Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

I have heard the Minister say a number of times that he is not willing to move to a statutory basis and at this late stage in dealing with the Bill I am not going to push that issue. I acknowledge that section 7 of the consultation protocol deals with the regulatory impact assessment, which is to be welcomed as it will look at options and the implications in terms of regulation of the credit union movement. A prudential rule book will also go some way towards clarifying what is required of the movement. A regulatory impact assessment is one element, but there are others that should or could be included in a broader memorandum of understanding. I return to my point about this being a two-way street.

I do not understand the Minister's reluctance. I understand his fear that it might tie the hands of the Central Bank and agree that is something we should not do. However, a memorandum of understanding could be developed between both parties that would provide a clear understanding of the requirements on both in terms of the new regulatory regime. Part of this is included in the communication protocol in terms of how communication on the part of the Central Bank will happen, but how communication on the part of credit unions will happen has not been spelled out. There are other elements that are missing too.

I will park the statutory requirement issue and again appeal to the Minister to request the two parties, in the context of the rule book and communication protocol, to attempt to formulate a memorandum of understanding. If the Central Bank is not happy with it, obviously, there will be no memorandum of understanding. I am acknowledging that it would not be on a statutory footing. However, an attempt should be made because memorandums of understanding give clarity in terms of what is expected. I will not split hairs over this, but the provision would fit well with the Bill and the report of the commission. The intention is that there would be a better understanding between the credit union movement and the Central Bank and vice versa. I, therefore, ask the Minister to ask them to see if they could reach agreement on a formal memorandum of understanding that would not be on a statutory basis.

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