Michael Fitzmaurice (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

306.To ask the Minister for Finance his views on setting both the credit union stabilisation fund levy and credit institution resolution fund levy at 0% for 2025; and if he will make a statement on the matter. [30913/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Credit Institutions Resolution Fund (the Resolution Fund) and the Credit Union Stabilisation Fund (the Stabilisation Fund) are currently the subject of ongoing reviews. Consultation papers on both funds were issued to stakeholders on Friday 12 July 2024. These consultations are on foot of a request in September 2023 by my predecessor that the Department complete a comprehensive review of both the Credit Union Resolution and Stabilisation funds.

Stakeholders selected to participate in these consultations include the following: the Central Bank of Ireland, the Irish League of Credit Unions (“ILCU”), the Credit Union Development Association (“CUDA”), the Credit Union Managers Association (“CUMA”), the National Supervisors Forum (“NSF”) and a random selection of 20 credit unions operating in the Republic of Ireland as at 26 April 2024. The consultation papers are also published on the Departmental website and any credit union not randomly selected is also free to make a submission to these consultations, if they so choose to do so.

The consultation will remain open to 27 September 2024 giving stakeholders ample time to develop their responses. It is my hope that a broad range of the sector will take the time to input into these reviews.

When the consultation process is complete, the Department of Finance will review feedback received before issuing feedback statements to these consultations. The feedback received will play an important part in informing the Department of Finance’s recommendations to myself as Minister for Finance on the future of both the Resolution Fund and Stabilisation Fund.

The 2025 Resolution Levy must be made before 1 October 2024. As such, the 2025 Resolution Levy will be set before the completion of the review of the Resolution Fund. The Resolution Fund has a current target size of €65 million to be met by 2025. The Department will work with the Central Bank over the coming weeks (and complete the necessary statutory consultations) to assess the level of the Resolution levy to be collected in 2025. Once I reviewed the necessary information, I will make a decision on the 2025 Resolution Levy rate.

As the review of the Resolution Fund will be published after the 2025 Levy is set, recommendations made will relate to the future of the Fund (i.e. target size, levy collections) post-2025.

The 2025 Stabilisation Levy must be made before 1 January 2025. As such, it is expected that the review of the Stabilisation Fund will be completed before the 2025 Stabilisation levy is signed. The output of this review will assist in determining the level at which the 2025 Stabilisation Levy is set.