Joan Burton (Dublin West, Labour)

In the context of events on the financial markets in recent months, why is it not appropriate to ask the Financial Regulator to check that the credit unions have, where necessary, responded appropriately to any exposure they may have had to investments? The credit unions have had an extraordinary inflow of funds, particularly from SSIAs. Many of them, specifically those associated with public services such as the Garda Síochána, Revenue Commissioners and so forth, are large, well-run institutions. However, smaller, local credit unions in towns, districts and parishes may not have available to them the same level of financial expertise available to the larger public service credit unions. It is important, therefore, that all credit unions have access to the best possible advice on prudential matters, particularly as they are required to have high reserves and levels of investments and these must find a home.

Various brokers have been engaged in intensive efforts to sell some of their products to credit unions. Savers in credit unions should be given savings protection equal to that available to savers in commercial banks. It is time the Minister arranged a review of the deposit and savings protection schemes. This would strengthen our financial services regime and reduce the risk of savers having a bad experience.

The credit unions provide a great service and it is important that they maintain their strong role in future. However, some of the change and turbulence in financial markets may expose a small number of them to excessive risk. I hope the regulator of credit unions is in a position to offer up-to-date advice to the various credit unions. Updating the guidance note issued at this time last year and introducing stronger protection schemes for savers and depositors would be an appropriate start.

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