Results 7,821-7,840 of 27,019 for speaker:Michael Noonan

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: They cannot invest money that is on call. One of the finest features of the credit union movement is that one can, under law, withdraw one's savings any day. We are talking about surplus funds. The reason there are surplus funds is because such funds are not on call for members or being invested in the kind of projects to which the Deputy refers. This is why there are reserves to put in...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: In that case, why does the Deputy encourage the credit union movement?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: There is no legislative obstacle to the provision of electronically enabled payment accounts. Therefore, the amendment is not needed. Almost 70 credit unions already provide such accounts and have been doing so for many years, including for a wide range of services, which include a wide range of social welfare payments. Credit unions already have a variety of EFT capacity providers. The...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: Under the law already, credit unions must apply to the Central Bank for permission to offer new services. A debit card service comprises a new service. The reason credit unions did not apply in the past is twofold. The application procedure was a little complex. In addition, savings underpinned loans quite frequently in the credit union movement. One could not allow somebody with a debit...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: That is what the Bill is doing now.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: The Bill will solve the problem the Chair has just outlined.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: It will be clear on enactment of the legislation.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: While the Bill does not go into that level of detail, in its role generally, the Central Bank is very interested in moving people forward to use the latest technology and this also would apply to credit unions.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: While I will consider the Deputy's suggestion, it probably would be better to do it under the new system. However, I will revert to the issue on Report Stage and will ascertain whether it can be facilitated in a less complicated matter.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: It will be an amendment to section 48(1) of the Principal Act of 1997 and it states: "Subject to the following provisions of this Part, a credit union may provide, as principle or agent, additional services of a description that appears to the credit union and to the Bank, to be of mutual benefit to its members." The amendments are listed in the Schedule to the Bill and this general...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: Yes, after consulting, I have been informed that a tiering of the credit union movement is envisaged, in which the larger top tier would be allowed to make the kind of lending suggested by the Deputy but the smaller ones would not.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: Microfinance has a very precise definition. However, I do not see anything inhibiting credit unions from providing funding to small businesses in their own communities, if the definition of "microfinance" extends to that. As far as I know, they do it quite regularly, like putting money into small shops, businesses and start-ups. I would encourage them to continue to do so. I agree with...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: It is due to more complex lending at a large scale. This is not about lending to the local start-up, the local shop or a business that wants to put on an extension.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: For tier 1 credit unions, lending advice states the maximum loan amount in excess of shares is to be specified, a maximum loan term of five years is in place and there is no business lending. A tier 2 credit union can give limited business lending while tier 3 is less restrictive business lending than tier 2 credit unions. This has been specified by the registrar of credit unions....

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: Yes, it does. There is also provision that a credit union in a particular tier may apply to be enabled to conduct the activities in the tier above it. There is provision for a tier 1 credit union to apply to have its exclusion removed in certain circumstances. I will have a look at the Deputy's suggestions.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: Tier 1 credit unions, as a matter of practice, will only be enabled to lend for personal loans. Tier 2 can lend to small business while tier 3 can lend to larger businesses. As a safety net under that, there is an application mechanism where a tier 1 credit union could be allowed to lend for business purposes but it would not be the general practice.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: I move amendment No. 20: In page 14, subsection (2), line 30, to delete "catagories" and substitute "categories".

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: I move amendment No. 21: In page 15, line 22, to delete "subsection (2)(a)" and substitute "subsection (2)(c)".

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: I move amendment No. 22: In page 16, line 5, to delete "catagory or catagories" and substitute "category or categories".

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Credit Union Bill 2012: Committee Stage (21 Nov 2012)

Michael Noonan: This section gives effect to recommendations of the report of the Commission on Credit Unions relating to investments, chapters 10.3.22 to 10.3.24, inclusive. It substitutes a new section 43 of the 1997 Act which outlines the overriding principles with which a credit union must comply in managing its investments, including the need to avoid undue risk to members' savings as well as the need...