Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak in support of the motion. I genuinely believe that the motion has the full support of every Member of Dáil Éireann. I listened to several speakers and what has been said on the Government and Opposition sides is indistinguishable. Everybody is singing off the one hymn sheet in support of the credit union movement. It would be a disservice to politics, therefore, if in a short while people decided to oppose what they actually said here in the Chamber. That would be damaging to politics in public life, so I ask people to vote as they believe they should. Every member of the Government should be able to support this motion.

Credit unions are voluntary organisations employing 4,000 people, as well as 10,000 volunteers. They have a network that is unequalled anywhere by any other organisation. They are there to help with family events, car loans, home improvements or purchasing furniture. Many people at this time of year are obtaining loans to tide them over the Christmas period because there is a lot of expenditure involved. Loans may also be required when children go back to school in the autumn or when sons and daughters attend third-level colleges. That is because the grants they receive may not be sufficient to keep them in college, so there is a real risk that students may have to drop out of third-level education. I know of some people whose children would have had to pull out of courses but for the availability of a credit union loan to tide them over for a year or two.

First communions, confirmations and other events can place a big burden on low-income families. The credit union is a comfort blanket for many people. It would be a bad day's work for anybody in the Oireachtas to do anything to damage that particular safety net, so I ask people to support the motion before us.

Earlier today we had several presentations from people involved in the credit union sector, including one from Mr. Ed Farrell, the CEO of the Irish League of Credit Unions. He said that almost 3 million members have savings in excess of €11 billion and assets of over €13 billion. It is a voluntary and a visionary movement, which is what we need to see in Irish society. That is what makes it different. It is a grassroots, non-profit organisation.

One of the problems is that the credit union movement is not for profit, while the financial sector is the opposite. Consequently, the financial sector does not like organisations that are not operating to its profit agenda. This is a final move by the regulatory authorities that are doing some of the bidding of the large financial institutions, including banks. They want to squeeze out those who are eating away at their profit base. We should be resisting that.

The credit union movement was founded for a social purpose. It is unique, yet I am sure the regulatory authorities do not fully understand or appreciate it. I suspect that many of those involved in the regulatory area, and their families, have never had to go to a credit union, so they do not fully get it in simple English. Credit unions serve a broader agenda and have a number of strategies which banks could well adopt.

The major issue is that at least €8 billion is available for investment. Let us consider the position of the country. There is a shortage of social housing. I realise a pilot scheme is going ahead, but we are several years into the housing and homelessness crisis. A total of €8 billion is available but it cannot be lent for social housing. That is an example of how the country has not done a proper job in marshalling the resources available to solve the problems we have. We need to see urgent action on social housing.

We are discussing this motion because the final sections of the Credit Union and Co-Operation with Overseas Regulators Act are due to commence in January 2016. The regulations will place limits on the savings credit unions can take from their members. They will also limit the type of investments they can make. I realise people will say that over 90% of people will not be affected by this, but the Government will damage the view people have of the credit union movement as a strong movement if it puts these unnecessary restrictions in place.

The people who have spoken in the Oireachtas today do not have a problem with regulation. They want good sound regulation, but not overzealous regulation. There are not against regulation; they are for it. We were addressed today by Kevin Johnson, chief executive of the Credit Union Development Association. His presentation was interesting, although there is not enough time to go through all of it. He outlined for the committee the range of business model configurations in which the credit unions would like to be involved. We all know the traditional credit union business model. It deals with low-cost loans and long-term savings. The credit unions want to transition to a business model with a broader range of savings and lending products and, ultimately, to a mature credit union movement. This would have a business model with a full retail service and a wide range of financial products. Of course, those in the banks and financial institutions will not want that because it might reduce their profitability and bonuses. They want to get back to the big salaries they had before the bust. No doubt that is where they are heading. It is important that the advice of people who have a different ethos is heeded.

We heard a presentation from Sean Hosford, chairman of the Credit Union Managers Association. He made it clear that credit union managers support a strong regulatory framework for credit unions, as recommended by the Commission on Credit Unions. In the past three years, the credit union board of management teams have successfully introduced major regulatory changes. The relevant people in the Central Bank simply do not get it. It is easy to deal with two, three or four banks and take the approach that one size fits all. However, when dealing with hundreds of credit unions, one size does not fit all. Anyone who believes it does is showing that he does not understand the job he has been charged to do on behalf of the public in the regulatory authority.

Those representing credit unions are frustrated because they want to be involved in micro-credit or lending small sums of money to the most vulnerable people who are being pushed towards moneylenders. They are making significant sums of money available and they are keen to make these funds available for social housing, something I have mentioned. In particular, they are keen to lend to small and micro-businesses. Most people in Ireland are employed by small businesses which employ fewer than ten people. People refer to small businesses but they really mean micro-businesses that employ a small number of people. These businesses are known to the local credit unions. The people working there know who they are. In County Laois we have seen a number of amalgamations, including the credit unions in Mountrath and Durrow, St. Canice's Kilkenny Credit Union and the credit union in Portlaoise as well. That is fine. People are happy and they accept that it will make the movement stronger. The credit unions will be more professional in the way they do their business. They will have a strong presence in the towns I have mentioned. Indeed, they may have a better presence because they will have better back-up.

This week we are bringing forward a motion that is vital in the interests of the credit union movement and its members. We believe the motion represents the last realistic chance to ensure the sector can operate on a level playing pitch against the interests of the big banks. That is important. This is a business, but it is a not-for-profit business. That is what we are here to support.

I join all my colleagues in calling on the Minister to press the pause button. I recognise that at this late stage he has arranged meetings with the credit union movement, but there is no need to proceed at the beginning of January as he is planning. There is time to review these measures to ensure one size does not fit all and tiered arrangements are put in place for credit unions.

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