Written answers

Tuesday, 8 November 2016

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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120. To ask the Minister for Finance if a credit union (details supplied) will be wound up; if so, the outcome for the current members; and if he will make a statement on the matter. [33604/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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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 of Ireland 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 Central Bank of Ireland has informed me that it made an application on 2 November 2016 to the High Court to have joint provisional liquidators appointed to Rush Credit Union Limited (Rush Credit Union). Jim Luby and Tom Rogers of McStay Luby were appointed as joint provisional liquidators on that date by the President of the High Court, Mr Justice Peter Kelly. The full application will be heard on 21 November, when the Central Bank will seek the winding up of Rush Credit Union. The appointment of the joint provisional liquidators to Rush Credit Union has no impact on members' savings in any other credit union.

The Deposit Guarantee Scheme (DGS) provides protection up to €100,000 per depositor per financial institution. Following the appointment of the joint provisional liquidators, the DGS has been activated. Payments will automatically issue to the address held on file by the credit union. Members do not have to contact the credit union or the Central Bank, as compensation payments will automatically issue by cheque to all duly verified depositors. The DGS will make compensation payments as early as possible within the statutory deadline of 20 working days to duly verified depositors.

The Central Bank is conscious that there is a demand for the services of a credit union in the local area and will examine what arrangements can be put in place to provide specific credit union services in the community in the future. The Central Bank is keen that credit union services are available to the people of Rush and Lusk. In some cases members may currently be able to avail of services in another credit union in the area as the common bond may extend into their locality or through their place of work.

The Central Bank has further informed me that it remains fully supportive of the credit union sector in Ireland and is committed to the continued development of a strong and sustainable sector that meets members' changing needs and protects their savings.

The Government recognises 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 continue to support a strengthened and growing credit union movement.

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