Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I recognise the Minister's logic in encouraging rotation and a turnover at board level, but it is not necessary. What is the problem we are trying to solve? What is not happening that should happen? There is a natural turnover of directors in the vast majority of credit unions. They must all go before their members at AGMs and if their positions are renewed, it is because their members have faith in them that they are doing their job correctly. No such rotation provisions apply to the banks, for example, and directors can serve indefinitely.

Deputy Pearse Doherty's waiver amendment is positive and should be accepted by the Government because there will be cases, particularly in small rural credit unions, where they will be unable to do without directors. This provision will not kick in for any individual for 12 years following the enactment of the legislation if amendments Nos. 24 and 27 are accepted, as the Minister indicated he would. The credit unions, therefore, have plenty of time to adjust to rotation at board level, but it will present problems down the road. The issue has consistently been raised around the country. It will not necessarily be a problem in the Minister of State's area or in mine, as they are largely urban and the credit unions are of a certain scale, but it will present a problem in rural communities.

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