Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Cuirim fáilte roimh an deis labhairt ar an ábhar tabhachtach seo.

I welcome many of the Government's proposals with regard to the credit unions, which have been discussed by the Commission for Credit Unions. This legislation offers an opportunity for further support for the credit union movement throughout this State. It also offers us an opportunity to create a world-class movement here, one which will be an example not alone for Northern Ireland but for the international credit union movement. The success of the credit union movement has been a particularly Irish story. Credit unions are part and parcel of every community in Ireland, North and South. Whether one lives in Dunboyne, Derry, Ballivor or Belfast one has access to a credit union. The credit union movement is an all-Ireland body developing and delivering for people.

Financial institutions across the globe have collapsed around a business model that created elites that were bound together by greed and financial gain. During the past couple of days there have been many discussions about the pensions awarded to board members of banks. The amounts paid to these individuals is shocking, in particular at a time when the Government is enforcing cuts on the poorest in society. Contrast the pay that is received by people such as former Deputies Dick Spring and Alan Dukes and the damage done by Allied Irish Bank and Anglo Irish Bank to the community of Ireland with the voluntary and unremunerated effort by the boards of credit unions in places such as Navan and Clonmellon and their contributions to families and communities. Credit unions are a central part of Irish life.

The Irish League of Credit Unions represents the interests of almost 500 credit unions, 103 of which are based in the North of Ireland. The movement has 3 million members, savings of €11 billion and assets worth more than €13 billion. Credit Unions are available to the people of Ireland during periods of hardship, including in September when children are returning to school, at Christmas time or when small businesses need a loan to keep them afloat for a short period or to start up a new business. In these times of increased unemployment, increased costs and reduced earning power, credit unions are needed more than ever. Where the banks failed, the credit unions stepped in. They are critically vital in sections of our rural and disadvantaged areas which the banks refuse to service.

In addition to the impact of credit unions on the communities they serve they also provide a different business model, one which is not held together by greed and financial gain. It is a business model that is held together by a common bond of mutual support and trust. It is often forgotten, when we speak of financial institutions or businesses in this State that there are many successful models that include the not-for-profit model, the main objective of which is the common good of society. We must ensure we help such organisations to grow.

The core values of the credit union movement represent the way forward for a sustainability in financial institutions that has been heretofore unseen. I accept that the credit unions are operating in a difficult and challenging environment and that the economic downturn has increased unemployment, leading to difficulties in respect of the repayment of loans. Sinn Féin and the Irish League of Credit Unions fully support the need for enhanced regulation for the benefit of credit unions, their members and society. We believe that the majority of the proposals in this legislation, as developed by the Commission on Credit Unions, are good and sensible. However, I am concerned about the inclusion in this Bill of provisions which were not discussed by the commission, in particular the application of Central Bank legislation from 1942 to 2011 to credit unions and the consequences for them in this regard. These proposals and their impact were not discussed, developed or agreed by the commission. The Department maintains that they will have no real impact on the operation of credit unions. However, this is not the view of the credit union movement. It is not clear from the legislation what aspects of this considerable body of law will be applied to credit unions.

I am also concerned about the application of the Central Bank (Supervision and Enforcement) Bill 2011 to credit unions, which also was not discussed or recommended by the commission. The application of this legislation needs to be clarified by the Government or removed from credit unions until a reconvened commission can discuss these issues, following which subsequent legislation can be drafted. I believe a number of other issues need to be addressed in this legislation, which would ensure a strengthening of it. The credit union movement is looking to the future. The people need progressive and forward facing modern financial services. Essential to this is the provision of shared services across the credit union movement, in particular the development of electronic payment systems. The legislation as drafted is silent on this matter. It is hoped the Minister will reflect on this matter and will at a future date include a provision which enables and promotes the development of such shared services. It has been suggested that the Government is opposed to this out of concern for other financial institutions. I hope this is not the case and that the Government simply omitted to include such a provision.

The Bill is also silent on enabling credit unions to use their resources to invest in socially progressive schemes that would provide a return for their members and deliver for their communities. As I stated earlier, the credit union movement currently has assets worth approximately €13 billion. A fraction of this money could be invested in local communities, thus creating jobs and delivering real change at a time when real change is sorely needed. Surely it is better to borrow from the credit unions than it is to pay exorbitant rates to banks and bondholders. It is hoped the Minister will include a provision in legislation to enable this process.

As I stated, the credit unions embody how a financial institution should operate. They hold true to the core values of working on behalf of members and the wider community. Credit unions reward savers, support members in their needs and invest in business. We need to ensure this legislation does all that is required to progress these core values. Tá súil agam go ndéanfaidh an Rialtas macnamh géar ar na pointí a luaigh mé agus go gcuirfidh sé leasaithe isteach chun déileáil leo.

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