GOVERNMENT and opposition deputies joined in asking that the £20,000 limit on loans by credit unions be raised.

During a day long debate deputies were unanimous that the limit in the Credit Union Bill was too low. Mr Andrew Boylan (FG Cavan Monaghan) urged that it be raised to £40,000. By the time credit union legislation came to be considered again that would appear very modest.

Mr Sean Ryan (Lab, Dublin North) said credit union members would be allowed to have savings of £20,000 and shareholdings of the same amount. "I see no reason why the credit union could not lend this individual £25 000"

He strongly urged the Minister of State for Commerce Mr Pat Rabbitte, to consider the representations made by, among others the Irish League of Credit Unions, and bring forward an amendment at committee stage.

Mr Ryan said the willingness of banks to give loans to "ordinary people" had been largely brought about by the existence of the credit unions.

Mr Bobby Molloy (PD, Galway West) said there was no upper limit in existing legislation and it seemed arbitrary to impose a £20,000 limit now. That limit would impinge particularly on the ability of casual workers to raise finance. "The mainstream financial services industry does not want to know about the 200,000 people in Ireland who depend on short term contracts. For many of these people their local credit union is their only bank and their only source of loans."

The credit union movement had no history of profligate lending and there was no history of unacceptable levels of loan defaults. "Credit union managements have shown their ability to use their discretion wisely. We should continue to trust them to do so."

Mr Trevor Sargent (Green, Dublin North) said it should be left to the management of the credit unions to decide loan limits. He disagreed with the assumption in the Bill that the Minister and civil service knew best.

The debate continues.