Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein) | Oireachtas source

The Private Members' motion before us this evening lays out the size and importance of the network of credit unions across the State. With just under 3 million members and 400 offices, it employs 4,000 people and counts 10,000 volunteers among its anchor number. It is instantly comparable to the Gaelic Athletic Association, a very important organisation that exists for the betterment of friends and neighbours, with a strong volunteer effort. Reference is made in Fianna Fáil's motion to the fact that only 1% of credit unions needed State funding since the beginning of the crash. It is most unfortunate that the banks were not prudent enough or controlled well enough to be as wise as credit unions.

I am thankful that our local credit unions represent a more wholesome and helpful body. They are faced with challenges, however, and almost half of credit unions have lending restrictions and lending is decreasing, putting the long-term prospects of the sector at risk. The Irish League of Credit Unions indicates that the sector has approximately €5 billion to lend but that it is unable to do so due to restrictions. We must remember that credit unions are not-for-profit democratic co­operatives. They are governed by the Credit Union Act 1997 and the Credit

Union and Co-operation with Overseas Regulators Act 2012. The Registrar of Credit Unions, Ms Anne Marie McKiernan, registers and oversees the credit unions. Controls such as those that ensure funds of members are protected are certainly necessary but, seeing as credit unions have shown themselves to be mature and prudent when it comes to lending, I and my party feel that they must be freed to achieve more.

The Registrar of Credit Unions invited those unions that had limits put on their lending to apply to have these removed but according to her, those unions had yet to adopt adequately robust financial practices. I am notsuggesting that all control be removed but credit unions can and should be given more responsibility. Some credit unions are particularly limited, with five restricted to lending under €10,000 and a further 50 that cannot go above €20,000. This Private Members' motion highlights the 35% of credit unions that have had lending restrictions in place for five years or more. The motion indicates that other countries have improved national policy to set out the role and function of credit unions. I ask the Minister to outline whether he has conducted an examination of these approaches and what he now proposes to do.

The credit unions are a good and viable alternative to the avarice and shameless greed of the institutions that brought this State to its knees.

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The fact that not a single credit union has received approval for additional services since the banking crisis began is a disgrace. Despite proving their worth and robustness, they have been granted no increased role. Credit unions are also effectively restricted from engaging in mortgage lending due to section 35 of the Credit Union Act 1997. This means that anyone who needs a mortgage will have to use a bank. Why does the Government decide to push our citizens only in that direction? Impím ar an Rialtas teacht ar réiteach agus comhair chreidmheasa a cheadú le tabhairt faoi bhreis dualgais. Tá siad tar éis a chruthú go bhfuil siad ann ar mhaithe an phobail. Is gá a spreagadh agus a chabhrú le hiasachtaí a chur ar fáil don phobal.

The Private Members' motion calls for a White Paper and a forum, investment in infrastructure, a revisiting of the limits on lending and the provision of additional services. These measures must be examined and introduced in a prudent way to allow credit unions to reach their full potential. Credit unions are a positive force for customers and communities across the State. I record again, as I have done on many occasions throughout my years in this House, that I am hugely supportive of credit unions and believe that they now have, as they have had in recent years, a crucial role in supporting the well-being of people and families as they struggle to emerge from this financial crisis.

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