Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I am grateful to have an opportunity to respond to this debate and to contribute some of my own thoughts on the issue. I have no intention of engaging in any sort of partisan comments. That is unnecessary and is not what those in the Visitors Gallery came to hear last night or tonight. This is too important an issue. I accept the sincerity of Members on all sides of this House. There is not a Member who does not know of the benefit of the credit union movement because there is not a community in this country that does not benefit from that movement. We all have seen and heard it already. We have seen students who would have had an opportunity to go to college, perhaps even school, had we not had these supports. We have seen business owners who have benefitted. We have seen families who have been able to respond to emergencies due to the support of the credit union movement. I join with others in recognising the contribution made by the massive volunteer network and the staff and all those who have given a contribution in both time and expertise to that movement.

At a time when trust and confidence in so many financial institutions and, in fact, in so many parts of society has been shattered, the trust and confidence in which the credit union is still held is both incredible and justified.

Credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country.

They provide a unique and trusted service to their members. As Deputy Michael McGrath noted yesterday, the credit union sector has a proud tradition in communities throughout the country, with expert local knowledge and strong personal relationships. I share that view.

The safety of members' savings and the security of the credit union sector as a whole are priorities for the Government. The Government recognises the important role of credit unions as a volunteer co-operative movement as well as the importance of getting lending going in the economy. We all want a strong, stable and progressive credit union movement. We are taking steps to ensure this and will work with the movement to that end.

As the Minister for Finance, Deputy Noonan, highlighted yesterday, the Government put in place a number of measures to ensure that credit unions could continue providing these vital services to their members and to ensure the stability of the sector into the future. These measures include the establishment of the Commission on Credit Unions, the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012, the establishment of the Credit Union Restructuring Board, ReBo, the availability of €500 million to support the stability of the credit union movement should it be required, the introduction of stabilisation support schemes and the establishment of the credit union advisory committee.

The Government has worked closely with key stakeholders in the credit union movement to reach agreement on the Commission on Credit Union's report and recommendations. The Government will continue its ongoing engagement with the movement so as to ensure the safety of members' savings, support credit unions in broadening the range of services to members and safeguard the credit union sector as a whole into the future.

The Government has a clear policy to support the strategic growth and development of credit unions as set out in the Commission on Credit Unions' report and recommendations. The Government established the commission in May 2011 within two months of being elected. The commission's report was agreed and co-authored by key stakeholders, including credit union representatives. The commission published its final report in March 2012. The Government has fully accepted all of its recommendations, with more than 60 having been implemented so far.

A number of Deputies raised the issue of lending restrictions. The imposition of lending restrictions is the responsibility of the Registrar of Credit Unions, who is the independent regulator for credit unions. The role of the Minister is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions, not the imposition of lending restrictions. Like other Deputies, though, I am aware that the Central Bank commenced a lending restriction review initiative last February. It is open to credit unions to make applications to it until 30 September. Like the Minister did yesterday, I encourage credit unions to partake in the review. Many already have. Separately, the Minister has introduced legislative changes whereby, as of 1 August 2013, regulatory directions are appealable to the Irish Financial Services Appeals Tribunal.

The Government wants to continue working with and growing the movement and to enhance its potential further. The commission's report was co-authored and agreed. The Government is always open to considering new proposals. Indeed, it is already doing so. This debate is not occurring in a vacuum. I recently held a meeting with the Irish League of Credit Unions, ILCU, and we are aware of its six-point plan. The Government's door remains open.

I welcome this debate. As we emerge from crisis on the road to recovery, it is timely that we examine the role of credit unions and work with that volunteer movement. This is exactly what the Government will do.

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