Thomas Pringle (Donegal South West, Independent) | Oireachtas source

I thank the Ceann Comhairle for selecting this Topical Issue because it is very important. The credit unions have been established since the 1960s and there are more than 354 credit unions across the country. Fewer credit unions were baled out during the financial crisis than banks. Currently, the credit unions have €8.5 billion on deposit with the banks, which they are not allowed to lend out under Government policy. That is providing liquidity for the banks but giving a very low return to the credit unions and their members.

When the housing strategy was launched, the Minister, Deputy Kelly, stated that the funding of the housing programme would require the development of innovative funding mechanisms that do not increase the general Government debt. On his desk is an innovative funding mechanism from the credit union movement representing millions of people across the country with funds that they are ready, willing and able to invest in order to achieve a return for their members.

The credit unions have said they could invest up to €2 billion in a special purpose vehicle that could lend money on to local authorities or approved housing bodies, whichever the State would require. That would go a long way towards helping to solve the housing crisis. It would also provide the credit unions and their members with a better return on their investments, and would ultimately assist people who are already members of credit unions and ordinary citizens across the country. That would lead to an easing of the crisis, which I believe has developed through a lack of Government policy. It is a deliberate crisis rather than a crisis that happened because of something over which we have no control.

This proposition is part of the solution. It is a matter that should be addressed urgently in the Department. I urge the Minister to get back in contact with the Irish League of Credit Unions, engage in that dialogue and make this happen very quickly.

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