Kathryn Reilly (Sinn Fein) | Oireachtas source

I move amendment No. 124:

In page 59, before section 30, to insert the following new section:"30.--The Principal Act is amended by the insertion of the following new section after section 84A (inserted by this Act):

"84B.--As soon as is practicable, the Bank shall enter into a memorandum of understanding with credit unions the form of which shall be agreed in consultation with credit unions and representatives bodies.".".

The issue to which this amendment relates has been raised by Sinn Féin on all Stages and has not been satisfactorily dealt with to date. The proposed memorandum of understatement is being confused with the consultation protocol for credit unions. What this amendment seeks is more akin to a customer charter or service level agreement so that the parties - the Central Bank and the credit unions - know what is expected of them in their mutual dealings.

The example of lending restrictions has been highlighted. In some cases, credit unions have had restrictions and demands imposed upon them without real explanations or, more importantly, guidelines on how to remedy the situation. Credit unions expect and require clarity concerning what they need to do to have restrictions eased or removed. One credit union had a lending restriction communicated to it in writing. A part of that restriction was a complete ban on commercial lending, but it was later alleviated verbally. There is a great deal of confusion. This is of little use to the credit union in question and is certainly no way for a professional regulator to conduct business.

Simple issues such as communication, timeframes and so on could be easily addressed by way of a memorandum of understanding, which we are calling for in this amendment. Such a memorandum would be immediately beneficial, in that it would map out the rule book for the parties. We want our facilities to have the highest standards. This amendment would provide clarity and allow for a much better working relationship between the credit unions and the regulator. Will the Minister of State consider accepting it?