Maureen O'Sullivan (Dublin Central, Independent)
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Question 52: To ask the Minister for Finance the reason the Financial Regulator, with responsibility for credit unions, is making decisions on credit union reform before the commission has completed its review. [22806/11]

Michael Noonan (Limerick City, Fine Gael)
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The Programme for Government sets out the Government's position with regard to the credit union sector. The Government recognises the importance of credit unions as a volunteer cooperative movement and the distinction between them and other financial institutions. The Government has established the Commission on Credit Unions to review the future of the movement and make recommendations in relation to the most effective regulatory structure for it. This will take into account its not-for-profit mandate, its volunteer ethos and community focus, while paying due regard to the need to fully protect depositors' savings and financial stability. The Commission has met on eight occasions since the end of June and will be providing me, as Minister for Finance, with its interim report by the end of September.

While the work of the Commission on Credit Unions is ongoing, and its interim and final reports will inform Government policy, it should not prevent or delay regulatory action where it is needed in the meantime. Under the Credit Union Act 1997, the Registrar of Credit Unions, as part of the Central Bank, has an independent role in the regulation of credit unions. From time to time, the Registrar is required to act to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. Such actions are within the Registrar's independent statutory mandate and are a necessary part of an effective regulatory regime.