Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

An issue has arisen following the liquidation of IBRC for the credit union movement in this country. A number of credit unions had fixed-term deposits with IBRC, which were due to be repaid in September of this year. As a result of the decision to liquidate the IBRC, many credit unions will suffer huge losses. Sources within the credit union movement say the losses could be as high as €17 million for credit unions across the county. It would be an incredible situation if that were the case.

We were told much work went into the preparation of the legislation some time ago. Was the Taoiseach aware of the level of implication for the credit union movement or that there would be this consequence for credit unions as a result of the decision to liquidate the IBRC? Why did the Government not consider making special provision for credit unions when preparing to take the decision? The losses involved will at a minimum wipe out any shareholder dividends credit union members could have anticipated in 2013 and 2014, and worse, unfortunately, may have an impact on the stability of some of the credit unions concerned.

Could the Taoiseach clarify the situation and what he intends to do? He promised before the election to burn senior bank bondholders, which did not happen. He did not do that and now we are in a situation where credit unions - the banks of ordinary people - have essentially been burned as a direct consequence of the decision taken by the Government. It seems that this is the only instance in the eurozone to date where depositors have taken a direct hit as a result of the decision to liquidate IBRC in the manner decided by the Government. It is wrong and something must be done about it.

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