Maria Byrne (Fine Gael) | Oireachtas source

I thank the Minister of State for coming to the House to discuss this very important topic. Credit unions are very much at the heart of their communities. Within half a mile of my house there are two credit unions. I took a look at their websites and what they have on offer. One of them was started by the Redemptorists. It is now an independent entity. It gives everything but it does not give mortgages. The other credit union I looked at has amalgamated with others to become a bigger entity than it was originally when it started in a local community. It has delivered a very worthwhile service and many people have availed of small loans to improve their houses, for education and to start small businesses. However, it is not large enough to give mortgages.

In his contribution Senator Casey referred to the fact credit unions are a lot more personable than banks because there are still staff that people can speak to. In banks now we are nearly speaking to a machine. This is the difference between credit unions and the banking sector. How many mortgages a credit union can offer depends on how much money it has. If it has given loans to the SME sector it reduces the number of mortgages it can give. I would like to see this area looked at. While I understand the credit union sector should not be able to borrow huge amounts of money, people like going in because they can talk to the staff. It gives certainty to people applying for loans.

The Minister of State referred to the retrofitting scheme. There is also the agricultural sector. Many farmers and people have taken out small loans. The fact they can pay them back over five or ten years is commendable. It makes it affordable for people. Some people might not be able to carry out the work in one go but they can talk to the local credit union and take out a loan and pay it back over an agreed term. Credit unions are very good at looking at insurance and advising people. This is what people need. People who are not good with figures or managing their money can go into the credit union. A payment plan can be put in place and the credit union works with them. This is commendable.

The work the credit union sector has done is fantastic but I would love to see it being expanded. The Minister of State said he would love to see them filling the gap being left by Ulster Bank and KBC, which are pulling out of Ireland. I would also like to see this. We have to work with the credit union sector to expand its offering. Older people in particular want to be able to talk to people about the work they want to carry out. Credit unions have put many people through their education. Recently I spoke to a family that had two members who studied medicine. It is quite a costly course. If that family had not been able to avail of a loan from the local credit union, those people would not have been able to go to college. They were very grateful for the support they received from the local credit union.

I began by saying credit unions are at the heart of their communities. Many people who avail of the credit unions' services live nearby. They are known personally to the staff. This makes a difference because there is personal engagement. Most people are in and out of the credit union every day of the week. Online banking has deterred many people, especially older people, from going near the bank. We need to expand the offering of the credit union service. I commend the Minister of State. He is committed to looking at the 100 observations submitted. This is commendable. I wish him all the best in his deliberations. I look forward to hearing the outcome once he has looked at the observations to see what is being proposed for the future of credit unions.