Heather Humphreys (Cavan-Monaghan, Fine Gael)
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65. To ask the Minister for Finance if his attention has been drawn to the rigorous process now in place to assess a person for the position of credit union chairman and that this process involves completing a 24 page application form and may also require an interview by Central Bank officials; the huge difficulties this is causing in attracting volunteers to the movement; the difficulty in getting board members to take up the position of chairman; and if he will make a statement on the matter. [10171/14]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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82. To ask the Minister for Finance the qualifications and experience of the Central Bank officials who adjudicate on whether a person is suitable to carry out the duties of a Credit Union chairperson; and if he will make a statement on the matter. [10284/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 65 and 82 together.

The Commission on Credit Unions recommended that Part 3 of the Central Bank Reform Act 2010 be commenced for credit unions providing the Central Bank with the powers to set out the Regulations and Standards of Fitness and Probity for credit unions. On 24 September 2012, I made the necessary commencement order to give effect to this recommendation.

Following consultation by the Central Bank with credit unions, a Fitness and Probity regime for credit unions has been introduced, which requires that credit unions ensure that individuals who take up key board and management positions are fit and proper. The Fitness and Probity regime for credit unions prescribes two Pre-Approval Controlled Functions (PCFs) in credit unions: the office of chair of the board of the credit union and the office of manager of the credit union. The prior approval of the Central Bank is required before an individual can be appointed to a PCF role. The individual must complete an online Individual Questionnaire which is endorsed by the proposing credit union and then submitted electronically to the Central Bank for assessment.

Individual Questionnaires are assessed within the Central Bank with input from the relevant credit union supervisors from the Registry of Credit Unions. Requests for further information may be issued and/or an interview may be requested. If the Central Bank refuses to approve a PCF application, this decision may be appealed to the Irish Financial Services Appeals Tribunal.

The Fitness and Probity regime for credit unions is being implemented in two phases. The first phase commenced on 1 August 2013 and introduced fitness and probity requirements for credit unions with total assets of greater than €10m. The second phase will commence on 1 August 2015 when all remaining credit unions will be brought within the scope of the regime. Transitional arrangements will apply for the implementation of each phase of the regime.

The Commission on Credit unions also highlighted the importance of volunteers to the success of the credit union movement. The Commission Report states that the difficulty in recruiting volunteers could be addressed through a planned effort by credit unions to seek-out potential candidates with the necessary levels of skill and commitment. Greater use of succession plans and volunteer development strategies are recommended. The Commission on Credit Unions Implementation Group in conjunction with the credit union representative bodies have looked at this issue and updated volunteer strategies in line with the Commission recommendations are in place. These strategies are to be reviewed later this year to access their effectiveness.

I have been informed by the Central Bank that staff employed in the Registry of Credit Unions have a range of backgrounds including accounting, economics, legal and compliance.  The Registry of Credit Unions ensures on appointment that all staff are suitably qualified for their role.