Michael Noonan (Limerick City, Fine Gael)
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They cannot invest money that is on call. One of the finest features of the credit union movement is that one can, under law, withdraw one's savings any day. We are talking about surplus funds. The reason there are surplus funds is because such funds are not on call for members or being invested in the kind of projects to which the Deputy refers. This is why there are reserves to put in the banks overseas. Under law, there is nothing to stop credit unions from investing in their local communities, cultural or small business activities, etc. It is because the credit unions chose for prudential reasons not to make such investments that they have spare money that they are putting on deposit. However, the Central Bank has an obligation, based on knowledge of the banking system, to ensure money is spread around. It was a question of spreading risk at a time when there were serious doubts about banks everywhere. Now the fiscal climate has settled again.