Regulations may hurt credit unions

Any tightening of our tax legislation to deter evasion and fraud is to be welcomed, but targeting credit unions to the same degree as commercial banks is something that needs serious pause for thought on the part of Finance Minister Charlie McCreevy.

The movement is now, obviously, a multi-billion, largely voluntary, organisation and the principle that credit unions should be regulated is not a problem for the Irish League of Credit Unions, as they have repeatedly stated. The problem is treating them like any other commercial institution in the money market when they are palpably not in the same field.

Applying the same regulations to credit unions as apply to commercial banks is completely over the top. There is more than just a lingering whiff about it of the long-standing row between the minister and the League, which had lasted for two-and-a-half years, and ended in an uneasy peace.