Sunday 22 January 2017

Credit unions reject reform-plan funding

Published 26/04/2016 | 02:30

The vote on funding raises a major doubt about the commitment
of credit unions that make up the league to the reform plan
The vote on funding raises a major doubt about the commitment of credit unions that make up the league to the reform plan

Plans for a massive shake-up of the credit union movement have been dealt a blow after delegates turned down funding for the initiative.

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Leading management guru Eddie Molloy came up with the proposals to radically reform how credit unions operated.

He proposed that the Irish League of Credit Unions changed to become an "empowered centre" instead of being a loose affiliation of credit unions.

The aim is to make the movement more like the GAA, by combining strong local units that make decisions centrally.

The reform plan was presented by Dr Molloy to 1,000 delegates at the annual general meeting of the League of Credit Unions in Limerick at the weekend.

Delegates at the AGM voted in favour of the reform agenda after it was outlined to them by Dr Molloy.

But they voted down a proposal to pay €800,000 to Dr Molloy's Advance Organisation for the work completed so far.

The funding was to come from the league's Special Protection Scheme (SPS), a €100m fund to bail out credit unions at risk of insolvency.

The vote on funding raises a major doubt about the commitment of credit unions that make up the league to the reform plan, especially as it was also planned to tap the SPS to fund the €5m to €6m cost of the first phase of Dr Molloy's Advanced Organisation shake-up plan.

Asked about the vote, a spokeswoman for the league said: "While this particular funding motion was defeated, this is not the end of the process and the board will now decide on a date for a special general meeting to discuss and debate the final Advanced Organisation (AO) report, and make a decision on costs and funding going forward.

"AO at this time has been paid in full for work completed to date."

President of the league Brian McCrory insisted there was an appetite for reform, despite the voting down of the funding proposal.

Irish Independent

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