Pearse Doherty (Donegal South West, Sinn Fein)

I thank the Minister. I do not want to have a debate on credit unions but I look forward to reading the commission's report on Friday.

There is no problem with caps on lending being imposed when they are needed. However, the problem is some of the blunt instruments that are being used. At a time when we want to encourage lending in the economy and the Minister is having difficulties with banks meeting the lending requirements laid down, the idea of telling a credit union it cannot lend more than €10,000 to an individual does not make sense. A person may earn €250,000 per year, but because he or she has a car loan from a credit union in excess of €10,000, he or she cannot take out another loan. It is a blunt instrument which does not make any sense. Unfortunately, people are being caught in a spiral.

I will not second-guess the Minister on dampening down the concerns and fears created by the rumour mill. A report which is outdated remains unpublished and proposed recommendations that are unfounded. It used criteria that are not required. The contribution made by the Minister in the Seanad was based on the report. Rightly or wrongly, there is concern that the regulator will restructure credit unions to an extent that is not required to try to impose more control over the movement. While there is no doubt there is a need for some restructuring, there should be a balance. I and many other credit union members and managers are concerned. We will have a chance to debate the issue in the report is published.

See this speech in context