Michael Noonan (Limerick City, Fine Gael)

I thank all Deputies who contributed, in particular Deputies McHugh and Doherty and the leader of Fianna Fáil.

Deputy Doherty will recall we had a short recess on Committee Stage during which members were contacted by members of the credit union movement. The sequence of events was that as the Bill was proceeding the Central Bank asked for additional powers of resolution to be applied to credit unions, which was done by way of amendment very late in the process. I understand the amendment was only circulated the day before the discussion took place. While it had been scrutinised, it did not have the benefit of a second look after reflection which normally happens with good legislation. I was very pleasedwith the interaction between Deputies. There is no politics or ideology in a Bill like this. We try to have the best legislation we can. If suggestions come from the Opposition, I am quite prepared to accept amendments or redraft them to make sure the spirit of what Deputies say is included in the Bill.

As there was some controversy on Committee Stage, rumours began to fly, most of which were not true. We had a free-flowing question and answer session in the Seanad and when I was asked a direct question about credit unions, I felt the easiest thing to do was to tell people what was happening. The interim report of the credit union commission is due for publication which will give the situation context. When I was in the Seanad there was a special meeting of my parliamentary party to discuss credit unions. I was contacted by Deputies from different parts of the House with different allegiances who wanted to know what was happening. The easiest solution was to tell them what the situation was and that there would be recapitalisation of the credit union movement.

It may have caused concern for credit union management but it did not cause concern for credit union depositors or shareholders because they immediately knew the State was prepared to invest a quantum of money their investment was secure, which was my intention. The interim report of the commission will be published on Friday by the commission. Deputies will get a lot of additional information and context on Friday about the situation.

Rumours can be quite damaging. Stories circulated that people would not be able to enjoy Christmas because the traditional temporary lending which they availed of from credit unions to pay for Santa Claus would not be available. It was reported that limits were so low credit unions would not be able to lend to the traditional creditors who sought loans at Christmas. That is not true.

It is true that the regulatory authorities have issued limits on the amount of lending that can be engaged in by credit unions. Some 50% of credit unions are subject to lending restrictions at the current time. Almost all credit unions with lending restrictions have a maximum individual loan size restriction. Claims were made in the Seanad and in newspapers that the Registrar of Credit Unions placed restrictions of approximately €1,500 per saver on a number of credit unions. It is not case, even though it is widely believed that it is.

Some 70% of credit unions who have restrictions placed on them can lend up to €20,000 or more to an individual member. Only nine credit unions are restricted to loans of less than €10,000 to an individual member. Just one credit union is restricted to lending less than €5,000. The figures of €1,000 and €1,500 to which people referred are fictional. Facts always kill rumours and, therefore, I am trying to communicate as many facts as possible. I am very glad the commission's report will be available on Friday because it will give everybody who is interested in this debate a factual basis for the discussion to proceed.

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