Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

I record my appreciation of the credit union movement. The programme for Government contains a social economy element. The credit union movement encapsulates all that is good in a community. The 1997 legislation provided for a figure of 0.5% for reinvestment in community projects which is decided by the board of directors of a credit union. We should not, therefore, take our eye off the ball. We must ensure there is a civic and community gain through the participation of credit unions in local communities. In my county there are 14 credit unions which certainly did not cause the financial crisis or the break-up of the banking model. Prior to the arrival of the Celtic tiger and during that period, the credit union movement continued to do the business in looking after people in communities by lending money or providing for share options through investments. Today communities and the good citizens of the country are completely livid and vitriolic in their attitude to some of the payments and pensions enjoyed by bankers. This reaction of the public must be taken into account very carefully in this House. I share the opinion of citizens of the unregulated banking sector which led to the demise of our financial sovereignty.

Previous speakers have referred to the provision in respect of a nine year term limitation for members of boards of directors of credit unions. This is a ridiculous and crazy provision. Directors of credit unions invest their time over a nine year period and will be told they are no longer required. The option of providing for a step-down period will result in people ceasing their involvement with the credit union movement. The provision that they can return at a later date is not good enough.

The banking model forms the main point of my contribution. One way to tackle the banking issue and the high salaries of bankers is to take the money from the banks' accounts to hurt them in their own pockets. How is it that the Department of Agriculture, Food and the Marine can make farm payments into credit union accounts, while the Department of Social Protection cannot pay pensions, make social welfare or child benefit payments into such accounts? Let us hurt the banks in their pockets. We should facilitate the movement of finance into credit unions which would be delighted with the extra financial injection. Let us facilitate them and avoid the ridiculous nonsense about the need for a sort code, for example. This is a job for the regulator, for Matthew Elderfield. That is the challenge I make. Let us begin to transfer some of the money in the commercial banks to credit unions in order that they can compete with the big banks. There are plenty of people who are hurting in their pockets because of the behaviour of some of the larger banks. Therefore, all options should be considered. We need to respond to the general discontent in society because people do not believe the banks operate fairly.

I acknowledge the important contribution of voluntary workers in the credit union movement and also Coast Guard volunteers. The Department of Transport, Tourism and Sport is investing good money in a voluntary Coast Guard movement, with high professional standards which are being improved year on year. The credit union movement should not be treated differently from the Coast Guard. The Government should consider the social economy element of the programme for Government. It should endorse the civic participation of directors of credit unions who are not remunerated. They should be rewarded and the big banks hurt in their pockets.

See this speech in context