Written Answers Nos. 237-256
237. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the merits of conducting an overall assessment of the existing local property tax scheme to create a more equitable system based on ability to pay rather than property value; and if he will make a statement on the matter. [69082/25]
View answerLocal Property Tax (LPT) was legislated for in 2012 in the Finance (Local Property Tax) Act 2012. On the introduction of the LPT, the Government decided that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.
The design of LPT was considered by an interdepartmental group chaired by Dr. Don Thornhill. As part of their terms of reference, the group were asked to “consider the design of a property tax to replace the household charge and that is equitable and is informed by previous work and international experience.”
In considering the equity of a property tax, the report of the group noted that owners of more valuable properties would pay more under a market value-based tax. The report noted this was equitable to the extent that market value provides a measure of the value of a residential property to the owner, particularly in terms of its proximity to places of work and local amenities and facilities.
Furthermore, in 2019, an interdepartmental group also conducted a review of LPT. Their report noted that, when viewed as a capital tax, property tax can be considered progressive since capital tends to be more heavily concentrated in the hands of higher income earners. It also noted that taxes that are based on incomes tend to bring about behavioural change. In contrast, property taxes apply to a base that is largely immovable and broadens the tax base.
Any property owners experiencing difficulties can avail of a wide range of flexible payment options both in respect of their LPT liabilities and for any previous years where liabilities remain outstanding. The full range of payment options, which includes phased arrangements, are available to property owners on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx
For these reasons, it is my view that a property tax system that is calculated on the basis of property value, with supports in place for those who need assistance, is appropriate and fair.
238. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he is considering more aggressive tax measures to address the problem of land hoarding and property speculation; and if he will make a statement on the matter. [69914/25]
View answerThere are currently a number of measures currently in place which disincentivise land hoarding and property speculation.
Residential Zoned Land Tax
The Residential Zoned Land Tax (RZLT) was introduced in Finance Act 2021 and first charged in 2025. It seeks to increase housing supply by encouraging the activation of residential development on lands which are suitably zoned and appropriately serviced.
RZLT legislation allows for a deferral of the tax where the landowner has either commenced residential development or has received planning permission within the past 12 months. Should works on the site permanently cease prior to the expiry of the planning permission period, without the lodgement of certificates of compliance on completion in respect of all of the residential development outlined in the planning permission, the tax deferred up to that point becomes due and payable. The liable person must amend all returns in which the deferral was claimed and pay the RZLT that was deferred and interest accordingly.
The policy objective is to ensure the land is activated in a timely manner. The most important metric for judging the success of this tax is the number of planning permission applications, and the number of activations of planning permissions. This is reflected in the high percentage of the liability which is deferred as it shows that land which meets the criteria for RZLT, is not being left idle and development is taking place.
Vacant Homes Tax
The Vacant Homes Tax (VHT) was announced in Budget 2023 and legislated for in Finance Act 2022. The main objective of this tax is to increase the supply of homes for rent or purchase by encouraging the owners of vacant, habitable, residential properties to bring those properties back into use. A residential property will be within the scope of the tax if it has been occupied as a dwelling for less than 30 days in a chargeable period.
VHT operates on a self-assessment basis, where the number of properties in scope and the amount of tax payable depends on the self-assessed returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.
VHT is charged at a rate of seven times a property’s base local property tax (LPT) charge with effect from 1 November 2024.
Derelict Property Tax
In Budget 2026, Government agreed to the introduction of a new Derelict Property Tax. The aim of this tax is to encourage the activation of derelict properties. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners. I intend to legislate for the Derelict Property Tax in 2026.
Local authorities need time and resources to identify properties in their areas so that preliminary registers of dereliction can be published in 2027. The tax will be implemented as soon as possible after these registers are published.
Stamp Duty
I would also like to bring to your attention the Stamp Duty rate of 15% which is applied where 10 or more houses (not apartments) are acquired in any 12-month period. This measure is designed to address the issue of property speculation
First introduced in May 2021, at a rate of 10%, it was increased to 15% in Budget 2025.
The higher Stamp Duty rate on bulk acquisitions is one of several measures introduced in 2021 with the intention of discouraging investment funds (and others) from buying up blocks of new houses, and sometimes whole estates, usually with the intention of placing them on the rental market. Such activity reduces the supply of new houses available to individual private buyers.
In conclusion, I am satisfied that the existing measures are having a positive impact on the issues of land hoarding and property speculation. I am also confident that the proposed Derelict Property Tax will be helpful in encouraging the activation of derelict properties. All of these measures are kept under review.
239. Deputy Thomas Gould asked the Tánaiste and Minister for Finance the reason his Department pays an external company for media monitoring and another for press release distribution. [69851/25]
View answerMy Department has a contract with Ruepoint for media monitoring and Media HQ for press release distribution service. The Department carried out a procurement process, specifying the requirement for both of these services. On the assessment of the tenders received, the Department selected the aforementioned companies as those best placed to meet the needs of the Department, as outlined in the procurement documentation. Officials in my Department will be conducting a new procurement process following the end of the existing contracts in the first quarter of 2026.
240. Deputy Catherine Ardagh asked the Tánaiste and Minister for Finance if he will ensure that the next Ireland for Finance strategy will be underpinned by a clear vision for growth, a commitment to a competitive operating environment, and a focus on attracting and retaining the best talent; and if he will make a statement on the matter. [73160/25]
View answerIreland for Finance is a whole-of-Government strategy for the development of the international financial services sector in Ireland. In line with Programme for Government commitments, the Department of Finance has commenced work on a new Ireland for Finance Strategy. Significant engagement and consultation has and will continue to take place to inform this work, including a public consultation held earlier this year which received 57 written submissions, input from the standing quarterly Ireland for Finance Joint Committee forum, and a wide range of bilateral, national and international stakeholder engagements.
While currently in development, a key objective of the new strategy will be the production of targeted, evidence-based and agile policy measures designed to enhance Ireland’s international competitiveness and foster sustainable growth. Ensuring that we continue to foster an environment that seeks to attract and retain the necessary talent will also be a focus of the new strategy.
I anticipate that the new Strategy will be taken at Government and following approval published during the first half of 2026.
241. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance for an update on the Ireland for Finance strategy; and if he will make a statement on the matter. [72577/25]
View answerThe Ireland for Finance strategy is a whole-of-Government strategy for the development of the international financial services sector in Ireland. The strategy was originally published in 2019, with the Update to Ireland for Finance being published in October 2022.
Earlier this year the Ireland for Finance Progress Report for 2024 was published. This outlined the progress of the 13 actions set out in the Ireland for Finance Action Plan 2025. The report showed that out of the 13 actions, 11 actions were complete while one action remained ongoing, and one action delayed. Key measures delivered within this included the Central Bank of Ireland's first Innovation Sandbox Programme opening for applications, establishment of the International Financial Skills Implementation Group, and significant promotion and support for the international financial services sector from Ireland's enterprise agencies.
Additionally, this year the Ireland for Finance Action Plan for 2025 was published. The action plan outlined 15 action measures under the 5 five themes, with progress delivered across all actions over this year. A formal progress report on this activity will be produced in 2026.
In line with Programme for Government commitments, the Department of Finance has commenced work on a new Ireland for Finance Strategy to be published in H1 2026. Significant engagement and consultation has and will continue to take place to inform this work, including a public consultation held earlier this year which received 57 written submissions, input from the standing quarterly Ireland for Finance Joint Committee forum, and a wide range of bilateral, national and international stakeholder engagements.
242. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance the position regarding stamp duty for first time buyers with respect to both new and second hand residential properties; and if he will consider abolishing stamp duty for first time buyers. [69529/25]
View answerStamp Duty is a tax charged on documents (deeds) which transfer ownership of property. It is payable by the “accountable person”, who in respect of a sale of residential property is the purchaser. Where there is more than one accountable person, each person is jointly and severally liable to pay Stamp Duty.
Schedule 1 to the Stamp Duties Consolidation Act (SDCA) 1999 provides for Stamp Duty to be charged on transfers of residential property. The standard rates that currently apply are:
• 1 per cent on the consideration up to €1 million,
• 2 per cent on any consideration exceeding €1 million up to €1.5 million, and
• 6 per cent on any consideration exceeding €1.5 million.
Over the years, a series of Stamp Duty regimes have applied to residential property. Between 15 June 2000 and 8 December 2010, when Stamp Duty of up to 9% applied at staggered rates dependent on the value of the acquired property, first time buyers were relieved from it entirely or up to a certain value threshold. A decision was then taken to end that relief and to apply the same rate structure to both first time buyers and those acquiring their second or subsequent residential property. As a result, there is now no special treatment for first time buyers in terms of the Stamp Duty rates in effect, irrespective of whether the residential property concerned is new or second-hand.
A further simplification of the Stamp Duty system was also introduced in December 2010, and the rates applying in respect of residential property transfers were significantly reduced, from the previous rates, which as already noted were of up to 9%.
Those reduced Stamp Duty rates were 1% on the value of a residential property of up to €1 million and 2% on any value above that. Those rates continued to apply (excepting the introduction in May 2021 of a 10% Stamp Duty rate on the bulk acquisition of houses) until the additional Stamp Duty rate of 6% on value in excess of €1.5 million was introduced in Budget 2025. That Budget also saw the 10% rate increased to 15%. The higher Stamp Duty rate on bulk acquisitions is one of a number of measures introduced at that time with the intention of discouraging investment funds (and others) from buying up blocks of new houses, and sometimes whole estates, so reducing the supply of new houses available to individual buyers, including first-time buyers. Data shows that these measures appear to be having a noticeable and positive effect.
Stamp duty is reviewed as part of the annual Budget and Finance Bill process and as part of wider tax policy considerations.
243. Deputy John Connolly asked the Tánaiste and Minister for Finance the number of persons who availed of the rent tax credit for a child renting accommodation while studying in qualifying third-level education in 2023, 2024 and 2025, in tabular form; and if he will make a statement on the matter. [69846/25]
View answerThe Rent Tax Credit may be claimed by a parent for a student child where:
• the child concerned is undertaking an approved course and was under the age of 23 at the commencement of the year of assessment in which he or she first entered an approved course,
• the child’s residence in the property facilitates his or her attendance at or participation in that approved course,
• neither the parent nor the child is related to the landlord concerned, and
• the landlord has complied with their RTB obligations.
Where the claimant is jointly assessed to tax, the qualifying payment may be made by either the claimant or his or her spouse or civil partner, and the child concerned may be a child of either the claimant or his or her spouse or civil partner.
Revenue have advised me that it is not yet possible to provide comprehensive data for 2024 and 2025 is not available as the filing deadline in relation to self-assessed taxpayers has not yet passed. In 2023, 17,200 taxpayer units who claimed the RTC, indicated the claim was made in relation to a child.
244. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance the timeframe for the introduction of the new derelict property tax; the way in which this data will be collected; and if he will make a statement on the matter. [65834/25]
View answerIn Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
In order for the new tax to be successful on introduction, care must be taken in its design. A key issue is that the tax must apply in a consistent manner to all residential properties and sites that are derelict. Therefore, a lead-in time will be required for local authorities to identify all the relevant derelict properties in their area for inclusion on a register in a consistent manner.
I intend to legislate for the DPT in 2026. This is dependent on engagement from stakeholders and will also be influenced by any advice I receive from the Attorney General. This timeline is necessary to allow local authorities to prepare and publish a preliminary register of derelict properties in 2027, with the tax coming into effect as quickly as possible thereafter.
Replacing the existing levy with a new tax will be a complex process. There is much detail that remains to be worked through in relation to the operation of the tax, including the way in which the data will be collected. I will be in a position to provide further information next year, in advance of the tax being legislated for.
247. Deputy Catherine Ardagh asked the Tánaiste and Minister for Finance if the next Ireland for Finance strategy will give priority to becoming a centre of excellence for financial technology; and if he will make a statement on the matter. [73161/25]
View answerIreland for Finance is a whole-of-Government strategy for the development of the international financial services sector in Ireland. In line with Programme for Government commitments, the Department of Finance has commenced work on a new Ireland for Finance Strategy to be published in H1 2026. Significant engagement and consultation has and will continue to take place to inform this work, including a public consultation held earlier this year which received 57 written submissions, input from the standing quarterly Ireland for Finance Joint Committee forum, and a wide range of bilateral, national and international stakeholder engagements.
The Department of Finance has consistently championed innovation, technology and the domestic fintech sector through the Ireland for Finance Strategy. The Programme for Government highlights the importance of fostering innovation and commits to continue work to ensure that Ireland becomes a global innovation leader and supportive of fast-growing firms.
248. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he will provide all available information on the distribution of residential property held by the Revenue Commissioners for the purposes of local property tax (details supplied); his views on the matter of wealth and property distribution, particularly after recent reports on the dramatic growth in household wealth, in tabular form; and if he will make a statement on the matter. [69917/25]
View answerThe Revenue Commissioners publish a quarterly report on property tax statistics. Their latest report was published in October 2025 and is available at the following link: www.revenue.ie/en/corporate/documents/statistics/property-taxes/pt-stats-update-211025.pdf
This report indicates that, in respect of the Local Property Tax (LPT) year 2025, there were 1,458,919 public and private owners in respect of 2,033,145 properties based on LPT returns filed. The distribution of owners is given in the following table:
|
Property ownership |
Number of owners |
Percentage |
|
1 |
1,285,219 |
88.09% |
|
2 |
122,721 |
8.41% |
|
3 |
26,937 |
1.85% |
|
4 |
9,784 |
0.67% |
|
5-9 |
10,686 |
0.73% |
|
10-19 |
2,296 |
0.16% |
|
20-49 |
835 |
0.06% |
|
50-99 |
203 |
0.01% |
|
100 or greater |
238 |
0.02% |
|
All ownership |
1,458,919 |
100.00% |
I am advised by Revenue that they will be furnishing the next quarterly report on Property Tax statistics report in Q1 2026. Revenue will undertake to carry out further, more detailed analysis on property ownership, in addition to that provided in their latest property statistics paper, as requested by the Deputy.
Regarding the matter of property distribution, LPT is payable based on the market value of properties and represents a tax on wealth. LPT is payable in respect of each property owned by multi-property owners. Furthermore, Capital Gains Tax and Capital Acquisitions Tax also represent taxes on household wealth.
LPT revaluation took place on 1 November 2025, with the next valuation period commencing in 2026 for a duration of five years. The Finance (Local Property Tax and Other Provisions) Act 2025 was enacted in July 2025 and provided for a number of changes to LPT. Base LPT charges will increase by 5% or 6% for homes values under €1.26 million. Properties valued at greater than €1.26 million, or properties that have appreciated significantly in value since 2021, will pay proportionately higher LPT. These changes are expected to yield an additional €45 million in revenue.
The changes that were made this year were fair and progressive. Owners of multiple properties will also see their base LPT charges increase for each property they own. This will contribute to the additional funding for local services over the next five years.
249. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance for an update on the Programme for Government commitments on insurance reform; and if he will make a statement on the matter. [72870/25]
View answerThe Government is progressing the commitments in the Programme for Government to further reform the insurance sector in Ireland and ensure transparency, affordability, and availability of insurance for all consumers.
The new Action Plan for Insurance Reform was published in July 2025, comprised of twenty-six actions being led across a number of Departments, ten of which are priority actions. Of these priority actions, one has been completed, and the remaining nine actions are currently on track to be completed within their respective timeframes.
Of these priority actions, transparency in the insurance sector is a key priority and a transparency code for the insurance industry is under development. The Code will require insurers to provide simple, understandable explanations of how premiums are formed and what broader factors influence pricing. It will also ensure consumers can receive additional individual information upon request. It is my expectation that the Code will be finalised by my officials shortly and ready for launching in the new year.
Work is also ongoing in the Office to Promote Competition in the Insurance Market (OPCIM) to enhance competition in the insurance market. Meetings have taken place with insurers in London and Ireland to address capacity issues, and the Office has established a speciality forum to explore the speciality insurance sector and to examine how Ireland can be effectively positioned and promoted as a leading jurisdiction for speciality insurance business.
My Department is working closely with the Office of Parliamentary Counsel to progress the “Right to Be Forgotten” legislation for cancer survivors to ensure fair access to financial services, specifically mortgage protection insurance, and to allow the Bill to progress in a timely manner in 2026.
The Government has also approved the drafting of a general scheme of a Bill to amend the Judicial Council Act 2019 to make reviews of the Personal Injuries Guidelines more comprehensive and transparent.
The Minister for Enterprise, Tourism and Employment commissioned the Injuries Resolution Board to undertake a piece of research to examine levels of Irish personal injury awards compared to the UK. That independent report, ‘A Review of Compensation for Minor Soft Tissue Injuries in Ireland and the UK’ was published on 16 October.
The Government will continue to monitor the progress of the Programme for Government commitments on insurance reform via the Cabinet Sub Group on Insurance Reform and work to secure a fair and transparent insurance market in Ireland.
250. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the total amount by which he proposes to raise the price of petrol, diesel and home heating oil through increases to the carbon tax, in each year until 2030. [73038/25]
View answerLiquid fuels used for motor or heating purposes are subject to excise duty in the form of Mineral Oil Tax (MOT). MOT comprises a carbon and a non-carbon component with the carbon component also being referred to as carbon tax. The application of carbon tax to petrol and auto-diesel was introduced in December 2009, followed by the extension of carbon taxation to other liquid fuels, including home heating oil, on 1 May 2010.
Ireland’s carbon tax regime is a carbon pricing mechanism which directly links the taxation of fossil fuels to carbon dioxide emissions: a single price is set for a tonne of carbon dioxide, and this price is then applied to each fuel type according to the level of carbon dioxide emitted by that fuel when it is combusted. In this way, the carbon tax applying to each fuel type reflects the level of carbon dioxide emissions that it releases.
Legislation was introduced in Finance Act 2020 to provide for annual increases in carbon tax rates up to May 2030, at which point all carbon tax rates will be based on charging €100 per tonne of carbon dioxide emissions. Carbon tax rates on petrol and auto-diesel are legislated to increase at Budget time each October up to and including 2029, with rates on other liable fuels such as heating kerosene and marked gas oil legislated to increase each May (i.e. after the winter heating season) up to and including 2030. This means that rates for the carbon component of MOT are set to increase a further four times for petrol and auto-diesel, and five times for heating fuels, over the remainder of the trajectory provided for in legislation.
For petrol, the MOT rate increases, inclusive of VAT, will total to 8.1 cents per litre over the remainder of the carbon tax trajectory. The annual increases will be 2.1 cents per litre for each of the next three years, and 1.8 cents per litre in 2029.
Inclusive of VAT the remaining four increases to the MOT rate on auto-diesel will total to 9.6 cents per litre. The annual increases will be 2.5 cents per litre for each of the next three years and 2.1 cents per litre in 2029.
Kerosene is the most commonly used oil for home heating. Inclusive of VAT the MOT rate increases on heating kerosene will total to 10.7 cents per litre over the remainder of the carbon tax trajectory. The annual amounts will be 2.2 cents per litre for each of the next four years and 1.9 cents per litre in 2030.
Marked gas oil is also used for heating. Inclusive of VAT the remaining five increases to MOT on marked gas oil will total to 11.2 cents per litre. The annual increases will be 2.3 cents per litre for each of the next four years and 2 cents per litre in 2030.
252. Deputy Paul Murphy asked the Tánaiste and Minister for Finance if he will bring in an emergency supplementary budget before Christmas in order that emergency winter cost-of-living payments can be made to disabled people and carers; and if he will make a statement on the matter. [69657/25]
View answerGovernment has provided a significant amount of support to households and businesses over the last four years to help absorb the worst impacts of rising prices. The policy response has included energy credits, reduced rates of tax on fuel and electricity, lump sum payments for social welfare recipients as well as mortgage and rent supports for households.
This was in response to the high rates of inflation that began in 2022. Inflation has reduced significantly over the first half of the year, although there has been an uptick in the last three months. I am advised that this, in part, reflects a ‘base effect’, in other words very low figures in the same months last year.
Government has moved away from the temporary ‘once-off’ packages of previous budgets in favour of introducing more targeted and permanent measures. For example, Budget 2026 extended the reduced rate VAT on gas and electricity in recognition of the fact that prices remain elevated.
Budget 2026 provides for €28.9 billion to be spent on social welfare in 2026. The measures contained in the Budget are designed to support the most vulnerable in our society with the increased cost of living and there is a particular focus on tackling child poverty.
The wide array of measures clearly demonstrates the huge focus the Government has placed on assisting vulnerable people and families.
254. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the total estimated amount of public money that will be handed over to property developers for apartments that would have been built anyway from Budget Day to 2030 accounting for measures related to VAT, restricting additionality to only apartment above the number of apartments projected to be built without these measures; and if he will make a statement on the matter. [73163/25]
View answerThe VAT reduction, in concert with the suite of complementary broader policy measures, will materially change the viability prospects of many developments. The estimated cost of the VAT measure is approximately €250 million in 2026, rising to an estimated €390 million in 2030.
The Government anticipates that in the short-term, projects which were deemed non-viable or marginally viable will now proceed. Over the medium to longer term it is expected the industry will grow, in terms of its productive capacity and annual output, such that it is better positioned to meet society’s needs for new housing in a more cost-efficient way.
It is not possible to provide an estimated figure for the cost of the deadweight within the VAT measure as it is not possible to determine a counterfactual against which the estimated cost of the measure could be set against. However, there is clear evidence that viability gaps are resulting in an under-supply of much needed new homes, and I believe these measures are appropriately designed to deliver additional supply into the market.
255. Deputy Brendan Smith asked the Tánaiste and Minister for Finance if his Department is examining mechanisms, including tax relief, to further incentivise the purchase and renovation of vacant homes; and if he will make a statement on the matter. [72892/25]
View answerA number of measures are already in place which support or encourage the bringing of vacant residential properties back into use and to increase housing supply. These include the Living City Initiative (which was significantly enhanced in the recent Budget), pre-letting expenses for vacant properties, the Vacant Homes Tax and the Residential Zoned Land Tax.
Additionally, the Department of Housing, Local Government and Heritage provides funding for the Vacant Property Refurbishment Grant which supports bringing vacant and derelict properties back into use. Recently announced changes to the scheme, which is being extended to 2030, provide for additional amounts to support claimants in refurbishing vacant and derelict properties. Furthermore, in the case of "over the shop premises", a new grant is being introduced.
Finally, and as the Deputy will appreciate, the consideration of further tax-based measures which might incentivise the purchase and renovation of vacant homes; would have to be undertaken in the context a future annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
256. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance his priorities for the credit union sector in 2026; the key initiatives taken to support the sector during 2025; and if he will make a statement on the matter. [72578/25]
View answer373. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance the key measures taken to support the credit union sector during 2025; his priorities for 2026; and if he will make a statement on the matter. [73582/25]
View answerI propose to take Questions Nos. 256 and 373 together.
One of key priorities for credit unions in 2026 is the Programme for Government commitment, to draft a five-year strategy for the sector. Both I and the Minister of State with responsibility for credit unions intend to co-sponsor with the credit union sector a plan to determine the sector's strategy. Agreement on a sector strategy and a focused deployment of credit union resources will support the expansion of financial services to all credit union members.
I expect that in early 2026, both I and the Minister of State will have the opportunity to approve and launch the work plan to deliver this strategy, in conjunction with the sector.
My officials, together with credit union stakeholders worked collaboratively to deliver the Credit Union (Amendment) Act 2023. The 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.
The majority of provisions of the 2023 Act have commenced and progress is being monitored and reported to me by the Credit Union Advisory Committee (CUAC). Provisions yet to be commenced are in relation to Credit Union Service Organisations (CUSOs) and a corporate credit union. It is intended that the Central Bank of Ireland will publish a consultation paper during H1 2026 which will set out their proposals for the regulatory framework for investment by credit unions in CUSOs.
A statutory consultation will then be undertaken, as required under section 84A of the Credit Union Act, 1997 on draft amending regulations which will give effect to the regulatory framework for investment by credit unions in CUSOs.
In August 2025, the previous Minister for Finance and the Minister of State published recommendations on the Credit Union Resolution and Stabilisation Funds (the Funds). This followed a review and public consultation on the future use and structure of the Funds for the credit union sector.
Following the recommendations and statutory consultations, the levy rate for Funds has been set at 0% until October 2029, subject to certain conditions prevailing. This represents a considerable reduction from the €5.3 million that was collected by levy in respect of these Funds in 2023.
One very important Programme for Government commitment was to engage with the Central Bank of Ireland to review credit union lending limits. I am pleased to confirm that this work has been completed and revised lending limits are now in place.
Amending regulations commenced on 30 September 2025, permitting the sector to advance up to €6.75 billion in house lending and €3.375 billion in business lending, based on sector total assets of €22.5 billion as at 30 September 2025. This is a significant increase from previous permitted lending limits of €2.9 billion at 30 June 2024.
The amendment of these regulations reflects the competence and capability of credit unions to grow their respective loan books in a prudent manner, and to futureproof their offering to support homeowners and businesses.
I welcome the amended regulations as it will allow credit unions to compete more effectively in the mortgage and business lending market.
