Tommy Broughan (Dublin Bay North, Independent)
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46. To ask the Minister for Finance the status of discussions with the Irish League of Credit Unions on its proposals to release funds for social housing; and if he will make a statement on the matter. [8860/16]

Michael Noonan (Limerick City, Fine Gael)
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The Department of the Environment, Community and Local Government is the Department primarily responsible for the formulation and implementation of policy and the preparation of legislation in relation to housing. 

My Department has received a number of different proposals from the Credit Union Development Association (CUDA) and from the Irish League of Credit Unions (ILCU).  Proposals from both representative bodies, in relation to the funding of social housing, are at various stages of development.

In respect of the ILCU proposal, I have been informed that Minister Alan Kelly and Minister of State Paudie Coffey at the Department of the Environment, Community and Local Government met with ILCU in December 2015 to discuss its proposal around funding of social housing developments. There have been a number of follow-up meetings between officials from my Department and the Department of Environment, Community and Local Government to consider any potential regulatory or legislative implications of credit union becoming involved in social housing funding.

Two alternative models of funding were proposed by ILCU in relation to social housing and it was determined that the second of the two models would be best placed to achieve the objective of providing a mechanism for investment in social housing without negatively impacting on the General Government Balance, and keeping the funding 'off-balance sheet'.  It was agreed that ILCU would progress the preferred model, with both Departments indicating their availability should any assistance be required regarding technical advice or further information. 

The Registrar of Credit Unions at the Central Bank is the independent regulator of credit unions, and ultimately any decision around credit unions providing such fundung would require regulatory approval prior to implementation.

The Government recognises the important role of credit unions as a volunteer co-operative movement in this country. The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to support a strengthened and growing credit union movement.