Expected changes to the legislation governing building societies will allow the EBS to sell a wider range of products and transform itself into a co-operative mutual bank, according to chairman, Mr Brian Joyce.

Addressing members at its annual general meeting in Dublin yesterday, Mr Joyce said these changes would assist it to develop into a strong cooperative mutual bank in Ireland providing higher levels of service and expertise. "The challenge now is to satisfy the proven need and desire for real choice that a full service cooperative mutual financial services provider would bring to this market," he said.

Mr Joyce said the society had carefully studied European cooperative mutual financial services providers such as Banque Populaire, Credit Agricole, OkoBank and Rabobank, which are dominant forces in their markets. The EBS, which has been represented on the committee reviewing the Building Societies Act, hopes it will be able to develop along similar lines in the future.

"The absence, up to now, of a strong co-operative mutual bank in Ireland means that there is a competitive vacuum. A cooperative mutual banking alternative would bring the Irish financial services market real competition and choices which consumers in the euro zone greatly enjoy," he said.

Some members were curious as to whether the society should be using its €41 million surplus to help to improve the returns paid to its depositors, but their hopes were dashed.

"I accept that interest rates are at extremely low levels. We do what we can and try to create a balance between mortgages and savings. We don't claim to be the best every week of the year but in the long-term we offer consistently fair rates," he said.

Another man questioned the more than 30 per cent rise in the fees paid to its non-executives being proposed over the next two years.

Mr Joyce explained that its directors fees had fallen well below those paid at other financial institutions and while it was not trying to catch-up with some of the front runners, it wanted to redress the balance.

The society is proposing that Mr Joyce will be paid fees of €85,000, vice-chairman, Mr Ron Bolger, will receive €62,000 while the other directors will be paid €36,000 for their services.