Written answers

Thursday, 29 September 2016

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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45. To ask the Minister for Finance the level of engagement he and his officials have had with the Irish League of Credit Unions regarding proposals to utilise its existing reserves on deposit for investment in public infrastructure improvements. [27628/16]

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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72. To ask the Minister for Finance the level of engagement he and his officials have had with the Irish League of Credit Unions regarding proposals to utilise their existing reserves on deposit for investment in public infrastructure improvements. [27799/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 45 and 72 together.

In the Programme for Partnership Government, we stated that we will investigate with all stakeholders how credit unions can support the delivery of social housing.

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

However, the Department of the Environment, Community and Local Government is primarily responsible for the formulation and implementation of policy and for the preparation of legislation in relation to housing. Also, the Registrar of Credit Unions at the Central Bank is responsible for the regulation and supervision of the credit union sector. Earlier this year the Central Bank amended regulations to allow for investments to be made by credit unions in projects of a public nature, to include but not limited to investments in social housing.

The ILCU has submitted a proposal setting out a means by which funding could be provided to Approved Housing Bodies by credit unions, for the development of social housing. CUDA has also submitted a proposal in respect of the funding of social housing. For credit union investment to work in providing additional investment it has to be off-balance sheet . Credit unions cannot simply hand over money to the State to build social housing. This would effectively be Government borrowing by another name and would end up on the State's balance sheet. The credit union bodies themselves will therefore have to put in place the necessary financial structure for investing in the delivery of social housing by the AHBs. Both representative bodies are working on these structures with the Department of Environment providing necessary technical advice and support.

Officials from my Department and officials from the Department of the Environment have met jointly with the Central Bank to provide information and to discuss issues arising from these proposals. The Department of the Environment provides updates on progress and has been in ongoing contact with the credit union representative bodies. I have been informed that the most recent meeting between Department of Environment officials and the ILCU was on 12 July. It was agreed that the representative bodies would progress their proposals, with both Departments indicating their availability should any assistance be required regarding technical advice or further information.

Ultimately, any funding mechanisms will have to be put in place in the first instance by the credit unions themselves, with the support of their members, and these must be sanctioned by the Central Bank.

Both myself and Minister Coveney are happy for our officials to continue to contribute to this process by providing necessary technical advice and support as required.

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