Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this Bill. The State is in a difficult position financially, as are many households. I am thankful that there are institutions such as the credit union movement that are unique to Ireland and of which we can be proud. An interesting aspect of the movement - along with the GAA, another great organisation rooted in the community - is that it covers the whole island. It has a branch and cumann in every corner of every county. The GAA and credit union movement have shown themselves to be very resilient. All such progressive movements draw their strength from the fact that they are community-owned and people-centred. They are based in the community. They are solution-based organisations addressing social need. It is interesting to note that the credit union movement, with its co-operative ethos, is based on socialist principles. The Minister of State, Deputy Alex White, will share with me his appreciation of that fact.

The credit union movement was founded because of the efforts of three people, Ms Norah Herlihy, Mr. Sean Forde and Mr. Séamus P. MacEoin, all of whom were based in Dublin during the very difficult recession of the 1950s, whose effects they witnessed. I have but a vague memory of the pawnshops that were widespread in Dublin city at the time. There was considerable unemployment and other problems associated with poverty in that decade. In the 1950s, unemployment benefit was very low and did not last indefinitely. Many families were left in poverty.

Some 60 years later, more than 2.9 million people throughout the island have recognised the value of the credit unions and have savings approaching €11.9 billion. Over 9,200 active volunteers are involved in the movement. We know them in our communities. There are more than 3,500 people in very good employment in the credit unions. I have been a credit union member for a long time. I have been a member of two branches, one of which is near where I live now and another near a former residence. I acknowledge the benefits of having been a member. I used the credit union at times of greatest need and was always offered a sympathetic ear when trying to borrow money for essentials. The credit union was there for me. I have seen it play an essential role in the lives of people with low incomes.

Credit unions play an important role in their communities. Credit is difficult to obtain from banks at present. This is rehearsed in the House week in, week out. Where possible, credit unions try to facilitate their members. I salute the staff and volunteers of the credit unions across the State, including those in my constituency, Laois-Offaly, where there is a strong movement. It provides a great and very professional service and has been very important for people. Having spoken to representatives of the credit union movement, I can confirm that they are the first to admit more regulation is needed. They require a better regulatory context in which to operate and there is a need for reform. The credit union movement has been the primary advocate of this. We support the reform of the credit union movement. In doing so, we believe it must be achieved in a manner that reflects its unique ethos and community-based, not-for-profit and volunteer-based approach.

While I broadly welcome the Bill, I must highlight a number of concerns I share with the credit union movement. The first is the proposal to apply to credit unions the historic Central Bank legislation dating from 1942 to 2011. The legislation is inappropriate and fails to recognise the difference between the banking sector and credit unions. This was not considered by the Commission on Credit Unions and may have far-reaching and negative consequences for credit unions. We are also concerned about the application of the Central Bank (Supervision and Enforcement) Bill 2011 to credit unions. This view is shared by the credit union movement.

The commission's report recommended certain enhancements for the credit union movement but none of these is contained in the Bill. These include service sharing, social finance, micro-finance for small business, co-operative ventures and the introduction of electronic payments. I urge the Minister to consider my sincerely held views and ensure that the final Bill will be capable of enjoying the support of every Member such that it will be passed successfully.

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