Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 88: To ask the Minister for Finance his plans regarding the discretion provided in the consumer credit directive, due to come into effect on 11 June 2010; if he will exercise this right and apply a differentiated regime to credit unions as against the banks and other financial services providers; and if he will make a statement on the matter. [23696/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Consumer Credit Directive establishes a harmonised legal framework in the European Union for the provision of consumer credit ranging from €200 up to €75,000. (It does not apply to mortgages). It replaces a 1987 Directive (87/102/EEC), which laid down minimum rules for consumer credit arrangements within the EU. In consultation with the Office of the Attorney General, my Department is currently preparing the draft Statutory Instrument, which will transpose the Directive into Irish Law. It is intended that the legislation will be finalised by 11th June, 2010. The Directive will take effect from that day.

I believe that the Directive enhances the strong regulatory regime underpinning consumer protection, and as such, I have decided that credit unions should be subject to its full application. However, following consultation with representatives of the Credit Union movement, I am aware that the credit unions will require some time to upgrade their systems and train staff, so that they can effect compliance with all the requirements of the Directive. Consequently, I have adopted the discretion allowed for under Article 2.5 applying limited provisions of the Directive to them until 11th December 2011, after which date, the full Directive will take effect.