Joan Burton (Dublin West, Labour)
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Question 193: To ask the Minister for Finance the terms of reference of the strategic review of the credit union sector to be carried out by the Financial Regulator; the details of the tendering criteria; the process for the recruitment of an external consultant to conduct this review; if and the reason the tender limits applications to consultancies with a minimum turnover of €2.5 million per annum; and if he will make a statement on the matter. [7620/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have requested the Financial Regulator to carry out a strategic review of the credit union sector in Ireland. This will involve an examination of the structure, operation, regulation and legislation of the credit union sector with a view to providing a report making recommendations, including specific proposals to strengthen prudential soundness, which will advise and inform an assessment of the future strategic direction of credit unions. The Terms of Reference have not yet been finalised.

The Financial Regulator is currently undertaking a tender process, in accordance with the public procurement guidelines, to select the most suitable candidate to undertake the strategic review. The initial stage of the tender process, inviting Expressions of Interest, has recently concluded. The criteria that candidates are required to meet to progress to the next stage of the tender process were designed to ensure that the candidates selected have the necessary financial, economic and technical capacity to carry out such work and have sufficient skills, experience and levels of resources available.

Joan Burton (Dublin West, Labour)
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Question 194: To ask the Minister for Finance his views on the establishment of an independent credit union regulator under the auspices of the Department of Enterprise, Trade and Employment as proposed by an organisation (details supplied); and if he will make a statement on the matter. [7621/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Credit unions are regulated by the Registrar of Credit Unions within the overall framework of Financial Services Regulation. In the programme of reform of financial services regulation the Government decided that the Registrar would continue to operate in the context of the proposed new structures. These arrangements are intended to ensure that regulation of credit unions is carried out in a manner that is supportive of the unique structure of the credit union movement while also addressing the appropriate regulatory and consumer protection requirements that arise. It must be acknowledged that the sector has grown exponentially in recent years. It now has 14.4 billion euro in assets and a large proportion of credit unions have grown into large operations which are significant providers of services of a financial nature.

I have requested the Financial Regulator to initiate a strategic review of the credit union sector in Ireland. This will involve an examination of the structure, operation, regulation and legislation of the credit union sector. Its conclusions and recommendations will inform the development of policy in relation to credit unions, including an appropriate regulatory framework. This comprehensive review is to be an objective assessment carried out by independent experts in consultation with all of the stakeholders and I look forward to the outcome.

Joan Burton (Dublin West, Labour)
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Question 195: To ask the Minister for Finance his views on the establishment of a credit union review group under the auspices of his Department proposed by an organisation (details supplied) to conduct a review of Irish financial regulation as they apply to the credit sector; and if he will make a statement on the matter. [7622/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have requested the Financial Regulator to initiate a strategic review of the credit union sector in Ireland. This will involve an examination of the structure, operation, regulation and legislation of the credit union sector with a view to providing a report making recommendations, including specific proposals to strengthen prudential soundness. Its conclusions and recommendations will inform the development of policy in relation to credit unions, including an appropriate regulatory framework.

This comprehensive review is to be an objective assessment carried out by independent experts in consultation with all of the stakeholders and will feed into a review of credit union legislation.