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

SECTION 70.

Question proposed: "That section 70 stand part of the Bill."

Eamon Ó Cuív

Subsection 70(2)(b) states that a cheque, draft or similar document drawn on an account of a credit union must be signed by a member of the board of directors.

Section 70(1) states:

None of the documents specified in subsection (2) shall be effective in law to bind a credit union unless signed by at least two officers of the credit union, one of whom shall be a member of the board of directors.

This means that every cheque must be signed by a member of the board of directors. A director cannot be present all the time so someone presents the director with a book of cheques and asks him or her to sign every one of them. If one wishes to buy 100 stamps at 32p one needs a cheque for £32.

Mr. Rabbitte

I accept the Deputy's point and I will deal with this on Report Stage.

Question put and agreed to.

SECTION 71.

Mr. Rabbitte

I move amendment No. 100:

In page 56, subsection (1), line 21, to delete "a transaction" and substitute "an account or transaction".

This subsection requires an officer or voluntary assistant of a credit union to keep confidential all transactions of a member with a credit union and any other business of the credit union. The purpose of the proposed amendment is to widen the scope of the subsection to require both an account and any transaction of a member to be kept confidential. This derives from a suggestion from the Credit Union Advisory Committee. It has been pointed out that if an account number of a member was disclosed, as distinct from a transaction of that account, it might be possible for someone to withdraw sums from that account without the member's knowledge.

Amendment agreed to.

Mr. Rabbitte

I move amendment no. 101:

In page 56, subsection (2)(b), line 26, to delete "criminal".

Subsection 71(2)(b) permits the disclosure of information relating to the business of a credit union to a court in connection with any criminal proceedings. It has been pointed out to me by the Prison Service Credit Union that a similar requirement might arise in any family law proceedings before the courts. Following consultation with the Attorney General's office it has been agreed that such disclosures should not be solely restricted to criminal proceedings and, accordingly, this amendment removes the word "criminal".

Amendment agreed to.

Question proposed: "That section 71, as amended, stand part of the Bill."

Mr. E. O'Keeffe

Does the league not perform audits and have a regulatory function for its affiliated unions? Is there a danger this amendment will interfere with that role? Is this legislation over restrictive?

Mr. Rabbitte

Is the Deputy asking if this will lead to a duplication of roles?

Mr. E. O'Keeffe

Yes. This is a sensitive area. I am referring to amendment No. 100.

Chairman

Amendment No. 100 is agreed. The Deputy is back tracking. The Minister has kept pace with me.

Mr. Rabbitte

I am not sure I understand the Deputy's point. Is he referring to the savings protection scheme?

Mr. E. O'Keeffe

No. We are on section 71.

Mr. Rabbitte

In amendment No. 70 I inserted a provision at the request of the league that where a credit union participates in a savings protection scheme representatives of the scheme will be entitled to inspect the books.

Mr. E. O'Keeffe

I have no problem with that, my question is technical.

Chairman

We have dealt with amendment No. 100. The Deputy is talking about the entire section.

Mr. E. O'Keeffe

We are dealing with a technicality. The league has a strict code.

Mr. Rabbitte

Is the Deputy saying that, since the league conducts its own audits, there is no necessity for the entire section or part of it?

Mr. E. O'Keeffe

The amendment.

Mr. Rabbitte

The amendment plugs a hole and clears up the distinction between a transaction on an account and confidentiality of the account.

Chairman

That is contained in amendment No. 100.

Question put and agreed to.

Sections 72 to 74, inclusive, agreed to.