Tuesday, 8 October 2019

Questions (40)

Shane Cassells


40. Deputy Shane Cassells asked the Minister for Finance if he has liaised with credit unions and their representative bodies regarding the impact changes to the industry funding levy will have on local credit unions; and if he will make a statement on the matter. [40809/19]

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Written answers (Question to Finance)

On 28th August last, I held a meeting with the credit union representative bodies to discuss their views on the Industry Funding Levy and other credit union related matters. Over the course of the year I have also responded to direct and indirect correspondence from credit unions and representative bodies in relation to the Industry Funding Levy.

The Deputy might also wish to note that the Department of Finance, in collaboration with the Central Bank, held a public consultation on potential changes to the Credit Institutions Resolution Fund Levy. Following this review I published a press release on 1 October 2019 announcing a reduction in the levy from 0.0511% to 0.0274% of total assets of a credit union which will result in a reduction in the levy from €9 million in 2019 to €5 million in 2020. This is a 44 per cent reduction in the Resolution Fund levy for 2020 compared to 2019.

It is also important to note that as Minister for Finance I have reduced the Stabilisation Scheme Levy materially and that since 2017 no further levies have been charged by the Credit Union Restructuring Board (ReBo). I have previously committed to a further review of the Stabilisation Scheme in 2020.