Finian McGrath (Dublin North Central, Independent)

I thank the Leas-Cheann Comhairle for the opportunity to speak on the Building Societies (Amendment) Bill 2006. It is important we have an informed debate and I regret the shortness of this debate. I also must admit I received mixed messages on this Bill.

Mr. Tom Doherty, the head of IT at the EBS, told me the Irish Nationwide Building Society can demutualise if it wishes. The position of the EBS is not weakened by the legislation. He stated it is put on a level playing field with the banks in the way they are regulated and run their business. That is one view. He also believes a scare story on demutualisation was put about during the week which could not be raised by members at the AGM. He stated that story is not true and no further restrictions will be applicable after the legislation is implemented than before.

I also heard an opposing view on this issue. People, including my constituents, are concerned and believe it appears from the proposals that members of the EBS, a mutual company owned by its membership as is the Irish Nationwide Building Society, will be discriminated against. In short, should this Bill be passed in its current form, it will restrict members of the EBS from having a future democratic influence on its destiny and will be a move to restrict the ability of the owners of the EBS to determine through democratic means and within the rules of the mutual society the future of the company. To propose to discriminate against such a group of people as the membership of the EBS, which numbers many thousands, cannot be permitted, given that it will differ significantly from the rights of Irish corporate owners.

Other concerns are raised about the proposal of a restriction based on an entry fee of €10,000, clearly referred to in the Bill. There is no common sense on how this figure was arrived at and, if anything, it suits the private agenda of the boards of directors of the Irish Nationwide Building Society or the EBS. I welcome the debate. However, it should have been longer and more detailed.

I also take this opportunity to commend the work of the staff of the credit union movement, who have done a vast amount of work throughout the State, particularly in disadvantaged areas. I will support any progressive amendments which come before the House.

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