Seán Ó Fearghaíl (Kildare South, Fianna Fail) | Oireachtas source

I thank the Ceann Comhairle for having accepted this particularly important Topical Issue matter. I also thank the Minister of State, Deputy Harris, for coming in to deal with it. I hope he will take seriously the issues I am raising.

The Minister of State will know from his party colleagues the huge controversy that has surrounded the closure of Newbridge Credit Union, both locally and nationally. Locally it was a union of enormous significance. Its building dominated the local streetscape in very much the same way that it dominated the local community. The size of the building reflected the importance of that organisation to the community as a whole and its loss has had a devastating impact on the community at large and in particular on low-income families.

The impact on low-income families has been further exacerbated by the contemporaneous closure of the local parish savings club on foot of legal advice arising out of the role of the charities regulator. As a result, Newbridge has become a playground for moneylenders and the least well off in the community are suffering most. Those are the difficulties we have to contend with.

The particular issue I wish to raise is death benefit or life assurance. One of the significant benefits that came to members of credit unions and a benefit that was of particular importance to people of relatively modest means was that on death they could avail of a benefit of up to €12,000 or €12,500.

The understanding was that when the credit union transferred to Permanent TSB, all of the loans, deposits and benefits accruing to members would also transfer. It was only realised in recent months that Permanent TSB will not provide death benefits. This is important to all members but it is particularly significant to people on modest means and older people for whom this was their only life assurance provision. It provided a fund that would bury them when their time came. People were alarmed to discover that Permanent TSB will not be honouring the commitments made by the credit union.

The State has committed €53 million to fund the transition of the credit union to its new manifestation. Given the amount that has been paid to Permanent TSB and the costs incurred in the process, some of which were questionable in terms of the role played by the Central Bank and the Department of Finance, there is a moral imperative to ensure that people who had this benefit in the past can continue to enjoy it in future.

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