Deputy Carey and Minister Killeen Clash over Credit Unions


Clare Fine Gael TD Joe Carey last week clashed in Dáil Éireann with Minister Tony Killeen in relation to the impact new legislation will have on the Credit Union movement in Ireland.


Deputy Carey has said that the new regulations will hamper the way Credit Unions conduct their business. He said that the credit union movement had served this country well and had not lent billions to property developers or got involved in wholesale property development.


Moves to give Credit Unions statutory recognition were rejected by Minister Tony Killeen.


Deputy Carey said


“The Credit Union movement are an integral part of community life throughout County Clare and throughout the Country. Credit Unions have always sought to help their members. These new regulations, which were designed for banks under the Central Bank Reform Bill 2010, will prevent Credit Unions from helping ordinary members with their financial problems. The new legislation voted into law by Fianna Fail will bring overbearing regulation and extra costs to these institutions, which will prevent rescheduling of member loans in these very difficult times.”


“Last week, I appealed to Minister Killeen, who took this legislation on behalf of the Government, to accept the amendment put forward which would protect the Credit Union movement from this section of the Bill.


Unfortunately Minister Killeen failed to listen. You must remember the average loan to the 2.5 million members of Credit Unions in the Republic of Ireland is less than €9,000. The Credit Union movement will not be sending loans to NAMA. It’s outrageous that at a time when ordinary people need most help and support, the Government is introducing such obstacles to the one financial institution in this Country that has not indulged in wholesale reckless lending practices.”


“This piece of legislation still has to pass through Seanad Éireann. The Fine Gael Party will table an amendment to the Bill that will be pushed to a vote. I would urge the Government to look more favorably at that stage on the Credit Union movement.”


Below is extract from the Dáil Debate of the 1st July 2010