A SPECIAL general meeting of the Irish League of Credit Unions in Limerick over the weekend is expected to hear strong criticism of some of the provisions of the new Credit Unions Bill. The meeting is expected to be attended by at least 900 delegates from the 434 credit unions in the country.

In a statement, the league has given a cautious welcome to the bill, which significantly extends the scope of the credit unions' activities, including powers to issue chequebooks, debit cards, access to ATM machines, foreign exchange, loans up to £20,000, shareholdings up to £20,000 and deposit accounts to £20,000.

According to the league, there has been strong adverse reaction to some of the provisions in the bill, notably the £20,000 limit on loans, shares and deposits. Some credit unions also believe that the extension of the regulatory powers of the Registrar of Friendly Societies is "intrusive and beyond the bounds of "prudential requirements."

Under this latter proposal in the bill, the Registrar, Mr Martin Sisk, will be able to compel credit unions to comply with various operating requirements and will also be able to issue directions on advertising and prohibit activities he is not happy with.

The special general meeting will have a closed session on Saturday and Sunday morning, but an open session on Sunday afternoon will include a presentation from the Minister for Commerce, Science & Technology, Mr Pat Rabbitte, the Minister responsible for the Credit Unions Bill.

Mr Rabbitte has previously stated that the bill is not aimed at encouraging credit unions to compete directly with banks and building societies for commercial business. He also described the £20,000 limit on loans, shareholdings and deposits as "appropriate for credit union activity".