Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I am pleased to speak on this Private Members' motion. I have been a long-time supporter of the credit union movement, which does fantastic work. Working as an accountant prior to entering the Dáil, I dealt with a range of people providing services in the credit union movement. Credit unions operate in every town, village and parish and during the difficult times when the banks were not lending, they enabled many small companies to continue to operate.

The €100,000 savings limit for credit unions will not affect the great majority of savers in credit unions. However, the Government is conscious that it will have an impact in certain cases and I expect it to take on board this issue.

The basic model under which credit unions operate must be retained. Local people build up savings in their local credit union which are then lent to other people in the community to be spent on essential services. This model must be underpinned by a solid financial structure, meaning credit unions must, in terms of their balance sheet, be solvent and profitable. In the long term, they must be also able to pay dividends to their members. In addition to these elements, the credit union movement has a significant role to play in providing funding for social housing and this issue is being addressed. The way in which loans are structured is also important. The credit union movement has emerged from a very difficult period in a much more secure position than the other financial institutions.

As a public representative in Limerick who deals with the credit union movement on the ground, I am aware of the fantastic work credit unions do. Both sides come to the this welcome debate from the same position, namely, one of support for the credit union movement. While Deputies may differ on various issues, their differences can be resolved. The credit union movement represents ordinary people and is here to stay. While its voluntary spirit must be retained, credit unions must also operate with professionalism. I wish the credit union movement well and hope the difficulties and issues that have arisen can be resolved over time.

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