Seán Sherlock (Cork East, Labour) | Oireachtas source

At this stage of the proceedings, where further down the speaking slots, it allows time to read a Minister of State's speech and parse the words. In supporting this Bill, in the same spirit as we have always done, we would continue to support any initiatives that come before the House in respect of highlighting the continuing important presence of credit unions in our towns and villages throughout the country.

In proposing an amendment to the Bill, the Minister of State states that it is deemed to be read a Second Time this day nine months to allow for the progression of the review of policy framework, which is at an advanced stage and for such progression to be taken into account in further scrutiny of this Bill. At face value, it would appear that he is seeking to engage with the proposer of the Bill and, pending the review, see where stands the Bill.

However, when I quote from his speech, I am a little bit disturbed by some of the words, which suggest that the contrary is the case. He started by stating, "The potential legislative amendments will be considered as part of the review". The key point is his statement is:

However, my engagements have highlighted that there is no firm consensus as to the desired legislative change which would assist in solving the financial challenges to the sector. I do not want to raise unrealistic expectations about the potential impact of any such change, if it were approved.

I am long enough around the House, including having served as a Minister of State, to recognise the coded language in that. That suggests that the Government has no intention whatsoever of promulgating this Bill. It may be that the only exercise if the Bill is to succeed is that the review has to be fast-tracked in a way that involves engagement with all of the stakeholders. Even if the pregnant pause, to use Deputy Connolly's expression, that has now replaced the guillotine is to be implemented as a tool, it is a coarse tool to use not to allow legislation to proceed to Committee Stage.

However, if the one thing that comes out of this is a fast-tracking of the review such that the stakeholders feel that they have been meaningfully engaged with, then that might not be such a bad thing. It is hard not to be cynical, however, because the Minister of State said, "I hope to update the House in the not too distant future of the Government's plan to support the credit union sector". There are too many ifs and buts. The language is nebulous.

We want concrete actions in respect of a sector that is vital to the functioning of this society. There are 3.6 million credit union members on the island of Ireland. There is €16.38 billion in savings and €19.28 billion in assets. I could go on. Credit unions have been consistently voted the best organisations for customer experience for the past seven years.

Credit union stakeholders are in and out of this House, through the committee structure, on a regular basis. What the Minister of State is hearing from all of us is a genuine plea to Government to engage with stakeholders in the credit union sector so that credit unions can lend productively within their communities. It is most patronising for him to come into the House and say:

I would encourage them to engage more with local community groups, voluntary and sporting organisations to increase their lending. Its in keeping with their ethos and social value to the community.

I am speechless at that remark.

The volunteers in credit unions know exactly what their ethos, mandate and mission are. They are doing this day in and day out. They are seeking to lend. However, now the very ethos that underpins the credit union movement is being hampered by regulatory overreach where, in certain circumstances, the Central Bank now controls whether the credit union can pay a dividend. This sticks in the craw of every reasonable and rational credit union member that ever was, myself included.

Dividend restrictions on credit unions by the Central Bank have, by stealth, undermined the ethical basis through which credit unions were created. There was a time when Fianna Fáil would have stood up to the Central Bank on issues like this. There was a time when Fianna Fáil would have pushed back against the Central Bank on this. The way to push back against the Central Bank on this now is to put in place a proper policy framework so that credit unions can realise their full potential throughout Ireland and within the very communities that we represent. I do not know what the modus operandi of the Central Bank is, but is high time that we reach a point where it and the Department of Finance pull back a little and consider the potential of the sector.

Given the stark reduction in the number of credit unions throughout the State, there is the danger of an existential threat to their very existence in some of the communities mentioned here today where banks have gone to ground. There is no oversight of the Central Bank by other central banks in respect of the regulation of credit unions.

I reiterate the point about dividend restrictions. There is no other country in western Europe where there has been transformational changes in governance in credit unions. Those involved are volunteers who have gone through a process and have done everything that has been asked of them in terms of governance and meeting requirements. It is time to give them a fair chance, take the foot off their necks and let them thrive.

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