Govt 'could have avoided Credit Union bailout four years ago'

The former chief executive of the Credit Union Development Association, Bill Hobbs, has said concerns that he raised about the future of the credit union movement four years ago "fell on deaf ears".

Yesterday, Finance Minister Michael Noonan said up to a billion euro would be used to recapitalise struggling credit unions.

But Mr Hobbs said the move could have been avoided, as he flagged up the issue to the head of the Department of Finance, Kevin Cardiff, in early 2007.

He believes the price is being paid now because Mr Cardiff probably felt he was "exaggerating the case".