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

SECTION 177.

Mr. Rabbitte

I move amendment No. 144:

In page 134, lines 24 to 28, to delete subsection (2) and substitute the following:

"(2) A credit union may indemnify, or incur expenditure in obtaining and maintaining a policy of insurance indemnifying, an officer or voluntary assistant against——

(a) any civil liability which is of a description falling within subsection (1); and

(b) any liability incurred by him in defending proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted, or in connection with an application under section 178 in which relief is granted.”.

A number of Members brought the question of penalties to my attention, which should properly have been dealt with as an amendment to section 171. I take this opportunity to indicate my freedom to consider the matter for Report Stage.

Chairman

Is that agreed? Agreed.

Mr. Rabbitte

On amendment No. 144, section 177(2) allows a credit union to indemnify an officer or voluntary assistant against any liability incurred by him in defending proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted, or in connection with an application under section 178 in which relief is granted to the officer or voluntary assistant concerned.

The league and an individual credit union proposed that indemnification of an officer or voluntary assistant may be effected by insurance taken out by the credit union. At my request, the parliamentary draftsman undertook to draft an amendment to meet the league's point.

I regret, however, that, since we agreed to do that and the parliamentary draftsman sought to do it, the Attorney General has advised against the amendment which is before the committee. It is argued that acquittal is not necessarily proof of innocence and a contract to insure the person against the consequences of criminal liability, even where he or she is acquitted, would, in the view of the Attorney General's office, almost certainly be regarded as a contract contrary to public policy and, as such, is illegal. Therefore, I regret I have no alternative but to withdraw the amendment.

Amendment, by leave, withdrawn.

Section 177 agreed to.

Sections 178 to 180, inclusive, agreed to.

NEW SECTION.

Mr. Rabbitte

I move amendment No. 145:

In page 136, before section 181, to insert the following new section:

181.-Without prejudice to the generality of any reference in this Act to bodies appearing to the Minister or to the Registrar to be expert or knowledgeable in matters relating to credit unions, any such reference shall be taken to include the unincorporated association known as the Irish League of Credit Unions.".

Amendment agreed to.