Simon Harris (Wicklow, Fine Gael) | Oireachtas source

First, like Deputies Dowds and Penrose, I appreciate the important role that the credit union movement plays. I am a member of a credit union in my constituency and, like many Members of this House, I know the substantial difference the movement makes to the lives of so many citizens throughout the country. The Minister for Finance, his officials and I have had good engagement with the various representative bodies of the credit unions over a period. I have found that engagement to be fruitful and it will continue.

I must make clear, however, that Members of this House passed the Credit Union and Co-operation with Overseas Regulators Bill 2012. We voted for it, we passed it and it is the law. There are sections of that Act that are due to commence at the end of this year. The independent regulator has made it clear that there are new criteria coming into place in relation to the €100,000. Many Members, including myself, had concerns that depositors would be told that they had to take their savings out of the credit union movement and put them into banks. I am very pleased, as is my colleague, the Minister for Finance, that the Central Bank has now advised him that this is no longer the position. The position now is that once one can meet certain criteria to show various adherence in relation to asset size, liquidity ratio and additional reserves in excess of the minimum, those savings can remain in the credit union. That is an important step forward in relation to the credit union movement.

I am also pleased that the Registry of Credit Unions has stated it will engage with the representative bodies of the credit union movement - I would again urge it to do so - and to invite their comments prior to the finalisation of this application process. The Central Bank has further informed the Minister that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. The credit union movement wants to play a bigger role in our economy and in our communities. I believe it can and so does the Government. I look forward to that engagement taking place with the Central Bank.

The credit union movement will continue to play an important role in the economy and this Government is committed to working with it. I will continue to engage with the Deputies on the matter.

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