The Irish League of Credit Unions is initiating a root-and-branch review of its structures and operations and has asked its 535 affiliates to submit their views within the next two weeks.
A letter received by credit unions yesterday from the league's general secretary, Mr Tony Smyth, said the board would present its proposals to the forthcoming annual general meeting following the consultation. The a.g.m. is scheduled for April 28th-29th in Cork and will play a decisive role in deciding how the credit union movement will change over the coming year.
The announcement of the "comprehensive review" comes at a time of tension within the movement, with some senior members saying they fear a split.
Credit unions affiliated to the league have about 2.6 million members and £4.6 billion (#5.84 billion) on deposit.
An attempt by the league to introduce a new standard technology system for its affiliated unions collapsed earlier this year after £27 million had been spent. The review process will continue alongside consideration by some of the major credit unions as to how they will satisfy their technology needs.
Sources have indicated that some of these larger unions are considering grouping together to buy a technology system direct from one of several possible supplier companies, with the league having no involvement.
Mr Smyth said in his letter that the board had decided to establish a committee to review all aspects of the league.
The move arises from February's special meeting in Limerick, where the collapse of the technology project was discussed along with the general development of the movement in the past 10 years.
"It is apparent that a full comprehensive review of the league, its role/purpose, structures, its operations, accountable procedures, services and funding, etc, is required.
"It is essential that the proposed review process have the appropriate terms of reference, independence, resources and commitment from the whole movement if it is to be successful.
"It is the board's wish that nothing in the terms of reference or constitution of this committee should inhibit the full participation and `buy-in' of all strands of the movement."
Mr Smyth said he was seeking the views of affiliates as to the terms of reference of the committee, its constitution, selection, how it should report and the timeframe.
A number of significant motions for the a.g.m. have already been tabled, including one from Waterford which would change the voting system for motions on certain matters, including technology.
At present all affiliated credit unions have one vote at an a.g.m. Under the Waterford proposals, the number of votes held by a credit union would reflect the size of its membership.
What will happen to this and other motions already tabled is not clear.
