More than 130 friendly societies have been taken off the Registry of Friendly Societies for either filing no annual returns or presenting incomplete returns.

Mr Noel Martin Sisk, the registrar of friendly societies, said many of the societies had not "met their statutory obligations over many years" to make annual returns. He said this was a most unsatisfactory situation which could not be tolerated.

He said by the middle of last year 133 "industrial and provident societies" had their registrations cancelled. He said this meant they no longer had any limited liability. He also emphasised the difficulties such societies had in getting their registrations restored.

"It is important to point out that a society can only have its registration restored by means of an application to the High Court. This is now a costly experience in terms of legal fees," he said. His comments are included in the Report of the Registrar of Friendly Societies 2001.

Mr Sisk said the report was likely to be the final one published as the new Irish Financial Services Authority (IFSRA) would be responsible in future for the regulation of credit unions and other societies.

Mr Sisk said the health of the credit union movement was clear with 32 credit unions maintaining assets in excess of 40 million. The largest credit union registered was the St Raphael's Garda credit union with more than 22,000 members and €145 million assets.

According to the report, credit unions have been extending more credit in the past few years, with 2.5 billion of loans issued in 2000 compared with just over 2 billion in 1999. The interest from loans increased to € 351 million in 2000 from € 296 million in 1999.

However, Mr Sisk criticised some credit unions for their use of savings stamps, which are the equivalent of cash. "It is of vital importance that credit unions which offer savings stamps to their members realise that they should apply the same stringent controls, both as regards the physical safekeeping and the recording in the books, to the stamps as they do to their cash takings and floats," he said.

Mr Sisk is critical in the report about the Irish League of Credit Unions and its handling of the ISIS project, including what he describes as the "misleading impression" given about the registrar by the acting league president Mr Jim McMahon at an a.g.m. in April 2000.