Trevor Sargent (Dublin North, Green Party)

May I finish? The registrar can also issue regulatory direction and prohibition orders to a credit union concerning a broad range of issues, including investments, raising of funds, loans, assets and liability ratios, and the composition of their assets and liabilities. The registrar has extensive powers of inspection and investigation of credit unions as well as broad supervisory powers, for example, to appoint, suspend or remove a person as a director of a credit union, or to remove auditors. A number of offences are also provided for in the 1997 Act. In view of the extensive powers available to the registrar under the Act, it cannot be said the regulatory system relies on guidance only to credit unions. The Government, however — this is an important point for Senator O'Toole — remains open to consider further legislative reform on the basis that proposals are agreed in consultation with the major stakeholders.

The main priority for safeguarding credit unions over recent years has been the reform of the Irish League of Credit Unions savings protection scheme. The Minister for Finance is considering legislative proposals for the stabilisation in the context of the preparation of the financial services deposit guarantee scheme Bill 2009 which will be ready to be published during this session. The Bill's purpose is to give effect to the Government decision to increase to €100,000, with effect from 20 September 2008, the protection for deposits with banks and building societies and to extend it to credit unions.

Recent media reports have highlighted difficulties which the registrar of credit unions is dealing with in a minority of credit unions. The registrar has highlighted that of the 419 credit unions registered in the Republic, only a handful are affected by these difficulties. The registrar is continuing to work closely with the boards of these credit unions that are encountering problems. Very close oversight, monitoring and controls over these credit unions by the registrar of credit unions are intended to assist them in addressing current issues and to ensure their long-term stability and sustainability.

It must be stressed that, following the Government's decision last September on the extension and increase in protection available under the deposit guarantee scheme, all credit union savers can be reassured that their deposits and shares to the total maximum value of €100,000 are safe and secure. In addition, the credit union movement as a whole is in a relatively strong financial position with solid liquidity and reserves.