Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

My strongly held view is that the more competition in the market, the better, but it has to be the right type of competition. Members are aware of the result of having the wrong type of competition 12, 14 or 15 years ago. It completely skewed the pitch. I discussed insurance earlier. The wrong type of competition can have a hugely detrimental impact in many different areas. The model in place did not have the correct balance between equity and lending. Whether small, big or other lending, it is important to have a different model. The model in Europe is 80:20 lending versus equity, while in the United States it is closer to 70% equity to 30% lending. The best model is probably somewhere in between and that is where we would like to be.

I am very encouraged by the credit union aspect with An Post and possibly supported by Government funding. We will consider the report when it is concluded and it will be analysed by both Departments and then go to the Government for consideration. There will be no delay on behalf of the Department of Finance in trying to implement a new model and structure and better competition in the market.