Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I, too, welcome the Bill. It is a long time ago that I, like my parents, became a member of the credit union in Carlow. All my children are now members as well. That is important. Credit unions have always been part of families and communities. Since I first joined, there have been great changes in credit unions but more change is needed. This is the first substantive credit union legislation since 2011. It is a first step to delivering for credit unions on a commitment in the programme for Government. It also reflects the potential of credit unions that was highlighted in the retail banking review.

The credit union movement plays a crucial role in communities throughout the country. They are voluntary not-for-profit organisations designed to serve their members and the wider community, such as by offering small business loans, car loans or mortgages. Of course, we cannot forget farmers. A credit union is an institution that is trusted by the people. I cannot stress enough the importance of the sector to financial services in rural Ireland, particularly in my home town of Carlow. Credit unions are the largest provider of personal unsecured loans, which are a lifeline for many families. They hold approximately €17 billion in savings and €5.5 billion in loans and serve 3.5 million members across a network of 204 credit unions and more than 400 branches. It is vital that we protect that network. Last year, during the early debates on the Bill we heard that credit unions are only lending 27%, or €5.5 billion, of their €20 billion in assets. We must support them to develop plans for lending in the community.

The Bill has many positive aspects and the process that led to it being drafted should be welcomed. When we work together, good things happen. In his previous role, my colleague, the Minister of State, Deputy Fleming, had more than 50 stakeholder engagements and met more than 60 credit unions, including in Carlow. He visited the credit unions in Carlow, Tullow and Bagenalstown.

Concerns have been raised within those credit unions. It is vital that we enable and support the credit union movement to grow but I urge caution that we do not lose the community spirit of credit unions. I was a little alarmed to hear recently of people being unable to access loan facilities, despite having been members of their local credit union for decades. They told me it had become a little bit like a bank. That needs to be considered. A credit union is not a bank; it is a community financial service. It has to serve the community in which it exists or it will be just another retail bank in a town. Credit unions are not simply an alternative to banks.

They are a model of community banking that can deliver a much wider range of services and an alternative financial platform. As people in our society move around more, and move between towns and communities, I welcome the flexibility in the common bond offered in the Bill to allow for the referral of members to other credit unions. This not only provides access to a service not provided by the referring credit union but allows for loan participation between two or more credit unions, in order to allow more businesses to be members and credit unions to lend to certain public sectors. I really welcome that.

All credit union members should be allowed to access a full-service community banking facility, regardless of their credit union size, which is another issue that was raised with me. This can support growth. However, I again caution that one of the most trusted things about our credit unions has always been the face-to-face element and local knowledge. I am a huge fan of credit unions. I welcome the Bill.

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