Government should allow Credit Unions participate in housing schemes
Credit unions in Laois, Offaly and other counties should be allowed to help people to buy a house, according to a local TD.
Offaly TD and Fianna Fáil spokesperson on Public Expenditure and Reform, Barry Cowen, called on the Government to seriously examine allowing credit unions to help buyers.
“Why are the Government not making use of the credit union network to provide home loan schemes? Under present legislation or Central Bank rules, credit unions do not have the capacity to participate in schemes such as the Government-backed mortgage scheme."
“They are more than willing to do so. Credit unions are only lending 20% of their capacity. They have €1 million coming in per week that they cannot use. They are only permitted to invest in the pillar banks, but the pillar banks are not giving them a return. Any return from a housing scheme would be far greater than the 0% they currently get," Dep Cowen added.
He claimed the Taoiseach Leo Varadkar confirmed that it was something he needed to study more closely.