John Lahart
Question:222. Deputy John Lahart asked the Minister for Finance his plans to carry out a review of credit union legislation; and if he will make a statement on the matter. [18221/20]
View answerTuesday, 28 July 2020
Questions (222)
Written answers
The Government recognises the key role that credit unions play in the delivery of financial services in local communities across Ireland, the need for which is heightened at this time. Credit unions account for approximately one third of the consumer credit market and are well positioned to provide credit to support the recovery.
The economic outlook arising by virtue of COVID-19, including reduced demand for new lending, has increased the challenges the sector is already facing. As a result it was agreed that the Credit Union Advisory Committee (CUAC) would report to me on challenges and opportunities for the sector, incorporating implications of COVID-19, and any relevant recommendations. CUAC has now submitted it's report to me, including recommendations, which I will consider carefully.
There are several commitments in Programme for Government which relate to credit unions, which will be expanded upon in the coming weeks and months by the new Government, taking into account work already completed such as the CUAC report noted earlier and a separate CUAC report on directors, which was finalised in February 2020. I will also take into consideration the views of key stakeholders in the sector. I cannot pre-commit to an undefined review of credit union legislation in advance of this work being undertaken.
However, there are several discrete pieces of legislation relating to credit unions which may progress including, inter-alia, legislation to amend the interest rate cap and dissolve the Credit Union Restructuring Board.