Dáil Éireann Debate, Thursday - 18 June 2015
76. Deputy Patrick O'Donovan asked the Minister for Finance in regard to the deposit guarantee directive, if he will use discretion under the directive to ensure that credit unions are to be charged at a lower rate of contribution; and if he will make a statement on the matter. [24316/15]
Amharc ar fhreagra78. Deputy Pearse Doherty asked the Minister for Finance with regard to the transposition of the deposit guarantee scheme directive, the consideration he is giving to using the discretion permitted to allow credit unions contribute at a lower rate, given their social ethos and for other reasons, as outlined by the Irish League of Credit Unions; and if he will make a statement on the matter. [24334/15]
Amharc ar fhreagraI propose to take Questions Nos. 76 and 78 together.
The Deposit Guarantee Scheme (DGS) provides protection of up to €100,000 per saver per credit institution, including credit unions. The scheme gives confidence to depositors that their money is safe in the event that a financial institution gets into financial difficulty.
Directive 2014/49/EU is a new EU Directive being transposed into Irish law which provides the same level of guarantee, while proposing a number of changes to the way in which the Scheme operates.
A consultation process conducted by my Department and which concluded last Friday, 12 June 2015, provided the opportunity for stakeholders to give their views on specific aspects of the Directive. In particular, Question 6 specifically asked whether or not credit unions should be considered a low risk sector and thus qualify for a lower level of contribution, it further requests justification for the answer provided. All submissions received by my Department will now be examined and the views therein considered carefully over the coming weeks.
