Maureen O'Sullivan (Dublin Central, Independent)
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236. To ask the Minister for Finance if he considers that the implementation by restructured credit unions, in particular of section 44 of the Credit Union Act 1997, together with the inclusion of the credit unions in the dormant accounts regime would enhance the capacity of credit unions to contribute much more socially and economically to communities; whether, in the absence of its implementation, section 44, which is now almost 20 years on the Statute Book, will be best repealed, since to put legislation on the Statute Book that has little hope of being enforced degrades the rule of law and the legislators; and if he will make a statement on the matter. [32958/15]

Michael Noonan (Limerick City, Fine Gael)
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Section 44 of the Credit Union Act, 1997 provides that a credit union may establish a special fund to be used by the credit union for social, cultural or charitable purposes by a resolution passed by a majority of its members present and voting at a general meeting. I have been informed by the Central Bank that where individual credit unions intend to establish such a fund, the Central Bank would expect the credit union to take account of the need to ensure the protection of the funds of its members.

The remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012, when commenced, will replace, amend or supplement existing sections of the 1997 Act. The introduction of the new sections into the 1997 Act by the 2012 Act will, in effect, remove some of the requirements (including limits) that currently exist and will provide regulation making powers to the Central Bank.  While section 44 will not in itself be changed, the power to make regulations in relation to investments in projects of a public nature is specifically referenced in legislation and therefore such investments could be facilitated by future regulations, where appropriate, when there are specific proposals put forward by the credit union sector. While to date the Central Bank has not received any specific proposals regarding investment projects of a public nature, the Central Bank informs me that it is willing to consider such proposals including the type of regulations that would be required to facilitate such proposals.

In relation to dormant accounts, the Dormant Accounts Act, 2001 (as amended) provides for accounts in credit institutions to be transferred to the Dormant Accounts Fund when an account has been dormant for 15 years. Credit unions are currently not subject to the dormant accounts legislation. Accordingly, accounts in credit unions that have not been reclaimed by the owners for at least 15 years are not transferred to the Dormant Accounts Fund.

The Credit Union Act, 1997 (as amended) does not make reference to Dormant Accounts. Dormant accounts in credit unions, and the practices surrounding them, are governed by Rule 22 of the Standard Rules for Credit Unions published by the Irish League of Credit Unions.