FF opposes amalgamation of credit unions in Dublin

Date: 03/11/2011
Posted by: Darragh

Senator O’Brien said: “There is a very real worry that some communities across the capital may soon lose their local credit unions under the Finance Minister’s plans to re-organise the sector.

“While I agree that measures are needed to support the credit union sector at this time, I do not believe that this needs to include the closure of certain credit unions. The community ethos of credit unions must be protected if the sector is survived
and customers must continue to have access to their own credit union in their community.

“According to the latest figures from the Central Bank, approximately one in every five credit union in this country is now categorised as ‘high-risk’. A total of 18.5% of the €6 billion on loan from 407 credit unions nationwide is now in arrears. In this context, recapitalisation of credit unions is an investment worth taking. Fianna Fáil strongly support the credit union sector and we believe appropriate measures must be taken to address these problems. However, the fundamental community basis of the sector cannot be put in jeopardy.

“There are strong indications that the Minister for Finance Michael Noonan intends to amalgamate credit unions in certain regions, which could results in many communities losing their credit unions. There is no doubt that this would be counter-productive. Many people use the credit unions simply because they are local, accessible and a strong part of their community. Removing them from certain areas in the city could result in many valuable members taking their business elsewhere.”