Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to the motion. Not for the first time, I rise to address issues surrounding credit unions while focusing on the movement's key strengths, namely, its scale, its number of branches and its volunteer ethos. These elements have stood the test of time since the movement was first established as an organisation by the people for the people. The large level of trust in the credit union movement is important. As we deal with the regulators and so on, we as a Government have an important job to do in getting the balance right between ensuring we protect members' savings through adequate regulation and ensuring we do not over-regulate and hinder the positive role that credit unions might be able to play economically and socially. This balance is difficult to strike at times.

I have seen what can happen in a large town that does not have a credit union. We in Newbridge lost our credit union more than two years ago. Everyone knows the story. Without focusing on that, the time since has seen a vacuum filled by the rise of moneylenders. They have made hay through punitive interest rates. That is particularly so as we approach Christmas when parents who just want the best for their kids and do not have enough money to make ends meet opt in a moment of weakness for a small loan that turns out to be a crippling burden for the rest of the following year. As such, we in Newbridge welcome that we will have credit union services again in a few months time with the opening of a new branch in the town.

The impending announcement of the personal micro-credit scheme is also important as it will allow credit unions the discretion to provide small loans quickly to people who need them to get over the hump.

We must also get the regulatory balance right at the higher end of the scale, that is, people who have a great deal of money in credit unions. There are concerns about the proposal to limit savings to €100,000 per person. It is important to note that this will have no impact on 99% of the movement's current savers and I welcome the Central Bank's commitment to consider appropriate amendments to the regulators where credit unions set out clear paths along which they wish to develop their business models. Further consultation will be key.

The development of our credit union movement is crucial. Through the consultation paper 88, CP88, process of engagement with movement stakeholders, I welcome the focus and discussion on the sector's development. The dialogue on developing card services and payment accounts is key, as we are moving towards ease of access for people and allowing credit unions to compete with the banking sector. Also important will be the dialogue on credit unions' aims in terms of longer-term lending and the provision of mortgages to members.

The post office network presents a major opportunity. Private Members' motions have addressed the strength of that network. Given that considerable synergies can be realised, I would like to see the credit union movement and the post office network working closely in this regard.

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