Mr. Brian McCrory:

I thank members for inviting us here today and for putting credit unions on the agenda of the committee. We in the Irish League of Credit Unions comprise 390 credit unions from across the entire island of Ireland. There are 297 credit unions in the Republic of Ireland affiliated to the league and 93 in Northern Ireland. My background of over 35 years involvement in the credit union movement is in Belfast, with the Belfast Teachers Credit Union, which operates across all of Northern Ireland, and with the SAG Credit Union, which is anchored in the heart of West Belfast. I am also vice president of the World Council of Credit Unions. I am accompanied here today by Mr. Ed Farrell, the CEO of the Irish League of Credit Unions.

Before the last general election the league set out a succinct policy programme entitled Six Strategic Steps. One of those six steps is for credit unions to feature on a recurring basis on the agenda of this committee.

Credit unions are a vibrant, innovative movement that do a lot now, but critically are positioned to do a lot more for communities and our country. There is a mismatch between our capacity and willingness on one hand, and the willingness and capacity of those with policy and regulatory responsibility to partner with us. In seeking to put our business on the committee's agenda, we are looking for champions who will deliver change that will enable credit unions become a much more dynamic force.

Where credit unions have found partners, we have made progress. In this regard I positively single out the Department of Social Protection. Moneylending is a social scourge. It blights communities and doubles down on the financial exclusion of the poorest. In partnership with the Department and with MABS, the "It Makes Sense" loan scheme is now being rolled out nationally. It is making a difference to communities. It is very much part of our social ethos and we are very proud to be part of that. Where we can find partners to work with, we have a track record of delivering.

On the critical issue of funding for social housing, the then Government in its 2014 policy document, Social Housing Strategy 2020, looked to credit unions for funds. We responded with a very detailed policy paper setting out how that could be delivered in ways that would allow all credit unions to contribute via a centralised vehicle that underpins the credit union ethos and ensures effective regulatory oversight. The response has been very positive. Regrettably, several years later the delivery to date has been nil.

Today's agenda specifically deals with the CUAC report. This review was set up in response to the league's campaign and the implementation group has been established on foot of the review. The implementation group has met once. Effectively its first substantive meeting will be tomorrow. Its programme of work stretches over months. We hope this process will deliver substantive policy change that will be mirrored by appropriate regulatory change. We will be involved in it and we will work hard. However, we are concerned that this process is as much about time management as change management. Volunteers in credit unions ask me if this is just another hop on the merry-go-round.

Credit unions need sustained political support. We need this committee to pursue credit union issues forensically and continually. In 2015 we campaigned hard to persuade the Minister for Finance to pause and review before bringing into force the remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012, prior to implementation of CP88, the Central Bank's latest regulations. The Minister, however, would not pause. The last effective control of the Oireachtas over credit unions was handed over at midnight on New Year's Eve 2015. Now, we have had a review, followed by an implementation process in circumstances where the capacity of the Department of Finance, via the Central Bank, regarding credit unions is unclear.

The Department of Housing, Planning, Community and Local Government has advised that it is very interested in our proposal on social housing. Given that the Department elicited it in the first place, it should be. That Department is in turn in discussion with the Department of Finance, which we are led to believe is in discussion with the Central Bank. While I have no doubt such conversations are taking place, I doubt whether any action will ever arise as a consequence.

We have much more to give to communities. We have resources and have a national network, but we are also challenged. On the one hand we must develop our business model, and we are rightly reminded of this by the regulatory authority. However, we are caught in a Bermuda Triangle where we must develop but regulatory approval has not been forthcoming for the changes we wish to adopt. We receive political encouragement from the Oireachtas that ironically handed over nearly all effective responsibility to the Central Bank.

There are crying needs in our communities. The Irish League of Credit Unions has developed a number of policies on how change can come, many of which the committee members will have seen prior to today. However, change will not happen and credit unions will not realise their potential unless there is sustained political involvement that effectively connects better policy with more appropriate regulation. Our hope is that today is the beginning of that process, which unlike others, will be short and purposeful.