Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I reiterate the key point. We have approached this by putting in place a 50% recovery rate. This means that credit unions are treated strikingly differently, as should be the case, from the other bodies to which Deputy Burton has referred. This is precisely in recognition of the point the Deputy made about the capital or funding needs that credit unions have and the nature of the organisations. That is why they are subject to a 50% recovery rate compared to the banks, which are subject to a 100%. Those involved in insurance are subject to a 100% rate while moneylenders and bureaux de change will be levied at 75% in 2020. We are looking to treat the credit union movement in a different way to other bodies regulated in recognition of the points Deputy Burton has made.

A point was made regarding the impact of the industry funding levy. It would be fair and accurate to say that the increase in the funding levy is of course going to have an impact on credit unions - I acknowledge that. Our analysis indicates that over a three-year period when the rate moves up to 50%, the figure will be a little under 3% of the current overheads that a credit union may be dealing with. It will have an impact and I have no wish to create an impression otherwise, but I call on the committee to evaluate the decision I have made in the light of recognising the reduction in the resolution levy. Notwithstanding the point Deputy Michael McGrath made, there is still a reduction in that levy and the stabilisation levy will be up for review in 2021.