Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source

I pay tribute to the numerous credit unions in my constituency in County Mayo. It is fair to say they have been of the utmost and greatest assistance to ordinary people who need small loans, an approachable financial institution and credit for the normal financial requirements of families and individuals. There are credit unions in Ballina, Swinford, Kiltimagh, Claremorris, Castlebar, Westport and Ballyhaunis, which has amalgamated with Castlebar which has an outreach office in Balla. Credit unions have 3 million members and 400 offices throughout the country so not too many people do not know the benefit of a credit union. Many people would have experienced the exploitation, or whatever one wants to call it, of a moneylender if they did not have a credit union accessible at a particular time or juncture in life when they needed to get a loan.

The credit unions' not for profit mandate, which has been mentioned, volunteer ethos and community focus mean they are very sensitive to the needs of their members and the reality of people's situations and their ability to repay. No more than our banking system, credit unions experienced the ravages of the collapse of our banking system at one point and the issues and problems people have run into in not being able to repay credit extended to them. Credit unions did not have secured loans. Secured loans owed to the banks got priority and where credit unions were not prudent in lending in certain cases a pecking order applied whereby credit unions were below secured bank loans on the repayment priority list.

The Government has had to intervene and many issues have been addressed and many steps been taken towards prudent regulation, improved governance and restructuring and amalgamation. ReBo, the Credit Union Restructuring Board, has operated in cases where credit unions wanted to amalgamate to improve their situation and create a stronger unit to deliver to the people. This is the case in my county, where the credit unions in Castlebar and Ballyhaunis merged. Financial stability has been created through the establishment of the stabilisation scheme and resolution fund.

We must look at new business opportunities. The emphasis is very much on electronic financial services and the creation of current accounts, small loans and business loans. There are great opportunities for expansion. Credit unions need the support. The key is the volunteers who carry a heavy burden in financial regulation which is quite complex. They need support through technology and the implementation of regulation in order that everybody can be on the right side and people do not have to carry this burden. There is also an issue with director fatigue with all of the pressure experienced by many of these volunteers. With conversation and communication with the Irish League of Credit Unions and the credit unions themselves there can be a bright future for the credit unions.

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