Gerald Nash (Louth, Labour) | Oireachtas source

As a citizen, a member of my local credit union and a Member of this House, I very much welcome the opportunity to make a contribution to the debate on this extremely important legislation. It might be self-evident for all of us in the House, but it is no exaggeration to say that the provisions of the Bill impinge on the lives and economic prospects of hundreds of thousands of people right across the State. Its measures will have an impact on the social and economic lifeblood of hundreds of communities in this country, including the people of Louth and east Meath whom I represent.

The credit union movement is often the glue that keeps communities together. It was founded on the ethos which informs and influences my political thinking and philosophy and those of many Members of this House, namely, solidarity, fairness and equality of opportunity. I favour a description used by others which states that local credit unions are the people’s banks. When banks were inaccessible and unwelcoming places for many in my community, the credit union took on the mantle of lender and savings institution of first and often only resort for the majority of people who work for a living.

No organisation or institution has been left untouched by the economic collapse in this country. That includes a number of credit unions. There is a necessity to regulate and manage appropriately and proportionately and a requirement to ensure the highest standards of governance apply to this sector as well as to all of the other significant financial institutions active in the State. In accepting that, I am anxious to point out that the panoply of provisions contained in the legislation must be at one with the need to maintain and support the strong and unique ethos and philosophy of the credit union structure. When we emerge, as we are doing, from the economic crisis, we must be sure we do so in a way that, to coin a phrase, does not throw the baby out with the bathwater. There is a growing role to be played in developing the social economy in this country. There appears to be a fear in the credit union movement currently, as a result of the risk assessment models which will be applied and which are implicit in the Bill, that credit unions may be prevented from prudently lending to community-based companies that may, for example, have access to State funding and thus are to some extent supported by the State. From my experience I am aware that credit unions have responsibly engaged in lending processes with sporting, social and cultural institutions and would do so again because it complies with their unique ethos, modus operandi and philosophy. Crucially, it represented good business for them in many cases.

It is important to allay the concerns expressed by some across the country. I am sure the opportunity will be taken to do that. We will proceed with the legislation. Nobody should have anything to fear from it. However, concerns that prove to be legitimate and valid should be addressed. I urge the Minister to accept sensible amendments where they allow a balance between the need for a robust regulatory regime and the continuation of a successful credit union movement based on the kind of community-based philosophy that most Members of this House support.

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