Victor Boyhan (Independent) | Oireachtas source

I, too, welcome the Minister of State. I thank the Cathaoirleach for selecting my Commencement matter on credit unions. I read with great interest an article on the issue in the Sunday Independent. I am sure the Minister of State had some feedback about it, as I did. People were genuinely encouraged by the article. The substance of the feedback I received from the credit union movement, including the Irish League of Credit Unions, was that it would like the Minister of State to make the regulatory changes to enable credit unions to significantly increase their footprint in the mortgage market. We all know about the issues with KBC, Bank of Ireland and AIB. Indeed, my local AIB branch has closed. Post offices and banks are closing in communities and there is a desire for the credit union movement to grow and expand.

I am a member of my local credit union and I fully support the movement. It is an amazing organisation, rooted in community. Traditionally, it has been served by volunteers, although it is using from that model to a more professional one and all the staff are paid. The credit union movement has done a great service to citizens and to people in communities who have sought to take out small loans. As people have prospered and their wealth has grown, however, they have moved on and the movement is substantially funded and is in a position to increase their contribution to the mortgage market, which the Minister of State has identified. The movement wants him and the Government to honour the commitment in the programme for Government for credit unions to become key providers of community banking, and it has a good case. He indicated credit unions would fill the gap left by the departure of Ulster Bank and KBC from the Irish market and start lending more mortgages. Credit unions are ready, willing and able and have the capacity, funding and professionalism in place to carry out those objectives, so what is the problem? How can we enable the credit union movement to grow and provide a wide range of community banking with a focus on mortgages?

I think I am pushing an open door with the Minister of State, who is committed to this. Clearly, there are issues I might not be aware of, and the new policy framework review that he has mentioned is important. This presents opportunities for the Government to empower credit unions to realise their full potential, fill the gap left by Ulster Bank and KBC and offer a real alternative in our communities, with a focus on mortgages. The commitment the Government agreed to in the programme for Government is important and I would like to see a timeline for the introduction and roll-out of that commitment.