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Credit Union Bill 2012: From the Seanad (Continued)

Thursday, 13 December 2012

Dáil Éireann Debate
Vol. 786 No. 3

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(Speaker Continuing)

[Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes] This is line with the commission's recommendations on a tiered regulatory approach. This was in the Bill as published but was mistakenly removed from the Bill as amended on Committee Stage in the Dáil. These amendments clarify the issue and, as I noted in the other House yesterday, make it clear that the tiered approach will not compromise small credit unions or those which have a different range of depositors. That is what these three amendments are for.

  Seanad amendment agreed to.

  Seanad amendment No. 122:

  Section 30: In page 59, to delete lines 27 to 34 and substitute the following:
“ ‘maturity mismatch’ means the ongoing or possible future divergence between a credit union’s assets and liabilities because non liquid assets of the credit union have not or, at the appropriate time, will not have matured;”.

  Seanad amendment agreed to.

  Seanad amendment No. 123:

  Section 30: In page 59, line 43, after “arise.” to insert the following:
“The proportion of assets kept in liquid form shall take into account the nature, scale and complexity of the credit union, and the composition and maturity of its assets and liabilities.”.

  Seanad amendment agreed to.

  Seanad amendment No. 124:

  Section 31: In page 61, line 35, to delete “section 53.”.” and substitute the following:
“section 53.

(5) Any period of appointment under this section shall not be reckoned for the purposes of calculating the number of years that a person has served in aggregate for the purpose of section 53(12) or section 76N(5).”.”.

  Seanad amendment agreed to.

  Seanad amendment No. 125:

  Section 34: In page 62, line 34, after “Part IV” to insert “(other than sections 27B, 27G and 27H)”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes Seanad amendment No. 125 clarifies that sections 27B, 27G and 27H of the Central Bank Act 1997 continue to apply to the credit union auditor. These sections relate to the duties of auditors to provide reports to the Central Bank. Section 27B already makes reference to section 122 of the Credit Union Act 1997. It relates to auditor management and statutory duty declarations. I emphasise that this amendment does not apply any new provisions to credit union auditors but simply reflects provisions which already applied.

  Seanad amendment agreed to.

  Seanad amendment No. 126:

  Section 39: In page 63, to delete line 32 and substitute the following:
“ “ReBo” means the Credit Union Restructuring Board;

“stabilisation support” has the meaning given by section 62.”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes An amendment to section 39 was made on Committee Stage in the Seanad to provide for the inclusion of a definition of stabilisation support in section 39. It refers to the definition of stabilisation support which already appears in section 62 of the published Bill.

  Seanad amendment agreed to.

Acting Chairman (Deputy Olivia Mitchell): Information on Olivia Mitchell Zoom on Olivia Mitchell Seanad amendments Nos. 127 and 128 are related and may be discussed together.

  Seanad amendment No. 127:

  Section 44: In page 65, lines 25 to 36, to delete subsection (2) and substitute the following:
“(2) Subject to this Part, ReBo may do anything which it considers necessary or expedient to enable it to perform its functions including making arrangements with any other person or body for the use by it of premises or equipment belonging to that person or other body or for the use by ReBo of the services of officers or servants of that person or other body.”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes Amendment No. 127 was made on Committee Stage in the Seanad. It consolidates the provisions relating to the power of the Credit Union Restructuring Board, ReBo, power to carry our certain functions. The power to appoint staff is provided for in section 54. The power to organise meetings is also set out in section 50. As a result unnecessary references to this section and to the powers were removed by the amendment.

Seanad amendment No. 128 deletes section 44(3), which is not required because section 44(2) already provides that ReBo may do anything it considers necessary or expedient to enable it to perform its functions. We are clearing up these tasks with the amendments.

  Seanad amendment agreed to.

  Seanad amendment No. 128:

  Section 44: In page 65, lines 37 to 45, to delete subsection (3).

  Seanad amendment agreed to.

Acting Chairman (Deputy Olivia Mitchell): Information on Olivia Mitchell Zoom on Olivia Mitchell Seanad amendments Nos. 129, 146, 151 and 152 are related and may be discussed together.

  Seanad amendment No. 129:

  Section 45: In page 66, subsection (5)(a), line 37, to delete “funding” and substitute “financial support”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes These are technical amendments made on Committee Stage in the Seanad to provide for consistency in the references to what we refer to as "financial support" to be provided from the credit union fund under Part 3 and Part 4 of the Bill. The definition of "financial support" may take the form of a payment, loan, guarantee, an exchange of assets or any other type of financial accommodation or assistance. This is consistent with the Credit Institutions (Financial Support) Act 2008 and the Central Bank and Credit Institutions (Resolution) Act 2009. The amendments were made for the purposes of consistency.

  Seanad amendment agreed to.

  Seanad amendment No. 130:

  Section 47: In page 67, lines 39 to 41, to delete subsection (4) and substitute the following:
“(4) The ReBo levy received from each credit union shall be paid into the Credit Union Fund.”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes I brought forward an amendment on Committee Stage in the Seanad to provide that the ReBo levy to be paid by credit unions will be paid into the credit union fund rather than paid into or disposed of for the benefit of the Exchequer. The expenses incurred by ReBo will be paid out of the credit union fund and, therefore, it is appropriate that the levy received to recoup those expenses should be paid into the credit union fund.

  Seanad amendment agreed to.

  Seanad amendment No. 131:

  Section 49: In page 68, to delete lines 14 to 18.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes I brought forward an amendment on Report Stage in the Seanad to delete section 49 because the expenses of ReBo are to be paid out of the credit union fund. Section 49 is no longer required as a consequence and, therefore, I do not propose to include this section in the Bill.

  Seanad amendment agreed to.

Acting Chairman (Deputy Olivia Mitchell): Information on Olivia Mitchell Zoom on Olivia Mitchell Seanad amendments Nos. 132 and 134 are related and may be discussed together.

  Seanad amendment No. 132:

  Section 51: In page 69, subsection (1)(a), line 25, to delete “the Board of that Board” and substitute “that Board”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes These are straightforward. Amendments Nos. 132 and 134 were made on Committee Stage in the Seanad to correct typographical errors.

  Seanad amendment agreed to.

  Seanad amendment No. 133:

  Section 51: In page 69, subsection (1)(f), line 32, after “of” to insert “an auditor,”.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes Seanad amendment No. 133 provides that employees of auditors engaged by ReBo are subject to the non-disclosure of information provisions in this section. The amendment ensures consistency in the application of the non-disclosure provisions which the Bill currently applies to employees of agents, consultants and advisers appointed by ReBo.

  Seanad amendment agreed to.

  Seanad amendment No. 134:

  Section 51: In page 70, subsection (4), line 10, to delete “the credit” and substitute “credit”.

  Seanad amendment agreed to.

Acting Chairman (Deputy Olivia Mitchell): Information on Olivia Mitchell Zoom on Olivia Mitchell Seanad amendments Nos. 135 and 136 are related and may be discussed together.

  Seanad amendment No. 135:

  Section 54: In page 71, subsection (1), lines 32 and 33, to delete all words from and including “given” in line 32 down to and including “Reform” in line 33.

Deputy Brian Hayes: Information on Brian Hayes Zoom on Brian Hayes Seanad amendment No. 135 made on Committee Stage in the Seanad removes the requirement for the Minister for Finance to obtain the consent of the Minister for Public Expenditure and Reform before approving the appointment of staff by ReBo. The staff of ReBo will be paid out of the credit union fund and, as a result, the consent of the Minister for Public Expenditure and Reform to their appointment is no longer required. ReBo can, therefore, with the approval of the Minister for Finance, appoint such staff and at such grades as it may determine.

  Amendment No. 136 made in the Seanad makes the provisions relating to the appointment of the staff of ReBo consistent with those of the appointment of the chief executive of ReBo. Section 54 now mirrors the provisions concerning the appointment of the chief executive set out in section 53. Section 54(2)(a) restates section 54(2) as published following Committee Stage in the Dáil and provides that the terms of appointment of the staff of ReBo may be determined by the Minister for Finance with the consent of the Minister for Public Expenditure and Reform subject to the Public Service Management (Recruitment and Appointments) Act 2004. Section 54(2)(b) as provided for in the amendment made in the Seanad sets out an alternative means of determining the terms of appointment of ReBo staff. These terms may be determined by the board of ReBo subject to the approval of the Minister for Finance with consent from the Minister for Public Expenditure and Reform.

  Seanad amendment agreed to.

  Seanad amendment No. 136:

  Section 54: In page 71, lines 38 to 43, to delete subsection (2) and substitute the following:
“(2) An appointment under this section shall either—
(a) be on such terms (including terms as to remuneration, duration of term and allowances for expenses) as the Minister may, with the consent of the Minister for Public Expenditure and Reform, determine and be subject to the Public Service Management (Recruitment and Appointments) Act 2004, or

(b) be on such other terms (including terms as to remuneration, duration of term and allowances for expenses) as may be determined by the Board of ReBo and approved by the Minister with the consent of the Minister for Public Expenditure and Reform.”.

  Seanad amendment agreed to.


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