Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I understand. Part of our work here is to encourage people to go to credit unions as well. Deputy Doherty and I often have discussions on credit unions. It is something that we would support, but this legislation is introducing a cap at this stage and what Deputy Doherty is calling for is provided for in the legislation. The rate can reduce to the rate the Deputy is talking about, but we are saying it will just not happen on day one. We are starting with the 1% per week and it can go down, but the view in the Department of Finance in bringing forward the legislation is that we would like to see the operation of the 1% per week for a period and get information from the Central Bank, and if it feels that the industry could continue to operate at a lower rate, this legislation specifically provides for a reduction to the rate Deputy Doherty has signposted. Our only point of difference is we are saying we want to stick with the 1% on day one. It is a reduction from where we were. None of us like to see the high rates that have been in place, but we are on a road whereby we can reduce the rates at a further date. The principal point of difference is we are saying we will start with the 1% cap now, which is an improvement for most people who are getting loans, and there is scope for a reduction when we get more information from the Central Bank reporting on how the operators are complying with the new legislation. There is scope by means of a statutory instrument to make a change at a later date without having to come back with primary legislation.