Sean Barrett (Independent) | Oireachtas source

I was trying to take up the invitation of the Minister of State to address the fact that we have no prudential supervision of friendly societies by putting it under the Central Bank. The registrar does not want to do it, the Central Bank does not want to do it and the friendly societies cannot set up loan funds. That we run into these culs-de-sac explains the background to some of the financial mess the country is in. Maybe we will refer it onto all the other contentious items before the banking review. It was plain under section 6 that a society may not establish a loan fund after the coming into operation of the section. As the Minister of State said, it does not affect an existing society that currently operates a loan fund. We tried to set up a facility where the friendly society could operate the loan fund under the Central Bank, which is the financial services authority for the country, and the amendment was not acceptable. I accept what the Minister of State said.

If there is so little interest and appetite for regulating the sector in respect of registrar of friendly societies, perhaps it can be transferred to the Central Bank. Maybe the banking committee will look into this matter. I see the sector having a much better future than the Bill envisages and I would not rule it out. I will not press the amendment. Certain contradictions are manifest. This is shutting off options for a sector that might very well have a role to play. I thank the Minister of State.