Kildare TD raises concerns over proposed Newbridge Credit Union plan

Paula Camppbell

Reporter:

Paula Camppbell

Newbridge Credit Union was on 'hourly liquidity watch'.
A Kildare TD has raised concerns over a proposed plan by a local action group over a plan for the future of Newbridge Credit Union.

A Kildare TD has raised concerns over a proposed plan by a local action group over a plan for the future of Newbridge Credit Union.

If the plan proceeds, it may involve Newbridge Credit Union members taking a risk on some of their savings to avoid a merge with Naas Credit Union or liquidation.

The plan was first discussed at a meeting between Kildare South Fine Gael TD Martin Heydon and representatives of Newbridge Credit Union Action Group “NCUAG”, a resolutions expert Greg Allen and Minister Michael Noonan last Thursday to discuss an alternative option for Newbridge Credit Union.

“I met with Mr Greg Allen, Financial Consultant for NCUAG earlier this week,” said Deputy Heydon.

“Mr Allen outlined that the proposal to be put forward by the Action Group would involve Newbridge members taking a risk on some of their savings. I do not think that savers in Newbridge Credit Union should risk their capital by relinquishing their state guarantee and I would have concerns over any proposal that suggests that.”

Minister Heydon added that he gave a committment to ask the Central Bank to consider the NUCAG proposal and to enage on it once it is submitted.

“Minister Noonan undertook to pass any proposal, received through me, to the Central Bank for their consideration and further consultation,” he said.

“The Minister was very clear however to stress that due to the urgency of the situation, work on the proposed merger with Naas would not be stopped in the meantime as there was a commitment given to have a resolution agreed before the end of the Special Manager’s term at the end of the year.”

The basis of the proposed alternative plan, which is to be delivered to the Central Bank in less than two weeks time, was outlined by this publication on Tuesday. The plan will propose to establish a new credit union which, if agreed, will be funded in part by members’ savings.

However a statement released by NCUAG to a local radio station afterward said it has not agreed a plan to prevent the planned merger with Naas Credit Union.

The group added the Central Bank has been asked by the Minister for Finance to meet with it, but, as yet has not responded to this request.

The statement added that the “detail of the proposal is dependent on many factors and is still in the preliminary stages of formulation. Indeed, until there is a firm commitment from the Central Bank acceding to the Minister’s request, the Action Committee cannot progress with a resolution and Mr Allen, the retained expert will only be asked to progress this option when that assurance is received”.