Thomas Pringle (Donegal, Independent)
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146. To ask the Minister for Finance his plans to engage with the Irish League of Credit Unions on its concerns regarding the one-size-fits-all regulation policy of the sector, specifically the Consultation Paper 88, which imposes considerable restrictions on credit unions increasing the regulatory burden on the voluntary movement; and if he will make a statement on the matter. [5775/16]

Michael Noonan (Limerick City, Fine Gael)
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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.

While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and the Minister for Finance work together for the safety of members' savings and the security of the credit union sector.

Commencement of all sections of the Credit Union and Co-operation with Overseas Regulators Act 2012 was aligned with the credit union financial year and the introduction of the underpinning Central Bank regulations, to ensure commencement in a coherent and cohesive manner. Implementation of the 2012 Act was completed in January this year.

Prior to implementation of the regulations, the Central Bank conducted two consultation processes. In its feedback statement on Consultation Paper 76 (CP76), containing a two-tiered regulatory structure, the Central Bank stated that the majority of submissions received indicated that it was not the appropriate time to introduce a tiered regulatory approach. While its second consultation paper, CP88, did not contain a tiered approach the Central Bank stated that where credit unions set out a clear path on how they wish to develop, it will consider any amendments to the regulations that may be appropriate.

The Commission on Credit Unions recommendations provide the basis for the 2012 Act and the regulations. I have invited the Credit Union Advisory Committee (CUAC) to carry out a review of implementation of the Commission on Credit Union's recommendations. This review is underway and is expected to be completed by end June 2016. The report will take account of various matters, including the need for credit unions to develop their business model and grow income in a prudent manner.

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.