Michael McGrath (Cork South Central, Fianna Fail)
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69. To ask the Minister for Finance the process required for credit unions to offer a debit or credit card service; if consultation has taken place between credit unions, the Central Bank and his Department with regard to the provision of such services; if an impact assessment will be undertaken as to the likely impact on credit unions if An Post is permitted to offer debit or credit card services; and if he will make a statement on the matter. [18531/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Credit Union Act, 1997 (1997 Act) sets out the services that a credit union may provide to its members. In addition, the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (2016 Regulations) provides for services exempt from additional services requirements. Where a credit union wishes to provide services to its members, other than those services that are provided for under the 1997 Act or the list of services exempt from the additional services requirements set out in the 2016 Regulations, an application may be made to the Central Bank for approval to provide such additional services, in accordance with the provisions in sections 48-52 of the 1997 Act.

Debit card provision is subject to formal application and approval by the Central Bank, whether it be direct provision or distribution of third party debit cards under sections 48 and 49 of the Credit Union Act.

There is currently a fully defined current account service including debit card, Members Personal Current Account Services (MPCAS) which is available to eligible credit unions as an additional service. The Central Bank is currently processing a significant number of applications for this service. Details and applications forms are available on the Central Bank website.. The Central Bank has also indicated it is open to applications for alternative debit card proposals and recommends the MPCAS framework as a scalar template for such alternative proposals.

The Central Bank has approved 43 credit unions for MPCAS and have another 9 in progress. Combined these 52 credit unions have c€7.6bn in assets.

In respect of prepaid debit cards, there has been little interest to date albeit the operational considerations and costs are less onerous. No credit unions issue credit cards at present, nor has there been any sectoral demand for this product.

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 products and services based on the needs of their membership.

The credit union sector is considering various proposals to increase its income and develop its business model. CUAC is also considering business model development.

Finally, while there are currently no plans to carry out an assessment on the likely impact on credit unions if An Post is permitted to offer debit or credit card services, the matter will be kept under review.