Mick Wallace (Wexford, Independent) | Oireachtas source

The Irish people have paid for the recapitalisation of the banks but, sadly, the banks are effectively closed to many of them. It is easy for people with lots of money to get more of it because they are considered a low risk but people who need it most find it very difficult to get it, whether it is for personal reasons or for business. Small and medium-sized businesses struggle to get money from banks today and credit unions are looking to lend to these people.

Credit unions want to lend to many people with small and medium sized businesses but are being hampered by the Government. Last year, credit unions had €5 billion available for lending but could not lend it owing to Government restrictions. As previous speakers noted, they also offered to provide several billion euro to help address the housing crisis. If the Government declines this offer, it will give rise to serious questions. For example, would the reason for such a decision be that the Government does not take the housing crisis as seriously as it pretends to take it or is because it wishes to keep the credit unions in their place and as weak as possible to ensure they are less of a threat to the banks?

If the Minister signs the commencement order for the savings provision of the consultation paper, CP88, as she has threatened to do, a local parish Christmas thrift fund in Wexford, for example, will be unable to use its account in the credit union if its total savings exceed €100,000. This would force the fund, against its members' wishes, into the hands of the big banks, while simultaneously undermining the ability of the local credit union to serve the interests of the local community. It is a no-brainer that the credit unions deserve more support from the Government. Similarly, it is a no-brainer that we should not rely exclusively on large banks to act as a service to citizens because we know they will not do so.

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