John Whelan (Labour)

I support Senator Darragh O'Brien's call for a debate, with the relevant Minister, on the proposed personal insolvency Bill. The Senator is right that it is a matter of huge public importance. People are crying out for some support to alleviate their personal indebtedness. I am not sure but I think it is the Minister for Justice and Equality that will introduce the Bill. I am concerned about the way it has been drafted and the potential damage it could inflict on the credit union movement. Everyone here is familiar with the fantastic contribution made by the credit union movement to our society over the past decades. There are 400 credit unions nationally with €13 billion in assets and 2 million members. The Tullamore Credit Union, in my own area, is one of the largest in the country with 35,000 members and €61 million of a loan book.

Many members of the credit union movement feel that the personal insolvency Bill, which is intended to solve one problem, could cause an even greater problem if it is introduced in its current state. As Senators will know, most credit union loans are under the €20,000 threshold. The preferential creditors system and structure proposed in the Bill means that the credit union movement could take a grievous hit even though it has always fostered a culture of saving and responsible lending. Nearly every person in the country has taken out a credit union loan at some stage of their lives. I was 17 years old when I took out my first loan from the Monasterevan Credit Union for a motorbike. Credit unions are very important to every community. It is important that in trying to solve one problem, the issue of mortgage indebtedness, we do not create an even greater one by completely undermining the foundation and stability of the credit union movement. A debate here could be fruitful because we could influence how the Bill is drafted and amend it accordingly to allay the genuine and well-founded concerns of the credit union movement.