The Russian delegation visit Mullingar Credit Union.
Russia
The ILCUF continues to focus its effort on
strengthening the regional presence of credit unions
in Russia. Currently, the ILCUF is supporting the
development of regional associations in three areas
of Russia - St. Petersburg, Karelia (North-west region
of Russia) and Dubna (Moscow region). The ILCUF is
assisting these regional associations with technical
and operational support to equip them to support
new and emerging credit unions.
During the summer of 2009 for 3 days, Karelia ran a
seminar in the form of an outdoor camp for 27 credit
union staff and volunteers from the three regions.
The participants benefited from various training
sessions such as ‘the role of volunteers in credit
union management and control’ and ‘internal
controls’. They undertook various group work
activities and exercises based on various aspects of
credit union operations. The seminar also included
some outdoor activities such as obstacle course
exercises to promote teamwork.
Representatives from all three regions participated
in a new two-year training project that is being
58
A N N U A L R E P O R T 2009
funding by the ILCUF. 2009 marked the second year
of the first ever two-year training course which
culminated in a study trip to Ireland during the year.
The 30 participants, who were mainly staff from the
credit unions in each region, received intensive
training for a week in the ILCU office on various
credit union topics, with the focus being on internal
controls and credit control given the current
economic climate. The participants also visited St.
Brigid’s Credit Union Clara, Mullingar, Roscommon,
Lanesboro/ Ballyleague and Longford credit unions
respectively, where they had an opportunity to learn
from the vast experience of the Irish credit union
movement.
No of
credit unions
Members
Savings €
Loans €
53
43,929
14,700,000
14,600,000
Other projects funded
In addition to the main projects, the ILCUF receives a
wide range of applications for funding from small
projects. In 2009, 13 projects that were funded
included the following:
5
The Foundation would like to take this
opportunity to thank the following:
The Irish League of Credit Unions for its support and
for bearing staff and administrative costs.
Individual credit unions and their members for
contributions and support in various forms,
including study visits.
The Irish Government for its financial support
through Irish Aid.
Partners CCA and Self Help Africa for their support
throughout the year.
SECTION
Nigeria: Society of African Missions – the
construction of a 3-classroom block at St.Mary’s
secondary school in Niger State. The ILCUF
previously funded a classroom block for the primary
school in 2005 and a kitchen/stores area in 2008. In
this area of over 25,000 square kilometres where St.
Mary’s primary school is located, there are only a
handful of secondary schools and they are of a very
poor standard. The nearest secondary school of
decent standard is over 100km away, which means
that many of the pupils finishing the primary school
would not be in a position to attend secondary
making to increase people’s chance of finding
employment – the project is also being supported
by Clones and Westport Credit Unions.
Bangladesh: Foundation of Credit Union Services –
aims to strengthen and promote the credit union
movement in southern parts of Bangladesh.
Kenya: Pamoja Self Help Group – to establish a cooperative dairy initiative which aims to alleviate
rural poverty.
Kenya: Achung Kenda Progressive Women’s Group –
pineapple growers established a small cooperative to fight poverty.
Malawi: Chidumula Model Organic Farming
Initiative - construction of 10 water harvesting
tanks.
Uganda: MCDT SACCO – focusing on the poverty
reduction of women through the credit union
model.
The children from St. Mary’s primary school are helping out in
the building of their new secondary school.
school due to the transportation and accommodation
costs involved. Therefore a decision, was made to
construct a much-needed secondary school beside
the existing primary school; currently the classroom
block is a work in progress and both the parents and
pupils from the primary school are involved in the
classrooms’ construction by providing labour and
assisting the bricklayers in their work. This school
will allow the pupils to continue with their education
at a cost affordable to their parents and it will
substantially increase their chances of finding
employment in the future.
Argentina: Via D’el Segor Enterprise Training
Centre-to provide technical education to members
of the community such as carpentry and dress-
The ILCU Foundation is committed to adhering to and
promoting the Dóchas Code of Conduct on Images and
Messages.
A N N U A L R E P O R T 2009
59
Report of the Northern Ireland Committee
Introduction
The members of the Northern Ireland Committee are:
Brian McCrory
Chairman
ILCU Director
Patricia Kerr
Chapter 1
Pennyburn Credit Union Limited
William Breen
Chapter 2
Larne Credit Union Limited
Liam McCullagh
Chapter 3
Camlin Credit Union Limited
Shelagh Murphy
Chapter 4
Kilkeel Credit Union Limited
Pat Donnelly
Chapter 17
Fintona Credit Union Limited
●
The Northern Ireland Financial Capability
Partnership, steered by the Consumer Council
●
Social Economy Network
●
Cross-Sector Advisory Forum, set up by the NI
Assembly
●
Meeting with Head of Enterprise, Trade and
Investment, Arlene Foster
●
Meeting with Head of Social Development,
Margaret Ritchie
●
Meeting with the new Enterprise, Trade and
Investment Committee Chairman, Alban
Maginness.
2009 was a difficult year, with the sad passing of Paul
Thornton on Friday 20th February. Whilst Paul had
experienced many health problems over the years,
his sudden passing came as a shock to his family,
friends and colleagues.
●
Department of Work and Pensions meeting,
London
Paul worked for the ILCU for more than 22 years, and
became an invaluable resource on credit unions,
particularly for Northern Ireland. He was
fundamental in the introduction of new services in
NI, and played a vital role in the lobbying campaign
to allow credit unions in NI to expand their services.
The knowledge, experience and expertise that Paul
held is irreplaceable, but more so, it is the loss of
such a dedicated, supportive and humble colleague
and friend that will be missed. Rest in Peace.
In August 2009, the ILCU appointed Carmel Morris as
Business Unit Manager for Northern Ireland,
replacing Paul Thornton. Carmel previously worked
as a Field Officer for the League, and the NI
Committee wishes her the very best with her new
role. Credit Unions can contact Carmel by email on
[email protected] or by phone on (00353) 876
844183.
ILCU staff support is provided by the Northern
Ireland Unit in the ILCU office which is comprised of
Carmel Morris (Business Unit Manager), Martina
Treanor (Field Officer), Marianne Cushley (Press and
Marketing Officer - NI) and the ILCU Project Manager
for the review of credit union legislation, Fiona
Cullen (Head of Legal & Secretariat). A quarterly
meeting is held by the Unit with the CEO and a
representative from each ILCU Department to
discuss and provide updates on issues of particular
relevance to credit unions in Northern Ireland, in
order to provide a co-ordinated approach to the
provision of services to these credit unions.
In Remembrance
Meetings
The Committee met on 7 occasions during the year.
The Committee was also represented at the
following meetings:
60
A N N U A L R E P O R T 2009
UPDATES:
New Appointment
Legislative Review
2009 has been a busy year in respect of the legislative
developments that have occurred, which affect credit
unions in Northern Ireland. The culmination of the NI
Committee and NI Inter-Chapter Committee’s joint
lobbying campaign, in time for discussions in the NI
Assembly on the ETI Committee’s Report on the ‘Role
and Potential of Credit Unions in Northern Ireland’,
was extremely successful, with all political parties
well-versed on the needs and obstacles facing credit
unions in NI. This brought about the first debate in the
Assembly Chamber that had the support of all
political parties. The lobbying co-ordinators ensured
the credit union message was delivered to all
constituents in their area.
The NI Committee met with representatives from
ABCUL, the representative body for Credit Unions in
Great Britain, in October 2009, which was followed
with a Roadshow for all credit unions. This gave an
opportunity to gain a wider understanding of the
operational requirements that FSA regulation
brings, along with the first-hand experience of
credit union managers in Great Britain.
Further meetings with the FSA and Government
Departments are expected in the coming months.
Whilst the ILCU’s stated preference at all stages
through out the process had been power sharing
between the FSA and DETI (NI), ultimately both the
NI Assembly and the Westminster Government
Debt Relief Scheme
The ILCU was invited to respond to a proposal for a
‘Debt Relief Scheme’, which would allow borrowers to
write off debts of under £15,000. The NI Committee
reviewed the proposal, and was unanimous in its
concerns for what a scheme such as this could do to
credit unions. The ILCU’s submission on the proposed
scheme was circulated to credit unions on May 26th. Its
response highlighted grave concerns for such a
scheme, and the potential impact that it could have on
credit unions. Following this, at a meeting with DETI to
discuss the scheme, the following has been
established:
●
Secured loans do not apply to this scheme
●
Any member with more than £300 in shares
automatically does not qualify for this scheme [the
scheme only applies to those with less than £300 in
assets]
●
No money should be paid to those processing
claims on behalf of applicants
●
The scheme is due to be discussed and passed in
the Assembly in January 2011, and come into force
by December 2012. Further information will be
passed onto credit unions as this develops.
5
Since this review was issued in July, the NI
Committee has been working closely with the Legal
& Secretariat Department within the League, to
establish if such recommendations are to be
introduced by Government, and to negotiate on
behalf of member credit unions for an adequate and
timely transition in regulatory requirements. The
primary concern, should Government decide to
implement the recommendations of HM Treasury, is
that credit unions have a deeper understanding of
what FSA regulation will mean for them and that
credit unions are given suitable timeframes within
which to conform to FSA requirements.
At this stage in the process, many more questions
need to be answered including in-depth discussion
and negotiation with the FSA. The NI Committee will
endeavour to keep credit unions updated on all
decisions and timescales as they become clear.
SECTION
Much of what the ILCU and NI Committee had
sought, in the way of service expansion for credit
unions, was supported by the ETI Committee’s
findings and the subsequent Review of ‘the
Legislative Framework for Credit Unions in Northern
Ireland’, released by HM Treasury in July 2009.
However, both reports recommended a transfer of
regulation from DETI to the Financial Services
Authority (FSA).
support a transfer of regulation to the FSA, to
facilitate the expansion of services and to ensure
that credit union members in Northern Ireland can
access the Financial Services Compensation
Scheme. Along with the League, the Committee is
working to try to establish if and when these
recommendations will be implemented. A joint
consultation paper from HM Treasury and DETI (NI)
will be published in due course which will address
these issues.
NW Housing Association Scheme
The NW Housing Association addressed the
committee at a meeting in October 2009. It
highlighted the plight of the tenants the Association
dealt with, who are most vulnerable to the
A N N U A L R E P O R T 2009
61
approaches of doorstep lenders, both legal and
illegal. Instant access was a big factor in the uptake
of borrowing with such lenders, and their biggest
hurdle to using credit unions was the need to
establish a pattern of regular savings. The Housing
Association is trying to develop a financial inclusion
strategy, and has asked credit unions to work with
them. The credit unions in Derry who were
represented at the meeting agreed to look at the
setting up of a pilot scheme.
Housing Rights Service
The Committee heard a presentation from the
Housing Rights Service, which is developing a
scheme called ‘Preventing Re-Possession Initiative’,
to help both homeowners in mortgage arrears, and
tenants in rent arrears. As part of the scheme, an
affordable lending service would be established,
which it would like to be with credit unions. On the
recommendation of an independent advisor, the
scheme could facilitate a loan of up to £500 to
62
A N N U A L R E P O R T 2009
prevent repossession. Key points to note:
●
All loans granted by a credit union on this scheme
would be guaranteed
●
This scheme will run on a pilot basis initially,
involving 2/3 willing credit unions
●
Loans would be given as a last resort, in special
circumstances only
The Committee has asked the Housing Rights
Service to prepare a detailed proposal, based on the
discussions that took place at the committee
meeting. If credit unions would be interested in
taking part in the pilot scheme, they should speak to
their chapter representative.
Experian/Credit Referencing
The ILCU Board has adopted a policy that credit
unions should carry out a credit check on members
who are applying for larger loans. As part of the
move towards full credit referencing, Experian is
offering a facility whereby credit unions may carry
out public register searches on applicants. The
facility would allow for the checking of registered
judgments, electoral rolls etc. The only cost in
utilising this service is a search fee of between £1.50£1.75 per search. If credit unions wish to progress to
full credit referencing or have any query they should
contact Carmel Morris, Business Unit Manager, by
email on [email protected] or by phone on
(00353) 876 844183.
Charity Bank
SECTION
An organisation called Charity Bank has been in
touch with the Committee to discuss its investment
options, which could allow credit unions to invest in
their local economy for social benefit, whilst still
under protection of the Government guarantee. It
hopes to speak directly with credit unions in Spring
2010 to inform them of the options available, and the
NI Committee intends to investigate this further, and
report back to credit unions.
Additional Developments
5
The NI Committee has explored with a number of
organisations and authorities, the possibility of
credit unions investing in social initiatives, similar to
the Housing Rights Scheme, or by means of
investment to provide capital to fund social
enterprise. However, until such time as these
organisations and authorities can offer a capital
guarantee to protect the credit union funds invested,
such investment is not possible.
Items for Comment/Information
The NI Committee would like to ask credit unions to
come forward with any concerns they may have, or
items that they would like the Committee to pursue
on their behalf. Whilst the Committee will continue
to work on key issues affecting all credit unions in
Northern Ireland, it is keen to hear from credit
unions who have matters they would like support or
assistance with. It is requested that credit unions
advise their Committee representatives of any issues
that they feel require examination, comment or
follow-up by the NI Committee.
A N N U A L R E P O R T 2009
63
64
A N N U A L R E P O R T 2009