to affordable credit. MABS and the credit union movement have worked together to support that goal, certainly, in MABS, over the past 20 years. It is vitally important and the legislation must address it in some form.

Access to credit generally for those with whom we work is a concern. We would be concerned that if there were greater prohibitions on access to credit in the future people would take recourse to high-cost credit forms, in particular, the likes of catalogue companies and legal moneylenders, and, potentially, illegal moneylending as well. There needs to be a source of mainstream access to affordable credit for those with whom MABS is working. The credit histories of such persons may have been impacted by their financial difficulties.

We see the credit union sector and the mainstream banking institutions as being vitally important in that context. However, people must have access to affordable credit because this is essential for their daily lives.