Billy Timmins (Wicklow, Independent) | Oireachtas source

I thank the Ceann Comhairle for selecting this matter for the Topical Issue matter. I also thank the Minister for attending the House. At a time when we are increasingly sceptical of the media, I acknowledge the role of local radio in this regard, including East Coast FM, which is my local station. This morning I listened to the Clem Ryan Show on Kfm Radio in Kildare, and he approached this subject in a most pragmatic, fair and reasonable manner. The winding up of Newbridge Credit Union is a very emotional subject in Kildare.

As well as the Newbridge situation, there is the broader national question concerning credit unions. It is clear things were not right in Newbridge and the difficulties were first identified by the Central Bank back in 2004. That speaks volumes for that organisation and its effectiveness in addressing the difficulties concerned. If it had acted in a more professional manner at the time, the credit union may have been saved.

I understand a meeting will take place tonight between the board of directors and members. I urge members to hasten slowly. It is important that the volunteers get out their message in regard to what happened over the past number of years. This is a unique situation with regard to Permanent TSB. It is difficult to visualise how it will be progressed. Is there a learning curve for everybody or has Permanent TSB and the Government a definite plan in regard to what will happen to Newbridge Credit Union? My understanding is that the building is in the ownership of the State. There is a desire on behalf of people in the area for a new credit union. I would welcome the Minister's view on this aspect.

With respect to the national issue, the message going out is that this is a unique situation and a one-off. There is a contingency fund of approximately €500 million for the recapitalisation of credit unions, €54 million of which I assume will go to Newbridge Credit Union. Where do other credit unions stand? Some reports suggest that one in four credit unions have issues. The Tánaiste said that 20 credit unions are reported to have regulatory reserves below the minimum requirement. Perhaps the Minister would elaborate on the situation. It is important that the message goes out that the Government supports the credit union movement. Most of the people engaged with the credit union system do not engage in other banking mechanisms. It is important these people have confidence in the system.

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