I propose to take Questions Nos. 53 and 54 together.
As Minister for Finance, my role is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. The Registrar of Credit Unions at the Central Bank of Ireland is responsible for the regulation of credit unions and is independent in the exercise of his duties. As Minister for Finance, I have no function in relation to the appointment of auditors by credit unions. The issue raised by the Deputy is a regulatory matter. I have consulted with the Registrar who advises as follows.
The position regarding appointment of external auditors in credit unions is set out in Part VII of the Credit Union Act 1997. The members of a credit union elect the auditor at the AGM. The Central Bank is not involved in the appointment process and any procedural matters including tendering, engagement, fees, etc., are a matter for the credit union concerned.
However, Section 113(9) provides that where the Central Bank is of the opinion that it would not be in the interest of the orderly and proper regulation of the business of a credit union or its members' interests, it may by notice in writing order the credit union not to elect or re-elect to the office of auditor, or the directors not to fill a casual vacancy in that office with, a named person. The only circumstance where the Registrar of Credit Unions has powers to appoint an external auditor is when the membership fails to elect an auditor at the Annual General Meeting (AGM).
