Dara Murphy (Cork North Central, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this Bill. Everybody accepts that credit unions play a very important role in this country and appreciates the voluntary status and nature of those involved with credit unions. Their importance can be seen in two large suburban areas in Cork. There are four financial institutions - two banks and two credit unions - in the north east of the city, but both of the banks are closing, unfortunately. In the north west of the city, there are two credit unions and no banks at all.

It is important to note that the ambition of this Bill is to protect the savings of credit union members, to safeguard the stability and viability of credit unions and the sector at large and to preserve the ethos of credit unions, which we are all talking about today.

It was interesting to listen to Deputy Humphreys who, like myself, spent a couple of days a month ago with various representatives of credit unions, including individual credit unions. It must be acknowledged that there is quite a varied stance on the Bill as it now appears. It must also be acknowledged, however, that this is a new position, because this Bill gives effect to 60 recommendations that came from the final report of the Commission on Credit Unions, which sat for some nine months. In the largest part, this comprised the Irish League of Credit Unions, the Credit Union Development Authority and the Credit Union Managers' Association. While one of the groups clearly has some difficulty with some of the elements, what I took from the meetings with individuals, particularly the managers, was how much they embrace the need for regulation. In fact, the need to move on and enact the Bill was the greatest message I took from that series of meetings and from the witnesses.

There was a fairly strong message that perhaps some differentiation might be considered between smaller and larger credit unions when it comes to some of the regulation. While this regulation certainly does not preclude movements on social finance, Government-backed schemes and electronic payments, that voice was clear and unanimous from the credit union movement. Given that all of those who have spoken so far seem to have given a voice to the Irish League of Credit Unions, it must be acknowledged that at our committee meeting, the managers' association, including one individual manager whom I know quite well, was very supportive of the concept of term limits. In particular, its representatives felt that to have employees as directors would be unsatisfactory within any financial institution.

When we are considering the amendments, it is important that there is some review of the fact that over nine months, all of the stakeholders were involved in a lengthy and thorough process. It is acknowledged that while this Bill is not a carbon copy of the report of the Commission on Credit Unions, it holds very true to it. There is not much point in engaging in such a widespread process with stakeholders for nine months and then allowing some individuals to come back afterwards and make arguments that would go against a unanimous report, although I am sure some of those opinions will once again be voiced when we reach Committee Stage.

I commend the Minister on supporting such a valuable resource to our country, which is, of course, our credit unions.

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