Thomas Gould (Cork North Central, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this Bill. Credit unions are in a unique space in the context of financial institutions in this country. They are rooted at the heart of communities, which makes them completely different from the banking sector and the way it is now. Credit unions are often compassionate institutions that offer people support.

I will briefly touch on a couple of matters. I have concerns about parents and vulnerable people being pushed to illegal moneylenders. We have an opportunity with credit unions. The Government now has a unique opportunity to use credit unions to bridge that gap. We now see one in ten parents having to use food banks amid the rising cost of living. People are at the pin of their collars. We see that in my constituency in Cork city where additional needs payment to people looking for help have trebled in 12 months. More than 2,000 families and individuals were refused help through the additional needs payment. Where will those 2,000 people and families go? Many of them will not qualify for bank loans. They might not be able to get a credit union loan and will then go to moneylenders. That is why credit unions need to fill that gap for the most vulnerable. There is a real fear people are forced to go to moneylenders because they have no other place to go. They are forced to go to them to pay for basics, such as food, clothing and electricity. That is why the Government needs to support and empower credit unions. They may also need to meet with them regarding filling that space because it is such a vital area.

I will raise another matter, which is a criticism of credit unions. Many of them used to offer a death grant, towards which a member paid a certain amount each year. In my constituency in Cork, it ranged between €1,500 and €4,000. That was for people who did not have private health insurance. Many of them were older people for whom the credit union was the way they would put money away to be buried. It is not a nice thing to say, but that is the reality. When many credit unions moved away from that kind of insurance policy, they left a gap in the system. I know of people who struggled to put money away so they could be buried. That is something the Government should look at with credit unions. For many people who do not have much money, that type of insurance policy, amounting to €3,000 or €4,000 to be buried, should be put back on the table by the credit unions. I recognise some of them do that. It is especially needed for older people who need that safety net.

In the community in which I live, there are credit unions on working-class estates and affluent areas. It is a brilliant community. The vast majority of work credit unions do is also brilliant. My worry is they are becoming more like banks. I want to see them community-based.

I recognise the sponsorship credit unions give to local communities. I see that with the GAA club in my area, St. Vincent's, where Gurranabraher Credit Union supports the street leagues, as do Cathedral, Blackpool and Mayfield credit unions. If it were not for all these credit unions, many local, ordinary clubs, groups and societies would not have financial support. I thank the credit unions for that. There is a big opportunity for them to do more to support families in not going to moneylenders.

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