Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Cuirim fáilte roimh an rún atá curtha síos ag an Teachta McGrath agus roimh na daoine atá inár gcuideachta anocht fá choinne an díospóireacht seo. Níl dabht ar bith ann gur ceist fíor-thábhachtach í an cheist seo. Aontaím le cuid mhór den méid a dúirt an Teachta Nolan fá dtaobh den dul chun cinn atá de dhíth fá choinne réiteach a fháil don fhadhb seo. Tá an fhadhb seo ag dul ar aghaidh ró-fhada agus aontaíonn go leor daoine sa Teach seo liom maidir leis sin. Tá daoine anseo atá ag tabhairt tacaíochta do na comhair creidmheasa le roinnt blianta anuas. Ach nuair a amharctar ar na fadhbanna móra a bhí ann le déileáil leo le cúpla bliain anuas, tá comhartha ceiste ann fá dtaobh den tacaíocht atá an Rialtas ag tabhairt don gluaiseacht seo.

Sinn Féin supports the motion. Representatives from the credit union movement are due to come before the Joint Committee on Finance, Public Expenditure and Reform this week. As elected representatives of our communities, we are aware of the incredible benefits the credit union movement brings to our society and economy. Deputy Nolan referred to a good example in his area, the Ballybane Enterprise Centre, which I have visited. I agree with him 100% on that matter. The centre is a template for what can happen in other areas regarding the investment in the social needs of the communities where credit unions are present.

In the programme for Government, the Labour Party and Fine Gael said they respected the ethos of the credit union movement and recognised that it is different from the banks. While that is a fine statement, it must be backed up by actions. The actions of the Government have not matched its words. In recent years, credit union offices have come under more regulatory pressure with more demands every year. Members of the finance committee know that Members across the political divide have had to battle very hard to take the rough and bad edges off previous legislation proposed by the Minister with the support of the Central Bank.

I support sensible and realistic regulation and would go much further than most in the House in the context of regulating certain financial services. Despite everything that has happened, a wealth management trust can advertise itself on its website as operating in a "lightly regulated environment". When I asked the Minister to comment on this, he said the company in question was not in breach of any regulations and he was satisfied. However, the pledge in the programme for Government to respect the ethos of the credit union movement and treat it differently from the banks has been discarded. It seems to be just another broken promise.

Across the State, there are 2.9 million members of the credit union movement and 352 credit unions. These members have more than €11 billion in savings, €3.5 billion in loans and more than €13 billion in total assets. My party firmly believes it is time the State worked with the credit union movement rather than against it to ensure these resources can be utilised more to help our economy to recover in a fair way. I commend the Irish League of Credit Unions on its Six Strategic Steps campaign.

The demands of the credit union movement are very sensible and responsible and are designed to benefit all. The €8 billion surplus funds held by the movement is stuck gathering very little interest in banks due to the limits in place. We must examine new ways to release some of the money so it can help build social housing for the 130,000 families in need of permanent roofs over their heads. The credit union’s proposal for a fund to channel this money to approved housing bodies must be seriously examined and could form part of the solution in a way that is consistent with public needs and the ethos of the movement. The Minister said he welcomed it and we have heard from the Opposition that it is a good idea. The Minister has pointed out that it has been possible to establish such a fund under the Act since 1997. It requires a more serious response. This is a major proposal coming from an entity that has a proven track record of helping communities. There is a social housing crisis. When we dealt with these issues at the finance committee when legislation was going through a number of years ago, we were telling the Minister the movement wanted to use its funds to invest in Ireland’s economy and benefit its members who owned the credit unions. Those avenues were not supported, and we are back here again seeking more than just a line in a Minister’s statement saying that, under the Act, if the majority of members at its AGM agree to set up a fund, it can be done. The Government must do more than just say the credit union movement can do this itself.

The recent section 43 report from the Department of Finance on the work of the Credit Union Restructuring Board, ReBo, showed much good work has been done. It also showed a great deal of the €250 million set aside to help credit unions merge is likely to be left in the pot when it is wound up. Given the efficiency and general good health of the credit union movement, this money, which has been saved, should be found to work with credit unions to see it reinvested in our communities. It was sent there for a certain purpose and it is not being used for that purpose. We should find a way to work with the credit unions to have it reinvested in our communities.

The Central Bank’s Consultation Paper 88, CP88, on the implementation of the remaining elements of the Credit Union and Co-operation with Overseas Regulators Act 2012 gave rise to a uniform reaction across the board from credit unions throughout the State and a similar reaction from political parties. People knew it was wrong. They had seen a number of problems with the Central Bank’s original proposals which were identified as being inappropriate. Chief among them was the proposal to cap credit union savings at €100,000. Much has been said about that particular proposal here tonight. I welcome the fact that, in reply to me previously, the Minister indicated that some leeway might be granted here by allowing existing savers to continue, while placing a cap on the newer customers gradually saving up to €100,000. It has been clarified again regarding the Minister’s motion. I argued for it in my party’s submission to the CP88 consultation process. We went further however, saying a review of the figure and an examination of whether a more flexible system can be accommodated is urgently needed.

Likewise, we raised a flag on the issue of reserves. It is in the interest of all that the credit union movement have the reserves to ensure confidence and growth. However, the CP88 proposal of a 10% reserve is way out of synch with the demands placed on other financial institutions, as everybody in the House knows. The Basel III capital requirements for banks are set at lower rates, while the EU is discussing legislation which would set a reserve of only 3% for some hedge funds operating in the State. The Government has signalled its opposition to the European Commission's proposal for a 3% reserve for hedge funds in the State as being harmful and unnecessary and is fighting the Commission on it. This seems to sum up the Government's approach to the credit unions. The Government says it recognises that credit unions are not like banks. I agree with that. The difference is, however, that the banks are more likely to break the rules and do serious damage to our economy and society.

Given the list of measures I have just outlined, it seems that the Government thinks credit unions are the real threat. Since I came into this Chamber, we have been dealing with a fundamental lack of understanding of the credit unions. I am not sure whether that can be attributed to the previous regulator, the registrar, the Central Bank, the officials in the Department of Finance or the Minister himself. We know there is support for the credit unions across the political divide. We are the credit unions. We are members of credit unions. We represent the people, and the people constitute that great movement which is the credit union movement.

Somebody needs to figure out where this is going wrong. In my view, there has been a concerted campaign against credit unions for a number of years. We need to stop it now. Efforts have been made to structure them into something they are not, to destroy their voluntary ethos and to shape them into something they will not and should not be. We need to get real about all of this. We need to open our eyes. We need to listen to our communities. We need to respect the work that is being done by the credit unions. We need to respect their professionalism and work with them on a way forward. The credit union movement has stood with the people through years of hardship. The Irish people have stood with the credit union movement. Now is the time to allow the movement to do even more in our communities and for our communities and to show ambition for the credit union movement.

I support this motion as a symbolic message of support for the credit union movement. More importantly, I support it as a statement of intent. This Government needs to put a stop to whatever is going on to drive the concerted campaign against the credit union movement. It might not be very visible, but it is happening nonetheless. The credit union movement is currently offering solutions to problems, as it has always done. The Minister should use the opportunity he has been given tonight to re-engage with the movement on the CP88 issues. This is where I differ from Deputy Nolan. There is something we can do in this House. The Minister should give a strong commitment that he will not commence the remaining elements of the Act until the full picture can be established.

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