Credit unions suffer setback

THE credit union movement has suffered a severe setback in its battle to curb the power of the registrar of credit unions to regulate the sector.

The credit union movement had lobbied hard and successfully to have section 35A of the Central Bank Bill 2010, which would have given the registrar unlimited powers over credit unions, removed.

However, the provision has been reintroduced by the minister under section (2C) and the amended legislation is virtually the same as it was before.

CEO of the Irish League of Credit Unions Kieron Brennan had argued section 35A meant credit unions would have no right of appeal when any new regulations were introduced and there was no requirement to consult with credit unions on regulatory changes.

Last night a spokesperson for the Irish League of Credit Unions said: “We are deeply unhappy with the proposed amendments to the Central Bank Bill 2010 as set out by the Minister for Finance. We do not feel that our concerns have been taken into consideration.

“We still feel that the Minister and the Regulator are attempting to control credit unions in an unreasonable way.”

The ILCU and the Credit Union Development Association are to recommence their massive lobbying operation to get the legislation changed.