Mr. Philip Hosford:

Regarding the board and its rotation, we do not see any difficulty. The board is quite happy with the fact that the term of a director is limited to nine years and the term of executives is limited to three years. The view of the board is that governance is essential and best practice is very important. It is a voluntary position and if one has completed nine years it may be time for someone else to take on the mantle. People on the board are voluntary directors. The credit union should not be their top priority in life and if one gives nine years of one's life, perhaps one has done enough. It is a time-consuming role. Nine years is enough and perhaps we should allow others to come in and take on the mantle.

The board does not have an issue with the rotation of the executive positions on the board. In certain credit unions, the chairman has been the same person for 25 years. That is not to say that the person is not very capable but it is not best practice to have the same person as chair of the board for that length of time. The board has taken the view that this is a positive step. One is not precluded from being involved if one is not a director.

Another question concerns the impact of the levies. As a larger credit union, this year we have a surplus of €2 million and levies may amount to 10% or 20% of the operating surplus. It is a more serious situation if a credit union does not have a surplus as the imposition of levies could push a credit union into deficit. Difficulties arise in this situation because the credit union must use its reserves, which affects its capital levels.

Regarding the overall perspective, different credit unions have different views and size is a major factor. We are not a very big credit union, with €85 million in total assets and 16,000 members. On an overall basis, the draft Bill and the commission report are very positive and will provide a platform for a sustainable credit union model into the future. Restructuring is an important part of that. There will be changes and challenges and not everyone will like them but overall it is the best thing for the credit union.