Charlie McConalogue (Donegal North East, Fianna Fail) | Oireachtas source

I am glad to speak on the motion. It is disappointing, however, to find ourselves here yet again trying to get the Government to understand the impact that its proposals for the remaining sections of the Credit Union Act 2012 will have on the credit union movement. This issue has been debated in the House on a number of previous occasions. Fianna Fáil has already tabled a Private Members' motion on the matter. Deputies across the country have been lobbied by members of local credit union movements on the impact of the proposed sections.

As we can see, there are significant numbers of people in the Visitors' Gallery with an interest in the motion and in the future of the credit union movement. At various times we have debated at length what is happening in the banking sector over the last three or four years, as well as in the 2007 to 2009 period. On those occasions the Visitors' Gallery was an empty place. Nobody from bank branches came along to see what was being debated. That is because the services provided by our banking sector are primarily about profit and business, whereas the role and work of the credit union movement are about providing a service to local communities. It carries out its business in a way that has the needs of the community at heart, thus ensuring that families are supported in going about their daily business. That is all part of the model that puts them at the centre, rather than trying to derive a profit for shareholders. That is why there are from 350 to 400 credit union branches across the country, with nearly 3 million members.

At a time when banks are pulling out of towns and villages, and reducing their branches across the country, credit unions are doing everything within their power to remain rooted in their communities. They are serviced and driven by local volunteers, so we want to see that model continue and thrive. However, there is real concern about the Government's proposals to enact the remaining sections of the Credit Union Act unamended and without taking the time to consider their impact. The Act's provisions were developed at a time, in 2011 and 2012, when the Minister for Finance expected that significant cost would be involved in resolving issues in a number of credit unions. At the time, he estimated the figure at between €500 million and €1 billion. The reality as it unfolded, however, has been entirely different. So far, a total of €35 million has been used by the Credit Union Resolution Fund, while at the same time €29 million went into the fund. Therefore the net cost to the State of resolving issues in the credit union sector has been €6.4 million. That should be compared to the €64 billion the banking sector has cost this State in having to resolve associated issues. That point should be taken on board because the credit union sector has emerged quite intact considering the challenges it faced. In light of that, the proposals contained in the 2007 Credit Union Act are unduly restrictive in not allowing or facilitating the credit union movement to grow and continue to serve communities, as it has done very well in the past.

I urge the Minister of State to take on board the substance of the motion before the House. He should ask the Minister for Finance, Deputy Noonan, to pause, engage with the sector and recognise that there are real concerns. In addition, there are dangers involved in the restrictions that will be imposed on the credit union movement if he pursues his current actions without taking their impact into account. I call on the Government parties to support this motion and recognise that we should all work together to ensure this movement continues to go from strength to strength.

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