Michael Noonan (Limerick City, Fine Gael)

I move amendment No. 1:

In page 18, line 28, to delete "and" and substitute the following:

"(c) shall consult with the Credit Union Advisory Committee (within the meaning of section 180 of the Credit Union Act 1997) where the proposed regulations relate to credit unions, and".

On Committee Stage I undertook to consider the provision of a consultative role for the Credit Union Advisory Committee, CUAC, in the making of regulations regarding the resolution fund. Following consultation by my officials with the chair of the CUAC I am now proposing an amendment to that effect.

The CUAC is a statutory body charged with advising me as Minister on credit union issues. It is therefore appropriate that it should be consulted in regard to regulations which will affect the credit union sector. I also undertook to consider a similar role for the CUAC on the intervention conditions. However, following consultation with the chair of the CUAC I do not propose to make such an amendment. It is important that the Central Bank is able to act independently in taking resolution actions subject to the carefully drafted intervention conditions in the Act. The requirement to consult in this way could delay necessary Central Bank action.

On Committee Stage, Deputy Michael McGrath, Deputy Pearse Doherty and others argued this strongly. It is a good proposal and therefore I have come back with this Report Stage amendment to meet their requirements.

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