Seanad debates

Monday, 3 July 2006

Photo of Paul CoghlanPaul Coghlan (Fine Gael)

Regarding the matters of the financial institutions and levels of indebtedness raised by Senator Brian Hayes, there are different anomalies. I wish to ask the Leader about a significant problem in respect of section 35 of the Credit Union Act 1997. As Members are aware, there is no level playing pitch because credit unions are only allowed to make available 20% of their loan books and they are overly liquid, that is, they have 50% excess liquidity. Will the Minister for Finance introduce the necessary ministerial order? He could examine the review of the matters raised by Senator Brian Hayes in time, but he should at least make available 40% of credit unions' loan books over five years and increase from 10% to 20% the amount that could be made available over ten years.

Credit unions are overly restricted and the Minister is allowed to make an order under the provisions of the Act. Similar restrictions are not placed on other financial institutions. Given the service provided by credit unions to their members in many villages and towns, the last eventuality we would like to see occurring would be many of the unions' members being forced into the hands of moneylenders by the current restrictions. I am sure the Minister and many Members received letters from those in authority that made them aware of the problem. I urge the Leader to use her good offices with the Minister for Finance to arrange for the immediate introduction of the necessary ministerial order.

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