Joan Burton (Dublin West, Labour)
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100. To ask the Minister for Finance if his Department has had discussions with the Irish League of Credit Unions regarding the establishment of a special purpose vehicle, SPV, to enable credit unions to invest surplus funds in, to facilitate lending to the SME sector; if his Department is developing a structure for such a SPV for the credit union movement's surplus funds; and if he will make a statement on the matter. [32564/16]

Michael Noonan (Limerick City, Fine Gael)
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The Government recognises the important role of credit unions as a volunteer co-operative movement in this country as well as their key role in providing access to credit and other important services in local communities throughout the country.

It is fair to say that credit unions have gone through a period of considerable change since the Commission on Credit Unions Report was published in 2012 and the movement has risen to the challenges posed.  This Government has worked with the movement and will continue its ongoing engagement to ensure the safety of members' savings, to support credit unions to broaden the range of services to members and to safeguard the credit union sector as a whole into the future.

Officials from my Department have held discussions with both the Irish League of Credit Unions (ILCU) and the Credit Union Development Association (CUDA). Specifically, discussions have taken place with the Irish League of Credit Unions regarding its proposed plans for the sector including a role for credit unions in providing funding for the Small and Medium Enterprise (SME) sector. Additionally, the Strategic Banking Corporation of Ireland (SBCI) whose goal is to ensure access to flexible funding for Irish SMEs has had ongoing engagement with the representative bodies around the matter of credit unions providing funding for the SME sector.

Ultimately the involvement of a credit union, including a restructured credit union, in the provision of funding to SMEs would be a matter for the individual credit union. Additionally, this type of service would require approval by the Registrar of Credit Unions at the Central Bank, prior to a credit union providing such a service.

I am always open to considering new proposals in relation to credit unions, particularly those that would see the development of the credit union business model and an increase in income for the sector.  In recognising the important role of credit unions as a volunteer co-operative movement in this country, 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.