Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 1:

In page 7, between lines 5 and 6, to insert the following:
“ 'chair' has the meaning given by section 55A(2);”.

All the amendments I am moving today are technical in nature and none contains any policy content. For this reason, members need not have any concern in regard to policy issues. The Ceann Comhairle was willing to allow the amendments to proceed to comply with the rules of notice.

Amendments Nos. 1, 2, 5, 6, 8 and 9 rearrange various definitions into alphabetical order. Amendments Nos. 4 and 10 correct a printing order. Amendment No. 7 deletes reference to the definition of a savings protection scheme, which is being replaced by the statutory stability support scheme. Amendment No. 3 refers to financial services legislation in section 6 and is to be grouped with several other amendments.

As I stated on Second Stage, the perception that this definition turns on a range of new legal provisions to credit unions from the wider financial sector is mistaken. This definition does not apply financial services provisions to credit unions anew, nor could it be used for that purpose. The definition of financial services legislation is a technical interpretation provision which is needed for references throughout the Bill to requirements that are already imposed on credit union under various items of financial services legislation. One reason for this is that the credit unions have secured authorisation outside of the credit union sector and, therefore, fall under wider financial services legislation, such as the European Communities (Insurance Mediation) Regulations 2005, Investment Intermediaries Act 1995 and European Community (Payment Services) Regulations 2009. The deposit guarantee scheme which protects members' savings also applies by virtue of wider financial services legislation such as the Financial Services Deposit Guarantee Scheme Act 2009.

It is important to understand that the agreed Commission report cannot be implemented if the Central Bank Acts are not applied to the credit unions. The provision for credit unions to appeal to the Irish Financial Services Appeals Tribunal is provided for in Part VIIB of the Central Bank Act 1942.

The facility for credit union members and credit unions to continue to seek redress through the Financial Services Ombudsman, relies on Part VIIB of the Central Bank Act 1942. The application of the administrative sanction regime to credit unions relies upon Part IIIC of the Central Bank Act 1942. The application of fitness and probity to the credit unions relies on Part 3 of the Central Bank Reform Act 2010. The resolution powers which the Commission recommends to be applied to credit unions where appropriate are set out in the Central Bank and Credit Institutions (Resolution) Act 2011.

The Central Bank Acts already have wide application to credit unions. For example, the office of registrar is provided for in the Central Bank Act 1942. I do not consider that excising all references to financial services legislation or the Central Bank Acts is a workable solution if it fundamentally compromises what the Bill and the Commission report is trying to achieve. I am, however sensitive to the concerns on this point and will consider further, in consultation with the Office of the Attorney General, whether it is possible to address the concerns being raised. I inform the committee of this because there appears to be a misunderstanding on the part of the league of credit unions about this issue. I want this information on the record for the committee. However, if sections of the Acts are being applied unnecessarily and if members indicate that to me here, I am prepared to take their concerns on board and see what we can do on Report Stage to meet their concerns and those of the Irish League of Credit Unions. My perception is there is a misunderstanding of how various other pieces of financial legislation interact with the new Bill and this is giving rise to unnecessary concerns. We will tease our way through the issues.