Catherine Murphy (Kildare North, Independent) | Oireachtas source

I very much regret that there is such a heavy guillotine on the Bill, which is a sizeable legislative measure, and also that we have such a short period in which to table amendments. That could come back to bite us.

The credit union movement started in this country in the 1950s, a time very similar to now, with poverty and emigration, and a difficult time for the construction industry. It was very much a response to pawnshops and moneylending, and it fulfilled a need. Part of the reason the credit union movement has been so successful over the decades is that it was built in communities in which people knew each other. That is as much a strength as it is a weakness. I would like to see that strength at local level being knitted into our political structure, because of the trust involved. The credit union movement is a good example of this, as are the GAA and other organisations.

Although there have been failures in the movement and I have no doubt there is need for regulation, these factors pale into insignificance when the movement is compared to the so-called pillar banks. There is a demonstrated trust in the community where people live. In a survey done not long ago, people were asked what was the first payment they made. Credit union loans were preferred to loans from banks. I do not doubt there are bad loans in credit unions, even in sizeable numbers, but this response shows a respect for the movement.

I am concerned by the recommendations for governance and term limits. The implication is that there is an endless stream of volunteers. We could quickly run into serious problems because we are setting up some of the credit unions to fail. There are to be limits on the number of people and a strict regulatory regime is to be put in place. Another point at issue is the kind of authority involved. The Bill contains many instances of "shall" and "may", which will obviously be teased out on Committee Stage. It is not at all clear what role the Central Bank will play, nor how strict it will be. We must be specific in that regard if we are to be fair to the credit union movement.

I refer to the sharing of services. It is good that some services are to be shared, because that will cut costs, but some measures that could be positive, such as debit cards, cannot be shared. Such a measure could allow the credit union movement to offer real competition to the banks.

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