Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

325. To ask the Minister for Finance the total administration costs of the Credit Union Restructuring Board for each calendar year since its establishment; and if he will make a statement on the matter. [21947/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Credit Union and Co-operation with Overseas Regulators Act 2012 provides the statutory basis for the restructuring of credit unions and placed the Credit Union Restructuring Board - ReBo - on a statutory footing from 1 January 2013. ReBo is currently in the process of overseeing and facilitating restructuring on a voluntary, incentivised and time-bound basis and is working towards the timetable set out in the Commission on Credit Unions report, with a view to completing the process by the end of 2015.

The Government has made available €250 million to the Credit Union Fund for the voluntary restructuring of credit unions.

ReBo's administrative costs since establishment are as follows:

- 2013  €696,000

- 2014  €1,254,000

Consistent with the co-funding of ReBo by the credit union movement and the State, as recommended by the Commission on Credit Unions, a levy on the sector has been put in place to recoup 50% of ReBo's total expenditure.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

326. To ask the Minister for Finance in relation to the €250 million from the Central Fund of the Exchequer, made available to the credit institutions resolution fund by him in December 2011, the total drawdown to date; the amounts used in each of the years 2011 to 2014, and in 2015 to date; the number of credit unions supported; the amount used to support each credit union for which the fund was used; and if he will make a statement on the matter. [21948/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government put €250 million into the Credit Institutions Resolution Fund which was established by section 10(1) of the Central Bank and Credit Institutions (Resolution) Act 2011 (as amended) (2011 Act). The purpose of the Resolution Fund under the 2011 Act is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, an authorised credit institution. In particular the Resolution fund may be used for:

- the payment of financial incentives for transfers;

- providing capital for a bridge bank (details of a bridge bank are set out in Part 4 of the 2011 Act);

- meeting the expenses of the Central Bank incurred when discharging functions under the Act, and

- making certain payments under the Act, for example, the payment of expenses to an assessor appointed under the Act.

To date, the resources of the Resolution Fund have been utilised to fund the resolution of 4 credit unions. In the case of 3 of those credit unions, the resolution action taken was a directed transfer under the 2011 Act, and the Resolution Fund funded a financial incentive for the transferee. The remaining case was a liquidation, and no incentive was paid from the Resolution Fund in respect of that resolution. In each of the 4 cases, the Central Bank discharged its third party resolution related costs against the Resolution Fund.

The amounts paid or payable to date from the Resolution Fund for incentives in each of the 3 transfer resolution cases are as follows:

- Newbridge Credit Union Limited: €27 million

- Howth Sutton Credit Union Limited: €2.15 million

- Killorglin Credit Union Limited: €2.15 million

- Central Bank resolution related expenses that have been discharged against the Resolution Fund to date amount to €2.7 million.

To date €35.4 million has been drawn down from the Resolution Fund by way of expenditure relating to incentives for credit union resolution, Central Bank resolution related expenses and interest expenses.

The breakdown of expenses per year of operation of the Resolution Fund is as follows:

The Resolution Fund has income over the period amounting to €29 million. This is made up of €23.7 million in levy income; €1.4 million in interest income; and €3.9 million in income estimated from the Newbridge Credit Union liquidation process.

Under Section 12(2) of the Resolution Act, as Minister for Finance I am entitled to be reimbursed from the Resolution Fund for all contributions to that Fund and for any financial incentive provided.

*The CIRF was established by the 2011 Act, and was only in operation from October in 2011; therefore the first set of published accounts for the CIRF relate to period from 28 October 2011 to 31 December 2012.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

327. To ask the Minister for Finance in respect of the Credit Union Restructuring Board, and the credit union fund available to the board, the total number of credit unions assisted, to date; the estimated total number of credit unions that are expected to be assisted; the amount that will be used to support credit unions before the board is scheduled to be wound up; and if he will make a statement on the matter. [21949/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Credit Union and Co-operation with Overseas Regulators Act 2012 provides the statutory basis for the restructuring of credit unions and placed the Credit Union Restructuring Board - ReBo - on a statutory footing from 1 January 2013. ReBo is currently in the process of overseeing and facilitating restructuring on a voluntary, incentivised and time-bound basis and is working towards the timetable set out in the Commission on Credit Unions report, with a view to completing the process by the end of 2015.

The Government has made available €250 million to the Credit Union Fund for the voluntary restructuring of credit unions.

ReBo undertook a high level assessment of all credit unions based on financial data from Central Bank and engagement with each credit union. To date, 48 credit unions have been assisted in ReBo approved mergers. A further 121 are currently being assisted in ongoing merger projects. Based on these figures, ReBo estimates that it will assist approximately 169 credit unions in achieving a voluntary restructuring solution. To date, drawdown from the Credit Union Fund has totalled €5.9 million. ReBo is continuing to engage with credit unions to provide an opportunity for those credit unions to merge on a voluntary basis. The remaining expenditure will depend on the number of credit unions that will engage in a restructure with ReBo in the coming months.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

328. To ask the Minister for Finance in respect of the Credit Union Restructuring Board, the schedule for conclusion of the board’s work; if there has been any request or discussion between him, his Department, the board or the Central Bank of Ireland regarding extending the planned time frame of the board’s work and remit; and if he will make a statement on the matter. [21950/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Credit Union Restructuring Board - ReBo, was established on a statutory basis on 1 January 2013. The objectives of the restructuring process are to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model. ReBo is continuing to work to the timetable set out in the Commission on Credit Unions Report and is expected to accept restructuring proposals up to the end of December 2015. 

Section 43 of the Credit Union and Co-operation with Overseas Regulators Act 2012 provides that a review of the work of ReBo will be carried out no later than 1 January 2016. This review will inform me as to whether or not ReBo has completed the performance of its functions. When I am satisfied that ReBo's work is done, I will by order dissolve ReBo. Section 43(2)(b) further provides that following this review, where it is shown that ReBo has not completed the performance of its functions, a further review must be carried out within 12 months of the first review.

I am expecting to receive the review on the work of ReBo from its establishment to that date, before the end of the year. This review will inform my decision on the future of ReBo.