Clare Daly (Dublin North, Socialist Party)
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9. To ask the Minister for Finance if the effectiveness of the Irish Financial Services Appeals Tribunal, has been impeded by the decision of the High Court to allow the Central Bank convert Newbridge Credit Union as part of Permanent TSB, in relation to case 010/2013 White v. Central Bank of Ireland; and his plans to change the system. [49076/13]

Clare Daly (Dublin North, Socialist Party)
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This question deals with the High Court handling of Newbridge Credit Union being handed over to Permanent TSB, which has important implications for the future of all credit unions but also gets to the heart of the area of accountability in relation to the financial institutions in that the Irish Financial Services Appeals Tribunal had commissioned a hearing into the operation of Newbridge Credit Union but the High Court overshot that opportunity. Does it expose the toothless nature of that appeals mechanism and has the Minister any plans to change it?

Michael Noonan (Limerick City, Fine Gael)
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The Irish Financial Services Appeals Tribunal, the appeals tribunal, was established by the Central Bank and Financial Services Authority of Ireland Act 2003.

The appeals tribunal is an independent tribunal which will hear and determine appeals from aggrieved parties against certain decisions of the Central Bank of Ireland. The appeals tribunal aims to provide an accessible, efficient and effective method of appeal in an informal and expeditious manner. Decisions made by the Appeals Tribunal are published on its website www.ifsat.ie.

I understand that the case referred to came before IFSAT on 15 November 2013 and relates to certain matters at Newbridge Credit Union. I am informed by the Registrar of the Appeals Tribunal that its formal written decision is to issue shortly.

With regard to the transfer of the assets and liabilities of Newbridge Credit Union to Permanent TSB, my priority throughout this process has been to protect the savings of depositors and members of Newbridge Credit Union, which is achieved by the transfer. The transfer to Permanent TSB was necessary to safeguard members' savings as the only alternative option available to the Central Bank was liquidation, which would have seen the loss of unprotected savings, including the savings of charities, schools and individuals.

It was in the context of a possible liquidation that the Department of Finance, with the support of the Central Bank, requested that Permanent TSB undertake this transaction. The participation of Permanent TSB has brought stability and certainty to the situation, especially for the members and staff of Newbridge Credit Union, and has provided an alternative to liquidation. This transfer means Newbridge Credit Union members can be assured that their loan and deposit accounts will continue to operate as normal.

Clare Daly (Dublin North, Socialist Party)
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A Newbridge resident took a case to the Irish Financial Services Appeals Tribunal, IFSAT, in regard to the making of a special management order under section 58 of the Central Bank and Credit Institutions (Resolution) Act 2011. The appointment of the special manager has caused considerable disquiet among the members of Newbridge Credit Union. Millions of euro have been spent on the manager and the assessors who were brought in to investigate the books. The aforementioned resident went to the tribunal well in advance of the High Court decision and was told that the tribunal would be convened expeditiously to examine the matter. However, given that it has not yet issued its findings, the horse has well and truly bolted. Does this not make a mockery of the structures? There is not really an appeals tribunal or any other body that can demand accountability for the behaviour of our financial institutions. Should the Minister not be changing that arrangement? He spoke about securing the safety of the savers in Newbridge Credit Union but if he was prepared to invest €53 million in allowing a bank to take over the credit union, why could he not have invested the money in the credit union, given the implications for other credit unions in the months and years to come?

Michael Noonan (Limerick City, Fine Gael)
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The case to which the Deputy referred is No. 010/2013, White v. the Central Bank of Ireland. IFSAT, which is responsible for processing the appeal, is independent in the exercise of its functions and it would not be proper for me to comment on a particular case. I understand, however, that the case is being processed and the written judgment will be available soon. The appeal has not been dropped. As the Deputy informed the House, the case pertains to the appointment of a special manager to Newbridge Credit Union.

On the other issue raised, it is Government policy to maintain a credit union presence in Newbridge. If we could have resolved the issue through the credit union movement, we would have done so. We tried every possible combination, including negotiations with Naas Credit Union which were made public. That would have been our preferred option, but it was only when the issue could not be resolved within the credit union movement that we asked Permanent TSB to get involved to avoid imminent liquidation and protect the savings of the deposit holders.

Clare Daly (Dublin North, Socialist Party)
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The problem is that the horse has already bolted and the conclusions from the examination of the appointment of the special manager, which the Minister says will issue shortly, are somewhat irrelevant given that the credit union has now been handed over. However, people still want answers. They wanted the gag on the directors of the credit union to be lifted so they could examine the decisions made in a few isolated cases which created the problems in the first place. The idea that the solution is to hand the credit union over, lock, stock and barrel, to a bank does not make sense when an examination of the role of the directors and the decisions made in the past could have brought better clarity and secured the savings in the credit union, with the investment being made under the credit union banner rather than having the credit union handed over to the bank.

Michael Noonan (Limerick City, Fine Gael)
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I await the report with interest, but the primary objective was to protect the savings of the members of Newbridge Credit Union. It was a close-run thing. We were within a week of the credit union's being forced into liquidation and there was no other option left. I am grateful to Permanent TSB. It had no commercial interest in the matter but it intervened because we asked it to save the credit union and people's savings. It is not ideal, but that is the way it happened. It is a pity the credit union movement was not able to come up with a solution.