Andrew Doyle (Wicklow, Fine Gael)
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158. To ask the Minister for Finance if he has considered the request by the Credit Union Advisory Council and the International Credit Union Regulators Network to review their three issues before signing the Statutory Instrument Consultation Paper 88; and if he will make a statement on the matter. [41362/15]

Michael Noonan (Limerick City, Fine Gael)
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The Government established the Commission on Credit Unions in 2011 to review the future of the credit union movement and to make recommendations, while taking account of their not-for-profit mandate, their volunteer ethos and community focus, and paying due regard to the need to fully protect members' savings and financial stability. The Commission presented its Report on 31 March 2012 and over 60 of those recommendations are contained in the Credit Union and Co-operation with Overseas Regulators Act 2012 (the "2012 Act").

The purpose of the International Credit Union Regulators' Network ("ICURN") review was to assess the performance of the Central Bank's performance of its regulatory functions in relation to credit unions. The review assessed the legal, regulatory and prudential supervisory framework in place to fulfil the Central Bank's mandate under section 84 of the Credit Union Act, 1997 and accordingly focused on the legal and regulatory framework for the regulation of credit unions in effect at the time of the review. Overall the review found that the Central Bank effectively performs its functions in the regulation and supervision of the credit union sector.

ICURN made a number of recommendations to the Central Bank under various headings outlining specific refinements. I am aware of the suggestion made by ICURN under the heading Communications and Guidance that consideration be given by the relevant authority to directing a closely-defined, limited review to evaluate the implementation of the original recommendations of the Commission on Credit Unions. ICURN acknowledges that this is not a matter for the Central Bank and suggests that such a review could be carried out by the Credit Union Advisory Committee (CUAC). I am currently considering this suggestion.

The 2012 Act was signed into law by the President in December 2012. It was agreed at that time that it would be neither practical nor feasible to commence the 2012 Act in its entirety in one fell swoop. Following on from that, an implementation timetable for the 2012 Act was devised in consultation with stakeholders, including credit union representative bodies.

Commencement of all sections of the 2012 Act has been aligned with the credit union financial year and the introduction of the underpinning Central Bank regulations, with a view to implementation of the 2012 Act in a coherent and cohesive manner. This has provided credit unions with the time necessary to ensure that the required processes and procedures are in place prior to implementation of each tranche.

I am very aware of the perceived impact of the new regulations being highlighted by the credit union sector as I have met with the three credit union representative bodies and this issue was discussed. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations by the Registrar of Credit Unions. 

The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.