Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I will clarify this because we appear to be mixing up two things. Shared branching is an internationally recognised term for the way in which credit unions can operate in a joined-up system of prudential risk whereby money can be taken out of one credit union applicable to another or loans can be taken out of one credit union applicable to another. That was not a recommendation from the commission. It recommended an aggressive form of shared services, which is already provided for in the Bill. The Senators are confusing one with the other.

If there is an appetite for shared branching, which is the essence of the co-operative banking system in America and other countries, the Minister, Deputy Noonan, is open to that. However, we must tease out the potential prudential risks and the implications for big and small credit unions and for deposit ratios, which are very clear in terms of what the Central Bank can issue to credit unions.

Senator Reilly spoke about shared services. There is nothing in the Bill to prevent that from happening. However, to take the next step and decide to integrate the entire credit union movement in a way that has hitherto not come before us in legislation or by way of a specific recommendation of the commission is one we cannot take. We are open to examining this, and I am not closing down debate on it. The view of the Minister for Finance is that in asking that this matter be brought before him by the end of the first half of next year he demonstrates his intent to both Houses of the Oireachtas to look at this in a constructive way, if there is support for it. However, we need to hear from the credit union and hitherto that has not been its position.

We are confusing both matters here. The Government is at one with Senator Reilly with regard to what she wants to do here, but there is nothing in the existing legislation that prevents us from doing what she wants us to do. However, I believe she is mixing this up with shared branching, which is a step too far at this stage. We are open to it if there is support for it in the future.