Maureen O'Sullivan (Dublin Central, Independent)
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109. To ask the Minister for Finance the specific actions taken by the Central Bank to articulate, express or give effect to its supportive attitude towards the implementation of section 44 of the Credit Union Act 1997 by credit unions; the number of instances known to the Central Bank where a section 44 fund has been established; if he envisages a role for his own office in encouraging the take-up of the enabling legislative provision; and if he will make a statement on the matter. [17572/16]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that section 44 of the Credit Union Act, 1997 as amended (the Act) provides that a credit union may establish a special fund to be used by the credit union for such social, cultural or charitable purposed (including community development) where it is approved by a resolution passed by a majority of its members present and voting at a general meeting.

Furthermore, Regulations made by the Central Bank of Ireland (the Central Bank); the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016, which were commenced on 1 January 2016, make specific reference to section 43 of the Act and to the further classes of investments in which a credit union may invest its funds which may include investments in projects of a public nature.

Funds established under section 44 do not require the approval of the Central Bank; it is a matter for credit unions to ensure that any such investments are in compliance with the applicable legislative and regulatory requirements. Therefore, it is a matter for an individual credit union to determine whether or not it is appropriate to establish a special fund under section 44 based on its own individual circumstances. Where an individual credit union intends to establish such a fund the Central Bank would expect the credit union to also take account of the need to ensure the protection of its members' funds.

Credit unions are not obliged to report the establishment of such a special fund to the Central Bank. Accordingly, the Central Bank is not required to hold data on the number of credit unions who have established a special fund under section 44.

The legislation does not envisage a role for my Department in encouraging the take up of this section.  My Department continues to be supportive of the credit union movement through the Credit Union Restructuring Board (ReBo), the Credit Union Advisory Committee (CUAC) review of the implementation of the Commission Report and a range of other measures as outlined in the Programme for Partnership Government.