Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Táim iontach buíoch as an deis chun labhairt ar an mBille seo. Tuigimid uilig trasna na bpáirtithe an tábhacht a bhaineann leis na comhair chreidmheasa agus an obair atá á dhéanamh acu ar fud an oileáin. Tá sé sin cloiste agam na céadta uair. Tá tacaíocht faighte acu ó Shinn Féin agus ó Theachtaí trasna na bpáirtithe agus Teachtaí Neamhspleácha le fada go leor. Caithfimid níos mó a dhéanamh ó thaobh na comhair chreidmheasana agus tá deiseanna ann iad a láidriú agus a neartú chun go mbeidh ról níos lárnaí á imirt acu i sochaí agus eacnamaíocht na tíre. Is féidir leo déileáil fosta le cuid de na deacrachtaí móra atá againn, go háirithe ó thaobh cúrsaí tithíochta agus a leithead sin. Chun é sin a bhaint amach, teastaíonn athrú intinne agus athrú meoin ó thaobh an Banc Ceannais agus an Roinn Airgeadais. B’fhéidir gur sin plé do lá eile. Inniu táimid ag déileáil leis an mBille atá os ár gcomhair. Tá trí phríomh chatagóir sa Bhille seo agus beidh Sinn Féin ag tabhairt tacaíochta dó. Sé sin ráite, tá leasuithe curtha chun tosaigh againn chun an Bille seo a neartú agus a láidriú agus le plé a bheith againn faoi chuid de na hábhair imní atá ag comhair chreidmheasa difriúla ar fud an Stáit, chomh maith le leasú ó thaobh an IFSC de.

The legislation has three core objectives: first, to amend the Credit Union Act to allow credit union general meetings to proceed virtually, as they are currently prohibited under Covid-19 health regulations; second, to amend the Fiscal Responsibility Act to increase the maximum number of consecutive terms an IFAC member can serve from two to three; and third, to amend the Credit Institution (Stabilisation) Act 2010 to include the EU as a facility lender.

I will focus on the first two objects. I commend the credit union movement and the services it provides to communities right across the island. It is an all-Ireland movement that is embedded in our communities. There are 317 credit unions across the island with 3.6 million members. It has a track record of delivery. For more than 60 years, our credit unions have been an underutilised asset on the island. Although not relating to this legislation in particular, as we emerge from the pandemic, and while there is uncertainty around the future of Ulster Bank, we need to enhance the role played by credit unions in the financial market. There is a total asset book of €20 billion, and with that comes great potential for the credit union movement to support our communities and economy through SME and mortgage lending and involvement in the delivery of social housing. For that to happen, a change in mindset is required in both the Department of Finance and the Central Bank. During my time as an Oireachtas Member, and particularly as spokesperson on finance for Sinn Féin for more than a decade, I have witnessed the support across the political divide for the credit union movement. Collectively, we can ensure the necessary supports are put in place so that they can provide a stronger role in society and the financial market.

I also wish to refer to legislation I introduced some years ago on moneylenders. Money lenders are a scourge on society, particularly in their charging of an annual percentage rate, APR, of up to 187%. Particularly at times of hardship, something that the pandemic has unfortunately brought to many households, moneylenders are advertising their wares, selling high-interest loans with immoral rates of interest. A Bill was before the House and is now before the finance committee for pre-legislative scrutiny. The committee has heard from stakeholders. As sponsor of the Bill, I am delighted to have read the submissions that have been received in support of the need to place a cap on the interest rate that can be charged by money lenders. I believe it is a role that the credit union has filled and can continue to fill. Initiatives were introduced in previous years, some by local credit unions, to ensure that short-term small lending is available to families and households who need it at times of pressure.

The financial year for credit unions falls at the end of September.

The AGMs subsequently occur between October and January, as required by the Credit Union Act 1997. As a result of the current public health measures, it is impossible to proceed in practice with physical AGMs or special general meetings. In addition, the uncertain direction of the public health measures into the future makes planning for a general meeting difficult due to the time lag between the notice of a meeting being sent to members and the holding of the meeting.

The purpose of this legislation is to allow for credit unions to hold meetings remotely that are required under the Credit Union Act. Our support for the legislation is wholly contingent on our support for the credit union movement itself. The Credit Union Development Association, CUDA, and the Irish League of Credit Unions, ILCU, have engaged with the Department of Finance and the Oireachtas finance committee on the general scheme of the Bill. Both organisations welcomed the provisions set out in the general scheme. However, concerns have been raised regarding specific provisions in the Bill. I want to focus on two of those concerns. The first regards the role of the nomination committees and how they are affected by this legislation. The second relates to the issue of proxy votes.

The Bill provides for the introduction of pre-meeting voting. The nomination committee is one of the key committees established under the Credit Union Act. Its purpose is to ensure that nominees to credit union directorships meet the highest standards. This is an essential part of what could be described as the fitness and probity regime for credit unions As part of the process, the nomination committee shares a report with members who, in turn, elect directors. Under the credit union rules, this report is shared in advance of any voting. The new subsection 78A(4)(a) of the 1997 Act, as inserted by section 6 of the Bill, suggests that voting will be allowed to take place before a nomination committee sends its report to members. This issue has been raised with the Department by the credit unions. I would appreciate clarity in this regard and for their concerns to be addressed.

The second concern is in regard to the proposed introduction of proxy votes. In 2016, the Department's credit union advisory committee published its review of the implementation of the recommendations in the report of the Commission on Credit Unions. The committee noted proxy voting as a specific concern for stakeholders. Serious issues have been raised with the Department regarding these proposals. Among the issues is that the introduction of proxies could lead to conflicts of interest or situations where undue influence could be exercised on voters. Concerns have also been raised about the possibility of one individual acting as a proxy for several members, which could lead to undue influence being exercised by a single individual. One of the fundamental tenets of the credit union movement is that there is one vote for each member. These concerns have been raised with the Department. I have tabled amendments dealing with both these issues and I would appreciate if the Minister could address the concerns raised.

Section 14 relates to IFAC. This provision has been brought forward to avoid an awkward situation for the Minister. IFAC was set up as part of a wider agenda of budgetary reform after the Fianna Fáil Government destroyed our economy. It was set up to scrutinise Government budgetary policy. Under the 2012 legislation, the council has five members, with no member allowed to serve more than two four-year terms in a row. Since the beginning of this year, the council has been reduced to four members, after the former chairman, Seamus Coffey, finished his term. This is despite the fact that the legislation passed by this House requires a vacancy on the council to be filled within six months. Another two members are due to finish at the end of the year, reducing the number of council members by two and leaving three vacancies. One of the members, the current chairman, Sebastian Barnes, has been on the council since 2012 and is coming to the end of his second four-year term.

This section seeks to extend Mr. Barnes's membership of the council by a third term, or another four years. To be clear, Mr. Barnes has served the council with distinction. However, it is not appropriate to extend his term of service and the provision to that effect has been introduced simply to avoid embarrassment for the Minister. It is important that fresh voices and new perspectives are brought to the council. That was the whole point of the two-term limit. Such limits exist in other jurisdictions to safeguard the credibility of budget watchdogs. The limit should not be undone and the credibility of the council should not be undermined simply because the Government has neglected the council.

I want to conclude by again commending the credit union movement on the continuous service it provides to members. I hope we can allow the movement to continue to play an enhanced role in the economy.

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