Dáil Éireann Debate, Tuesday - 21 March 2017
233. Deputy Jack Chambers asked the Minister for Finance his views on whether Government policy is constraining the future potential of the credit union movement; and if he will make a statement on the matter. [14020/17]
View answerI wish to make it very clear that this Government's policy is not constraining the future potential of the credit union movement. In fact I would argue the opposite. As I have stated many times, credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. The Government recognises this and has put in place a number of measures to ensure that credit unions can continue to provide services to their members and to ensure the stability of the sector into the future. These measures include:
- the establishment of the Commission on Credit Unions;
- the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012;
- the establishment of the Credit Union Restructuring Board ReBo;
- the establishment of a stabilisation levy to support credit unions that are undercapitalised but are otherwise viable;
- the availability of €250 million of exchequer funding for voluntary restructuring of credit unions facilitated by ReBo;
- the availability of €250 million of exchequer funding for resolution purposes.
Most of these measures stemmed from recommendations made in 2012 by the Commission on Credit Unions in its final report and were implemented over five years with the objective of developing a strengthened and revitalised credit union sector to ensure it is in a position to play an increasing role in the financial landscape of the future in this country.
Following on from this, in December 2015, I invited the Credit Union Advisory Committee (CUAC) to carry out a review of the implementation of those recommendations set out in the report of the Commission on Credit Unions. On 29 June 2016 I was presented with a report by CUAC which provides an in-depth analysis of the sector from a financial perspective and from a stakeholder perspective based on discussions with a wide range of stakeholders. This approach ensured a balanced report from CUAC providing focused and effective recommendations. I have now put in place an Implementation Group, which includes members from the main credit union representative bodies, to oversee and monitor implementation of these recommendations, which will support credit unions in many ways including in developing their business model.
The Government wants not only strong, vibrant credit unions offering a safe and secure place for members' savings but also credit unions' being appropriately positioned to offer their members a wide range of services including loans, debit card facilities and new facilities based on the needs of their membership. This Government recognises the important role of credit unions as a volunteer co-operative movement in Ireland and 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 continue to support a strengthened and growing credit union movement.
