Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I welcome the Bill. The Minister has done a substantial amount of work to strengthen the credit union movement, rather than damage it. I should declare at the outset that I am a member of a credit union. I would probably not be here if I had not been able to borrow money in 1998 to run my first campaign. I suppose I should declare my self-interest at this stage. That is an example of the strength of credit unions at the heart of the community.

My children were introduced to the credit union movement when their grandmother opened their first account for them. I am sure many people, including some of the young people in the Gallery, have had a similar experience of the intergenerational nature of credit unions. In that context, it is worth mentioning the support that credit unions give to local communities and the assistance the credit union movement gives to the Money Advice and Budgeting Service.

As Deputy Crowe said earlier in this debate, we need to examine the possibility of expanding the role of credit unions to allow them to fund schemes with a social benefit. I could not help thinking of John Hume when Deputy Adams was speaking. As part of his great work, John Hume travelled the length and breadth of the country to build and expand the credit union movement. Indeed, Deputy Adams would probably not be here today without the work done by John Hume as part of the Good Friday peace programme.

A number of major issues have been raised during this debate. Deputy Ó Ríordáin mentioned some specific areas. Rather than repeating those points, I will express my support for them. We need to examine the different types of credit union in this country. Some of the smaller credit unions are associated with certain professions or workplaces. The community credit unions tend to be slightly larger. Some credit unions are verging on the size of banks. Therefore, the new legislation has to cover a range of regulations.

I hope the Minister will consider some amendments to this Bill. A great deal of work has already been done. Government and Opposition Deputies continue to have an opportunity to work together to try to get the best solution for credit unions across the wide range of the spectrum, from the very small branches to the very large branches. That will be difficult. When the Joint Committee on Finance, Public Expenditure and Reform held hearings on this issue, it was clear that there was a difference of opinion across the movement in several areas.

I believe the issue of governance needs to be addressed. Current legislation imposes a number of administration measures on credit unions. For example, each credit union must have a membership committee, credit committee and a credit officer. All of the functions of small specialised credit unions that have an excellent credit record over a number of years could probably be carried out by a single board. I ask the Minister to consider giving the registrar of credit unions the leeway to permit small credit unions to have less formal committee structures, as long as the registrar is satisfied that the credit union in question is run in accordance with the regulations and requirements and is likely to be run in that way in the future.

The specific requirement for all directors have to expertise, qualifications or backgrounds in financial services is worrying and needs to be considered in greater detail. The extent of that requirement is not spelled out clearly. We must ensure we are talking about a qualified financial adviser. I ask the Minister to consider amending section 15(3) of the Bill to provide that the registrar must be satisfied that the board has availed of relevant financial services expertise and has not acted against the advice given. Such a small amendment could assist smaller and more specialised credit unions.

We have to bear in mind that the credit union movement in this country has been a force for good. Recent surveys have shown that people try to make repayments to credit unions first because they appreciate that credit unions are continuing to lend money. As Deputy Ó Ríordáin said, they keep the moneylenders from the door. They play a very important role in society. As we continue our consideration of this Bill, we have to ensure we do no damage and we strengthen the credit unions.

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