Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The commission considered all of these matters and I am following its recommendations closely. I repeat that the three credit union movements were represented on the commission. When their representation was combined, they were by far the biggest group, and they wanted to go down this road.

I am most interested in establishing the principle. With regard to the practicalities, this legislation will be passed before Christmas and will be signed by the President. AGMs will then take place in January, so it will be 2014 before the provisions are implemented. Existing directors can then go forward every three years for re-election and can continue to serve until 2023. That seems a fair length of time, but in establishing the principle I would not have a difficulty conceding the amendment drafted by Deputy Heather Humphreys to increase the period from nine to 12 years to give more discretion. I want, however, to retain the principle of rotation.

On whether an officer, such as a chairman or secretary, may hold office for four rather than three years, as suggested by Deputy Kieran O'Donnell, it makes sense to have continuity, for example, in cases where a chairman is re-elected and a large number of new directors are elected. The only reason the Bill provides for a term of three years is that this was the period recommended by the commission. If we change it to four years, we will not implement the commission recommendation, although as legislators we are entitled to do so. The best I can do is accept the proposal made by Deputies Kieran O'Donnell and Heather Humphreys and extend the nine-year period to 12 years, thus allowing a member of a board to remain in situfor 12 years in a 15 year period. I could also extend to four years the three year limit in respect of key officerships. This can be done by way of amendments introduced in the Seanad and resubmitted to the Dáil.

Beyond the changes I have proposed, I am not prepared to abandon this provision, as recommended by the commission. It is a good idea to have renewal. As I indicated on Second Stage, I observed such renewal in my political party in 1977 when the late Garret FitzGerald took over the leadership. When he changed the party's constitutional rules, we had chairmen of branches who had been in place since the party was founded or even ten years prior to that, dating back to 1922. We were told then the sky would fall in if we implemented the new rules as small branches would not find volunteers to serve. Once we renewed the rules, we had a rush of volunteers, including many young people. The principle of renewal is a good one and I would like to retain it.