Liam Twomey (Fine Gael)

When this motion was first put down by the Green Party, it had not expected the events that occurred last weekend which have made this a far more interesting debate. The two Green Party Members, however, gave us a history of micro-finance across Europe, never addressing any issues raised in Senator O'Toole's amendment to the motion. Neither did the Minister of State address these issues.

There is nothing micro-finance about the credit unions. They have been a significant player and have large funds. Micro-loans may be considered micro by the banks but for the individuals with low incomes involved, the sums loaned by the credit unions are hugely significant. It is important the issues raised by Senator O'Toole are addressed by the Minister of State. There is a clear conflict between what he told the House and the concerns raised in the amendment to the motion. He claimed, "the credit union movement as a whole is in a relatively strong financial position with solid liquidity and reserves" which has been questioned. The Minister of State cannot gloss over these concerns. There is nothing cuddly and sweet about this; it is a serious issue.

It was also stated,"It should also be noted that the Irish League of Credit Unions maintains a savings protection fund in excess of €100 million which is available to help stabilise the position of any credit union that encounters problems". I do not believe the league is in the position to bail out all the credit unions if they run into financial difficulties. The Minister of State is also aware that the regulator does not have the powers he claims. The regulator can give direction but so too can many people. Even when the regulator has more than just direction, we see matters going wrong. The Minister of State must respond to this because it is far too serious.

The Minister of State also had plenty of time to study the amendment to the motion. It is an insult to the House that the amendment was printed well in advance of the debate but that neither Senator from the Green Party referred to it.