Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I support this group of amendments. We had a good discussion on them on Committee Stage and they were withdrawn then on the basis of a commitment by the Minister to review the situation. The key issue is section 12 of the Bill, dealing with investments. While the Minister stated that there is no explicit prohibition on credit unions investing in State guaranteed projects, section 12 is quite restrictive in that subsection (2) sets out certain investments that are permitted and then there is a general provision in subsection (3) that any other investments may be prescribed by the Central Bank. We are seeking, with these amendments, that there would be specific mention of credit unions being empowered to invest in State guaranteed projects which involve no additional risk for the credit unions. Of course, this would be done on the basis that funds that are on call cannot be invested because customers must be guaranteed access to their deposits at any time. However, where a credit union has surplus funds and there are relevant projects in the areas of education, enterprise or health which are being promoted by the State, where the return is guaranteed, then it makes eminent sense that credit unions be permitted to benefit from those investments.

See this speech in context