Tom Fleming (Kerry South, Independent)
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268. To ask the Minister for Finance further to Parliamentary Question No. 167 of 14 January 2015, if he will provide an update on proposals to form an alliance of post offices and credit unions to grant loans to the general public; and if he will make a statement on the matter. [26362/15]

Michael Noonan (Limerick City, Fine Gael)
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The credit union sector plays an important role in providing financial services nationally, but in doing so must retain the responsibility of ensuring members' funds are not put at undue risk.

As I noted in Parliamentary Question No. 167 of 14 January 2015, my Department received a proposal in August 2014 outlining a plan to establish and operate joint initiatives between participating Limerick County Credit Unions and An Post. This plan involves a Pilot Project that would see the channelling of some of An Post services through credit unions and also looks at the prospect of An Post providing some credit union services.  Officials from my Department met with one of the proposers of this plan on the 29 August 2014 and again on 29 January 2015.  In April 2015, Department officials and I met with a Galway credit union that expressed an interest to be involved in any pilot scheme between credit unions and An Post.

I am always open to considering proposals in relation to credit unions, particularly those that would see the development of the credit union business model and an increase in income for the sector.  The proposals to date have been at a very early stage of development and would require additional work.  Also, such proposals would require agreement from all stakeholders before a pilot project could be rolled out.

The Registrar of Credit Unions at the Central Bank is responsible for the regulation of credit unions and as such, any proposal in relation to credit unions would be subject to regulatory approval by the Regulator.