Róisín Shortall (Dublin North West, Social Democrats)
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228. To ask the Minister for Finance the position regarding the future role of credit unions; if he is committed to supporting the strategic development of credit unions in order that they can extend the range of services offered so that the public can have a wider choice of financial services providers; and if he will make a statement on the matter. [32732/15]

Michael Noonan (Limerick City, Fine Gael)
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As I have previously stated, credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. The Government recognises this and has put in place a number of measures to ensure that credit unions can continue to provide these vital services to their members and to ensure the stability of the sector into the future. These measures include:

-the establishment of the Commission on Credit Unions;

-the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012;

-the establishment of the Credit Union Restructuring BoardReBo;

-the establishment of a stabilisation levy to support credit unions that are undercapitalised but are otherwise viable;

-the availability of €250 million for voluntary restructuring of credit unions facilitated by ReBo; and

-the availability of €250 million for resolution purposes.

My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.

The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions.  Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.

Credit union strategy is a matter for credit unions themselves and is specifically provided for in Section 17 of the Credit Union and Co-operation with Overseas Regulators Act 2012. The setting of strategy for a credit union is a function of the board of directors and Section 17 provides that this should be carried out in close co-operation with a credit union's management team. However, I am always open to considering new 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 Central Bank has informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in its feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months. 

The safety of members' savings and the security of the credit union sector as a whole are priorities for this Government and I have, on a number of occasions, highlighted the Governments' recognition of the important role of credit unions as a volunteer co-operative movement.