Michael Noonan (Limerick City, Fine Gael)
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The Credit Union Commission recommended that a consultation protocol should be in place between the Central Bank and the credit unions. This protocol is to be developed following consultation between the Central Bank, the Minister, credit union representative bodies and the Credit Union Advisory Committee. The protocol is to set out how the Central Bank proposes to engage with credit unions in any formal consultation process prior to the introduction of new regulations. The protocol may provide for varying levels of consultation depending on the nature and complexity of the regulation being proposed. This will have the effect of increasing transparency and confidence in the regulation-making process. The protocol is to include the specific requirement that consultation does not impact on the statutory independence of the Central Bank in the regulation of credit unions.

I understand that a draft of the protocol has already been circulated to stakeholders for comment and that the Irish League of Credit Unions has made a submission, which is being considered by the Central Bank. It has been suggested that a broader memorandum of understanding be agreed between the Central Bank and the credit unions. I understand that one of the concerns driving this is that the Central Bank would issue written directions. The Bill does not provide for this as well as providing for an appeals mechanism. I do not favour a statutory memorandum of understanding nor was one recommended by the commission. We should be careful not to undermine the independence of the regulator. We have learned enough from the financial crisis to know that the Central Bank must be able to act within its powers when required. Therefore, I am not accepting the amendment.