Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to this important debate. The importance of the debate is signified by the large number of contributions from Members across the political divide. Our credit unions have a proud tradition and are deeply rooted in the communities they serve. They are a brand that has the confidence and loyalty of people in their areas. They are the financial institution that has kept many families and many small businesses going in the turbulent economic times of the last few years. Our credit unions are the one financial institution that did not play a part in crippling our country and bringing it to its knees. That is because the people who work in our credit unions were prudent. They lent based on local knowledge and sound personal relationships.

Our credit unions are stagnant and they need support. This motion is positive and the Government should have accepted it because it is a basis for reinvigorating the credit union sector.

When I speak to the various managers in the credit unions in my constituency, whether it be Mullingar, Kinnegad, Athlone, Longford, Ballymahon, Granard or Castlepollard, they all make the same point about the amount of current legislation and that the disproportionate amount of regulation is cumbersome. They want to see a relaxation of the lending restrictions so that they would have the ability to lend more. If they can lend more, they can generate more money for the credit union.

This introduction of a cap on savings sends out a terribly negative message that we do not support the credit unions or we do not think they are viable with deposits above €100,000 but nothing could be further from the truth. If this is to come about, some of the credit unions in my constituency will have to reimburse savings.

Then there are instances of fees being charged of them. The credit unions, unlike other financial institutions, do not pass on the fees.

Credit unions are the pillars of the community. They are tried, trusted and tested. The Government should be supporting them to become stronger as opposed to inhibiting their development.

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