Wednesday 25 April 2018

Kenny: ‘Takeover of Newbridge credit union necessary’

Enda Kenny
Enda Kenny
Caroline Crawford

Caroline Crawford

TAOISEACH Enda Kenny has described the take-over of one of the largest credit unions in the State by a bank as "a necessary decision".

Mr Kenny said the difficulties faced by Newbridge Credit Union had been a matter of serious concern to the Government which supports credit unions very strongly. He said he believed the move to transfer the credit union's deposit and loan accounts to Permanent TSB would stop a run on other credit unions throughout the country.

"This was a necessary decision that was made in the High Court otherwise the alternative was liquidation and that ordinary people would not have access to their deposits and their savings and that's something that Government couldn't stand for and won't stand for," he said.

Speaking in Mayo today at the opening of Value Centre Castlebar, Mr Kenny hit back at comments from MEP Marian Harkin who accused the Central Bank of "jackboot tactics" in trying to shut the member-owned credit union.

"MEP Harkin may be doing this for political reasons, there has been a change in the Europe constituencies. Is she suggesting that you should have the liquidation of Newbridge Credit Union?," he asked.

The Taoiseach pointed to the Government's €500m contingency fund for credit unions, saying he believed this and the decision by the High Court would stem any threat of a run on deposits at other credit unions.

"This has put a stop to that. Quite clearly the contingency funds set here of €500m speaks for itself. The focus of Government here is to protect and defend ordinary people with their deposits and their savings accounts in Newbridge Credit Union. This doesn't apply anywhere else as far as we are aware.

"The double report given to the Minister for Finance has been acted upon by Government the rules have changed here, we want a stronger, more effective more transparent credit union system which is very important for ordinary people all over the country and we support it and will defend it very strongly," he added.

The Taoiseach also spoke of the PwC review into Royal & Sun Alliance which suspended three senior executives last week after issues relating to Irish clams and finance functions were identified.

Describing the events as "a matter of concern" Mr Kenny added; "Insurance has risen though that is not deemed to be as a result of this. A number of top personnel have been suspended here, clearly there is an investigation ongoing here and the full details of what has transpired will have to emerge but as of last week RSA is still an authorised company which continues in business."



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