Seán Kyne (Galway West, Fine Gael) | Oireachtas source

I welcome the delegation. I recently met representatives of St. Columba's Credit Union in Galway at the SCCUL enterprise awards. A number of board members commented on the funding available within a credit union to invest and said they would like to use Government or investment bonds. However, such proposals add to the general government deficit, whereas the Government wants initiatives to be off-balance-sheet.

I would like to address a number of questions to Mr. Murray. The collapse in confidence in the banks over the past number of years has given a stimulus to credit unions. Can this be maintained? Many credit unions are independent. Does there need to be greater co-operation between them in order that they can grow, meaning individual credit unions would have to have confidence in their neighbouring credit unions in terms of regulation, management, corporate governance and so on?

Mr. Matthews mentioned St. Canice's Credit Union initiative with the CEB in Kilkenny. Was that pilot scheme initiated by the credit union or the ILCU?

Mr. Murray mentioned that rural credit unions know their customers and their character and creditworthiness. Does he think, therefore, that if they began to lend to SMEs, they would be taking on clients refused by the banks? On the one hand, the risk would be increased, but on the other, the credit union would know the people who are applying.

CUDA is much more reluctant to get involved in this area than the ILCU. What is the reason for that?