Brendan Griffin (Kerry, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle and his office for allowing me to raise this very important matter. I also thank the Minister of State for being present for this debate.

I begin by congratulating him on his recent appointment as Minister of State. It is a massive honour for any Deputy to be appointed, both for himself and his family and for his supporters. I wish him the very best of good fortune in the time ahead. I have no doubt he will do an excellent job.

I raise this issue off the back of an informative meeting with members of the Chapter 23 Kerry and West Limerick Credit Union movement in Kerry last week and also off the back of the report by the Irish League of Credit Unions last Friday, 10 July entitled The Movement. It is an insightful and interesting report that makes for interesting reading and also makes reasonable recommendations. I ask the Minister, if he has not already seen that report, please to prioritise and have a look at it. It is very clear and makes eight recommendations, none of which is outlandish. They are all reasonable and by implementing those recommendations we would have stronger communities and a better country overall.

In the context of this discussion, the impact of the credit union movement in Ireland over the last six decades cannot be overstated. When one hears people of the magnitude of John Hume saying his involvement in the credit union movement was one of the things he was most proud of, and when he referred to it as having done so much good for all the people of Ireland, North and South, it really puts into context where the credit union stands in terms of its importance in our communities. It is critically important that it is supported at its time of need.

Among the number of things it has pointed out is that it needs support in terms of first putting together the new credit union Act to create a legislative basis for credit unions to become a stronger community banking force. That is something the new Government needs to look at and I am hopeful it can be achieved.

The reduction in capital reserve requirements from 12% to 8% would give credit unions some breathing space, as they say themselves, and also give them a better opportunity to expand their mortgage and business lending. That would be really important.

They are also seeking to unlock the potential for credit union funds to support construction of social housing through a State-regulated investment vehicle for which they have €900 million, almost €1 billion, available. That money would be put to good use if that measure could be considered and acted upon.

They also want to make credit union finance available through the Strategic Banking Corporation of Ireland, SBCI, to fund the proposed national retrofitting plan. We know almost 500,000 homes are planned for retrofitting by 2030 under that plan. The credit unions want to assist and put their money to good use in that regard as well.

One of the other main points is the suspension of regulatory levies from the Central Bank for 12 months and a review of all levies. To put into context what some credit unions are experiencing with regard to regulatory levies over the last number of years, one of my own local credit unions, Killarney Credit Union, in the year ending September 2014 paid just over €66,000 in regulatory levies. In the year ending September 2019 that figure had risen to €243,000. That is a huge hit for any credit union to take when one considers the great work they do and that credit unions were not to blame for the huge financial mess we have seen in the past. That is salt in the wounds of the credit unions and needs to be looked at. I urge the Minister of State please to consider the points raised and do his best to assist the credit unions in their time of need.

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