Amendments Nos. 62 and 64 are related and may be discussed together by agreement. Is that agreed? Agreed.
SECTION 44.
I move amendment No. 62:
In page 37, subsection (1), line 37, after "purposes" to insert "(including community development)".
Deputies will recall that, arising from earlier deliberations on section 41, I promised to widen section 44(1) to include funding for community development purposes within the ambit of the special fund under this section. As a result of these increased demands, I have decided to raise the annual contribution ceiling of credit union assets from 0.25 per cent to 0.5 per cent in subsection (3). I see these purposes covering credit union support for the development of business enterprise or community centres as a means to improve the local economic and social infrastructure of communities.
It remains the case that in subsection (4), as published in the Bill, the Registrar will retain the right to vary this percentage on request from a credit union. I commend these important amendments to the committee.
Amendment agreed to.
Amendments Nos. 63 and 65 are related and may be discussed together by agreement. Is that agreed? Agreed.
I move amendment No. 63:
In page 37, subsection (2), line 40, to delete "Moneys" and substitute "Subject to subsection (4), moneys".
In response to representations from the Irish League of Credit Unions, I have been made aware that the level of annual contribution allowed under subsection (3) could restrict the social and community purposes which could be helped with this money simply because it could take some time before a significant level of funds would be accumulated. Accordingly, I have decided that in the initial phase of the fund a credit union should be allowed to contribute a lump sum of up to 2.5 per cent of its accumulated reserves, excluding the statutory reserve which is required to be maintained under section 45. The change gives rise to the amendment to section 44(2) and the insertion of a new subsection (4).
With these two combined amendments, credit unions will be able to kick-start the fund and, thereby, financially support the social and community development needs of their areas from the commencement of the Bill. I commend the amendments to the House.
Amendment agreed to.
I move amendment No. 64:
In page 38, subsection (3), line 5, to delete 0.25" and substitute 0.5".
Amendment agreed to.
I move amendment No. 65:
In page 38, between lines 7 and 8, to insert the following subsection:
"(4) In respect of the financial year in which the special fund is established, there may be paid into the special fund (in addition to any amount paid as mentioned in subsection (2)) an amount not exceeding 2.5 per cent. of the accumulated reserves of the credit union, excluding the statutory reserve.".
Amendment agreed to.
Question proposed: "That section 44, as amended, stand part of the Bill."
If a credit union is transferred from a building which has become too small due to its development, must it dispose of that building? If not, may the credit union keep it and let it? Where a credit union is situated in a building which contains two further storeys which are not used by the credit union, may they let those floors as apartments in the normal way? These problems have arisen after the publication of the Bill. Major problems will arise if credit unions must dispose of the upper floors of a building.
Everybody now admits the Bill was read incorrectly in that regard. It did not state that and nobody disputes that unless the Deputy is disputing it.
No, I am not. I am looking for clarification.
A credit union may dispose of it to a community entity for either a commercial or nominal rent, depending on the purpose. I have instanced the kind of community development purpose, such as a community micro enterprise. The purpose of this is the stimulation of local enterprise within the community and it is an important development. Deputy Ó Cuív has drawn a number of these aspects to my attention and I think this will facilitate it within reason.
I welcome what the Minister has done here. In addition to doing that which we associate with their business, credit unions should be a focus of self-development within the community. Must the sponsored prizes of a promotional nature given for postal competitions and at AGMs come out of the special funds being set under section 44 or can they come out of the general fund?
No, that comes out of funds for the promotion of the credit union.
Section 44(7)(a) refers to where ". . . the board of directors make a recommendation in writing to the members of a credit union that it is appropriate to wind up a special fund . . . ". What would happen if the board of directors decided to reduce the fund?
That would be a matter for the board.
Would there be a problem?
No. It is autonomous.
Question put and agreed to.