Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to the debate. The Bill before the House has great importance for the effective operation and functioning of credit unions. It is important that we get the legislation right because it will have a long-lasting effect on the future viability of credit unions the length and breadth of this country.

Credit unions are the cornerstone of the communities in which they operate. The statistics show that this country has more credit union members per head of population than anywhere in the world. That is an indication of the confidence people have in their local credit union. I welcome the fact that the Government has rescinded its decision to guillotine the Bill and that it has extended the timeframe for debate to ensure each Member will have an opportunity to contribute because of the critical importance of the Bill.

The Irish League of Credit Union has contacted all Members to voice its numerous concerns on the Bill as proposed. In the short time available to me I wish to focus on those concerns. I acknowledge the positive elements in the Bill but it is important to focus on where it can be improved. We will submit amendments in that regard. It is important that credit unions are allowed to maintain their ethos. They are not banks. They are a voluntary movement. They continue to support people who would not otherwise have access to loans. As we approach Christmas the number of families who depend on their local credit union is evident. The manager of the local credit union knows its customers. They might not have a strong credit history according to the Irish Credit Bureau, ICB, but the local credit union manager knows them and is in a position to take a risk and help out a family.

Last night we debated the ongoing debacle of tens of thousands of students who cannot get access to their third level grants. I and other Members on all sides of the House have seen umpteen examples of where the local credit union has come up trumps and has worked with families who will get the grant, albeit sometime in the future, to ensure that students can register and actively participate in their third level education. The credit unions are helping out those affected by the problem with accessing third level grants on which the Government has failed. I acknowledge that last night the Minister for Education and Skills put up his hands and apologised for his role in that regard. That is a practical example of the importance of credit unions.

Not alone do credit unions help families but they are also the only financial institutions that re-invest in the community. My local credit union gives approximately €100,000 per year in grants to vibrant and worthwhile community groups in the Mullingar area. I am sure the same is true for credit unions in other areas of the country.

The grants range from €500 to several thousand euro. That is of enormous benefit to the local community.

I wish to put on record my admiration for the credit union movement and the men and women who work to ensure we have that strong movement. They do so in a voluntary capacity and it is very important that we acknowledge that.

The credit unions believe that if the proposal they have made is not implemented there will be a detrimental and inappropriate effect on credit unions. As it stands, the legislation will serve only to reduce their ability to provide services to their members. It will undermine the principle of local democracy that gives voluntary control to the credit unions and will impose ever-increasing costs that in many cases will threaten the viability of these bodies. That belief has been expressed by the credit unions; those are their words, not mine. It is very important that we take this on board.

Many elements of the proposed governance structure, such as terms imposed on directors, prohibitions on members joining the boards and the removal of the office of treasurer are unnecessary and undemocratic. There is no imposition on Members' terms in this House. I look at the Acting Chairman, a man who has had a long and distinguished career in the House. He goes for re-election at each general election without any prohibition telling him he has had two terms, which is enough, and that he should go out to grass.

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