Select Committee on Enterprise and Economic Strategy debate -
Wednesday, 9 Apr 1997

SECTION 64.

Mr. Rabbitte

I move amendment No. 92:

In page 50, subsection (1), to delete lines 40 to 42 and substitute the following:

"(b) a balance sheet for the same period.".

The purpose of this subsection is to require the treasurer to submit up to date financial statements covering the period up to the end of the preceding month to each board meeting. These statements must detail the income and expenditure of the credit union and its balance sheet for the same period. The subsection also requires the treasurer to give the board the most recent audited revenue account and balance sheet.

It has been drawn to my attention by the league that it is unnecessary for the treasurer to supply a copy of the audited revenue account and balance sheet for each monthly board meeting as this would not change from the end of the preceding financial year and would, in any event, be readily available to each director. That point is valid and the amendment proposes the deletion of the reference to the audited revenue account and balance sheet.

Amendment agreed to.

Mr. Rabbitte

I move amendment No. 93:

In page 51, subsection (2)(e), line 9, to delete "deposit all cash" and substitute "ensure that all cash is deposited".

This amendment has been brought to my attention by the credit union advisory committee. They pointed out that paragraph (e) suggests that the treasurer of a credit union shall personally deposit all cash with the financial institution in accordance with the instructions of the board. In practice, some credit unions use security services or other means to effect transfers of cash from credit unions to financial institutions. This amendment proposes that this paragraph be broadened to only require that the treasurer ensure that all cash is deposited in accordance with the instructions of the board thereby removing any personal implication that he or she has to effect the necessary depositing of funds.

Amendment agreed to.

Mr. Rabbitte

I move amendment No. 94:

In page 51, between lines 28 and 29, to insert the following subsection:

"(6) Nothing in this section affects the power of a credit union to appoint, in addition to the treasurer, a manager who is not a director and whose functions are defined by the board of directors.".

The credit union advisory committee commented to me that the unconditional statement in section 64(1), that the treasurer shall act as the managing director of the credit union, ignores the fact that many of the larger credit unions specifically employ a manager in addition to the treasurer to carry out certain duties. The purpose of this new subsection (6) is to make clear that this practice is not precluded by the delineation of the treasurer's functions in this section.

Mr. Costello

I welcome this amendment. The treasurer works voluntarily, as specified in the original legislation. If a manager is appointed, it is specified that the board of directors shall define the functions but not the remuneration. I presume the reason for appointing a manager separate from the treasurer is that the work is too onerous for treasurers in larger credit unions to carry out in a voluntary capacity. Should there be some guidelines on this? Did the league of credit unions have any views on the matter? This is moving into the area of remuneration.

Mr. Rabbitte

Is Deputy Costello alluding to something he might explain more plainly? Is there some hardworking colleague in Dublin Central who is not being adequately paid by his credit union?

Mr. Costello

It is a simple query. I do not have a hidden agenda in any query I put to the Minister. The treasurer, as defined in the original legislation, works in a voluntary capacity for the credit union. If another person can now be appointed by the board of directors, that person will specify the functions to be carried out and the remuneration.

Mr. Rabbitte

Section 55 sets out the functions of the board of directors and I draw the Deputy's attention to (h) which reads: ". . . . .the employment and the terms of employment of such person or persons as the board of directors consider necessary for the purposes of the credit union;". The power the Deputy speaks of is in that provision and that is the appropriate place to deal with it.

Mr. Costello

I trust there would not be an understanding, from the legislation as originally framed, that the treasurer would be in receipt of remuneration under the terms of the legislation. By and large, the treasurer works voluntarily but he is appointed under the legislation as the managing director. In most credit unions, there would not be remuneration for the managing director but, if a specific person is appointed, he could technically be remunerated.

Mr. Rabbitte

An exception is made in the case of the treasurer as he is the only person to whom a stipend is paid. Section 68(4) states:

In any year the treasurer of a credit union may be paid such remuneration (whether described as such or as an honorarium or otherwise) as——

(a) may from time to time be approved prior to its payment (or the payment of any part of it) by the members in general meeting; and

(b) does not exceed an amount recommended by the board of directors.

Mr. E. O'Keeffe

I support the Minister's amendment because credit unions are now professional organisations dealing with large businesses and large amounts of money, so they must have professional people. Am I right in saying treasurers work voluntarily?

Mr. Rabbitte

Yes.

Mr. E. O'Keeffe

Someone who works voluntarily is not remunerated whereas a professional person must be. I support the amendment as it is sensible and good.

Amendment agreed to.

Section 64, as amended, agreed to.