Brian Cowen (Laois-Offaly, Fianna Fail)

As I indicated, the guidance note was issued in October 2006 because the regulator is mindful of all these issues. The note is subject to regular review and consultation with the credit unions. Each individual credit union is answerable to its membership through its board. Annual meetings are held, financial reports are examined and approved and properly run credit unions confirm that they are in compliance with all aspects of the guidance and have a good relationship with the regulator. From time to time, the Financial Regulator discusses the position in the credit union sector with me and the subject is one of the items on the agenda when the chairman of the Irish Financial Services Regulatory Authority, Mr. Patterson, comes to see me. I am engaged in a process with the credit unions which is delivering progress and addressing long-standing issues.

Regarding the question of the savings protection scheme, the credit unions point out that the ethos and philosophy of solidarity, which extends from one union to another and one set of members to another, will always ensure savings are covered. By the same token, the regulator is anxious to ensure full legal clarity is brought to bear in respect of the scheme and that an appropriate response would emerge in the event that it was triggered. As one will often hear from representatives of the credit unions, this is not an issue.

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