Brian Cowen (Laois-Offaly, Fianna Fail)

It may not have been a problem but it has become an issue. A common approach must be adopted to ensure all parties are satisfied. This is an ever-changing financial environment. The reason the guidance was issued by the registrar in the first instance was that credit unions need to find an outlet for loans for the savings lodged with them, while ensuring the investments entered into are sensible and not subject to undue risk. It emerged from dialogue with the credit unions — we did not take a top-down approach — that they believed that since the establishment of the Irish Financial Services Regulatory Authority a one-size-fits-all approach had been adopted which did not taken into account the diversity and difference in scale and scope of these autonomous organisations. It is to deal with the sensitivity of these issues that a dialogue has been established. My Department and I have been engaged in this process and progress is being made. While I would like the process to reach a conclusion, the approach we have adopted is much better than all the other options.

The amendments in this section have been proposed as a result of a review of long-term lending. The Department listened to the views of the Credit Union Advisory Committee, which is statutorily required to advise me in these matters. Dialogue conducted between the Department, the credit union representative bodies and the Financial Regulator through the Registrar of Credit Unions is providing us with structured responses which show goodwill and will secure buy-in and ownership of the solutions to the problems as well as providing an agenda for expansion. I have always made the point that I will show form where I must to bring about a greater sense of confidence to the effect that we are on the same page while insisting that the prudential issues be addressed. This is the understanding in respect of our progress and the agenda items being ticked off.

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