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

The absolute priority for me with regard to the credit union movement is that members' deposits are safe and the risk of lending does not undermine members' deposits. I also believe that as the work of credit unions progresses and they move away from the threat of impairment in many cases to being active in the market again, the possibility of more extensive mortgage lending is not contrary to Government policy.

For example, the recent report of the Credit Union Advisory Committee, CUAC, provides a number of recommendations, one of which is to conduct a full review of lending limits. I have established an implementation group which is currently looking at those recommendations with a view to implementation, as appropriate. The implementation group consists of representatives from the Irish League of Credit Unions, the Credit Union Development Association, the Credit Union Managers' Association, the National Supervisors Forum, the Central Bank and a CUAC member. The implementation group is headed up by a Department official. One area which the implementation group is focusing on is an examination of lending and concentration limits. I look forward to progress reports from it.

I am not against it as a matter of principle. I need assurances that individual credit unions are capable of long-term lending funded by short-term deposits and that the savings of members are always secure.

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