Barry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance if he is satisfied with the progress being made in re-structuring the credit union sector; and if he will make a statement on the matter. [42296/12]

Michael Noonan (Limerick City, Fine Gael)
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The Final Report of the Commission on Credit Unions was agreed unanimously by its members, including representatives of the credit union movement. The Commission recommended that the credit union sector should be restructured on a voluntary, time-bound and incentivised basis and that the Credit Union Restructuring Board (ReBo) should be established to facilitate and oversee the restructuring process.

The Credit Union Bill 2012 was published on 28 September 2012 and implements over 60 of the Commission’s recommendations. The Bill makes provision for the establishment of ReBo on a statutory basis and sets out the functions of the board and staff of ReBo. This new legislation also provides the basis for the restructuring of the sector over time in a way that is stable and protects credit union members.

I want to ensure that progress on restructuring is not delayed pending enactment of the Credit Union Bill and so I have established the Board of ReBo on an administrative basis in the meantime. The Board consists of 13 members and its composition reflects the recommendation in the Commission report, comprising five independent members as well as members from credit union representative bodies, the Central Bank and the Department of Finance. The Board was established on 31 August 2012 and held its first meeting on 28 September 2012.

The first phase of ReBo’s work will involve undertaking preliminary engagement with credit unions during Quarter 4 of 2012. I am pleased that progress is in line with the timeline as set out by the Commission on Credit Unions.