Rónán Mullen (Independent) | Oireachtas source

I would have liked if there had been a representation from the Department of Finance at the very least, given the issue of tremendous urgency that has arisen with Newbridge Credit Union. The events of recent days are not only a disappointment to the people of Newbridge but also to this House and the High Court. This House, even more so now with the absence of any representative from the Department, has yet again been treated with contempt by this Government. Only last week I asked the Minister what the plans were for the future of Newbridge Credit Union. I was told they could not be discussed due to the fact there was a High Court order. Later in the week, the Government told the media its plans before telling this House or the High Court.

Whatever the agreed and uncontested evidence of irregularities in lending practices at the credit union, the events over recent days and the actions taken by the Central Bank have sent shockwaves through the credit union movement. The speed and pace with which the Government acted under these special powers which were originally meant for banks was unbelievable. Now, the people in the area are without a credit union. The Ministers from the Department of Finance are giving mixed messages to the 2.8 million credit union savers nationwide. The Minister of State, Deputy Brian Hayes, says Newbridge is the only case while the Minister, Deputy Noonan, claims a quarter of all credit unions are potentially in trouble.

This credit union was treated like another failed bank. However, credit unions are not banks. They are owned and built by communities, brick by brick. There should have been more consultation. For the past 23 months there has been a special manager appointed to the credit union yet there was this lightning surprise development over the weekend, reminiscent of the late-night decisions regarding the banks.

The late night application by the Central Bank to the High Court was reminiscent of the worst night of the last Government, the night of the bank guarantee. People deserved more consultation locally. There needs to be more transparency. I do not buy the arguments that everything has to be done in absolute confidentiality. The lightning strike actions at the weekend do not reassure people in the slightest. There are specific questions that people want answered. People want to know which credit unions have been placed on a watch list by regulators. Media reports suggest one in four is in trouble. Which credit unions are these? What percentage of credit union loans are non-performing? What stress tests are in place to gauge the support the sector needs in the future? Most importantly, will the Minister for Finance commit to more consultation with members of the sector and no more late-night takeovers of the kind we have seen?

I regard it as contempt for this House what has gone on in circumstances where specific questions were asked last week but there was no transparency or accountability from the Department. Tonight, again, there is no representative from the Department of Finance, which is regrettable, not regarding the personal regard I have for the Minister of State, Deputy McGinley. If the Government wants to change the way business is done and mark its difference from the last Government, there must be honesty, respect for depositors and savers, as well as respect for transparency, accountability and being upfront in its actions as well as those of the Central Bank.