Tony McCormack (Offaly, Fianna Fail)
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29. To ask the Minister for Finance if he will enable credit unions to provide more services to members; and if he will make a statement on the matter. [16257/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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My officials, together with credit union stakeholders worked collaboratively to deliver the Credit Union (Amendment) Act 2023 (2023 Act). The 2023 Act represents a very significant piece of legislation that will have far-reaching positive implications for the credit union sector in the years to come.

One of the key deliverables in the 2023 Act is ensuring all credit union members have access to a full range of financial services. This has been achieved through; increased flexibility around the common bond, referrals of members and loan participations/syndications. My officials worked with the sector and the Central Bank to ensure early commencement of all these sections. This was delivered in 2023, with a 3 phased commencement in conjunction with required Central Bank changes. The majority of provisions of the 2023 Act have commenced.

Phases 4 and 5 of the 2023 Act have yet to commence. These provisions relate to Credit Union Service Organisations (CUSOs) and the establishment of a corporate credit union.

The take up by the sector, and effectiveness of these provisions in terms of service delivery has yet to be determined and may take some time. The Credit Union Advisory Committee have been tasked with monitoring progress and identifying blockers to implementation.

The Government received a significant level of feedback on the Central Bank of Ireland’s Lending Regulations and its impact on the credit union sector. I would like to highlight the work that previous Ministers of State did in communicating the sector’s concerns to the Central Bank. The Central Bank have listened to these concerns, and I broadly welcome the proposed changes published under Consultation Paper 159 - Consultation on Proposed Changes to the Credit Union Lending Regulations. The proposed amendments will enable credit unions to provide more house lending and business loans to its members.

The 2023 Act and the revised lending regulations should enable the sector to deliver more services for its members, however as outlined in Retail Banking Review 2022 “...the credit union sector and its leadership should develop a strategic plan to deliver business model changes that would enable the sector to safely and sustainably provide a universal product offering to all credit union members.”

To date, the credit union sector has not delivered a strategic plan. Hence, in order to support the sector, the Government as outlined in the Programme for Government will support the sector in developing a strategy to ensure credit unions can fully leverage new opportunities.

Minister Troy is currently considering the most inclusive and appropriate structure to enable the sector to develop its strategic plan.