asked the Minister for Industry and Commerce the present limits to the borrowing and lending powers of friendly societies, and the date on which those limits were fixed; and whether he proposes to introduce legislation to extend those powers, or to provide credit unions with the statutory recognition and powers sought by them.
Ceisteanna—Questions. Oral Answers. - Friendly Societies.
14.
Mr. Ryan
Under the provisions of the Friendly Societies Act, 1896, registered friendly societies have power to mortgage any land they may hold. This is considered to imply that such societies have borrowing powers to such amount as could be raised by mortgage on the land they may hold.
Friendly societies may, out of a separate fund, to be formed by the contributions or deposits of members, make loans to members under certain conditions. Members may not invest more than £200 in the fund and members borrowing from the fund may not owe more than £50. A society may also invest its funds in accordance with the Act without limit as to amount. Otherwise the Friendly Societies Acts do not confer on friendly societies any power of lending money.
The Committee on Co-operative Societies examined the law as it affects credit unions and their report contains certain recommendations on this subject. The report, which will be published in due course, is being examined and the question of the introduction of legislation will be considered in the light of the Committee's recommendations.
Question No. 15 postponed.