Dáil Éireann Debate, Wednesday - 17 June 2015
92. Deputy Brendan Smith asked the Minister for Finance if he is aware of the concern of the Irish League of Credit Unions in relation to the transposition of the deposit guarantee directive into Irish law (details supplied); and if he will make a statement on the matter. [24178/15]
View answer99. Deputy Jack Wall asked the Minister for Finance his views on correspondence (details supplied) regarding transposition of the deposit guarantee directive into Irish law; his plans to address the concerns expressed; if he has or is planning to meet with the National Group to discuss this matter; and if he will make a statement on the matter. [24221/15]
View answerI propose to take Questions Nos. 92 and 99 together.
The Deposit Guarantee Scheme (DGS) provides protection of up to €100,000 per saver per credit institution, including credit unions. The scheme gives confidence to depositors that their money is safe in the event that a financial institution gets into financial difficulty.
Directive 2014/49/EU is a new Directive in relation to the DGS which is being transposed into Irish law. Before transposition, the Department of Finance established a public consultation process to provide an opportunity for stakeholders to give their views on how discretions should be applied. This process concluded last Friday 12 June 2015. While this Directive provides less flexibility in transposition to Member States than the previous Directive governing the DGS, Article 13 provides some discretion for Member States on the calculation of contributions to the DGS where a lower level of contribution for low risk sectors which, if justified, could be put in place. In relation to the contribution amount, Question 6 in my Department's consultation paper specifically asks whether or not credit unions should be considered a low risk sector and thus qualify for a lower level of contribution, it also requests justification for the answer provided.
All submissions received by my Department will now be examined and the views therein considered carefully over the coming weeks.
