Speech by Minister of State Robert Troy T.D., at the 2025 ILCU Conference

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Good morning, I am delighted to have the opportunity to speak to you all at the 2025 ILCU Conference here in the ICC, Belfast. I would like to thank David Malone, CEO and Martin Busch, Chairperson for the invitation to speak here today. I would also like to thank all the ILCU staff and Board who have organised such a terrific event here in Belfast.
The all-island representative nature of ILCU and the location of this conference in Belfast provides a great platform for “the Art of the possible” – the title of today’s conference. I am delighted to address so many credit unions from across the island of Ireland.

Credit unions are hugely important providers of financial services to their local communities throughout Ireland and you have political support in both Northern Ireland and the Republic of Ireland.
Credit unions are renowned for their customer service and putting the needs of their members first, indeed this has been recognised nationally with credit unions being named the most reputable organisation in Ireland for two years running. This exceptional service is driven by the dedication of people in this room. Your members recognise this. Your communities recognise this, and I as Minister with responsibility for Credit Unions recognise this.
I was appointed Minister of State with responsibility for credit unions in late January, and since then have had the opportunity to visit ILCU credit unions and meet with your representatives. These engagements allowed me to experience the vital work being done by a sector which is incredibly diverse, but it has also given me an opportunity to hear about the challenges that you are facing. The model and legislative approach differs somewhat between North and South, but the issues facing your communities, and your members are similar.

The Irish economy performed strongly last year, reflecting ongoing gains in the labour market and an easing in inflation, which helped support solid growth in the domestic economy. However, the economic backdrop has become increasingly uncertain with a number of risks to the outlook.
The global economic landscape is changing and the ‘new normal’ will most likely be very different from what we have been used to for many years. In times of uncertainty members will turn to their credit union for support, to a local institution whom they trust. But there is also opportunity amid uncertain times to look to the future, and what else can be done to support our communities.
Government will do all it can do to maintain Ireland’s standing as a competitive and supportive environment for inward and indigenous investment and quality employment.
I am confident that credit unions will do all they can for their members. Just as I will do all I can to support the credit union sector during this period of economic uncertainty.

The Credit Union Amendment Act has introduced many new opportunities for you all. The previous Government listened to your concerns and within the Act has provided you with the necessary tools to meet the needs of your members. What is needed now is a further step around future planning, not just for ILCU members, but the entire sector whom we engage with regularly.
I am aware that the Department of the Economy here in Northern Ireland has recently launched a public consultation on legislation to modernise and strengthen the credit union sector. I wish you well with this and offer you mine and my officials full support and cooperation.
One of the key objectives of the Credit Union Amendment Act is to enable collaboration within the sector to deliver a better service for members. Last September, some very important collaborative provisions including referrals, loan participation and loan syndication were enacted.
There are also many Governance provisions, including the appointment of the CEO to the Board, which have been designed to promote better governance for the benefit of your members.
Many of the legislative provisions can help to address some of the strategic and operational issues that you are facing today. I urge you all to use them.
CUAC have completed their first report on the implementation of the Amendment Act. CUAC noted that collaboration was critical to the successful enactment of the Act. CUAC also states that this collaboration is required to ensure the successful implementation of the Act.
I have asked CUAC to continue to review and report on the implementation of the Act. This is a very important request. Government and I need to be aware of progress made, and of any remaining barriers to implementation.
I look forward to CUAC’s second report on the Act which will provide an indication of the uptake of the collaborative provisions of the Act, and ultimately improved services to your members. I ask that you all continue to consider the tools available to you under the Act and work towards improving services to your members.

Provisions of the Act relating to the establishment of a corporate credit union, or as it has become to be known – a Collaborative Credit Union – have yet to be enacted. I believe that the collaborative credit union will be particularly transformative for the sector and could provide the necessary solutions to many of the constraints and issues that have been identified within the sector.
It is now time for credit unions and their representative groups to work together and deliver a unified vision of what the collaborative credit union needs to be. Then, the Central Bank will be able to begin the lengthy process of devising suitable regulations.
I know that some of you have already begun considering this concept. This is not an easy task. It will require compromise, communication and cooperation. It is also likely to require significant capital, technical expertise and time.

Collaboration has also been the driving force behind Payac, Collaborative Finance and the mortgage CUSO.
Payac has been very successful and now 81 credit unions provide current accounts. Collaborative Finance are focused on replicating the success of the Cultivate model. I look forward to the launch of Greenify, a standardised green loan offering for credit unions in urban and rural Ireland which will launch this Autumn.
I am pleased to note that the mortgage CUSO is due to officially launch next month. The Credit Union Mortgage will mean there will be a standardised national mortgage, with a set interest rate for members.
There are common themes to the success of these CUSOs and these are Collaboration, Standardisation and Single Brand.

One area which does need more attention however, is the AHB fund. Many of you will be aware that investment in this fund is lower than it could, and should be. I believe that supporting communities is a cornerstone of the credit union movement. This Fund enables credit unions invest their members’ savings in one of the most critical community needs of our time. It also provides a diversified long term, and low risk income stream.
It is frustrating that as organisations who are so well regarded in their communities, the choice is made to invest further afield rather than what is on their doorstep. I will soon be meeting with representatives of the Fund, ILCU and CUDA to understand and address any barriers that might be affecting investment in the Credit Union AHB Fund.
I hope to see increased investment from credit unions into the AHB Fund and will work closely with you all to achieve this.

I am aware that the restrictions imposed by the existing lending limit regulations has been a significant issue for you all. I know there was significant engagement by my predecessors to communicate your concerns regarding the lending concentration limits. I met with the Deputy Governors of the Central Bank earlier this week to discuss the proposed changes under CP159. I broadly welcome the proposed changes under CP 159 and look forward to revised regulations coming into effect later this year. I thank the Central Bank for their work on this to date. The proposed targeted changes to the lending regulations will result in significant overall capacity for house and business lending. This is welcome news for the credit unions as I know many of you are keen to lend more to members.

The Programme for Government recognises the importance of the credit union sector and is committed to enabling the sector to grow, support the expansion of financial services to all members, and encourage community development. I believe that the sector needs a sector wide strategic plan and a focused deployment of its resources to enable delivery on your enormous potential.
In November 2022 the Retail Banking Review recommended that the credit union leadership devise such a plan to enable it be a community based provider of universal retail banking products and services. CUAC, in their recent report on the Amendment Act also raised concerns about the lack of a strategic plan. They consider that this is an area that requires a sense of urgency.
There are many challenges facing the sector including low Loan-to-Asset Ratios, high-cost base, changing consumer behaviours and significant digital change. We need to find a strategic pathway that retains the benefits of your individual uniqueness yet provides a structure to standardise and deal with the challenges you are facing.
It is for this reason that the Programme for Government has included a commitment to draft a five-year strategy for the credit union sector.
I intend to co-sponsor a workplan to determine the credit union’s Strategic Purpose and Framework. I have instructed my officials to draft a member focussed plan that will be inclusive and owned by the sector. This includes Directors, CEOs, staff and your Representative and Associate bodies.
You know your members needs. You have the knowledge to decide your long-term strategic purpose. And you have Government support to do so.
My officials will shortly present an initial draft of the plan to your Representative and Associate Bodies. Following receipt of their feedback, both I and the Minister for Finance will consider the plan and launch a general consultation. Our intention is that this consultation needs to be wide ranging to fully grasp the broadness of the sector. Not only do we want to engage with credit unions individually, but it is also about understanding the motivations of current and former members, or indeed those who have never been members.
There will be significant engagement with the sector, and we will require a number of Director and CEO volunteers to participate, to represent your members and your credit union.
This will be a challenging project and will require collaboration, trust, and a lot of hard work. I am excited to lead such a project and believe that it will ensure the future prosperity of the sector. I would urge you to take this opportunity to participate, ensure the voice of your members is heard and collaborate to help shape the future of the sector.

Events like today provide the opportunity to share knowledge and discuss how the sector can evolve to meet the needs of members. This is an extremely exciting time for the credit union sector who now can make “the Art of the possible” a reality.
As Minister, I would like to see credit unions be the community financial services provider in Ireland. You have been provided with the legislation and material changes to lending limits is forthcoming. Government will now support you to deliver a strategic purpose and framework. I recognise that you are all independent organisations, however you may need to find common ground with your peers in the credit union community.
By working together, credit unions can achieve more. That is why it is important for you to be ambitious, to show continued leadership and be collaborative for a stronger future.
Finally, I would like to thank the outgoing ILCU Board for their contribution to the sector and congratulate the recently appointed Directors. I wish you all well and look forward to working with you in the future.
Thank you.

ENDS