Derek Nolan (Galway West, Labour) | Oireachtas source

I am delighted to speak on this important Bill. The first point is that the credit union movement is in need of regulation. While it is an extremely positive movement with much positive to be said about it, we have to remember that people's savings are kept there, money is at risk and we have to make sure these financial institutions are on a sound footing. There is a need for regulation, therefore, although the first principle should be that regulation should do no harm to the positive attributes of the credit union movement.

The first of these positive attributes is that it is a voluntary organisation. I meet members of credit unions in Galway all of the time and the immense amount of work they do for absolutely no pay or remuneration of any kind is to be commended. We need to maintain that ethos.

A credit union is not a bank. It has been there, historically, to help people who cannot get credit from a bank. When we are talking about credit, risk ratings, credit portfolios and so on, we have to realise the credit union served its primary purpose when people could not go to the banks and were sent away. We have to maintain that flexibility within the credit union movement to facilitate those people who do not have access to credit on a normal basis.

St. Columba's Credit Union in Galway city operates as a large, well run credit union but it also has a subsidiary arm called St. Columba's Credit Union Limited Enterprises, or SCCUL Enterprises.

The company uses it resources and the money of the credit union in an innovative way. It has been involved in various projects. It has invested in community neighbourhood projects in the Ballybane area of the city where a library was put in place. A habitat centre in the area that was funded by the credit union won an award. The credit union also invested in an enterprise centre in Ballybane which provides incubation units for businesses. Great plans were formulated for a community centre and HSE facility in the Ballinfoyle area of Galway city but, unfortunately, it did not go ahead for reasons that were outside the control of the credit union. That is an example of social finance where the credit union uses its resources to help better the community. The legislation must promote the function and idea of credit unions linking in with Government as an alternative source of investment which is so badly needed in the economy. The example of St. Columba’s credit union in Galway city is a model of how the credit union movement can be involved with community organisations, fund projects and serve members at the same time.

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