Jimmy Deenihan (Kerry North, Fine Gael)

It is clear from the contact that all of us have had from people representing credit unions over the past few weeks that they are not happy with the amendment proposed by the Minister. It will impose a whole new system of control on credit unions in what they feel is a completely unreasonable way. It will prevent credit unions allowing members to restructure their loans in a reasonable way. They are concerned that because of this imposition, they will not be able to operate on an individual basis to resolve individual problems. This is the kernel of the problem. The representatives of the credit unions feel that the long-term micromanagement of credit unions by the regulator or the registrar for credit unions under section 35A and section 35B, which are now present under the new section 2C, will certainly change the way credit unions are operating in this country.

Of the 2.5 million credit union members in this country, the average loan is less than €9,000, so we are looking at institutions that are very different from banks here. I appeal to the Minister, as a pragmatist, to accept the Labour Party and Fine Gael amendments in order to resolve the problem for credit unions and to allay their concerns about this Bill.

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