Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

There is no legislative obstacle to the provision of electronically enabled payment accounts. Therefore, the amendment is not needed. Almost 70 credit unions already provide such accounts and have been doing so for many years, including for a wide range of services, which include a wide range of social welfare payments. Credit unions already have a variety of EFT capacity providers. The obstacle is not in legislation but concerns the broader capacity of credit unions generally to offer these services securely. Credit unions already offer ATM cards, and there are a number of changes in the Bill that will make debit cards more available.

The debit card is a new service. For credit unions to offer the service, they must apply to the Central Bank. The current difficulty is that some shareholders in the credit unions have their shares attached to loans. If shares and savings are attached to loans and one has a debit card, one could be removing collateral underpinning those loans. There are provisions in other sections of the Bill that change that. There are also provisions that simplify the manner in which credit unions will apply for new services. Capacity in this regard has been vested in the new boards.

With the changes in this Bill, it will be possible for individual credit unions to apply to offer debit cards. The Deputy is correct that technology is evolving and we should make provision, where prudent, to allow people to move with the times. We are doing so in the Bill.