Commission to advise on credit unions' future
THE Government has set up a new commission on credit unions and ordered it to look at how the movement can be consolidated.
The commission is to be chaired by Queen's University academic Donal McKillop and will have to present an initial report to Finance Minister Michael Noonan by September, and a final report in March.
Some 79 credit unions are close to collapse and will need to be merged or bailed out.
The commission, whose members include registrar for the sector, James O'Brien, along with members of the Irish League of Credit Unions, has been told to take into account the fact that the movement is a not-for-profit one.
Under the IMF/EU deal, the State has signed up to design a strategy for how the credit union movement evolves. Legislation has to be submitted to the Oireachtas by the end of this year as part of the bailout deal. The new laws are likely to usher in stronger governance and new rules for the sector.
The Irish League of Credit Unions said it welcomed the fact the Government "has acceded to our request to establish a commission".