Michael McGrath (Cork South Central, Fianna Fail)
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44. To ask the Minister for Finance if he will provide the background to the decision of the Central Bank to seek High Court approval for the transfer of Newbridge Credit Union to Permanent TSB; the consultations held with the bank prior to the application to the High Court; and if he will make a statement on the matter. [48717/13]

Michael Noonan (Limerick City, Fine Gael)
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The decision to transfer Newbridge Credit Union’s assets and liabilities to permanent tsb bank was taken following the withdrawal of Naas Credit Union from the process. It was in the context of a possible liquidation which would have seen unprotected savings of €1.1m lost, that the Department of Finance, with the support of the Central Bank, requested permanent tsb bank to undertake this transaction. The participation of permanent tsb, for which I would like to express my thanks, has brought stability and certainty to the situation and specifically to the members and staff of Newbridge Credit Union and has provided an alternative to liquidation. This transfer means that Newbridge Credit Union members can be assured that they can continue to operate their loan and deposit accounts as normal. The Central Bank has published extensive information on its website* setting out the details of the transfer, including the relevant background material and financial details.

*http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankconfirmstransferofNewbridgeCreditUniontopermanenttsb.aspx

Michael McGrath (Cork South Central, Fianna Fail)
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45. To ask the Minister for Finance the number of Credit Unions that the Central Bank currently believes remedial action will be required; if he will specify the work that is ongoing in that regard; and if he will make a statement on the matter. [48718/13]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has informed me that, based on data submitted by credit unions as at 30 September 2013, some 20 credit unions have reported regulatory reserves below the minimum requirement of 10 per cent of assets. This gives rise to a capital shortfall in the region of €11 million in total. The Central Bank is continuing to work through a portfolio of approximately 100 credit unions on a case by case basis. The programme of work to engage with such credit unions is informed by the following:

- levels of arrears;

- Inadequate bad debt provisions;

- High fixed asset to total asset ratio and

- Other supervisory concerns including weak lending practices.

The outcomes of these engagements can include some or all of the following:

- Governance changes;

- Risk mitigation programmes;

- Lending and other business restrictions;

- Requirements for credit unions to seek capital support.

Michael McGrath (Cork South Central, Fianna Fail)
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46. To ask the Minister for Finance the amount of fees charged to date by the special manager of Newbridge Credit Union since their appointment; the person who pays the bill; and if he will make a statement on the matter. [48719/13]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that from 13 January 2012 to 26 April 2013 a total of €1,252,142 was approved for payment to the Special Manager by the High Court. The Special Manager rates were reduced after one month from €423 to €375 with the approval of the High Court. This included a corresponding fee reduction for staff working for the Special Manager. The fees concerned were paid by Newbridge Credit Union Limited. I have also been informed that the Special Manager has not been paid any fees since 26 April 2013. As part of the transfer order to PTSB, approved by the High Court on 10 November 2013, a further accrual for Special Manager fees from 27 April 2013 to 10 November 2013 of €537,000 formed part of the liabilities transferred to PTSB. The financial incentive paid to PTSB as part of the transfer reflects this amount. However, fees to be paid to the Special Manager during that period have not been agreed at this point. In that regard, the fees payable cannot be greater than €537,000.