The Irish League of Credit Unions will be revamped this year according to a package endorsed yesterday by a special conference of members.

The changes come as the movement seeks to re-establish its credibility after a highly critical review completed in April.

Chaired by the industrial relations consultant, Mr Phil Flynn, the review reflected significant alienation among the league's 535 member unions.

Radical overhaul was needed to ensure the movement's future, it said.

The league's president, Mr John O'Regan, said yesterday: "There was an overwhelming desire for change and the meeting carried that through. The message coming across from one and all was of a new beginning and of a very clear attempt to be cohesive going forward."

The changes endorsed by 1,000 delegates include the appointment of a full-time chief executive at the league, which has more than €6.6 billion on deposit for some 2.2 million investors.

The position replaces that of general secretary which was held by a Department of Finance official, Mr Tony Smyth, until last December when he resigned by "mutual agreement" with the board. While the reason for his resignation has never been revealed, it followed the write-off of more than €34 million after a computer project intended to create a common network for the entire league collapsed.

Other difficulties have surfaced, among them the loss of market share in borrowing to the banks and the administrative challenge of the euro introduction.

In addition, several credit unions have threatened to leave the league, arguing that its structures are outdated. It was unclear late yesterday whether the changes would be sufficient to convince them to stay.

Mr O'Regan and his predecessor, Mr Jim McMahon, have argued strongly against a split although the union at Tullamore, Co Offaly, has notified the league that it will leave in October.

In his address to the conference on Saturday, Mr O'Regan said: "United we retain our potential and real strengths.

"Divided we will provide the opportunity for other financial service providers to take our place with regressive consequences for our members."

Mr O'Regan has stated that the tension which prompted the review would have arisen even if the computer project had not failed and said in his address that the league "fully recognised" the need to change. After the meeting, he said: "I believe there was very clear evidence of a renewed coherence in the whole league process."

The two-day conference at the Citywest Hotel in Dublin accepted about 60 of 64 motions proposed after Mr Flynn's review.

Other changes endorsed included:

•a new method of funding;

•the replacement of the annual general meeting with a biennial delegate meeting;

•the reduction to 13 from 16 in the number of board members;

•the nomination of an implementation committee to oversee the changes.

The implementation committee is seen as crucial because Mr Flynn stated in his report that change had been agreed before but not followed through with action.

Mr O'Regan said: "There was a distinct difference on this occasion. The league set up the review commission.

"The meeting recognised that change was needed. That was different from what happened on the previous occasion."

The composition of the committee had not yet been agreed, Mr O'Regan said.

He added: "There's a large volume of work which has to commence. The target is April 2003 so we won't be letting the grass grow under our feet."