Dáil Éireann Debate, Wednesday - 6 April 2016
163. Deputy Pearse Doherty asked the Minister for Finance the number of proposals from the credit union movement the Central Bank of Ireland or he has received related to social housing; the action taken to date to implement these proposals; and if he will make a statement on the matter. [6155/16]
View answer180. Deputy Joan Collins asked the Minister for Finance further to Parliamentary Question No. 30 of 18 November 2015, the position regarding the progression of the proposal from his officials. [6255/16]
View answer181. Deputy Róisín Shortall asked the Minister for Finance his views on the proposal from the League of Credit Unions to make deposits available to approved housing bodies in order to fund a major public housing programme; and if he will make a statement on the matter. [6270/16]
View answerI propose to take Questions Nos. 163, 180 and 181 together.
The Department of the Environment, Community and Local Government is the Department primarily responsible for the formulation and implementation of policy and for the preparation of legislation in relation to housing.
I have been informed that Minister Alan Kelly and Minister of State Paudie Coffey at the Department of the Environment, Community and Local Government met with the Irish League of Credit Unions in December 2015 to discuss a submission containing a proposal setting out a means by which funding could be provided to Approved Housing Bodies, by credit unions, for the development of social housing.
While the Registrar of Credit Unions at the Central Bank is the independent regulator of credit unions, bilateral engagement has taken place between my Department and the Department of Environment to consider the potential regulatory and legislative implications of credit union involvement in social housing funding.
The Central Bank commenced a number of new regulations for credit unions on 1 January 2016. Prior to their commencement, following careful consideration, some modifications were made, including to Regulation 25(2) which makes reference to the fact that the Central Bank may prescribe, in accordance with section 43 of the Credit Union Act 1997, further classes of investments for credit unions which may include investments in projects of a public nature. The effect of these modifications is that regulation 25(2) now specifically provides that investment in projects of a public nature can include, but are not limited to, investments in social housing projects.
Although proposals received to date are at a very early stage of development, my Department is always open to meeting with credit unions and their representative bodies to discuss new ideas.
While the Government recognises the important role of credit unions as a volunteer co-operative movement in this country, the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to support a strengthened and growing credit union movement.
