Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to this really important debate on the credit union movement. I have had an opportunity to listen to people on all sides of the House and am somewhat perplexed as to why the Government parties are dividing the House tonight. I understand they intend to call a vote against the motion we have tabled. This beggars belief given the contributions that have been made. I hope, therefore, that we will see Members break ranks with the Government tonight and support the Fianna Fáil motion.

The credit union movement is and has been an enormous enabler for hundreds of thousands of families. Its reach and impact are truly immeasurable. There is scarcely a family across the State that has not had recourse to the support of credit unions, be it to send children back to school or teenagers to college, or in respect of burials, christenings, weddings or unexpected illnesses in the family. From crisis to celebration, the credit union movement has been in place to support communities and society generally.

The credit union exists solely to support its members. Juxtapose that with the objective of the commercial financial institutions, which exist principally for the purpose of supporting and benefiting their shareholders. Profit and return on investment are the keys, while the credit union movement's activity is not for profit. Its key drivers are serving members and providing an appropriate structure to assist communities. It is not an exclusive club; anybody can join.

Without a doubt, we have come through the biggest financial crisis in the history of the State. Commercial banks were decimated. By and large, the credit union movement survived that entire period, with a couple of notable exceptions. In general, because of the management structures that were in place and the key local focus, as alluded to by Deputy Spring, and because of appropriate risk assessment, prudent lending and solid investments, the movement survived and is in a healthy position. We know the potential that exists in terms of the difference between loans and reserves. The figures are €11 billion and €3 billion.

Let us not fool ourselves here: the credit union movement cannot stand still. It is in a competitive environment and needs to serve the changing needs of its members. Lifestyles have changed and people's expectations, demands and needs change. That happens with new generations. Therefore, the credit union cannot just be restricted with all the regulations that are set out but with no potential to broaden its range of services and investments. It requires the support of the Legislature and Executive.

There is less competition in the marketplace now. We know the way banks are trying to repair their balance sheets. We all recognise that this has to be done and that it is important but, by and large, the credit unions are taking up the slack and helping people who really need help most. The credit unions' reach can now be greater, particularly because of the lack of competition. In addition to regulation, new lending opportunities and investment opportunities are needed.

The crux of this debate tonight is the necessity to give full recognition to the Commission on Credit Unions, established in 2012. The credit union movement got behind that and fed into it. The movement supports all aspects of it. The Government intends to deliver piecemeal, with all the restrictions and none of the potential for growth. The Government lacks a strategy on the potential to grow the credit unions, and it is restricting them absolutely.

Before I left my office, I had an opportunity to state on Facebook that I was coming to the Chamber to address this issue. I had a flood of responses, one of which is worth reading:

Timmy I thought the credit unions were owned by the members, it always helps for the little things that arises such as children returning to school college fees and maybe the odd home improvements. The banks wont entertain the smaller person for loans to do such things so where are they to go is it the money lenders this government wants them to go to and as for education do they not want the ordinary man [or woman] to give their children a chance to go to university. This government is a disgrace...

I appeal to the Minister to set aside the politics, accept the motion that has been tabled and support the credit unions.

In doing so, he would supporting not the institution but the people throughout this country whose lives, children and communities depend on a vibrant credit union movement that needs to grow to meet society's demands and requirements. The Minister of State would thus put in place a structure that has proved that it can withstand the kind of financial disaster we have come through.

I appeal to the Minister of State to talk to the Government Whips and avoid dividing the House tonight. It seems ridiculous to do so because it would say that the people in this Chamber are out of touch with the daily reality facing many people.

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