Brendan Smith (Cavan-Monaghan, Fianna Fail) | Oireachtas source

I am glad of the opportunity to make a short contribution on this very important motion. There was an implication by some on the Government side that the contents of this motion could lead to inadequate governance and regulation but that is far from the truth. We want absolutely adequate, proportional and proper regulation. I have spoken to directors, members of credit unions and staff and they are of the same opinion that it is in everybody's interest to have proper governance. It is in our interest as public representatives and it is the interest of all members of credit unions, as proper governance and regulation protects members and staff. It is in the long-term interest of the credit union movement, and that is what the motion is about.

The motion was put forward by my party colleague, Deputy Michael McGrath, in a very comprehensive, well thought out and progressive speech last night. He indicated the motion was very comprehensive, balanced and realistic. The motion followed extensive consultation with the credit union movement, individual members and representative organisations. As Deputy Michael McGrath and others stated last night, the Fianna Fáil Party wants to outline its unequivocal support for the credit union movement, and we are determined to support its further development for the betterment of Irish society.

We all know the movement has a very proud tradition in communities throughout the country. Deputy Rabbitte put it very well when he spoke of the unique ethos of the credit union movement. We all know that many distinguished persons throughout the island have been involved with the credit union movement over the years. Some of the movement's strength derives from local knowledge and its good relationship with local communities. To its credit, the movement has considerably improved its regulatory framework over a number of years, which is a very welcome development. Excessive regulation will hamper the further development of the credit union movement and stymie its growth and potential. Proper governance is in everybody's interest.

The figures quoted last night by Deputy Michael McGrath indicated there are 4,000 employees, 10,000 volunteers and 3 million members of credit unions. These statistics alone are a powerful message on the importance of the movement throughout our country. There are credit unions based in many small local communities, meaning they draw from a small pool of people to appoint and elect directors. I know from speaking to some directors over the past number of years, who have served loyally and faithfully, that they believe that some demands made of them have been excessive recently. We know the powerful strength of good community involvement. If it emerged in years to come that many credit union branches had to merge, we would lose the unique community ethos. If a credit union in my constituency in Cavan or Monaghan was forced to merge with other credit unions 30 or 40 miles away - or even further away or in a different county - where would the local community involvement, knowledge and expertise come from? It would be lost, which would be a shame.

Deputy Kitt referred to the importance of the credit union movement to many families which have children going through school, right up to further education and third level education. As public representatives, we have all dealt with families over the years which may have a son or daughter going to further or third level education. This can put enormous financial pressure on households with limited incomes. In so many instances, I have helped people to fill out application forms for student grants, etc., and these people turned to local credit unions for assistance. That help was available over the years in the form of loans, which provided aid when it was most needed and there was an opportunity for a son or daughter to go to further or higher education. That opportunity may have been denied to their parents or older siblings. In many cases, if it were not for the availability of credit or a loan facility from the local credit union, a young person would have been denied the opportunity to go to further or third level education.

It is absolutely critical that this very comprehensive, progressive and positive motion be supported by this House. It outlines the opportunities to further develop the credit union sector.

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