Finian McGrath (Dublin North Central, Independent)
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Question 118: To ask the Minister for Finance the amount in Irish credit unions and if this finance could be used more constructively in our economy. [42259/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Based on information at 30 June 2010, the total assets of the credit union sector in Ireland is €14.5 billion. The Deputy is aware credit unions are independent financial institutions with full responsibility and control over their own funds. It is open to credit unions to invest surplus funds as they see fit provided that such loans or investments are made in accordance with the provisions of the Credit Union Act 1997. As Minister for Finance I do not have a role in making recommendations to credit unions on where they might invest their funds.

Section 55 of the Credit Union Act 1997 sets out details of the functions of the board of directors of a credit union. This includes the making of decisions on applications for loans and decisions in respect of the investment of funds of the credit union. There are also obligations on boards on the general control, direction and management of the affairs, funds and records of their credit unions. In this context, the Registrar of Credit Unions requires credit unions to manage their business in a prudent manner and to comply with all regulatory requirements, guidance notes and circulars which he issues.

The Deputy will also be aware that the conditions for registration as a credit union include having as one of the objects of the credit union the education of its members in their economic, social and cultural well-being as members of the community and the improvement of the well being and spirit of the members' community. Section 44 of the Credit Union Act 1997 provides that a credit union, subject to the accompanying provisions in legislation, may establish a special fund to be used by the credit union for social, cultural or charitable purposes, including community development.