Banks who lend to customers would get paid back directly from social welfare payments under a plan from Lucinda Creighton's new political party.

About 360,000 people who don't have access to normal bank lending and who are reliant on money lenders who charge high levels of interest, would be able to borrow at normal lending rates, under the plan.

The new "basic banking service" would see banks repaid at source out of dole and other social welfare payments, and would essentially give people an advance on their welfare in order to meet exceptional costs.

It is suggested that the amounts to be loaned out would be under €1,000 and repayments would be deducted every week over a set period of time.

For example, if a person borrows €500 from a bank offering this service, then they could see €10 deducted from their dole for 50 weeks plus whatever amount of time it takes to pay the interest.

"The plan is in order to help vulnerable people who are forced to pay very high interest charges to money lenders. They would see a modest deduction from their social welfare," said Senator Paul Bradford, Ms Creighton's husband, last night.

At present, the party says, almost €200m is being loaned out by such money lenders.

The new party is also proposing a radical change to the electoral system toward a single-seat constituency model.

"We would envisage maybe 100 single seat constituencies, elected by proportional representation in the same way by-elections are held at present," Mr Bradford said.

Mr Bradford last night ruled out any deal with Sinn Féin.

"We are deeply concerned as to the cult-like allegiance to the party, which supersedes any duty to the country," he said.

The party will have at least 15 of its expected candidates present at the launch in the Science Gallery in Dublin this morning. The Reform Alliance TDs Billy Timmins and Terence Flanagan and economist Eddie Hobbs will be present.

Irish Independent