Minister appears willing to gamble on the future of the Credit Unions - Nolan
Independent TD Carol Nolan has described statements by the Minister for Finance, Paschal Donohoe, with respect to the proposed approval for an increase on the Industry Funding Levy on Credit Unions, as "deeply concerning."
Deputy Nolan was speaking after Minister Donohue replied to a Parliamentary Question she had submitted which sought assurances that the Credit Unions would not be targeted by massive Central Bank levies.
“From my talks and engagement with Credit Union staff and management, it is clear that there is enormous anxiety about the proposed levy," she said.
"If introduced, it will mean Credit Unions will be hit with hit with an increase from €1.5 million to approximately €7.8 million by the end of 2022," Deputy Nolan claimed.
"When I asked the Minister to protect the Credit Unions he stated, that In response to the Central Bank's request he has recommended that credit union contributions should not increase beyond the 50% target until 'the impact on the viability of the sector will be better understood.'”
"This is an extraordinary statement for him to make," Carol said
"Effectively he is conceding that he has no idea how adversely the Credit Unions will be hit and so we will just have to wait and see how things pan out."
"That is utterly unacceptable, and it must be opposed."
"The Minister also indicated in his reply that a regulatory impact assessment of such a change on the sector will only occur after the levy has reached beyond 50%."
"Again, this is not the appropriate way to proceed especially in light of the fact that the Irish League of Credit Unions (ILCU) have explicitly informed me and the Minister that the scale of the levy will be extremely damaging to the Credit Union movement."
"The Minister must reconsider these proposals and engage in a more cooperative manner with the Credit Unions. They are the backbone of many a community and have been there when the banks were engaged in reckless or prohibitive lending to many ordinary working people,” concluded Deputy Nolan.