Finian McGrath (Dublin North Central, Independent) | Oireachtas source

I thank the Acting Chairman for the opportunity to speak on this very important Private Members' debate on credit unions and their role in Irish society. I must declare a vested interest in this issue, as I was one of the founder members of the Irish National Teachers' Organisation, INTO, credit union, of which I am very proud. I rate very highly the credit union movement, which has played an important part in the strategic growth and development of the country. It can also play a major part in the recovery following the economic crash and the disastrous decisions by some senior bankers. The credit union movement has over 3 million members and nearly 400 local offices. It also employs in the region of 4,000 people and has almost 10,000 volunteers. That is why it is such a significant player, with just 1% of credit unions needing State funding or support since the financial crisis began.

I can see a major positive role for the credit unions as they could develop into a vibrant not-for-profit and competitive alternative within the financial services. I also support the principle of public banking. We have long viewed the German savings bank model as a natural evolutionary step for Irish credit unions. Both share common principles and key objectives, such as transforming local savings into prudent and beneficial local lending; promoting saving; financial inclusion and co-operation between co-operatives; and serving the financial needs of local communities responsibly with democratic governance. Public banking and how it may best complement and advance Ireland's credit unions is very important. I am confident that regulatory obstacles can be overcome with the expertise and capacity of many ideas and proposals coming from Germany.

Public savings banks can greatly advance social and economic justice. I call on the Minister for Finance to bring forward a White Paper on the role of the credit union sector within the broader financial sectors in Ireland, to review section 35 of the Credit Union Act 1997 and to review the process for the approval of additional services.

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