Tom Shehan (Fine Gael)

I thank the Minister for this and for all his help throughout this process. In 1980, when auditors were auditing credit unions, the first thing they did was to ask for all the relevant information regarding loans and those who provided them - directors, managers, supervisors, staff and voluntary tellers. In 1980 auditors were seeking that information from credit unions and it is unfortunate we did not have this type of auditing in our banking system. We would not be where we are if we had.

Credit unions lost €50 million with the recapitalisation of the banks and this loss has not been fully resolved. Some credit unions did not accept the 20% proposal and the offer on the table now is €1 per €1,000. Some say the €50 million was lost as a result of bad investments, but some credit unions were sold bonds that were proven not to have trustee status. The issue should have been teased out fully and it is unfortunate it has come to this. I hope it does not cost the amount suggested by the Minister's officials of between €500 million and €1 billion.

The Bill is concerned with the €50 million that was lost in some of the investments and there is also special mention of investment advisors. I hope the advisors appointed will be more prudent than the ones engaged by the credit union movement down the years, who lost a lot of money. I take on board the statement made by the Minister of State, Deputy Brian Hayes, yesterday that the same prudential systems should exist for credit unions as for banks.