Seán Sherlock (Cork East, Labour) | Oireachtas source

I wish to support that statement if I may. At the start of the crisis, we were informed there was a €1 billion hole in the credit unions. The Department now informs us the sum involved is €500 million, consisting of €250 million related to restructuring and a further €250 million related to resolution. Of the €250 million provided for one of these two purposes, only €20 million was used as bail-out money. I use that term for the sake of argument. This means the extent of the crisis in the credit union movement was grossly exaggerated. If only €20 million of a €250 million fund has been required, the amount needed has been minuscule when compared with what was needed for the banks. It is certainly minuscule relative to the €1 billion we were informed would be needed for restructuring.

The credit unions are now being levied to generate funding for an unspecified purpose. It does not seem to be for any particular reason because two separate funds, each of €250 million, are already in place. This is akin to imposing a highway tax on the credit unions. Will the witnesses explain the reason for this in simple language, please?