Nationwide promises more to appease the members

Irish Nationwide will provide more detail about the remuneration of its two executive directors - €1.11 million in 2001 - next year and will improve on its communications with members, chairman Mr Michael Walsh told members yesterday.

Mr Walsh moved to head off anticipated complaints and criticism before members had the opportunity to question the society's board at its annual general meeting in Dublin.

In future, Irish Nationwide will include details of the interest rate charged in all annual mortgage statements issued to borrowers. It will credit interest payments to mortgage-holders' accounts monthly from June 1st instead of the current annual basis - though he did not say if this would be applied to all mortgages or to new business only.

During the meeting, in response to questions, Mr Walsh told members there would be further information in the 2002 annual report on payments to executive directors.

In 2001, two executive directors - managing director Mr Michael Fingleton and secretary Mr Stan Purcell - apparently shared pay of €854,000 and pension contributions of €258,000. Commenting on the lack of detail in the annual report, Mr Walsh quipped that the total was given and there were only two executive directors, so "you can ask Stan later how much he got".

At a well-attended meeting, members complained that the mutual's mortgage rates were too high and about how the society dealt with mortgage-holders who fell into arrears.

Describing the Irish Nationwide mortgage rate as "the most expensive of any institution excluding moneylenders", Mr Brendan Burgess welcomed the decision to tell members what interest rate they are being charged but accused the society of "coming the heavy immediately" on members who got into arrears and asked what its policy was on jailing these members.

Asking whether the society would notify members of changes in their mortgage rates, he said the society would have to "buck up" with the appointment of the new Irish Financial Services Regulatory Authority which "will have great interest in Irish Nationwide".

Mr Walsh responded that the society had "no problem" with the new regulator or a consumer focus and that anyone who felt they were unfairly treated aleady had access to the ombudsman.

Irish Nationwide's interest rates were "in line with others", he said. The accusation of jailing members in arrears drew an emotive response from managing director Mr Michael Fingleton who insisted Irish Nationwide had "never sought to put anyone in jail" and asked Mr Burgess to withdraw his remarks.

Mr Walsh handled most of the members' questions with Mr Fingleton only commenting a few times during the almost two-hour long meeting.

Shareholders agreed to reappoint auditors KPMG.

The annual report shows the auditors' remuneration jumped to €100,000 in 2001 from €65,000 in 2000.