Mr. Kieron Brennan:

I thank the Chairman and the ILCU appreciates the invitation to make a presentation to the joint committee today. I note what the Chairman said and we will attempt to be as brief as possible. In reality, we have a narrow range of issues we wish to put to the joint committee, which will reflect our concerns that in some respects the draft legislation under consideration does not fully or in some cases, appropriately, reflect the position as set out in the Commission on Credit Unions. If I may, I will launch straight into it.

The first issue for us pertains to democratic control within credit unions. Credit union thinking, planning and operations worldwide are based on ten fundamental credit union operating principles that provide a common foundation among all credit unions. The second operating principle - namely, democratic control - provides a number of considerations, including members enjoying equal rights, credit unions being autonomous within the framework of law and regulation and recognition that credit unions are co-operative enterprises controlled by the members. Credit union elected officers are voluntary in nature and the incumbents should not receive a salary for fulfilling the duties for which they were elected. However, credit unions may reimburse legitimate expenses incurred by elected officials. In light of this, we ask that in revisiting this draft general scheme, full consideration be given to the significant concern that provisions of the draft general scheme unduly interfere with this operating principle. Our point is that in seeking to impose, for example, term limits - restrictions on the amount of time persons can spend on credit union boards - and in the list of prohibitions which specifies the people who may not serve on boards, the democratic principle is being interfered with. Credit unions will not be allowed to elect whomsoever they wish to serve on their boards. In addition, it would be inequitable, unnecessary and potentially detrimental to some, particularly small, credit unions to impose a legal restriction on the number of years an individual can serve as a director or on the board oversight committee. Were this proposal to be implemented, the Republic of Ireland movement would be the only credit union movement worldwide where such a limitation would exist. What is the justification for this unfavourable treatment of Irish credit unions, as against all other credit union movements worldwide? Our colleague, the vice-president of the World Council of Credit Unions, is present and I will ask him to say a brief word on that point.