I thank the Minister for coming in. I raise the issue of North Wicklow Educate Together secondary school in Bray. I am not sure whether the Minister is familiar with this school but she will become very familiar with it. It has been let down over recent years in finding permanent accommodation and has been bounced from temporary accommodation to temporary accommodation. Unfortunately, it is in the middle of one of those bounces. It has packed up where it was based in the previous academic year and has all its things in storage. It was planned that it would move into a disused primary school in Bray, but it has yet to receive the keys to that school. It had been promised a complete refurbishment of the school, but that has not occurred and so the school wants to know what is happening. It needs to be able to find accommodation for its 240 students for September. It needs to be able to plan. There are many children with additional needs in the school who need to be planned for. I ask the Minister to give a progress update and to make sure the school gets the care and support it requires.
Saincheisteanna Tráthúla - Topical Issue Debate
School Accommodation
Since the North Wicklow Educate Together school in Bray opened in August 2016, it has been treated absolutely appallingly by the Department. It was opened in 2016 in a temporary premises in the old Presentation College on Putland Road in Bray. At the time, the Department was aware of a 2015 High Court agreement between the former owner of the site and the Kildare and Wicklow Education and Training Board that vacation of the premises needed to take place by April 2019. Last year, right up until the 12th hour, the school did not know where it was going to be located for the 2019-20 school year. At the last moment, the Department announced a 12-month extension to that lease, which would run out on 30 June just gone. In January of this year, the Department announced that the school would move temporarily to another old school, the former Ravenswell primary school building in Bray, in September of this year. There is now major concern because, with less than seven weeks to go until the school is due to reopen in that building, a legal difficulty appears to have arisen between the State solicitor and solicitors representing the owners of that site and a licence has not been signed. Significant refurbishment works are due to take place within the premises, which cannot happen until that licence is signed. This school has been treated appallingly by the Department and it is shameful that two Deputies have to come into the Chamber to try to get answers from the Department and the Minister as to what is going to happen come September.
I have two specific questions for the Minister. First, when will the licence be signed between the two parties to ensure the significant refurbishment works can take place? Second, have tenders been signed to allow that work to take place and are contractors in place in order that it can be done immediately?
I thank Deputies Whitmore and Brady for raising this matter. It provides me with the opportunity to clarify the current position regarding the accommodation needs of the North Wicklow Educate Together secondary school for this September. As the Deputies may be aware, the school was established in 2016 and has been accommodated since then, as the Deputies said, in a leased property on the Putland Road in Bray.
The school opened with an enrolment of 36 pupils and numbers are growing incrementally, with an enrolment of 226 pupils in the 2019 to 2020 school year. I understand that the school expects an enrolment of 280 pupils for the 2020 to 2021 school year. My Department held a lease on the Putland Road property until 30 June last and has secured an extension to this lease until 31 October 2020. The school's patron is aware of this extension.
The property is not available for long-term lease and the school requires alternative accommodation to facilitate its growth. In this regard, the Department has secured the agreement of the Religious Sisters of Charity to use the former St. Philomena's primary school, Ravenswell, Bray to accommodate North Wicklow Educate Together secondary school. The legal arrangements associated with the lease are being finalised by the Office of the Chief State Solicitor and the owner's legal representative, and that process is expected to be completed shortly.
It is my Department's intention to have refurbishment works carried out in the building in advance of the school's occupation. In preparation for these works, various surveys were required to develop the scope of the work to be undertaken. This work was interrupted arising from Covid-19 and resumed when the restrictions were lifted. A licence agreement between my Department and the Religious Sisters of Charity is required to admit the building contractor on site to undertake the refurbishment works. The licence is being finalised by the Office of the Chief State Solicitor and the congregation's legal representative. This process is also expected to be completed shortly. My Department is anxious to ensure that the refurbishment works can be initiated in the building as soon as possible thereafter and will continue to keep the patron updated on progress.
My Department's planning and building unit is working closely with the school authorities and patrons, including Educate Together, to ensure that contingency arrangements are in place where necessary if a school building project is not completed in time for the start of a new school year as a result of delays caused by Covid-19.
I wish to clarify for the Deputies that my Department is continuing to prioritise this matter and will be liaising with the school's patron when a further update is available. I again thank the Deputies for giving me an opportunity to outline the position to the House and I assure them that the Department is concerned to ensure that the school's accommodation needs will most certainly be provided for.
I am trying to take this in. It is incredibly disappointing for this school. From reading this reply, it would appear that it is expected that the school will take everything that has been packed up and is in storage in a different county, bring it back into the school that has already been deemed inappropriate, and that the school will be put in there for a month or two while this work happens, before the school is actually placed back in its new temporary accommodation.
This will be a huge upset for the school and for the children. As the Minister knows, children with special needs and additional needs must have routine and be able to plan. These children will now be forced back into a very uncertain period. It is unacceptable that this school will not have Ravenswell available to it in September.
Will the Minister expedite this work? Much of the work that has not happened, such as the licence, is something that could have happened administratively. It did not need to be postponed because of Covid-19. It is not like work on the construction site. I am really disappointed, therefore, that this has not happened and that the school is not getting ready to move into its new accommodation. Perhaps it might be possible to open a channel of discussion with the school itself, because it is completely unaware of this situation. The school will be really disappointed and frustrated to hear this news.
I am flabbergasted by the response of the Minister and the handling of this entire situation by the Department. The school is completely in the dark as to what is going on. All the equipment from the building which the school is legally obliged to vacate has been packed up and is in storage. Now the Minister is talking about potential contingency plans being put in place if the work is not carried out. Perhaps somebody might want to speak to school and start talking to it directly about what plans may have to be put in place, because it is completely in the dark. The school is making plans to move into the building at Ravenswell, which it was informed it would be moving into in September.
I know Covid-19 has caused much disruption in this State, as it has across the world. I do not see how it could impact, however, on two legal entities signing a piece of paper, a licence, to ensure that the work could proceed. I simply do not buy that explanation. The handling of this situation by the Department has been absolutely shameful. Someone needs to pick up the phone to the school immediately, have a conversation and start putting in place contingency plans, if those plans need to be put in place. Less than seven weeks remain now until that school is due to open its doors to first years on 28 August. Someone needs to pick up a phone and start talking. It is absolutely shameful the way the school has been treated since 2016.
I appreciate the case the Deputies are making and the frustration being experienced all around. All I can say is that my Department is doing all it can to expedite this matter as quickly as possible for the benefit of everybody, and in particular for the benefit of the students and staff of the school. I clarify once again that my Department is continuing to prioritise this matter and will be liaising with the school's patron when and as quickly as a further update is available.
We must wait for the appropriate Minister to arrive before taking the second Topical Issue matter. The third Topical Issue matter is in the name of Deputy Sherlock to discuss the planning and construction of an inner relief road for Mallow, County Cork. We have a Minister for that matter.
Road Projects
I congratulate the new Minister of State at the Department of Transport, Tourism and Sport, Deputy Hildegarde Naughton, on her appointment. I have not had a chance to do so formally and I wish her the very best of luck with the journey ahead. People may be aware that we were in the same year in college at NUI Galway, so I am very proud of her accession to such a high position. Well done to the Minister of State.
I will speak briefly to keep the Mallow relief road on the political agenda. The M20 is very much on the political agenda regarding the roll-out of that motorway between Cork and Limerick. As part of that, however, what the people of Mallow need and require now is an assurance regarding the relief road for the town. The Minister of State will tell us that the design preparation is in play and that consultants have been appointed since November 2019. We acknowledge that and there is a process to be gone through in that regard. JB Barry Transportation has been approved as technical advisers and the study area has been identified.
This project is part of the national development plan. There is a strategic outcome which is relevant to this project and it comes under enhanced regional accessibility. I am seeking assurances now from the Government that this project will not slip down the political agenda and that moneys will be put behind this project after the consultation process is over so that the project can be delivered.
It is an essential project in giving relief for the N72 and N73. The N73 is in a deplorable state. It is the Mallow to Mitchelstown road and it needs serious investment regarding realignment. The town of Mallow for many years now, however, has been asking for moneys to be made available for a relief road. It is important that dovetails with any project concerning the M20 in a way that ensures a seamless joining of the two projects to give that relief.
I ask the Minister of State and the Government to give an assurance that this project will not slip down the political agenda. As I have said, the Minister of State will probably tell me that the consultants have been appointed. I fully acknowledge that and we appreciate that design preparation is under way. We have been there before and route corridors have been assigned before.
That is why we want to remain vigilant about ensuring that the town of Mallow is not left behind in any capital investment for roads infrastructure. It is a key reference town in the province of Munster and a key point of connectivity between Kerry and Dublin as well. I appeal to the Minister of State to keep that in mind.
Once funding arrangements have been put in place through the Department of Transport, Tourism and Sport under the Roads Acts 1993-2015 the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland in conjunction with the local authorities concerned. Overall, TII is responsible for the delivery of the national roads programme in accordance with Project Ireland 2040 and the national development plan. In that context, TII provides the Department with regular updates on its delivery of the national roads programme. Within the timeframe given in the lead-up to the debate this evening, the following information is the most up to-date information available to me on Tll's delivery of this project.
Within the overall context of Project Ireland 2040, the national development plan has been developed by Government to underpin the successful implementation of the new national planning framework. This provides the strategic and financial framework for Tll's national roads programme for the period from 2018 to 2027. As set out in the programme for Government, the Government will be carrying out a review of the national development plan later this year, taking account of the priorities of Government set out in the programme.
The proposed N72-N73 Mallow relief road project is included among a number of major national road schemes that were identified in the national development plan for planning, design and construction. This scheme consists of a single or dual carriageway bypass of the town of Mallow. The scheme length would be of the order of 4.5 km to 7 km. The pre-appraisal plan for the Mallow relief road was approved by the economic unit of the Department. Following this, the procurement process for the appointment of technical advisors to progress the first four stages of TII’s project management guidelines was completed. Early planning, design and appraisal work for the project has commenced. Cork County Council and its advisors are currently assessing all route options available given the constraints.
The relief road project would provide numerous benefits. It would bypass Mallow, reducing congestion and improving the environment of the town. It would cater for strategic traffic. It would improve access to and from Mallow. It would bring economic improvements for the Munster region. It would provide cycle and walking facilities for non-motorised users.
The scheme is at an early stage of development and, therefore, it is not possible at this time to indicate a likely timeframe for construction of the project. The timeframe for delivery of any major or minor works or projects that require statutory approval, whether for environmental impact assessment or compulsory purchase orders or both, is between eight and 13 years. As this project is in the early stages of planning it is not yet possible to provide an accurate estimate of the total cost. The estimated cost cannot be finalised until the project reaches the business case stage of the process.
The Deputy may wish to contact TII directly for more detailed information on the agency's implementation of the national road network, including the N72-N73 Mallow relief road.
I thank the Minister of State for her reply. Again, I wish to reiterate the point that while there are statutory processes to be gone through in respect of Transport Infrastructure Ireland's responsibilities in that regard, it is important to state that there is considerable political capital in delivery of roads. That political capital comes from the fact that Government decisions are made in respect of infrastructural projects like roads throughout the country. I am again calling on the Government, once the consultation period has ended, to move to the next stage so that moneys can be assigned to carry out this project.
I welcome the fact that there will be a review of the national development plan. I acknowledge that but I am hopeful and optimistic that this Government will recognise the relief road from Mallow as being a key project given Mallow's location and centrality in the province of Munster.
We are talking about regional development and inward investment. We are talking about opening up the south-western region in the context of a keynote project like the M20 Cork to Limerick road. If we go on an east to west trajectory then it is vital that the town of Mallow does not get left behind in that analysis.
Notwithstanding the response of the Minister of State, which I appreciate, and the fact that there are environmental impact assessment reports and compulsory purchase orders to be gone through, I am asking for the Minister of State to give this her utmost priority.
As I outlined previously, once funding arrangements have been put in place through the Department of Transport, Tourism and Sport under the Roads Acts 1993-2015 the planning, design and construction of individual national roads is a matter for TII in conjunction with the local authorities concerned. This is also subject to the public spending code guidelines and the necessary statutory approvals. The N72 and N73 Mallow relief road has been identified in the national development plan. Therefore, TII is working to progress the scheme through planning, design and construction.
As I have outlined, the project is at an early stage in this process. The programme for Government commits to bringing forward the planned view of the national development plan from 2022 and to use the review to set out an updated national development plan for the period to 2031. The review of the NDP will be aligned with the national planning framework and Project Ireland 2040. Work is under way within the Department to contribute to this planned review and the programme for Government also states that the process of reviewing the NDP and updating the national planning framework will not frustrate or delay any existing projects.
TII remains committed to progressing the N72-N73 Mallow relief road and, as previously stated, this is subject to the public spending code guidelines and the necessary statutory approvals.
Marine Casualty Investigations Board
I wish to ask a question as a matter of courtesy. Is the Minister of State, Deputy Chambers, taking the issue raised by Deputy Griffin? I think Deputy Griffin was waiting.
I am okay.
Who is taking it?
It is just that Deputy Griffin was before me.
I am aware of that but he is waiting quietly in the wings. Whether he remains quiet for long remains to be seen.
I am sharing time with Deputies Buckley and O’Rourke.
Last week the European Court of Justice found that the Marine Casualty Investigation Board is not adequately independent and gave costs against the State. Any decision of the European Court of Justice that finds against the State is weighty and significant but this is especially so in the context of the work that the Marine Casualty Investigation Board does. It has issued over recent years almost 300 reports on marine incidents and casualties since its establishment. Throughout the history of the State, and especially in recent years, there have been so many significant events and tragedies and families left grieving because of significant instances and tragedies. It is vital that the incidents are properly investigated and that the people who are affected, bereaved and injured have confidence in the system.
It has been found by the European Court of Justice that Ireland is in breach of Article 8(1) of directive 2009/18/EC. The fundamental point is quite straightforward. The court decided that the Marine Casualty Investigation Board is not independent because two of the five on the board are from the Department of Transport, Tourism and Sport. It seems obvious. Frankly, it is difficult to understand why the case was fought by the State given that many commentators were of the view that it was bound to fail. Will the Minister set out how much this case cost?
I have not been keeping track of time.
The Deputy has exceeded the time anyway.
How am I to know?
This is an important judgment.
The Commission raised concerns about the lack of independence and a conflict of interest and found that the State failed to comply with its obligations. It is an important and significant judgment and requires a full response from the Department and the State. I would question the approach taken by the Government in contesting the case. As Deputy Ó Laoghaire outlined, it is not as if this had not been flagged. The judgment has important implications for the recommendations, findings and report of the Marine Casualty Investigation Board. That needs to be fully investigated. Above all, we need a system of governance and practice in the Marine Casualty Investigation Board that is beyond reproach.
This judgment has serious implications. It is about accountability and responsibility. It beggars belief that this judgment has come back from the European Union. It was not too long ago that we raised other marine safety issues relating to lifeboat gear, the Coast Guard and so on in the House. It is imperative that the matter is investigated. We have to get clarity in respect of what actually happened. The previous two speakers indicated that this has serious implications, but it has also had an impact on families. I was almost ten years of age when the Whiddy Island disaster happened, but I still remember it. I urge the Minister of State to look into this judgment. I am curious to hear her response. I will stick to the time allowed and reply to the Minister of State afterwards.
I thank the Deputies for raising this matter. The Marine Casualty Investigation Board was established as an independent body in 2002 under the Merchant Shipping (Investigation of Marine Casualties) Act 2000 to investigate marine casualties and publish reports of such investigations involving Irish-registered vessels worldwide and other vessels in Irish territorial waters and inland waterways. Section 8 of the Act provides that the board shall be independent of the Minister for Transport, Tourism and Sport in the performance of its functions and in general shall be independent of any other person or body whose interests could conflict with the functions of the board. Section 9 sets out the composition of the five-person board, which consists of three persons appointed by the Minister for Transport, Tourism and Sport, the chief surveyor of the Department of Transport, Tourism and Sport and the Secretary General of the Department or his or her nominee.
Under current arrangements, the three ministerial appointments are made following an open application process involving the Public Appointments Service, PAS, State boards recruitment system. The 2000 Act set out a specific legislative framework for the operation of the board and also addressed such issues as tenure of office, removal from office, disclosure of interests, the reporting of marine casualties and investigations. All investigations of marine casualties are carried out by the Marine Casualty Investigation Board's panel of external investigators. The panel reflects the broad-based marine competence and experience which is of relevance in undertaking independent investigations.
Directive 2009/18/EC of 23 April 2009 establishes the fundamental principles governing the investigation of accidents in the maritime transport sector. The directive applies to a small subset of the marine casualties that come under the remit of the Marine Casualty Investigation Board, and involves an average of fewer than three casualties in any given year. Article 8.1 of the directive provides that an investigation of body shall be independent in its organisation, legal structure and decision making of any party whose interests could conflict with the task entrusted to it.
In 2011, the Marine Casualty Investigation Board was designated as the investigative body in the State for the purposes of Article 8 of the directive. The EU Commission expressed concern at the independence of the board in the context of the independence requirements of Article 8.1, with particular regard to the membership of the chief surveyor of the Department of Transport, Tourism and Sport and the nominee of the Secretary General of the Department of the board.
The case was lodged with the Court of Justice of the European Union in March 2019. On 9 July 2020, the court delivered its judgment, declaring that by failing to provide for an investigative body which is independent in its organisation and decision-making of any party whose interests could conflict with the task entrusted to that investigative body, Ireland has failed to comply with its obligations under Article 8.1 of the directive. The main issue of concern is the presence of two departmental officials on the board who were seen as persons whose interests could conflict with the task entrusted to the board. There is no finding of impartiality on the part of the board, but the court has noted that a finding that the investigative body failed to act impartially in specific cases is not necessary to establish an infringement. My Department is examining the judgment and has sought urgent legal advice on the possible next steps, which may involve amending legislation to provide a basis for early engagement with the EU Commission and to ensure that the court's findings and the concerns of the Commission are addressed.
At this early stage, I am not in a position to indicate definitively what our next course of action will be. However, I can assure Deputies that every effort will be made to progress matters as quickly as possible in order to enhance the organisational independence of the Marine Casualty Investigation Board in carrying out its important role in investigating marine casualties, establishing the cause or causes of those casualties and making safety recommendations for the avoidance of similar incidents in the future.
I have agreed with the other Deputies to take the full two minutes. There are a number of issues with the response from the Minister of State. There is a context to this. The Government and senior Ministers received an email in recent days from a maritime lawyer, Mr. Michael Kingston, who is the son of one of the victims of the Whiddy Island disaster. He outlined in that email his concerns that there has been a long track record in terms of a failure to tackle the issue of independence at the Marine Casualty Investigation Board. He is not alone in that regard. Many voices have raised the same concern.
To be honest, it is extraordinary that the case was defended. The issue was that there was a clear need for independence. Two of the five members of the board came from one Department. It is very difficult to see how anyone could have argued that was independent. I appreciate what the Minister of State said about impartiality, but it seems very apparent that the board was not independent. There are issues with that and there is a need for independence, which is required in the EU legislation.
It is remarkable that this judgment has not received more attention. The European Court of Justice has found that in the context of maritime safety, this State is in breach of EU legislation. It matters because the Department is responsible for safety on the water and for the legislation and relevant codes of practice. Of course it is important that, following an incident or tragedy, recommendations are made by a body which is adequately independent. That issue has been raised for several years now. I raised the issue last year, but many others have raised it for many years.
There is a strong view that the board was not adequately independent and that was problematic. How much has this case cost? The Minister of State referred to enhancing the organisational independence of the Marine Casualty Investigation Board. I hope that happens. Perhaps it needs to be entirely reconstituted. There may be a need to re-examine some of the cases it has dealt with or, at the very least, its approach in recent years. The State has incurred costs and it needs to accept that it is in the wrong and that there is a need for a fully independent body. We need to examine what happened in the past and how we got to the situation.
I have heard clearly what the Deputies stated. The Department is examining the judgment and has sought legal advice on this in terms of the next steps we will need to take to address the concerns of the Commission. Any proposed new policy approach will be the subject of a future submission for the consideration of the Cabinet. The Deputies can be assured that every effort is being made to progress matters as quickly as possible and to enhance the organisational independence of the Marine Casualty Investigation Board.
Credit Unions
I thank the Ceann Comhairle and his office for allowing me to raise this very important matter. I also thank the Minister of State for being present for this debate.
I begin by congratulating him on his recent appointment as Minister of State. It is a massive honour for any Deputy to be appointed, both for himself and his family and for his supporters. I wish him the very best of good fortune in the time ahead. I have no doubt he will do an excellent job.
I raise this issue off the back of an informative meeting with members of the Chapter 23 Kerry and West Limerick Credit Union movement in Kerry last week and also off the back of the report by the Irish League of Credit Unions last Friday, 10 July entitled The Movement. It is an insightful and interesting report that makes for interesting reading and also makes reasonable recommendations. I ask the Minister, if he has not already seen that report, please to prioritise and have a look at it. It is very clear and makes eight recommendations, none of which is outlandish. They are all reasonable and by implementing those recommendations we would have stronger communities and a better country overall.
In the context of this discussion, the impact of the credit union movement in Ireland over the last six decades cannot be overstated. When one hears people of the magnitude of John Hume saying his involvement in the credit union movement was one of the things he was most proud of, and when he referred to it as having done so much good for all the people of Ireland, North and South, it really puts into context where the credit union stands in terms of its importance in our communities. It is critically important that it is supported at its time of need.
Among the number of things it has pointed out is that it needs support in terms of first putting together the new credit union Act to create a legislative basis for credit unions to become a stronger community banking force. That is something the new Government needs to look at and I am hopeful it can be achieved.
The reduction in capital reserve requirements from 12% to 8% would give credit unions some breathing space, as they say themselves, and also give them a better opportunity to expand their mortgage and business lending. That would be really important.
They are also seeking to unlock the potential for credit union funds to support construction of social housing through a State-regulated investment vehicle for which they have €900 million, almost €1 billion, available. That money would be put to good use if that measure could be considered and acted upon.
They also want to make credit union finance available through the Strategic Banking Corporation of Ireland, SBCI, to fund the proposed national retrofitting plan. We know almost 500,000 homes are planned for retrofitting by 2030 under that plan. The credit unions want to assist and put their money to good use in that regard as well.
One of the other main points is the suspension of regulatory levies from the Central Bank for 12 months and a review of all levies. To put into context what some credit unions are experiencing with regard to regulatory levies over the last number of years, one of my own local credit unions, Killarney Credit Union, in the year ending September 2014 paid just over €66,000 in regulatory levies. In the year ending September 2019 that figure had risen to €243,000. That is a huge hit for any credit union to take when one considers the great work they do and that credit unions were not to blame for the huge financial mess we have seen in the past. That is salt in the wounds of the credit unions and needs to be looked at. I urge the Minister of State please to consider the points raised and do his best to assist the credit unions in their time of need.
I thank Deputy Griffin and appreciate his kind words. I commend him on his time as Minister of State at the Department of Transport, Tourism and Sport. I remember him in one of my own local schools. He really lived up to the title around promoting physical exercise and has left a strong legacy in that Department. I think him for his time and acknowledge his role there in the last number of years.
The Minister for Finance, Deputy Donohoe, wishes to inform the Deputy that both he and his officials have engaged extensively with the credit union representative bodies in recent months. Both I and the Minister for Finance are hoping to meet with the credit union representative bodies again next week. As the Deputy will be aware, one of my specific responsibilities as Minister of State relates to the credit union movement and it will bring an additional focus to this area. We must have significant and extensive engagement in the coming weeks so that we take the recommendations of reports the Deputy has referenced, and others, and expand the role of the credit unions across our communities.
The Government recognises the key role credit unions play in the delivery of financial services in local communities, 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. However, it is recognised that credit unions have challenges, with a low and falling return on assets arising from the low sector loan-to-asset ratio whereby only 28 per cent of assets are lent out, from low-negative interest rates on over €12 billion of investments, and a high cost to income ratio.
Deputy Griffin mention as well meeting the Kerry and West Limerick Credit Union movement. I am happy to engage directly with the credit union movement in the Deputy's own area over the period. It is important not only to meet the national bodies but actually to engage with the local ones. I am stating at the outset that I am happy to meet with people in the Deputy's own area on this.
The economic outlook arising by virtue of Covid-19, including reduced demand for new lending and rising household savings over the past few months, has exacerbated the challenges the sector was already facing. As a result, it was agreed that the credit union advisory committee would report to the Minister for Finance on challenges and opportunities for the sector, incorporating implications of Covid-19 and any relevant recommendations. This report is actually complete and will be submitted to me and the Minister for Finance shortly. I am hopeful we can take the challenges in the current sector and try to get new opportunities in the context of the stimulus and investment we will see in our economy in the coming period. The credit union movement will have a strong role to play in that.
There are several commitments in the programme for Government which relate to credit unions, including a review of the policy framework, which will be expanded in the coming weeks and months as the new Government beds down, taking into account work already completed such as the credit union advisory committee report noted earlier. We will also take into consideration the views of key stakeholders. Credit unions have a role to play themselves. Credit unions have the ability to improve their loan-to-asset ratio, including through additional consumer lending, mortgage and SME lending, either individually or through collaborative efforts.
Following a public consultation, the Central Bank issued revised lending regulations for credit unions which came into effect this year. Under these regulations, the sector has capacity to lend an additional €1.1 billion for mortgage and SME lending collectively on top of approximately €300 million already lent at the end of 2019. Further additional lending capacity could be available to credit unions which can comply with certain conditions or on approval by the Central Bank.
As part of the Government's Covid-19 supports, a revised credit guarantee scheme, CGS, was announced this morning. This scheme is a Department of Business, Enterprise and Innovation scheme, operated by the SBCI, and is already available for banks, non-banks and, it is important to note, credit unions to participate in, subject to certain conditions. Officials are available to discuss the CGS with banks, non-banks and credit unions. In this regard I have been advised that some credit union stakeholders have held exploratory discussions with the SBCI in recent months. We will also work with credit unions to support the programme for Government with regard to retrofitting. I know from my previous role as climate action spokesperson that they will play an important role to embed their community pillar, as the Deputy has referenced, on that ethos with the entire transition we will see. That is a positive future for the credit unions. I will address some of the other questions the Deputy has in my other contribution.
I appreciate the Minister of State's response. From the outset I should have declared, a Chathaoirligh, that I previously, many years ago, was a member on a board of a local credit union, lest there be any accusations of conflicts of interest or anything, but that was long before being in public office. That experience gave me great insight into the work credit unions do to improve their own situations and to progress in life. I am concerned at the moment that credit unions find themselves in a perfect storm. The Minister of State's help, and the support of the Minister for Finance and the Government as a whole, is critical now and perhaps has never been as critical in the history of the credit union movement in Ireland. I welcome very much the Minister of State's commitments to engage further with the credit unions and to have an open-door policy. He will have an open door to some of the best people in the country, some of the real local heroes and unsung heroes of our communities, both at local and national level, as far as the Irish League of Credit Unions is concerned. It is important that the points they put forward are facilitated, where possible.
It is not always possible to do everything, but as I referred to earlier, there is nothing outlandish in what the credit unions are looking for here. They are looking for a fair crack of the whip but they are trying to fight with both hands, not just one hand, tied behind their backs. That is terribly sad when one considers the enormously positive impact that the credit union movement has had throughout Ireland over the past six decades.
I thank the Minister of State, Deputy Chambers. I acknowledge the inclusion of numerous references to the credit union movement in the programme for Government. The credit unions have a big role to play in numerous aspects of life in the time ahead, but they need a better environment in which to carry out their business and continue their excellent work into the future. I hope Deputy Chambers will take a hands-on approach in making this one of his key issues as a Minister of State in the Department of Finance so that his work will benefit everybody in the country.
I thank Deputy Griffin. As the Deputy mentioned, the Government recognises in the programme for Government the role that credit unions play in society as a volunteer co-operative financial institution. The economic outlook, including reduced demand for new lending, rising household savings and continued low return on investments, has exacerbated the challenges the Deputy referenced that existed before Covid-19 and the perfect storm that we need to turn away from.
We committed in the programme for Government to a review of the policy framework. The policy review will take into account work already completed, such as the Credit Union Advisory Committee report which I expect to receive shortly. We will also take into consideration the report published last week by one of the representative bodies, and other views of stakeholders in the sector.
The Deputy will be aware that the current policy framework for credit unions was introduced from 2012 to 2016 and was based on the recommendations of the Commission on Credit Unions. The implementation of these recommendations was the subject of a review by the Credit Union Advisory Committee in 2016. Both I, the Minister for Finance and officials will continue to engage constructively to assist credit unions in delivering new services to their members, including other Government initiatives such as the credit guarantee scheme and initiatives in retrofitting.
It is important to say that there is no legislative or regulatory barrier to the involvement of the credit union sector in the credit guarantee scheme, for example. I encourage credit unions which can involve themselves in that to do so because it will allow them to lend into that structure which will help their balance sheet, which the Deputy referenced. Similarly, there is no regulatory restriction hindering credit unions investing in a National Treasury Management Agency, NTMA, auction or purchasing bonds in the secondary market. However, there is an overarching difficulty in the European context with the way the ECB has flooded the liquidity markets. That has an impact on credit unions and other financial institutions in terms of their balance sheet.
We must support credit unions to increase their lending capacity into communities which will help their balance sheet, and we must support, as I do, their ongoing expansion of services. With the input of Deputy Griffin and others, it is to be hoped we can have a more positive pathway for the sector. That is what we are ambitious about.
As it is now past midnight, the Dáil stands adjourned until 9.30 a.m. when it will reconvene at the Convention Centre Dublin.