The Irish League of Credit Unions (ILCU) has said that while it was disappointed with Wednesday's defeat in the Dail of an Opposition motion on credit union tax, its planned meeting with the Government next week was "a significant breakthrough".

"After 17 months of inaction, the Government has conceded the need to meet with the credit union movement to resolve this issue," the ILCU said.

The league plans to use the meeting, which will take place at Government Buildings next Thursday, to press the Government to deliver on the findings of a working group into the taxation of credit union savings.

"The use of the European Commission investigation was clearly shown in the debate to be a red herring," the league said. "We do not expect that the Government will continue to justify inaction on that ground."