Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Okay. I am proposing a limit, as author of this legislation, three times the average cost of credit. Taking a six-month to two-year old charge of interest on a €1,000 loan, if the legislation is enacted as I propose, it would mean the cost of credit that a moneylender could charge would be a maximum of €186 for that €1,000 loan. That would clearly be down significantly from €560 and it would be phased in over a three-year term. For the first number of years, the charge could be higher.

What is Mr. Farrell's view of that proposal? I have another couple of questions that could be taken before I ask Ms O'Connor a couple of questions. There is a repeated argument from the Government that legislation to cap interest on moneylenders would drive people to the hands of illegal moneylenders. The witnesses have rejected the claim, citing research by credit unions and the authors of the 2018 University College Cork report. Will Mr. Farrell elaborate on that?

It is really important that credit unions are enabled to provide credit to borrowers, including those who have availed of high-cost credit and loans from moneylenders in the past. How, in the view of the witness, could that be better facilitated? Does he have any comments on the fact that the Government has failed to increase the interest rate cap imposed on credit unions from 1% per month to 2% per month? I will leave it at that but I have other questions if time permits or I can come in again. I have a series of questions for the representatives of MABS and FLAC.