An MP has demanded an ‘urgent debate’ about the Co-op Bank’s decision not to pay a dividend.
Colne Valley Conservative Jason McCartney spoke in the House of Commons this week to seek a debate.
His comments came after the Co-op Bank decided to issue food vouchers instead of a pre-Christmas divided to its members.
The UK’s biggest mutual organisation said that £8m in half-year payments to 7.6 million members could not be justified in light of the near-collapse of its banking arm.
Mr McCartney said: “I am a proud Co-op member and I use my local Co-op in Honley and Holmfirth every week.
“May we have an urgent debate on why the Co-operative Group feels unable to give the annual members’ dividend this year which would help hard-pressed families in the lead-up to Christmas, when it is able to find hundreds of thousands of pounds to donate to Labour party politicians?”
Andrew Lansley, Commons leader, did not comment on a debate, but said: “...there are 7.6 million Co-op members across the country who will not get a dividend, whereas last year they received a dividend of £64m.
“That is 7.6 million people who have a legitimate question to ask about why they will not get a dividend when, through the Co-op, loans continue to be made to the Labour party.
“Co-op members will all be asking why the below market rate loans and the donations are continuing, while their dividends are not.”
It follows a turbulent time for the Co-op, whose Bradford-based former chairman the Rev Paul Flowers was filmed allegedly buying and using illegal drugs including crystal meth, crack cocaine and ketamine.
