Kenny says Newbridge problems don’t apply to other credit unions

Taoiseach Enda Kenny assured members of credit unions across the country today that the problems faced by Newbridge Credit Union "don't apply anywhere else as far as we are aware".

Mr Kenny was questioned by reporters in Castlebar about the takeover by Permanent TSB of Newbridge credit union before he opened a cash-and-carry outlet in the town.

The dangers of “a run-off” on credit unions arising from the Newbridge situation had been averted, the Taoiseach insisted.

He went on to emphasise the importance of credit unions stating that the Government and the Minister for Finance and the Central Bank supported them very strongly.

The Taoiseach continued: “In fact we want to see a growth in strength of credit unions because local access to community credit is very important.”

The decision of the High Court to licence Permanent TSB to take over Newbridge credit union was a necessary one, Mr Kenny said.

Otherwise the alternative was liquidation – a situation where “ordinary people would not have access to their deposits and their savings”.

“That is something we could not stand for and won’t stand for”.

Mr Kenny emphasised that the Government wanted a strong, transparent and effective credit union system and pointed out that the taxpayer had already put in €500 million as a contingency fund arising from the reports given to the Minister for Finance about the viability of credit unions.

Asked about comments by MEP Marian Harkin in which she blamed the Central Bank for the credit union's difficulties, the Taoiseach suggested that Ms Harkin had spoken for "political reasons" with the revision of the European Parliament constituencies.

“Is she suggesting that we should have liquidation of Newbridge credit union?”

Asked about difficulties at Royal Sun Alliance (RSA), the Taoiseach said the situation was “a matter of concern”.

A number of top personnel had been suspended, an investigation was ongoing, Mr Kenny pointed out, and full details had to emerge but as of last week RSA was still in business.