Robert Dowds (Dublin Mid West, Labour)
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Question 43: To ask the Minister for Finance when the Commission on Credit Unions is expected to begin its work; and the length of time it will take to complete same. [11033/11]

Robert Dowds (Dublin Mid West, Labour)
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Question 44: To ask the Minister for Finance the remit which will be given to the Commission on Credit Unions. [11034/11]

Robert Dowds (Dublin Mid West, Labour)
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Question 45: To ask the Minister for Finance if he expects that legislation regarding credit unions may be necessary after the Commission on Credit Unions completes its work. [11035/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 43, 44 and 45 together.

The Deputy will be aware that, under the EU/IMF Programme of Support for Ireland, we have certain commitments in relation to the credit union sector. One of these commitments is to have the Commission on Credit Unions established by end-May 2011. I intend to meet this target.

The Terms of Reference for the Commission will be agreed later this month by Government Decision. The Programme for National Government 2011-2016 sets out the Government position with regard to the credit union sector. The Government recognises the important role of credit unions as a volunteer cooperative movement and the distinction between them and other types of financial institutions. It is intended that, as described in the Programme for Government, the Commission will review the future of the credit union movement and make recommendations in relation to the most effective regulatory structure for Credit Unions. This will take into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect depositors' savings and financial stability.

It is clear that legislation will be necessary. The Government has made a commitment under the EU/IMF Programme of Support to submit legislation to the Oireachtas by end-2011 to assist credit unions with a strengthened regulatory framework, including more effective governance and regulatory requirements. The Commission will be required to design a strategy for the future evolution of the sector and while I would not wish to preempt the outcome of the Commission's deliberations, I would envisage that the legislative provisions contained in the Credit Union Act 1997 will have to be amended to underpin the structure, operation and regulation of a modern credit union sector.