Dáil Éireann Debate, Tuesday - 16 April 2013
326. Deputy Pearse Doherty asked the Minister for Finance the reason he endorsed the imposition of a special manager on a credit union (details supplied) in County Kildare at a cost expected to exceed €2 million, on a financially struggling credit union. [17210/13]
View answer327. Deputy Pearse Doherty asked the Minister for Finance the reason the directors, staff or stakeholders of a credit union (details supplied) in County Kildare have not been advised as to the special manager's role within the credit union. [17211/13]
View answer328. Deputy Pearse Doherty asked the Minister for Finance the reason as per the Credit Union Act 1997 the special manager and Ernst and Young has refused to hold an AGM for a credit union (details supplied) in County Kildare despite public and directors' requests and their statutory obligation to do so. [17212/13]
View answer329. Deputy Pearse Doherty asked the Minister for Finance the work carried out by a person (details supplied) on behalf of Ernst and Young to justify bills of more than €9,500 per week, in total over €2 million, paid for by ordinary members of a credit union. [17213/13]
View answerI propose to take Questions Nos. 326 to 329, inclusive, together.
The decision to apply to the High Court for the appointment of a Special Manager is a matter for the Governor of the Central Bank, following consultation with me as Minister for Finance. On 13 January 2012, the Central Bank of Ireland secured a High Court Order for the appointment of a Special Manager to Newbridge Credit Union. Further High Court applications were made in June 2012 and January 2013 to extend the term of appointment of the Special Manager and High Court Orders were secured for a 6 month extension period on each occasion.
This action was taken to strengthen Newbridge Credit Union, protect members’ savings and ensure that Newbridge Credit Union can continue to operate effectively, providing financial services to the local community while ensuring. The Special Manager replaces the management and Board of Newbridge Credit Union and his primary role is to establish the financial position and bring forward a business plan.
The Central Bank of Ireland has informed me that they have discussed with the Special Manager the question of an AGM. The Special Manager has not refused to hold an AGM. However, as the accounts cannot be signed off without a final resolution either completed or substantially completed there would not be any basis to underpin an AGM.
The Special Manager originally had a question and answers document available in the Credit Union and wrote to all members informing them of his appointment and to advise them of his role in Newbridge Credit Union. Updates are provided on the website and he and his team also make themselves available to members.
The fees payable to the Special Manager of Newbridge Credit Union are currently subject to an on-going Court process and therefore I cannot provide any specific details at this time. However, the Deputy might note that the hourly rate of fee payable to the Special Manager was reduced from €423 to €375 following an application by the Central Bank of Ireland to the Court on 10 February 2012. The fees payable to his team were reduced on a pro-rata basis.
