Michael Mullins (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Brian Hayes, to the House for the debate on this important item of legislation, which relates to a movement that is near and dear to the hearts of many people throughout the country. Credit unions are an example of the very best of the co-operative movement. Every small town in the country has a credit union which has served the needs of the local community very well.

Credit unions have always been regarded as the small person's bank. Credit unions provided lifelines to people who did not have many resources and who would have been overawed at the prospect of meeting a bank manager when times were difficult. Many small businesses in the town in which I live, Ballinasloe, and in the surrounding area began operating and have survived as a result of assistance provided by local credit unions. Like other Senators, I want the credit union to be strengthened. I appreciate the support which credit unions have provided within communities and in respect of particular projects. In Ballinasloe there is a community facility whereby small businesses can start up operations. The local credit union was one of the main sources of funding for the project in question, Ballinasloe Area Community Development Limited, which has been responsible for the creation of 180 jobs. This has been made possible by the efforts of the local chamber of commerce, the town council and the credit union.

Reference was made to volunteerism. The strength of the credit union movement over the years has been a result of the dedication and commitment of its volunteers, who have given unselfishly of their time and expertise. There is a need to be flexible and I welcome the fact that the Minister of State indicated a willingness to examine the provision relating to length of a time a person can serve on the board of a credit union and, perhaps, to making some amendments on Committee Stage in this regard.

The credit union in Ballinasloe raised two issues with me. The first of these - I am sure previous speakers referred to it - is that which relates to shared services. This obviously involves the inability of a credit union to service its members other than at its own office. As such, the Irish League of Credit Unions was looking to the Bill in the context of it enabling credit union members to have access to their accounts at any credit union office throughout the country. Members are facilitated in accessing their accounts by electronic means and they do so a regular basis. However, physically accessing one's account at another credit union office remains a problem. This is because each credit union is obliged by law to serve only its members and no one else. The Irish League of Credit Unions is seeking to enable credit union members to access their accounts wherever they wish. This is a sensible and practical suggestion and I urge the Minister of State to consider it.

The second issue that was raised with me relates to the memorandum of understanding, which will give the credit unions and the Registry of Credit Unions a clear comprehension of how they should interact with each other. It will also indicate the level of service each expects of the other. In the Dáil the Minister for Finance indicated that the registry had issued a consultation protocol for credit unions. This protocol will allow for structured engagement with credit unions in order to seek, receive, analyse and respond to feedback received, build consensus on new regulations and to inform the decision-making process. However, it does not contain any indication as to the type of service a credit union may, on an individual basis, expect to receive from the registry. During the past two to three years the latter has prohibited some credit unions from holding AGMs. Under the Credit Union Act 1997, AGMs are supposed to take place within four months of year end. The registry can, by law, delay an AGM for nine months. The 1997 Act is silent with regard to what happens thereafter. Credit unions have been unable to have this matter addressed. The Irish League of Credit Unions believes that a memorandum of understanding between credit unions and their regulator would be beneficial to all concerned. In addition, it would oblige both parties to behave responsibly.

We have made significant progress. I hope the Minister for Finance, as he indicated in the Dáil, will take on board some of the issues raised by Members and by the Irish League of Credit Unions. I would like a structure to be put in place that will guarantee the future success and viability of credit unions in order that they might continue to provide people and communities with the type of service they have both enjoyed and come to expect. There is huge support for the credit union movement. I want that movement to be strengthened.