FEELINGS have been running high in the past week as the Newbridge Credit Union saga appears to be drawing to a close.
A massive turnout for Wednesday night’s meeting at the Ryston centre was followed by an apparently spontaneous, internet-led protest outside the credit union building on Saturday morning. Meanwhile, members of the newly formed Credit Union Action Group stated their intention to seek legal advice on the constitutionality of the actions taken by the government and the Central Bank. Finally, a Sunday newspaper report added fuel to the fire by quoting a statement from the Central Bank which accused Newbridge Credit Union of “severe and persistent breaches of regulations, particularly around reserves”.
In relation to the proposed combination of Newbridge and Naas Credit Unions, the ***Sunday Business Post*** article noted that according to the Central Bank, “because of concerns about the low capital levels and impaired assets at Newbridge, other credit unions declined approaches to merge before Naas agreed in principle to the deal in April”.
This was described by Willie Crowley of the Newbridge Credit Union Action Group as “inaccurate” and he accused the Central Bank of “orchestrating misleading leaks and propaganda to force through a merger with Naas Credit Union claiming that Naas Credit Union is “being paid to take us on”
The action group, which organised the meeting last Wednesday night, is also planning a protest at the Central Bank, inviting members of other credit unions to participate.
Saying that legal advice was being sought, Willie Crowley told the ***Kildare Nationalist*** that
as any decision to combine the credit unions would be taken by the Naas directors on one side and the Newbridge special manager on the other, without any members’ vote, it would be “undemocratic”.
The Central Bank statement issued midway through last week said that it had sought and received a proposal from Naas Credit Union in April “setting out the basis upon which Naas Credit Union would be prepared to combine with Newbridge Credit Union”.It added: “The proposal remains subject to, amongst other things, the completion of due diligence, negotiation of relevant documentation, Naas Credit Union board approval, regulatory consideration as well as steps required under the 2011 Act including court approval.”
The statement further noted that Finance Minister Michael Noonan had approved the proposal in principle, and concluded by reminding members that deposits up to €100,000 were fully guaranteed.
Meanwhile, Naas Credit Union also issued a statement, confirming the negotiations and saying that, if approved by all parties, the proposal “would lead to the continued provision and development of Credit Union services in both Naas and Newbridge”. It added that negotiations could take “a number of months” to conclude.
Local TD Martin Heydon, who attended the packed and heated meeting at Ryston on Wednesday night, stated on Thursday that it was essential that the future of Newbridge Credit Union is safeguarded in its current building as “anything less would be completely unsatisfactory to members”.
He again criticised the lack of information since the appointment of the Special Manager and noted: “I believe the Central Bank has serious questions to answer on how it has handled issues in Newbridge.”
Fianna Fáil TD and party whip Seán Ó Fearghaál stated that he had written to special manager Luke Charlton, asking him to address the Newbridge Credit Union members “as a matter of urgency”. On the proposed combination of Naas and Newbridge Credit Unions, he commented: “In my opinion it is totally unreasonable to suggest that a very large credit union, such as Newbridge, can resolve whatever problems it may have through amalgamation with another very large entity, serving the needs of an entirely different community. Such amalgamations cannot represent the way forward for the credit union movement.”
Nevertheless, the publication of the ***Sunday Business Post*** article will have caused some disquiet among Newbridge Credit Union members, with its claim that the Newbridge operation now has a shortfall “which will be plugged from the Department of Finance’s €500 million credit union resolution scheme”.
Given all of this, it now seems that the government and the Central Bank will need to act quickly in finding a final resolution to the problem.
