Maureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

Ar dtús, ba mhaith liom aitheantas a thabhairt do na comhair creidmheasa ar fud na tíre a thugann deiseanna furasta do dhaoine airgead a shábháil agus a thacaíonn leo iasachtaí a fháil. I know from my own community, where East Wall Credit Union is based, and from my own membership of the ASTI credit union that credit unions have made it easy for people, especially young people, to save and borrow over the years. I refer, for example, to their user-friendly hours of opening. I would like to acknowledge the role of the volunteers in the hundreds of credit unions throughout the country.

I would also like to acknowledge that a reply I received from the Minister, Deputy Noonan, earlier this month was encouraging for credit unions as a funding source for the provision of social housing. In the reply, the Minister mentioned that "section 44 of the Credit Union Act 1997 provides that a credit union may establish a special fund to be used by the credit union for such social, cultural or charitable purposes ... where it is approved by a resolution passed by a majority of its members present and voting at a general meeting". I would like to know whether the credit unions are allowed to augment that with dormant account funds. It would require an amendment to the Dormant Accounts Acts, but I understand such a provision was recommended by the dormant accounts board in 2012.

The credit union movement was founded in the north inner city of Dublin. The early credit union movement had a strong ethos of social action. I suggest it now has a real possibility of being a main player when it comes to housing. For example, credit unions have an opportunity to get involved in microfinancing. I suggest that the representative organisations - the Irish League of Credit Unions and the Credit Union Development Association - should embrace the role of credit unions as social actors. I believe the credit unions want such a role. When one looks at their savings and assets, it is clear that massive potential exists in this regard.

I would like to speak about the €100,000 cap. I do not understand why someone getting a redundancy payment of just over €100,000 should not be allowed to put it into a credit union account. I suggest that preventing them from doing so undermines the credit unions.

I agree with those who have suggested to me that the Central Bank is crucifying the credit unions and that the restrictions imposed by the Central Bank come from a lack of understanding of the work of the credit unions, particularly in relation to their social ethos. There is no doubt that credit unions are seen by the public as fair, transparent and helpful institutions. They are customer-centred and have a personal touch, whereas the banks seem to be on a rampage of replacing everybody with a machine.

They also help people in much poorer circumstances in the way they are able to provide an alternative to loan sharks and illegal moneylending.

See this speech in context