Brian Lenihan Jnr (Dublin West, Fianna Fail)

I am responding on behalf of my colleague, the Minister for Finance. A number of specific legal provisions are in place under section 69 of the Credit Union Act 1997 to address issues of a conflict of interest that might arise in credit unions. Under section 69(3) of the Act, individual board members of a credit union are obliged to declare any possible conflict of interest to the board of directors of the relevant credit union. It is open to any member of a credit union who is concerned at a possible conflict of interest in a credit union to bring that issue to the attention of the board.

As for the arbitration process undertaken in the dispute at board level in the credit union referred to by the Deputy, the Registrar of Credit Unions is responsible within the financial regulator for the regulation of credit unions. He met the board of the credit union in November of last year and proposed the appointment of an arbitrator to undertake a formal process of arbitration on the issues dividing the board. The registrar's proposal was accepted by the board and a senior counsel was appointed to undertake the arbitration process.

Unfortunately, the arbitration process has not been successful. The Department has been informed by the Registrar of Credit Unions that the arbitrator will shortly withdraw from the process. Following the completion of the arbitration process, the registrar will undertake a full investigation of the affairs of the relevant credit union. On foot of the outcome of that investigation, the registrar will take any steps that are necessary to resolve the issue using the regulatory powers available to him under the Credit Union Act 1997.

See this speech in context