Michael McGrath (Cork South Central, Fianna Fail)
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225. To ask the Minister for Finance the status of the work of the Credit Union Restructuring Board; and if he will make a statement on the matter. [10642/16]

Michael Noonan (Limerick City, Fine Gael)
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On 1 January 2013 the Credit Union Restructuring Board ("ReBo"), was established on a statutory basis. ReBo was established to facilitate and oversee the restructuring of credit unions on a voluntary, incentivised and time-bound basis. The objectives of the restructuring process are to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model.

In October 2015 a detailed review of the work of ReBo was carried out under section 43 of the 2012 Act to examine whether or not ReBo had completed the performance of its functions. This review recommended that the final date for a credit union to receive a letter of offer from ReBo should be extended from 31 December 2015 to 31 March 2016. This extension provided additional time for credit unions considering entering the restructuring process to make an application in good time. 

Section 43(2)(b) of the 2012 Act provides that a further review must be carried out within twelve months of the first review to establish whether or not ReBo has completed its work. In accordance with the 2012 Act, when I am satisfied that ReBo's work is done I will, by order, dissolve ReBo.

As at the end of April 2016, ReBo has engaged with 219 different credit unions in 117 merger projects. This represents in excess of 50% of total sector assets. 41 of these projects, involving 91 credit unions, have completed mergers with a further 9 projects involving 22 credit unions set to complete shortly. ReBo's focus for the rest of the year is to assist the remaining 106 credit unions in completing their mergers.

ReBo expects to have fully completed this work by the end of the year using circa €20 million of the €250 million set aside into the Credit Union Fund for the purposes of restructuring. Over the course of its lifetime ReBo expects the number of credit unions in Ireland to have consolidated from 403 to circa 260.

As stated previously, I am pleased that credit unions are engaging with ReBo as a business strategy to achieve the scale necessary to move to a more efficient and effective business model and as a means of strengthening the sector.