Dan Neville (Limerick West, Fine Gael)
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Question 243: To ask the Minister for Finance if the group established to review the powers of credit unions in respect of loans and mortgages has reported to him; and if he will make a statement on the matter. [12784/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Report of the Review Group on Longer-Term Lending Limits under Section 35 of the Credit Union Act, 1997, was published on my Department's website on 2 February 2007. The Review Group was comprised of representatives from the Irish League of Credit Unions, the Credit Union Development Association, the Registrar of Credit Unions and my Department.

The Report recommended that Section 35 lending limits should be increased for loans over five years from 20% to 40% and over ten years from 10% to 15%, for those credit unions approved by the Registrar as having the necessary controls and safeguards in place and which satisfy financial criteria in relation to arrears and reserves.

I consider that the recommendations in the Report strike an appropriate balance between the development needs of credit unions and the protection of members' savings and have undertaken to introduce the necessary Regulatory amendments in the coming months.

It should be noted that the focus of the review was on longer-term lending in general and not on any specific product type such as mortgages. I understand however, that a number of credit unions have been approved by the Registrar of Credit Unions to provide a mortgage referral service to their members, as a result of partnership arrangements they have entered into with specific banks/building societies.