Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank Deputy Cahill for raising this issue relating to Clonmel credit union. He has been in contact with me about it on a couple of occasions in recent days. Normally, in the run-up to Christmas, as the Deputy outlined, the credit union would have paid out an interest rebate or dividend, having had its AGM and having received authorisation to make those payments.

The Government recognises the important role credit unions play in Irish society as volunteer co-operative financial institutions. In the current environment, credit unions are appropriately focusing on the health and well-being of their volunteers and staff and continuing to serve the needs of their members. Credit unions are important at both a local and national level, given their community presence across the country.

It is important to note that virtual AGMs are not prohibited by Central Bank regulations. Rather, they are not allowed under the Credit Union Act 1997, which sets out that there should be an AGM which members can physically attend. That is the issue we are having to deal with now. It is for this reason that the Government brought forward the Finance (Miscellaneous Provisions) Bill 2020 to allow, among other matters, for the holding of virtual AGMs by credit unions.  The Government approved the drafting of the Bill based on the general scheme on 6 October and, once the drafting phase was complete, the Bill was published on 18 November. It passed all Stages in the Seanad last week and I thank Senators for their co-operation in that regard. It will be introduced to the Dáil next week, subject to the schedule of the House.  The Bill is priority legislation for the Government to get enacted before Christmas and we look forward to the co-operation of Deputies to ensure that happens.  I am confident that it will happen. Once enacted, the legislation will take immediate effect and credit unions will be able to hold virtual AGMs from that point.  The legislation also provides for an interim period which extends the deadline for credit unions completing end-September 2020 AGMs until 30 April 2021.

The principal reason the AGMs are not happening is that the Covid restrictions mean it is not possible to have an indoors gathering for a large AGM such as that of a credit union might be. It is an issue that has arisen solely because of Covid. Given that we do not know when the restrictions will end or the format of those restrictions as we head into the new year, we decided to bring the legislation forward to allow credit unions, if they so wish, to have virtual AGMs from January. It will take time for the boards of directors to set a date for an AGM and put the arrangements in place for a virtual meeting. It is envisaged that the meetings will not require participants to use a laptop. People can take part by telephoning in, for example, or by way of other technology and, depending on Covid restrictions, a blended meeting may be possible. Some people may be able to physically attend while others will participate by telephone or other electronic means. It is a function of the AGM, when it happens, to approve the payment of a dividend or rebate of interest.

Covid has been the particular problem in terms of the delays that have arisen up to now. I hope the directors of the credit unions know that we expect the legislation to be enacted well before Christmas. As such, they should commence arrangements to set a date for their virtual AGM as early as they can manage in the new year. I encourage Clonmel credit union and others to start moving on their initial preparations. Once the legislation is passed, they will be able to set a date promptly for their AGM.

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