Joe McHugh (Fine Gael)

I thank the Minister of State for taking the time this evening to come to the House. I express the fear felt locally in County Donegal, coming from Sheephaven Credit Union which is extremely worried about the new consumer credit directive and how it will affect, on a grander scale, the smaller, rural type of credit union. As Senators are well aware, credit unions have filled a gap for a certain targeted market over the past 15 to 20 years. They have probably eradicated many of the loan sharks and the dodgy lending in a certain socio-economic group.

Sheephaven Credit Union is totally voluntary. There are about 40 voluntary and three paid workers. It is not on the same scale as some of the credit unions in the large cities. Its members believe, as a result of being included in the directive, that they will be burdened and put under pressure as a lending institution. The totally voluntary sector has ploughed profits back through rebates and dividends.

I highlight the great work that credit unions do but need hardly say this, for the Minister of State is aware of it. It is very important that the issue is not treated as black and white for all credit unions. There is definitely a case for them to be examined on merit rather than have a blanket situation regarding the Consumer Credit Act 1995. I look forward to the Minister of State's response and call for credit unions not to be included in the directive dealing with the Consumer Credit Act 1995.