Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Amendment No. 17 in my name deals the prohibition being put in place to prevent voluntary assistants from becoming members of the boards of credit unions. When we discussed this matter on Committee Stage, the Minister for Finance indicated a willingness to deal with all but one of the exclusions about which my party and I are concerned. He indicated that he would bring forward proposals in respect of someone who fell into arrears for more than 90 days. He also stated he would deal with the prohibition on voluntary assistants from one credit union not serving on the board of another. Further, he indicated a willingness to deal with the position on the board oversight committee. He stated he would take action on all of these issues and indicated that he could strengthen other parts of the Bill in order to deal with conflicts of interest. I will be very interested in discovering the progress that has been made in this regard, particularly in the context of the type of wording he is considering introducing, etc. I will park these issues because we are of the view that he may deal with them.

The issue which was not dealt with in a satisfactory manner on Committee Stage was voluntary assistants being barred from serving as members of the boards of credit unions. This prohibition is going to have an effect on credit unions across the board, particularly in view of their nature and the number of volunteers who work for them. It will have a particular impact on smaller credit unions which rely on voluntary assistant to try to keep their costs low. This allows them to offer products to their members at a low cost. If we put in place a prohibition such as that suggested, not only will it undermine the democratic ethos whereby the members of credit unions are entitled to elect the members of their boards, it could also have an impact on the overall cost burden of credit unions. When a member of a board volunteers within a credit union, it allows him or her to witness, at first hand, the impact of the decisions made by the board. It also allows for a flow or exchange of information in this regard. Not only is there a cost issue, there is also a practical consideration. I reiterate that nowhere else in the world is there a prohibition on voluntary assistants in credit unions serving on their boards. Introducing such a prohibition in Ireland will bring us to a destination we do not need to visit. The parts of the Bill relating to conflicts of interest could be strengthened to deal with genuine conflicts of interest which might arise in the work of a board and that being carried out by a voluntary assistant. It is not fair to prohibit voluntary assistants from becoming members of boards. A voluntary assistant with a credit union who passionately believes in what it is doing, agrees with its ethos and wants to serve on its board could encounter difficulty in seeking election as a board member. The reason is that other members would be aware that, once elected, such an individual would be obliged to vacate his or her voluntary position with immediate effect and there might not be another person available to carry on his or her work. Volunteers are, therefore, restricted from playing a more enhanced role within credit unions.

I have not pressed any amendment to a vote thus far, particularly as we are making progress. However, this issue must be dealt with and we have not yet received an indication from the Minister that he is going to take action on it. What is proposed in the Bill is genuinely unfair on volunteers. God knows, we need more, not fewer, volunteers. Putting in place a restriction which does not apply anywhere else in the world is not the way to proceed. There are other ways in which we can deal with conflicts of interest and overseeing people's work. There are better ways to proceed than putting in place restrictions of this nature. I ask the Minister of State to be open-minded in this matter.

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