Jim O'Callaghan (Dublin Bay South, Fianna Fail) | Oireachtas source

I thank the witnesses from the Social Finance Foundation and UCC for appearing before us. I found their submissions very helpful. I also commend Deputy Doherty on introducing this important legislation, and I hope we can enact it promptly. That is of course the responsibility of the Oireachtas and of the Government. The area of financial services is one that requires vigorous regulation, and it is surprising that we as a country have allowed a situation to develop where people can be subject to an annual percentage rate, APR, of interest as high as 187%. What makes this situation particularly concerning, as the witnesses have indicated to us, is that to a great extent it is low-income borrowers who are impacted in this context.

I have a question that perhaps Dr. McCarthy and Dr. Byrne may be able to help me with. There are obviously reasons low-income borrowers go to moneylenders rather than the credit unions. Mr. Whelan gave us the example whereby if people borrowed from a credit union they would only be paying an interest amount of €30, but would have to pay up to €300 for the same amount of borrowing if they go to a moneylender. What is the reason for that happening?

What can we do to encourage people to go to credit unions as opposed to moneylenders? Is it simply a question of ease of access? What recommendations could the witnesses make to credit unions in order to make their approach more attractive to borrowers than what appears to be the attractive approach being presented by moneylenders? Dr. McCarthy or Dr. Byrne might be able to answer that question.