Joan Burton (Dublin West, Labour) | Oireachtas source

I have one other question which Mr. Corr has in part already commented on, which is helpful. As Minister, I was involved in the development of the It Makes Sense loan, which is very popular. It was piloted in Finglas Credit Union. The demand for it has been good but relatively few credit unions are providing it. I accept that as credit unions are small scale structures administrative costs and handling charges are probably very high. Would there be scope for, say, the Department of Employment Affairs and Social Protection to pay a fee in respect of each loan generated? This is a vital scheme which helps people, perhaps, following job losses or other financial difficulties, to get back on their feet and also those who have never had any type of structured borrowing and do not fit with the ethos of the credit union. I would be anxious to see this developed.

There are areas in my own constituency where this loan is being made available through credit unions. People are aware of it and it is working well. This is a model which, during my time working in development, I was involved in helping to develop in places like Ethiopia. It does work. I would welcome a response on my proposal regarding the Department meeting a relatively small cost regarding these loans. As I recall it, there was a four and a half year discussion on this with the Department of Finance before we got a successful outcome. The issue was that this was going to be time consuming and the people involved might need a lot of support and encouragement to become regulars. The Money, Advice and Budgeting Service, MABS, was often the introducer to the local credit union where the service was available and it was helping people to resolve debt issues.

In comparison with a commercial bank, what are the credit unions charges for a credit union account holder where the Department of Employment Affairs and Social Protection is in effect sponsoring a small micro loan? Would, say, a €30 charge on each loan be of assistance in that regard? This would be a relatively small payment that could generate an expansion of the scheme to most credit unions in the country if it became viable. Is that realistic?