Seymour Crawford (Cavan-Monaghan, Fine Gael)

I support the amendments. The record of credit unions is superb. The situation in the movement is so different from what happened in other areas. Banks failed, the regulators failed but credit unions have not failed. We know there have been problems in some credit unions. In my own local credit union in Monaghan town there was a problem but the credit union officers dealt with it. When they found there was a difficulty they got in and, thankfully, have restored confidence in the credit union. I remember the day I left this House in a panic and hurried to Monaghan to check out the situation but I found that everything was covered and above board. No one lost a cent.

The record of the credit union structure and how it works is extraordinary. If the Minister goes proceeds with some of the proposed regulations he will make it impossible for those structures to continue to work. Many people would be out of business were it not for the credit unions. Many small companies had to go to credit unions, not only this year but in many previous years, to ensure they could continue in business. Banks simply refused them. These are the banks that this House supported. We gave €22.5 billion to Anglo Irish Bank and that money has, without question, gone down the tube.

The Bill contains credit union regulations that are totally unjustifiable and unworkable. For example, if two members of a family have jobs but one of them loses his or her job, it might make sense for them to extend the term of their loan. Even if they never missed a payment in their lives, that loan will be classified, under this legislation, as being impaired. They will be unable to get further credit for any other reason and they may be forced to resort to money lenders. What does this House allow money lenders to do? We allow them to charge up to 188% interest. What does that do for any individual who is in some slight trouble?

It is important to have regulation. I am not against it. However, it must be sensible and realistic. I hope the Minister will reconsider these amendments. As far back as December 2009, the Minister for Finance agreed to review credit unions and promised that nothing would be done until the review was completed. What has happened to that commitment? We want to make sure that credit unions are sustainable, and not money lenders. The availability of credit is vital.

I know from my clinics, as I am sure the Minister also knows, that little or no money is being given out by the main banks. If it is it is under terms that people cannot accept because to do so would put their families at risk. Credit unions allow companies to survive. I beg the Minister to ensure that sensible regulations are introduced and those that are nonsensical are withdrawn for the time being. Let us allow time for proper structures to be put in place.

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