Frank O'Rourke (Kildare North, Fianna Fail)
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34. To ask the Minister for Finance if he will consider deploying some of the unused funds allocated to the Credit Union Restructuring Board, ReBo, to support the development and growth of the sector, in line with commitments entered into on the formation of the Government, in particular in relation to supporting the information technology infrastructure and new product offerings; and if he will make a statement on the matter. [17532/16]

Michael Noonan (Limerick City, Fine Gael)
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Section 57 of the Credit Union and Co-Operation with Overseas Regulators Act 2012 (2012 Act) provides for the establishment of the Credit Union Fund as a source of funding for restructuring and to meet the expenses of the Credit Union Restructuring Board (ReBo) in carrying out its functions under the 2012 Act. In December 2012, I contributed €250m to the Credit Union Fund for the purpose of restructuring the credit union sector. The placing of money in the Fund had no impact on the general Government deficit as it is only when this money is spent that it impacts the deficit. This funding has always been ring-fenced specifically to provide financial support for restructuring credit unions.

The terms of the Restructuring Scheme, agreed between the Department of Finance and DG Competition at the European Commission are specific to restructuring credit unions and are measures granted under a State aid scheme. There is no flexibility within the Scheme to provide funding for any measure other than restructuring.  Therefore the deploying of funds for other uses would have State aid issues.

In 2015, ReBo conducted a detailed analysis of likely funding requirements and it estimates that its net use of the Credit Union Fund will amount to no more than circa €20m.  This will enable the return of circa €230m to the Exchequer.  While it was envisaged that significant funding would be required for credit union restructuring, it is commendable that the credit union movement itself has provided funding from within its own resources for this purpose, thus minimising the requirement for drawing on Exchequer funding.

ReBo continues to assist a large number of credit unions so its total expenditure will not be known for a number of months.  There are now 218 credit unions, spread across 118 projects that have either restructured or are actively restructuring. Over 100 different credit unions have now successfully completed a transfer of engagements.

My Department is always open to examining any proposals from the representative bodies or individual credit unions in relation to the development of a strengthened and revitalised credit union sector.  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.