The Irish League of Credit Unions has deferred introduction of its new funding structure, and is seeking an "urgent" meeting with the Minister for Finance, Mr McCreevy, about the proposed new single financial regulatory authority. The league is concerned that changes which the Minister is proposing to the legislation underpinning the new financial regulatory authority will undermine the "ethos and special character" of credit unions.
At a special general meeting held by the league in Galway on Saturday, which was closed to the media, delegates were apparently told that the Bill establishing the Irish Financial Services Regulatory Authority (IFSRA) was to be changed by the Minister. This was in spite of undertakings given to the league when the legislation was being finalised last year.
Angry delegates expressed concern that attempts might be made to impose regulations applying to banks on credit union branches, according to a spokesman for the Irish League of Credit Unions.
The original legislation brought credit unions within the scope of the new authority, but also allowed for a degree of independence in the new structure. Delegates were told that the Registrar of Credit Unions would now be fully subject to the authority of the board of the authority under the changes proposed.
"We have no problem with regulation and, indeed, believe it to be in the best interests of credit unions around the country. However, the changes now being made are a departure from the undertaking given to the league when the Bill was being prepared," Mr John O'Regan, president of the league, said afterwards. "I want to meet the Minister urgently to discuss the issue with him.".
Mr O'Regan said the league had already discussed the changes with Department of Finance officials, and had made it clear they were unhappy with them. Delegates at Saturday's special meeting called for withdrawal of the changes, and voted to lobby TDs on the issue.
"Credit unions have been a distinct and separate part of the financial services sector in this country for the last 40 years with their strong emphasis on voluntarism and the community, and their not-for-profit status.
"We do not want to see those special characteristics eroded in this legislation, and will not stand for being lumped in with the commercial banks when it comes to regulation," Mr O'Regan said.
Delegates also decided not to proceed with the introduction of a new funding system for the league in 2003.
Its introduction has now been deferred until 2004.
