Bobby Aylward (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I commend my colleague, Deputy Michael McGrath, on tabling this Private Members' motion.

I cannot understand why a sector which has close to 3 million members, employs 4,000 and has almost 10,000 volunteers is not being given an appropriate level of support from this Government. The manner in which credit unions are being stifled by lending restrictions and unfair competition from banks must be addressed as a matter of urgency. The sector is effectively stagnant due to current Government policy and the imposition of unnecessary constraints.

Credit unions have revolutionised their regulatory framework in recent years with professionally qualified persons among their employed and voluntary staff. They have greatly improved their overall reserve ratio without resorting to tactics employed by commercial banks, which sent interest rates and charges to the roof at the expense of their existing customers.

Credit unions have a proven track record on the ground, knowledge which results in sound judgments and expertise on lending to customers, SMEs, the self-employed and farmers. I have yet to meet a person involved in any of these sectors who looks forward to a meeting with his or her bank manager, which may be a daunting experience and which is not relished by most and yet people are put at ease by the credit unions' proud tradition in communities throughout the country of establishing strong personal relationships with their customers.

Credit unions are different in nature and they must be recognised and regulated in a different way to commercial banks. I am concerned that current regulatory and legislative restrictions threaten the viability of credit unions as they very much allude to maintaining an "as is" format which undermines the ability of the sector to innovate and expand. This sector can only make money if it is able to issue new loans. The infrastructure is there, the sector is ready to thrive and it only requires a shot in the arm from the Government.

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