Holly Cairns (Cork South West, Social Democrats) | Oireachtas source

The Bill helps address this with the requirement the Central Bank obtains the consent of the Minister for Finance when prescribing the minimum regulatory reserve requirement for credit unions.

Also, the importance of the section that values the common bond is essential. The common bond is the priceless solidarity that drives credit unions' philosophy, ensures it is focused on the needs of members and helps protect its community. Crucially, the Bill proposes the Central Bank would regulate credit unions in an appropriate way that recognises them as volunteer-led organisations and community banking providers. They must be subjected to very clear and robust regulation. Nobody disputes that. It is something the sector seeks. However, credit unions cannot be treated the same way as commercial banks. This point cannot be overemphasised.

One of the most significant threats to the viability of credit unions is the regulatory regime. There seems to be an inequity between the treatment of the big players, namely, banks, vulture funds, and insurance companies, and the measures credit unions as local organisations are subject to. At a time when commercial banks are closing branches and withdrawing from the market altogether for profit reasons, credit unions are being restricted by limits on business and mortgage lending, a harsh capital regime, and liquidity requirements on longer term lending. While these particular matters must be resolved, there is a pressing need for larger reforms that enable and direct the Central Bank to regulate credit unions as financial co-operatives, not commercial banks. This Bill provides excellent structures developed with the sector that will provide long-term solutions and help ensure the viability of credit unions. If Deputies value credit unions, they must support this Bill.

I must express my frustration at the Government’s response with another motion to delay a Bill from a member of the Opposition. We had the same two weeks ago with the Autism Spectrum Disorder Bill being pushed back by a year. Previously the Government had countermotions to the Opposition, but when that became too unpalatable, it just let motions pass and did not act on them. The latest tactic seems to be to delay Opposition legislation. It will take months for this Bill to progress through the different Stages without Government interference. Why can it not happen concurrently with the development of a new framework? This Bill provides many of the solutions credit unions need today. Any delay is wilfully putting more credit unions at risk. I simply cannot understand why the Minister of State, who claims to want to support credit unions, would want to delay legislation designed specifically to assist them. This Bill will enable a better, more appropriate architecture to oversee credit unions which acknowledges their vital and unique role while also facilitating them to provide SME and mortgage lending. I urge the Minister of State to withdraw his motion and for all Deputies to support credit unions.

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