Liz O'Donnell
Question:27 Ms O'Donnell asked the Minister for Enterprise and Employment if he will report on the discussions held with the Irish League of Credit Unions. [2921/97]
Written Answers. - Credit Union Legislation.
Kathleen Lynch
Question:47 Kathleen Lynch asked the Minister for Enterprise and Employment the progress, if any, made to date in the consultation process being undertaken in advance of the Credit Union Bill, 1996 being enacted; and if he will make a statement on the matter. [2902/97]
Trevor Sargent
Question:229 Mr. Sargent asked the Minister for Enterprise and Employment if he intends to submit amendments to the recently published Credit Union Bill, 1996 in view of the concerns being expressed by the Irish League of Credit Unions. [2893/97]
I propose to take Questions Nos. 27, 47 and 229 together.
The Credit Union Bill, which was published before Christmas, will consolidate existing credit union legislation and set out an updated framework for the development and regulation of the credit union movement. The terms and scope of the Bill were the subject of detailed discussions over a number of years culminating in broad measure of agreement between the Irish League of Credit Unions and the Registrar of Friendly Societies. For my own part, I have had six formal meetings with ILCU representatives since taking responsibility for this Bill. In addition, I addressed each of the last two AGM's of the league.
The published Bill contains certain changes from the broad agreement arrived at between the league and the registrar. In some cases these arose from policy decisions made by me about certain provisions including ceilings on holdings in shares and deposits and on loans. In other cases, the parliamentary draftsman supported by the Attorney General decided that for legal or technical reasons the wording which formed part of the agreement with the league was not appropriate or workable.
The Bill, as published offers a number of improvements for credit unions and their members. First, the existing shares limit of £6,000, set in the mid-1980s, is being increased to £20,000, and effective doubling of the limit in real terms. Second the Bill meets the long standing demand of the credit union movement to expand the range of services offered by credit unions to their members. Third, it updates and consolidates existing legislation in a variety of areas, many of which were identified by the movement as out of date. While the league has raised some concerns, it should also be recorded that the league board has generally welcomed the Bill and specifically welcomed many of its features.
Following Government approval to publish the Bill, I met both with the board members of the Irish League of Credit Unions and with the Credit Union Advisory Committee on 18 December last. I am glad to say that general appreciation was expressed for the fact that the Bill had been cleared by Government, and I invited both the league and the advisory committee to study the Bill and to make their views known to me.
At further meetings with the league on 22 January and with individual credit unions concerns were expressed to me about certain aspects of the Bill. I also attended, spoke and took questions at the open session of the league's special general meeting in Limerick on 26 January at which I heard at first hand the comments of many credit union representatives on the Bill.
I have made it known that I will consider well reasoned arguments for change or improvement to the Bill but that generally I believe we have got the balance about right. In particular, I have indicated my preparedness to review the published ceiling for loans. I anticipate that it will be some weeks yet before any specific changes which I might propose to the Bill will be available. I have recently arranged that officials of my Department, together with the Registrar of Friendly Societies, will meet regularly with league representatives this month to review the Bill. I am also expecting to receive the advice of the credit union advisory committee on its terms shortly.
As a final comment, the Bill safeguards the social and mutual purpose to which the credit union movement is dedicated, and it underlines in particular its community self-help principles. I am determined that the Bill should achieve a good balance, facilitating the growth and development of credit unions without undermining the essential character and ethos of the movement as a whole.