Robert Dowds (Dublin Mid West, Labour) | Oireachtas source

Cuirim fáilte roimh an mBille. From listening to some of the debate, it is clear the credit union movement has been very good at arm-twisting Deputies of all parties. I am no exception to that, so many of the issues I raise I have been asked to raise, and I would appreciate it if the Minister responded to them as positively as he can.

The credit union movement broadly welcomes this Bill and realises its necessity in terms of strengthening the movement. However, there are a number of issues it has asked us to raise. When he concludes the debate, perhaps the Minister can explain whether and why Central Bank legislation should be applied to credit unions given that this issue was not considered by the Commission on Credit Unions, as I understand it.

In terms of sharing services, I ask that the Minister allow for a more flexible approach. For example, could it be arranged that a member of one credit union could borrow money from or access his or her account in another credit union? In a situation where so many of the pillar bank branches are closing, this flexibility would be useful for a person who might, for example, be shopping in a neighbouring town. On the question of basic payment accounts, it would be logical to allow such accounts be attached to credit unions as well as to the two pillar banks.

Will credit unions be permitted to invest in Government schemes? This is especially important where credit unions are lending a relatively small proportion of their finances, and it might be a better use of their money than simply having it on deposit.

To turn to the issue of term limits and those who serve in credit unions, no such term limits are set for bankers, for credit unions in other jurisdictions or, indeed, for Members of this House. In particular, I have been requested to ask the Minister to remove the subsections at section 15(10)(a) and (n). Some of the volunteers in credit unions may have excellent local knowledge which would be a real asset to a board. Why should they, of necessity, be excluded from membership, although it is reasonable to insist that those people should have appropriate financial training before they take such service?

I am trying to get across the point that the exclusion of volunteers who serve on credit union boards should be removed. Such terms and restrictions on volunteers will be very hard on smaller credit unions. The role of such credit unions, whether they be in fringe areas of urban settings or in rural areas, is made even more important given so many pillar bank branches are closing. Everything should be done to try to ensure that each area is able to hang onto core institutions, and finance institutions are such institutions because if anyone is going out to shop, the first stop will be to get some money. It is a very important aspect of this whole issue.

Some other aspects might be considered in terms of amendments. The first is the removal of the post of treasurer from a credit union and its replacement by a manager. There is a definite worry among the credit union movement that the manager in that situation may become too powerful. It is important there is a balance between the manager, the board and the members. Retaining the position of treasurer would help in that regard.

The commission recommended that audit firms should rotate after six years and that a cooling-off period of four years should apply before they could be re-engaged. This was included in the draft heads of the Bill as section 32 but it has been removed from what we have before the House. There is a need to explain why this is the case. It seems strange that a recommendation regarding the rotation of auditors was removed yet the recommendation that directors must rotate remains in place. I ask for some explanation in this regard.

The issue of the tiering of credit unions needs to be reconsidered. Given the size of credit unions varies greatly in terms of assets, is there not more need to have a closer examination of credit unions that have larger assets?

With over 3 million members, credit unions play a vital role in the economy and in the community. In terms of how we move forward, it is very important to think both of the economic role and of the community role credit unions play. It is important that people have institutions close to them with which they can interact and relate, which makes for a good, productive and positive society.

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