Jim O'Keeffe (Cork South West, Fine Gael)
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Question 138: To ask the Minister for Finance his views on the legislative and other restrictions on the growth and development of the credit union movement should be removed and in particular his views on whether the restriction on the amounts that can be lent over five years and ten years are severely limiting the operations of credit unions; and if he will introduce the necessary changes as a matter of urgency. [25426/06]

Brian O'Shea (Waterford, Labour)
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Question 140: To ask the Minister for Finance his proposals to make a Ministerial Order under Section 35 of the Credit Union Act 1997 along the lines sought by the League of Credit Unions (details supplied); and if he will make a statement on the matter. [25508/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 138 and 140 together.

Under Section 35 of the Credit Union Act, 1997 loan terms over 5 and 10 years are limited to 20% and 10% respectively of each credit union's loan portfolio overall. These limits may be changed by Ministerial Order under the Act. The Irish League of Credit Unions (ILCU) has highlighted the current restrictions on longer-term lending as an important concern for the credit union movement and is advocating an increase in the lending limits. The Registrar of Credit Unions who is responsible for the regulation of credit unions under the Act does not favour a change in the lending limits at this time. In view of the divergence of views, I have referred this matter to the Credit Union advisory Committee (CUAC), the statutory advisory body on credit union matters under the Credit Union Act, requesting the Committee's advice on whether a review of the current limits on longer-term lending should be carried out. The recommendation of the advisory Committee is expected shortly.