Mr. Kieron Brennan:

We undertook extensive consultation, and continue to do so, with our membership and the members of credit unions have been informed through their credit unions. Last night I attended a meeting in Wicklow at which 30 or 40 credit unions and their members were present and these very issues were raised. Many were small credit unions and they told me in no uncertain terms what they thought about a narrow range of issues they feel need to be examined. I re-emphasise this involves a narrow range of issues.

With regard to how we can improve, we must make the point again that given the economic condition of the country it was to be expected the commission would focus more on prudential soundness, safety and regulatory concerns, and one could say it did so in spades. However, Deputies Higgins and Doherty raised the point that we not only need to do this and ensure regulatory soundness and good governance, but we must also ensure the credit union movement is equipped properly for the role it will play in future. The commission report made the point that the credit union movement is basically sound and can play an enhanced role. It goes so far as to state that if it does it properly the credit union movement could be a third pillar of the financial system.

How do we reshape the movement and what important things can we do or add to the equation? We mentioned a number of items already, including enabling electronic funds transfers. The legislation needs to enable this because it is strategically important. Shared services are also important. Credit unions need to be empowered to come together and share services for their members so that one can walk into a credit union in Cork and withdraw funds from a credit union in Dublin, and so that the movement behaves like the aggregate of what it is, namely, a large social movement. These are important aspects missing from the legislation which need to be brought in.

With regard to difficulties, I will return to the point that credit unions have 3.2 million members and our membership reflects the national demographic. Our social breakdown is exactly as it is in the national demographic and we have the same proportion of A1s. If something happens to the population at large economically it automatically reflects onto credit unions. I am happy and proud to state credit unions have raised their game and done everything in their power to respond to the needs of their members while at the same time protecting the financial base of their organisation, which is owned by their members. They have increased provisions and reserves so they are in a position to deal with members who have issues.

For the 50 years of their existence credit unions have ensured they have been in a position to deal with people who through no fault of their own are in economic difficulties, and they have given priority to this. They were born at a time when ordinary people did not have access to financial institutions or financial services, and when, if they needed funds, they were preyed upon by moneylenders. Unfortunately we are returning to this, so we must ensure the movement is strengthened and is in a position to continue its work.