Gerald Nash (Louth, Labour) | Oireachtas source

Credit unions which have served the ordinary people so well over the years are being pushed back out of sight and out of mind and they will soon be out of pocket. It is immoral that the banks, which contributed hugely to the debt crisis we are in through reckless lending, should receive primary protection while community-based credit unions, which have consistently encouraged responsible saving and lending plans, will be thrown to the wolves along with credit card providers and back street moneylenders. I am not surprised that the Irish League of Credit Unions, ILCU, has rejected this proposal. Under the scheme, banks will receive 90% of available debt repayments while the credit unions will have to scrap it out with other unsecured creditors for the remaining 10%. There is no doubt we need to introduce a robust and fair scheme to deal with distressed mortgage holders but part of that plan must include a facility for mortgage write-downs and write-offs, where required.

The banks have been provided with the funds to do this. They must stop burying their heads in the sand and deal with the reality as we find it as a society. Only then can our entire banking and financial sector start to move forward again. Does the Minister of State agree that the scheme needs to be revisited? Will he communicate that to the Governor of the Central Bank in the interests of all of those who save with credit unions, work for credit unions and value the credit union system? Credit unions have traditionally lent on a prudential basis and behaved responsibly. Credit unions and their members deserve more than what is contained in the pilot proposals.

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