Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I tabled a number of amendments on Committee Stage in the Seanad to increase the term limits of members of the board of directors. This arose from discussion with colleagues opposite on Committee and Report Stages in this House. On Report Stage the Minister for Finance had stated he intended to bring forward an amendment, following consultation with the Office of the Attorney General, to change the term limits to 12 years in aggregate in a 15 year period. This commitment is now reflected by the amendments made in the Seanad which strike an appropriate balance between promoting board rotation and protecting the volunteer ethos of credit unions. Seanad amendment No. 66 is consequential on this amendment to increase the term limits from nine to 12 years. Seanad amendment No. 64 increases the maximum consecutive term for the chairman from three years to four. The term of office of the chairman is for a period of one year. Currently, a chairman is not permitted to serve more than three consecutive terms in that post. The Minister agreed on Committee Stage to increase the maximum consecutive term for the chairman from three years to four. This will ensure continuity in the board. However, it will also be one of the responsibilities of the nomination committee to ensure board continuity. Seanad amendment No. 124 permits the Central Bank to appoint a director, even where that person may have exceeded the limit. This is the point made by Deputy Pearse Doherty when speaking on the previous group of amendments. The bank can give a credit union the power to appoint someone, even if that person is beyond the term limit.

In the course of the debate on Committee Stage and again in the Seanad a discussion ensued on a waiving of the term limits in exceptional circumstances. The Minister undertook to examine this proposal. The issue to be addressed is whether the term limits could result in a credit union being unable to attract enough suitable directors. The Bill already provides that the Central Bank can require a credit union to nominate additional directors where the board is lacking in skills or expertise. The director so nominated must be approved by the Central Bank. The Bill has been amended in order that the time served as an additional director in these circumstances is not reckoned for the purposes of the term limit. This means a director who has already served his or her 12 years in a15 year period could still be appointed to the board, but only in these exceptional circumstances, if there is a deficiency in expertise and agreed to by the Central Bank. This addresses the concern raised without undermining the core principle of the Bill on term limits.

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