Seán Canney (Galway East, Independent) | Oireachtas source

This is the first time I have had an opportunity to speak to the Minister of State since she assumed her role. I wish her all the best with it. She is taking on a very important portfolio. It is important that we work together within the House. The legislation she is introducing is to be welcomed. I concur with the remarks about her predecessor as Minister of State responsible for this area, Deputy Fleming, who did a lot of the spadework.

We all know about the credit union movement. We know how it was founded and how it developed. It involves genuine community banking. We talk about banking systems in other countries but we have real community banking here; we just do not have the legislation to take the next step in developing it so it will be of more benefit to people and communities.

At the heart of all of this is the fact that the money of the credit unions is their members' money. Therefore, they have to look after it. They do a great job in minding it and making sure it is invested properly to benefit communities and protect those saving for retirement or another purpose.

We have had some cases of things going wrong in particular credit unions. We will always have these but they have been blown out of all proportion, as is evident from the large number of good credit unions we have had throughout good and bad times. I acknowledge the staff of the credit unions in my constituency, in Tuam, Loughrea and Athenry. They have been working tirelessly, especially in the downturn, to try to help people as best they can.

Let me refer to something that sticks in my craw. During the downturn, loans that were being defaulted on were sold off to other institutions, which are making hay out of them. Many people, including couples and families, get letters monthly threatening them with eviction from their homes. The amount they owe is going up even though they are making repayments. It is time that the Government stepped in to get rid of this type of filth in our society, whereby people are making a profit on the hardship of hardworking families. I have a case involving a couple whose mortgage liability is rising month on month although they are paying up to €800 per month. They are working hand to mouth to try to feed the institutions. This is wrong. We pride ourselves on being a rich, developed country with a considerable tax surplus year in, year out, yet we have people who are actually suffering and getting no help from the State to get rid of the vultures. It is the real vultures who have bought the loans. They do not care if they never sort it out because they are getting money every month from people who are working hard without finalising any deals with them. The funds will not engage with the mortgage holders. One has to go through a customer service person, who states proposals must be submitted in writing. Six months later, the company states its committee has decided not to entertain the offer. That is all that is in the correspondence and the mortgage holder must try again. Every three months, one is sent a form to be filled out to state if one's circumstances have changed. It is the worst form of money grabbing by sharks who are effectively recognised and legalised in this country. It is wrong. This is a pet subject of mine.

When we examine the Bill and the credit unions, we see there is great potential. The Minister of State knows that. With all the grants being given for the deep retrofitting of housing, for example, and with farmers getting grants through the Common Agricultural Policy and the agri-climate rural environment scheme, there are opportunities for credit unions. They want to get involved in becoming the relevant agencies or one-stop shops so they can facilitate people with advice and loans and by ensuring the jobs being done are not a rip-off.

We have an opportunity but we need to put schemes in place on a national basis to support the grants. Within this legislation, which the Minister of State will agree is a first step in making sure we give powers to the credit unions to expand, we need to examine how best additional powers can be given to them to provide more money in an easy way to those improving their homes for building energy ratings, changing their heating systems and so on. It is important that we recognise this Bill is a first step.

I would never like to see the credit unions going the same road as the banks, whereby they get to a stage where they become bigger than their communities or believe they can do something like the banks have done and start closing branches. The banks are trying to remove themselves from the public and do everything online. We all know that, even in this day and age, there are many people without the computer literacy to deal with online banking and so on. The credit union is their saver, as is the post office.

Credit unions are assets in the sense of being service providers, including in the community. I welcome this legislation but it needs to be amended. The ILCU has set that out. The Minister of State said in her opening remarks yesterday that she will table amendments to this legislation. We look forward to seeing them and to continuing to work with her. Again, I wish her well in her role.

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