The report of the Review Commission into the Irish League of Credit Unions, Time for Change, starts out with the good news. "The Irish credit union movement is an outstanding success story; in terms of meeting its objectives it has succeeded far beyond original expectations."

In 1960 there were four credit unions on the island. Today there are 540 affiliates to the Irish League of Credit Unions, with others that are not affiliated. League affiliates have a membership exceeding 2.2 million.

But change in Irish society coupled with the growth of the movement, has created demands with which the movement has been unable to cope. The commission, in the course of its work, discovered a serious problem with the structures of the Irish League of Credit Unions and in the relationship between the league board and affiliated members.

"There is widespread disaffection; confidence and trust are at a low ebb and some credit unions are actively considering leaving."

What is needed, the report concludes, is radical change.

The report of the commission, headed by Mr Phil Flynn, has now been circulated to league affiliates. The league holds its agm this weekend, in Killarney, but full discussion of the report is being held over for a special delegate conference in June.

Nevertheless this weekend's conference will take place against the general background outlined in the commission's report. Contentious issues may arise, according to one key source. Expenses claims is an issue which may form the focus of discontent. The ISIS debacle, when the league lost €34.3 million on a failed technology project, could prove to be another.

It was the huge mess created when the league tried to devise a technology solution to link its affiliates that led in turn to the commission. But the commission has little to say in its report about the ISIS project, taking the view, obviously, that the problem is not so much with that project but rather with the organisation which initiated and oversaw such a disastrous process.

The commission decided it should not be drawn into the ISIS issue as it could not reverse what had happened, and that the movement must move on. But it said the need for a technology solution remained. It did comment that the league did not need to own the solution it might eventually use.

The commission's report is shot through with indications of the unhappy culture which exists within the otherwise highly successful credit union movement. There is huge potential, it believes, given the goodwill which exists for the movement and the talent which lies untapped within the movement. One of the commission's core findings is that some way must be found to unlock this unused talent.

(An example of the references to an unhealthy internal culture comes in the section dealing with internal communications within the league. "Because the formal channels of communication are inadequate, the informal rumour machine has a field day and functions with a creativity that would do justice to Hollywood.")

While conducting its inquiries, the commission says, it repeatedly encountered expressions of concern that any recommendations it might make would never be implemented. "Based on past experience that scepticism may well be founded," the report stated.

It recommended the creation of an implementation committee which would have the single purpose of ensuring all recommendations accepted by June's special conference are implemented as quickly as possible. A new office of chief executive officer would be created and that person would sit on the implementation committee (a senior staff member of the league would sit on the committee pending appointment of a chief executive). Also on the implementation committee would be Mr Flynn, the president of the Irish League of Credit Unions, Mr Jim McMahon, and five further persons to be agreed by Mr Flynn and Mr McMahon.

This implementation committee would sit within two weeks of the June conference. It would meet monthly thereafter.

One source said the whole programme could be implemented within six months if it did not encounter resistance.

The report recommends that after a year the implementation committee report back to members on progress and, if necessary, highlight any obstacles it is encountering. The coming year will be interesting in the development of the credit union movement.