Written answers

Thursday, 30 November 2017

Department of Finance

Credit Union Restructuring

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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28. To ask the Minister for Finance the status of his Department’s work in respect of the restructuring of the credit union sector; and if he will make a statement on the matter. [50877/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I can advise the Deputy that the Government has a clear policy to support the strategic growth and development of credit unions in Ireland as set out in the Commission on Credit Unions Report and recommendations. My Department is chairing a stakeholder group which is working to implement the recommendations of the Credit Union Advisory Committee report of June 2016. 

The safety of members' savings and the security of the credit union sector as a whole are priorities for this Government and a number of measures have been put in place to assist the credit union sector. These measures included, amongst others, the establishment of the Credit Union Restructuring Board – ReBo and the availability of €250 million of exchequer funding for voluntary restructuring of credit unions facilitated by ReBo.

ReBo was established on a statutory basis on 1st January 2013 pursuant to section 42 of the 2012 Act to facilitate and oversee restructuring of the sector. The 2012 Act provides that when the Minister for Finance is satisfied that ReBo has completed the performance of its functions under Part 3 of the Act, the Minister may by order dissolve ReBo. Prior to dissolving ReBo, section 43(2) requires that the Minister conducts a review of the operation of Part 3 of the Act, to determine whether or not ReBo has, in the Minister's opinion, completed the performance of its functions. A review of the operation of Part 3 of the Act was carried out by me in June 2017 which determined that ReBo had completed the performance of its functions. This review was published on the Department website. My Department has prepared draft Heads of a Bill for the dissolution of ReBo which will be brought to Government shortly.

During its 4 year lifetime, ReBo has overseen and facilitated 82 restructuring projects involving 156 credit unions with assets totalling circa €6bn, across 24 counties. These newly merged credit unions are now bigger and stronger entities who will be better positioned to harness the efficiencies of their increased scale to prudently develop the products and services that their members are looking for now and into the future.  Further restructuring projects have recently taken place without the support of ReBo, which has completed the performance of its functions.      

The Government wants not only strong, vibrant credit unions offering a safe and secure place for members' savings but also credit unions' being appropriately positioned to offer their members a wide range of services including loans, debit card facilities and new facilities based on the needs of their membership. This Government recognises the important role of credit unions as a volunteer co-operative movement in Ireland and 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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