Joan Burton (Dublin West, Labour)
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Question 187: To ask the Minister for Finance if he values the continued presence of mutual societies as an important element of the landscape of credit institutions; if the maintenance of such a presence is a tenet of current policy; and if he will make a statement on the matter. [6361/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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While the regulation of financial institutions, including building societies, is a matter for the Financial Regulator, policy responsibility for building societies currently rests with the Minister for the Environment, Heritage and Local Government. I might mention, however, that arrangements for the transfer of the policy responsibility for building societies legislation to my Department are currently under development and I hope to be able to bring forward the necessary enabling legislation later this year. The significance of the role of building societies has changed significantly over recent decades. During the 1980s almost two-thirds of mortgages were provided by building societies, with their proportion of total mortgages reaching a peak of over 70% in the early 1990s. However, they now account for approximately 20% of the mortgage market and the number of building societies now stands at just three — of which two are mutuals. The Government is facilitative as regards mutual building societies in providing a legislative framework under which they can be established and operate, and the legislation certainly supports any building society which wishes to retain its mutual status. Ultimately, of course, it is a matter for the membership of a building society to decide whether or not it should retain its mutual status.