I welcome the fact that we have been able to bring this matter forward today, as it coincides with the time of year when demand for a short-term loan system is at one of its highest levels, as has been stated. I welcome and note the comments of colleagues so far. We need to get a handle on the current situation.

This type of business is nothing new. It has existed one way or another through the ages. However, where we currently sit, it is probably at its most expansive ever, with the marketing side of the business flooding our society with material. Quite frankly, it is in your face daily. We heard the statistics that Mr Nesbitt gave.

The motion is pitched at just the right level. Although we are aware of our responsibilities in the devolved Administration, we have concerns and it is imperative that we engage with Her Majesty’s Government and the Financial Services Authority on this matter to ensure fair interest rates and protection for people who engage with those companies.

Regulation is crucial. Since the motion was laid in the Business Office, I have had the opportunity, on several occasions, to engage with folk who are users of the short-term payday loans system, and I have seen how it impacts on their lives. That is from a negative and dire situation through to, perhaps, a lesser percentage of people who make it work for them in a positive way but with strict discipline and controls on how they manage their personal situations. Unfortunately, not everyone falls into the latter bracket and, more and more, it is the desperate, needy and most vulnerable with spiralling debts who are drawn into the system by taking out expensive short-term payday loans, trying to give themselves a breathing space and a short period of reduced pressures. However, they are building on an already weak financial foundation and are putting off the inevitable collapse.

Most of us will have a fair insight into the extent of the problem through the issues and related matters brought to us through our constituency offices. Although I mentioned people who use the payday loans system to their advantage in a calculated, measured and disciplined way, it is due to our concern for those who are desperate, victims of the economic climate and the credit boom of the past era, whose circumstances are now spiralling out of control, that we support the motion. It is clear that it is the despairing group of people that I mentioned who are being targeted, and we are concerned at the number of companies that have sprung up across Northern Ireland recently at a somewhat hurried and aggressive rate.

We have established that banning such shops and their services will not get rid of the need of those who want to borrow small amounts of money nor will it solve any of the problems of those who are in financial distress. In fact, throughout November, those shops and on-line services saw a 23% increase. Banning them would just mean that people who are struggling would go to informal loan sharks, who make the payday loans companies look like angels. There is no regulation of those loan sharks and, obviously, they resort to other means to get their money back.

A better solution would be to ensure that fair interest rates and protection are offered to people taking out such loans. Bankruptcy or binding arrangements on creditors could also be made much easier. In that way, lenders would take more care and time in giving credit to people who cannot really afford it. It is absurd that those shops can apparently make a decision on who to lend to within an hour of an application form being submitted.

I urge the Executive to protect vulnerable people and to be mindful that the Christmas period will force even more low earners further into debt. Anyone in negative equity or in a job and struggling with their debts should, perhaps, be filing for bankruptcy and not borrowing more. It is essential that appropriate action is taken now to ensure that the right advice is given to find a sensible long-term solution to the debts in our constituencies. Borrowing more with high interest rates is definitely not the answer, however small the amount.

We need to get the message out that people need to keep well clear of payday loans. We need to instil an attitude of, “do I need it right now or can I get it in two to three months’ time when I have saved for it?” There is fierce marketing of payday loans, and we have seen the shop-front advertising of the money shops, gold shops and cash converters. Those, and the online services being advertised, need to be addressed sooner rather than later.

We want to ensure that vulnerable people are properly protected, and the Executive are working with the financial industry and consumer organisations to ensure that people have the protection that they need. I support the motion.