Maureen O'Sullivan (Dublin Central, Independent)
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61. To ask the Minister for Finance further to Parliamentary Question No. 236 of 29 September 2015, if he will confirm that the non-implementation of section 44, the local investment provision, of the 1997 Credit Union Act is not primarily due to any reluctance or unwillingness on the part of the boards of credit unions to establish special funds for social, cultural or charitable purposes, but rather, is due to the active discouragement of such initiatives on the part of the Central Bank of Ireland in its role as Credit Union Regulator; and if he will make a statement on the matter. [34795/15]

Michael Noonan (Limerick City, Fine Gael)
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Further to Parliamentary Question No. 236 of 29 September 2015, I have been informed by the Central Bank that 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 such social, cultural or charitable purposed (including community development) where it is approved by a resolution passed by a majority of its members present and voting at a general meeting. Funds established under section 44 do not require approval of the Central Bank. The Central Bank informs me that it is supportive of such initiatives by credit unions provided they fall within the provisions of section 44. These provisions include a requirement that funds paid into such a special fund can only be paid out of the annual operating surplus of a credit union and that no funds may be paid into such a special fund unless adequate provision has been made out of the annual surplus to cover all current and contingent liabilities and to maintain proper reserves. There is also a requirement that the payment of the funds into the special fund will not affect the financial stability of the credit union. In addition section 44(3) specifies that the amount of funds which may be paid out of the annual operating surplus into such special fund shall not exceed 0.5% of the value of the credit unions' assets.

Maureen O'Sullivan (Dublin Central, Independent)
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62. To ask the Minister for Finance further to Parliamentary Question No. 236 of 29 September 2015, if he has been apprised of the disposition of the Central Bank of Ireland, in its role as Credit Union Regulator, on the desirability of including credit unions in the dormant accounts regime, something that was seen as desirable by the Minister of Finance who introduced the dormant accounts regime (details supplied); and if he will make a statement on the matter. [34796/15]

Michael Noonan (Limerick City, Fine Gael)
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Dormant Accounts legislation is a matter for the Department of the Environment Community and Local Government (DECLG).

Further to Parliamentary Question No. 236 of 29 September 2015, 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.

I have been informed by DECLG that an analysis of the benefit of adding dormant credit union accounts to the Dormant Accounts Fund has not been carried out. In practical terms, increasing the amount available in the Fund does not necessarily allow for the introduction of new dormant accounts measures or programmes, which is the focus of DECLG in respect of the Fund. While applying the provisions of the dormant accounts legislation to credit union accounts could increase the size of the Fund, Government Departments must source monies for dormant accounts programmes and measures from their Exchequer allocation in the same way as with any other funding programme. When the monies expended on dormant accounts measures and programmes are reimbursed from the Dormant Accounts Fund, the refund is to the Exchequer rather than to the spending Department. For this reason, dormant accounts expenditure is subject to the same constraints within Departments as any other spending programme.  

In addition, expenditure on new dormant accounts measures or programmes would serve to increase Government debt levels, as moneys disbursed from the Dormant Accounts Fund belong to the account holder, who can reclaim it at any time, and not to the State.  Consequently, every euro spent from the Fund is regarded in accounting terms as a potential Government liability.  

It would be a matter for Government on the advice of the Department of Finance or DCELG to decide on any extension to the Dormant Account legislation to include credit unions. However, there are no plans at present to introduce such a change.