Brian Lenihan Jnr (Dublin West, Fianna Fail)

Deputy Bruton asked questions about legislation that is under preparation in my Department. One of the great difficulties is that there is not a unanimous view among the different credit unions in Ireland concerning how this matter should be approached. As Deputy Bruton correctly indicated, the League of Credit Unions has a particular view but there are other substantial credit unions outside the league that take a different view. The approach of the league has been to have a stabilisation fund which operates as a guarantee to the credit unions affiliated to it. The approach of certain other credit institutions has been that they want direct participation via the Central Bank or another appropriate institution with regard to the stabilisation moneys they save for deposit protection purposes.

There is no consensus within the credit unions about how to go forward in this area. I am anxious to devise a legislative solution that will accommodate the different concerns involved and that will ensure adequate protection exists for the depositor and adequate recourse will also exist for the taxpayer in respect of the funds that may be required.

See this speech in context