Aengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

I have dealt with many cases of people in severe financial stress, especially at times similar to Christmas, but often because of Government policy at other times, for example to pay for funerals. They have resorted to legal and illegal moneylenders and have then, because there is somebody calling at the door, availed of another loan and another and they have ended up in a cycle of debt which they do not seem to be able to get out of. This happens in working class communities in particular but anybody who is dependent either on very low pay or social welfare ends up forgoing food and heating and their kids do not have proper clothes and the like. That is the background to this and the type of people in the main who avail of the scandal that is supposedly consumer credit. These are people who provide loans at an exorbitant rate.

They are profiting from the misery of others and tying them in to an endless cycle of debt.

Even with the cap suggested by my colleague, there is a viable business model for consumer credit companies which can still make a profit. In other countries where a cap has been imposed, such companies have succeeded. The Minister of State should think about how much profit they are making in the Irish market. I first asked this question back in the 1990s and have continued to ask it since. I praise my colleague, Deputy Pearse Doherty, for being persistent and raising the issue again. It is an absolute disgrace that the Minister is seeking to delay the Bill. It will be delayed enough in going through the processes in this House and even if it is passed, it will probably not take effect until next Christmas. Rather than delay it until then, the Minister of State should withdraw his amendment and allow the Bill to proceed.

There have been changes in the credit union movement in recent years, some of which are good, while others are atrocious. Many of those who availed of credit union loans in the past are now finding it more difficult to get them. Some minor measures have been introduced such as the It Makes Sense loan that are offered by credit unions, but not enough has been done to promote the credit union system. The Government should have invested a lot more in that aspect of the credit and banking system. I hope the Minister of State will not only takes the Bill on board but that he will also deal with the credit union movement and encourage and support it in a more robust way than has been the case to date.

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