Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael) | Oireachtas source

He asked me about the oversight by the Oireachtas of the Minister in setting the maximum interest rate in the legislation. We had a very good discussion about that on Committee Stage. I would point out that there are a number of safeguards in section 38 that replicate similar provisions for ministers for finance in other areas in relation to the setting of rates or levies generally. Importantly, the Minister would have to consult with CUAC before setting the maximum rate. The Minister must also take account of a number of factors set out in section 38(5) of the Bill, namely, matters relating to the current interest rates charged generally, the market conditions generally, the need to avoid distortions and financial stability generally. There is also precedent for the Minister to set rates and caps directly without recourse to the Oireachtas in the consumer credit or moneylenders Act. There is provision there and a precedent in relation to it. Of course, as the Deputy has suggested, this oversight is extremely important. I wanted to come back to him directly on that point.

He also asked me about the consideration of what maximum interest rate should apply and the upper limits in that regard. I will have a final consultation with CUAC. However, the Deputy will be aware that CUAC already gave an opinion some time ago in 2017 and suggested a maximum rate of 2% per month. The rationale for this increase is to allow credit unions to continue to provide small short-term credit. The Deputy discussed, importantly, trying to avoid moneylenders. It is a principle I would completely agree with. We want credit unions to be able to provide small short-term credit loans, as small as €100 for a term of two months, particularly for members who might be in a time of greater vulnerability in their lives and who might otherwise be dependent on the services of moneylenders. That increase will provide the credit unions with the ability to cover the costs of providing those smaller loans. It is not to make a profit; it is just to provide for the servicing of it.

The Deputy had questions at the time, although I think they have been addressed, about digital membership and the loan approval process. We have dealt with that by way of discussion. He also had a question about the delivery of documents and so on, around consent and the electronic means. To confirm what I said on Committee Stage, if no consent is received, notice will still be sent out by post if a member does not proactively consent to that being done by way of electronic means.

The other point the Deputy made was about the review of the CBI's policies and the regularity with which those would be reviewed. He said we have not have reviews by the Central Bank in a timely way. I may be paraphrasing but I think it is fair to say that that is, in essence, what he was saying.

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