James Reilly (Fine Gael) | Oireachtas source

I apologise. I did not expect to find myself in this position. As I did not even know if I would get here, I did not bring all of my information with me.

I am a big supporter of the credit unions, Irish Rural Link and the Sparkasse model. When I was in Germany yesterday, I spent the full day hearing about it, with some people who are in the committee room. So enthusiastic were they that we nearly missed the flight back.

The public bank issue is the one Mr. Maye has been addressing. I know that Mr. Boland is also interested in it. There is an opportunity for more cross-fertilisation between the credit unions, An Post and this model. All bets are on the table.

I have a short amount of time because I do not want to miss the vote. The comment was made that the credit unions would like to see the legislation amended in order that they could lend. That would take time to do. Reference was made to the special purpose vehicle. Is that something that would allow them to move forward more quickly, just at that particular end of things? I could not agree more with what was said about lending larger amounts, but will credit unions not be limited to lending to their members? The Sparkasse model is public banking and Sparkassen only lend within their region. As a consequence, they are significant contributors in their region. One of them paid more than €500 million in tax to the local authority in a short period. Nobody owns the Sparkassen; they are owned by the public, which is the reason they are called public banks. Senior bank officials, local politicians - something which might make people in this country nervous - and customers are all represented on the board. They have a supervisory board. They are very keen to help us to set up the model here.

I do not believe we need another long report, forum or whatever else. We need action and I will call on the Minister to take it. Let us have a forum and tight terms of reference that will allow us to do the work that needs to be done. Let us receive a time limited report and get this on the road as there is a huge gap in the market. The geographical location limit is to protect the local area in order that the money will stay there and benefit the area. It is not the case that one area takes precedence over another. We need to see movement now in dealing with the obstacles. I know that the delegates have been exploring the various co-operation options with each other, but we must take off the local jersey and try to make this happen for rural areas. Let us get back to the old ways of banking, which is what the Sparkasse model is. It has been around for 200 years. It is about walking the land, going into shops and businesses and understanding people and their community because they are part of it. It is about lending while being able to make the risk assessment on more than just what is written on paper because there is background knowledge of where a business, family or person sits in the community, which is hugely important.

I encourage the delegates to continue to fight the fight. I will make as much noise as I can about it. We are aware of all of the problems outlined in terms of capture and protecting our own banks which we need, but they do a different job. That is clear from what happens in Germany where we heard a presentation by a man who had a great business. He went to Deutsche Bank - I do not mind mentioning it - with his idea and it funded him to a point and then stated he could have no more. He went to a Sparkasse and it took him on. He now has a turnover of €10 million which is growing. As the business is in the area of the Sparkasse, the €10 million is being generated in the community and tax is being collected by the local authority. The Government should not worry too much about the risk because it would get the money back in tax, jobs and a better society. Never mind the money - community cohesion is more important than money.

I wish the delegates well. I will certainly raise the issue with the Minister to expedite matters as quickly as possible. I am sorry, but I must leave.