Frank Feighan (Roscommon-South Leitrim, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this important Bill and I thank the Minister for bringing it to the House. I recognise and pay tribute to the contribution of the credit union movement and its members over the years and the valuable work they have done in this country.

The credit union in my home town started operating in a small room 30 or 35 years ago. It received the support of the community of which it is now a part. It is an organisation of people who saved together and loaned money to each other. It is owned by the members and was run by volunteers. That brings challenges but the community knows it is one of their own. I come from a business background and over the years I have seen many credit unions helping out businesses when access to funding from banks was not forthcoming. I do not think that has been recognised. Certainly, when the crash and the downturn occurred five years ago and the banks effectively closed up shop, the credit unions were available to give a helping hand to many businesses. Those businesses would not have survived without that capital injection, albeit small, from the credit unions. I appreciate that many credit unions got caught when the banks were under pressure, but they have played a role in assisting the banks.

This legislation amends the 1997 Act and provides a framework for the governance of credit unions. As Deputy Harrington mentioned, this might negate the role of the volunteer because the credit unions must move into a system of governance that is different from the somewhat voluntary system of the past. I saw this happen many years ago with a football club in my home town. In the 1980s we were fund-raising to buy a pitch and provide dressing rooms. We had a very loose arrangement whereby the secretary talked to the chairman and he talked to the treasurer. There was no huge accounting system. There was nothing wrong and everybody was honest and upfront, but we were advised by the league body that we had to put governance in place. We did that but it was a great deal more difficult because one was obliged to provide minutes of meetings and various other things. That governance deterred the voluntary aspect because it meant one was responsible for the funds and people's money. If somebody wishes to get involved in a voluntary organisation now, as a result of events that have occurred in recent years they must certainly be able to - I will not say cover their backs - live up to the expectations set down by the Central Bank.

There will be mergers of many of the smaller credit unions, and that will bring its own difficulty. I have no doubt that dialogue and consultation are ongoing within the credit unions and I expect all the views from the smaller unions will be taken on board. The protection scheme of €100,000 is quite reasonable. The credit unions have done a great deal to deter the prevalence of loan sharks in areas of poverty and deprivation because they are of the people and have worked extremely hard to represent the people. I believe many of the views of credit unions have been taken on board, although one cannot take every view on board. I commend the Bill.

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