Officers of the Irish League of Credit Unions are expected to meet the Minister for Science, Technology and Commerce, Mr Smith, in early September to finalise details for the implementation of Credit Union Act. The Act was signed into law in May and the target date for implementation of the provisions is October 1st. Under the terms of the Act, individual credit unions will be able to expand their core lending and deposit activities and offer new services to members. Credit unions will be able to make individual loans of up to £30,000 or 1.5 per cent of the lending union's total assets. On the savings side, a member can save up to a aggregate of £50,000 in deposits and shares.
Officials from the Department of Enterprise and Employment, the ILCU and the Registrar of Friendly Societies, have been in consultation for some months about the implementation of the Act. This weekend the board of the Irish League of Credit Unions met to consider a draft new rule book for all of the 426 credit unions affiliated to the league. The current rule book is to be replaced to bring practice and procedure into line with the new legislation.
A League spokesman described the rule book as the "procedural and legal bible by which the credit unions will operate".
The league is currently preparing an extensive training programme so that every staff member of each credit union will receive instruction in the new rules and procedures which will be required when the act comes into operation. The Department must make a commencement order to bring the legislation into effect. It can come into effect in stages or all at one time. Among the issues still to be finalised are the fees which the unions will have to pay to the Registrar of Friendly Societies to part fund their own supervision.
The Department of Enterprise and Employment is currently preparing an explanatory guide to the new Act.
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