Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The credit union sector nationally plays an important role in providing financial services, but in doing so retains responsibility to ensure members' funds are not put at undue risk. While the Department receives many proposals on various issues, my Department recently received a proposal involving a group of six Limerick credit unions and An Post investigating potential business opportunities to co-operate with each other and I assume this is what the Deputy is referring to. The Department received this proposal on 12 August 2014, which outlines the promoters' plan to establish and operate joint initiatives between participating Limerick credit unions and An Post, on a pilot project basis.

The proposal looks at channelling some of An Post services through credit unions and also looks at the prospect of An Post providing some credit union services. I am always open to considering proposals in relation to credit unions that would see the development of the credit union business model and an increase in income for the sector. Having read this proposal, there may be some merit in it. However, it must be stressed that the proposal is at a very early stage of development and would require additional work, as identified by the proposers, before it could be considered further. 

While officials from my Department met one of the proposers of this plan to discuss its merits, such a proposal would require more development before it can be fully evaluated. The Registrar of Credit Unions at the Central Bank is responsible for the regulation of credit unions and as such, any proposal on credit unions would be subject to regulatory approval by the regulator.

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