Michael Fitzmaurice (Roscommon-Galway, Independent)
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157. To ask the Minister for Finance if he supports the roll-out of debit cards by credit unions as per the programme for Government; if he will ensure that the Central Bank supports this initiative by the credit union movement; and if he will make a statement on the matter. [15048/16]

Michael Noonan (Limerick City, Fine Gael)
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In its Programme for Government, this Government is very clear on its support of the invaluable role of credit unions in Ireland and specifically supports credit unions moving towards more electronic and on-line services, including the rollout of debit cards and enhanced on-line financial services.

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.

The Credit Union Act  1997 (1997 Act) and related statutory instruments set out the services that a credit union may provide to its members. Where a credit union wishes to provide services to its members, in addition to the services that are provided for under the 1997 Act, an application may be made to the Central Bank for approval to provide such additional services in accordance with the provisions set out in sections 48 to 51 of the 1997 Act.

Both this Government and the Central Bank are supportive of credit unions developing additional services. The Central Bank informs me that is open to working with credit unions to ensure that prudent and appropriate development of the business model can be facilitated within the regulatory framework. The development of debit card services is a matter for the Registry of Credit Unions and applications for such a service must be approved by the Central Bank.

I have further been informed by the Central Bank that it has been clear in its engagement with credit unions and other stakeholders seeking to offer debit cards, that this service must be supported by the appropriate payment account service. Consequently, a full payment account service has recently been developed by the Registry of Credit Unions to allow eligible credit unions to offer these accounts and associated payment instruments such as debit cards. The service is subject to formal application and approval as an additional service under sections 48 to 51 of the 1997 Act. The Central Bank has received a number of applications which are currently being processed. No credit union has yet been approved for this service.

While the Government recognises the important role of credit unions as a volunteer co-operative movement in this country, its 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.