Joan Burton (Dublin West, Labour)

Mr. Seán FitzPatrick was called up to Farmleigh. It was not necessary to call in to Farmleigh or the Department of Finance the directors of credit unions because they were not indulging in massive speculation and the ruination of their financial institutions. Why will Fianna Fáil not in this legislation give due recognition in an orderly and structured way to the credit union movement? Other countries do this.

A consumer panel is a panel made up of people with an interest and expertise in finance, credit unions and credit union members. This will ensure continuous dialogue between the Central Bank, the Regulator, the credit unions and those who represent and are members of them in terms of obtaining the best possible outcome and regulation of the credit union movement in Ireland, thus allowing it to respond to the challenging conditions of the times and putting it in a position to upgrade, improve and change structures to respond to changing times. This is what we want. We also want consultation built in and for the people at the top of the Central Bank and Financial Regulatory Authority to give due recognition to issues other than profit in banking, which as I stated earlier is well considered in this Bill.

Part of the function of this Bill is to try to make the banks profitable. The function of the guarantee scheme was to plug the hole in the banks' balance sheets. Anglo Irish Bank has so far cost us €22 billion. What is wrong with Fianna Fáil Members that they cannot get into their head that the interests of the credit union movement should be fully recognised in this legislation? Amendment No. 10 is a modest, careful and cautious proposal which would allow credit unions to have a statutory function in this Bill. During discussion on Committee Stage the Minister said that the proposal I put forward on behalf of the Labour Party was a good one. I note that he has responded by way of amendment No. 34 which seeks to give the bank the power to, if it so wishes, establish an advisory group in respect of credit unions. It is at the disposal of the Governor of the Central Bank to establish such an advisory group which will have no statutory function. We are proposing that we, once and for all, in reshaping financial review and regulation structures in Ireland, recognise the credit union movement.

We are all aware of the reports made to committees in regard to the bad debts or bad debt potential of approximately five credit unions, which we understand to be for the most part small local area credit unions. Amendment No. 55, a Labour Party amendment, provides specifically that the Central Bank will be in a position to facilitate the voluntary merger of credit unions in the State in the interests of improve financial stability and management of the credit union sector. The amendment provides for a resolution mechanism which would assist the Financial Regulator in dealing with, as stated by him in committee, the one or two credit unions about which he is concerned. Our amendment is a sensible response to the concerns that were expressed. The State should facilitate small area credit unions that may wish to merge. This legislation should allow that to happen. If the Central Bank and the Financial Regulator deem it appropriate, it should be facilitated in a positive way. Deputies from all parties, including Fianna Fáil, are familiar with the problems encountered by people in many communities, including my constituency, in the run up to Christmas. They have to go to credit unions, to registered money lenders, who charge huge rates of interest, or to informal money lenders, who charge mega interest rates. The Central Bank is not above considering the need for social banking. As this form of business is worth between €11 billion and €13 billion, it should not be dismissed out of hand. I hope the Minister of State, Deputy Killeen, can respond positively on behalf of Fianna Fáil to the Labour Party's moderate and modest amendments, which would uphold and strengthen this country's credit union movement and enable it to grow. We should not allow the credit union sector to be wiped out, which is the aspiration of certain commercial banks. They would like an additional €11 billion or €13 billion to be lodged into their accounts, and let the credit unions go on the hunt.

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