Paul Bradford (Fine Gael)

I am requesting the Minister for Finance to consider his powers through ministerial order to amend section 35 of the Credit Union Act 1997. Representations have been made to me and other Members because the Act restricts the amount of money credit unions can lend to their members on a five-year and ten-year loan basis. Only 20% of the credit union loan book can be lent over a five-year period and only 10% of it over a ten-year period. Overall, only 30% of credit union loans can be granted for medium-term lending purposes. In many cases, the credit unions would like to reschedule some of their loans and grant a longer-term loan but are restricted in doing so.

Money is available to the credit unions which could be lent to members and put to good use. Instead, the credit unions find themselves lodging that surplus money in banks and building societies from where it is lent to their clients. This must be reviewed. We are all aware of the success of the credit union movement. It has transformed the lives of many people and communities. It has done tremendous work through its co-operative structure since it was established many years ago. We must ensure the laws reflect current lending practices and allow the credit unions to help as many people as possible, particularly people whose circumstances may have changed and who may need slight flexibility in their loan terms. Will the Minister for Finance consider the request of the credit unions?