Pa Daly (Kerry, Sinn Fein) | Oireachtas source

I commend Deputy Harkin on bringing forward this important Bill. I support it going to Committee Stage and allowing for further debate because it gets to the heart of the difficulties facing our credit union movement. I also commend the movement for working so hard and so professionally in their submissions to suggest many of the policy solutions causing difficulties for them and their thousands of members across the island. I do not have to list the many benefits credit unions have brought to Irish life, from allowing people who are not accommodated by the mainstream banks to access loans and mortgages to its commitment to maintaining hundreds of jobs in our town and village centres. Towns such as Castleisland, Killorglin and Causeway were abandoned by court services and by mainstream banks, but continue to be serviced by credit unions. During lockdown, the only life in some town centres was in the queue outside the credit union.

I welcome the amendments to include the provision of mutual services and the provision whereby the Central Bank of Ireland would be obliged to seek and obtain consent of the Minister for Finance when prescribing minimum regulatory reserve requirements. The current ratio of 10% of the assets is much more than what is required for high street banks and credit unions in other countries. Capital requirements mean that the sector has had to compete with banks with one hand tied behind its back. The credit unions lost millions of euro to mainstream banks as a result of the capping of deposits.

Discrimination in favour of the main banks has to stop. Obliging the Central Bank of Ireland to have regard to the common bond of other credit unions must also be discussed on Committee Stage. I am happy to support our credit unions and support this Bill on Second Stage.

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