PAGES_AUTUMN_15_Web_72

The magazine of the Irish League of Credit Unions – Autumn 2015

CREDIT UNION
COFFEE MORNINGS

ILCU Six Focus on WOCCU
Strategic Ardboe Interview
Steps Credit
Union



To claim your one hour CPD for CU Focus, you now need to complete the CU Focus Quiz on
www.culearn.ie. The Quiz is located in the CU CPD members' area.

Editorial

03 Editorial LEADING BY EXAMPLE
04 Interview with new Chair of WOCCU In his bestselling book “Tough Times never last, But Tough
06 Disability Sector People Do”, Robert Schuller laid out his theme, which we all
08 3rd Level Survey should know but many frequently forget, viz that persistence and
09 Chapter 2 does time in Crumlin Rd Gaol perseverance do in fact pay off in the long run.
10 Focus on Ardboe Credit Union
12 Personal Micro Credit OUR CREDIT UNION MOVEMENT WILL SURVOVE AND THRIVE
14 Credit Union Coffee Mornings The courageous pioneers who founded Irish credit unions did
18 Launch of ILCUs Young Peoples Network so, very successfully, in the face of strong commercial opposition
20 CUSOP Update from vested interests in our society. Times were hard then, with
22 Foundation – Interview with Elvana Sharkaj poverty rife and prospects poor; and they did not have the role
24 Guide to Risk Appetite models that our credit unions provide today. Have we since
26 Inaugural CUCC Conference forgotten the maxim: “It’s not just about the money”? We are a
28 HR – Implications of a transfer of undertakings people movement, using money to help members rebuild their
30 CU L&D – IT Management for Credit Unions lives. We are not a profit-for profit-sake organization, using
32 Focus on Castlecomer Credit Union people to maximize shareholders’ profits.
34 Your Stories
38 Legislative Update ROI & NI People may forget facts; but they do remember “moments of
40 Economic Commentary truth” where credit unions provide credit with dignity, treating
42 ILCU Six Strategic Steps members with the respect that they deserve. Regardless of class,
creed or condition. Remember, example is not just the main
Cover image: CONTRIBUTIONS thing that matters most to members; in practice it is the only
Bishopstown Credit thing! People are influenced strongly by what we do, not just by
Union Coffee Letters to the Editor / what we say.
Morning contributions may be
submitted via email to In life, personal or business, there are times when things seem
[email protected]. to be going wrong and we may feel discouraged. Recent years
have been especially difficult for credit union members; many
may feel overwhelmed. However the credit union, like life, is not
a “game of perfect”. It is not a sprint, more a marathon. No one
can be judged except against the backdrop of the time and place
in which he lived. Our members will judge us by what we do for
them in these troubled times. The tide will turn. Credit Union is
our “baby”; and we will not let the baby go with the bathwater.
When others speak of “Strong Credit Unions in Safe Hands” we
could do worse than remind them: the safe hands are ours.

That said, credit unions of the 21st Century should retain
traditional values; but it’s evident that services and delivery
methods must change to meet current and future demands of
members…present and potential. The “status quo” will not
suffice; we can celebrate the past, but cannot live in it. Today, in
our credit unions, we’re building a lasting legacy, our “gift” or
“present” to future generations of members and communities
we serve. Therefore we need to re-think how we communicate
with our members in this fast-changing age. Is it truly a two-way
street? Is this how members experience our communication? If
not, are we missing real opportunities to listen to our members?
How else can we hope to relate our offering to what they need
and/or want?

So the opportunity for all of us as individual credit unions and
the ILCU itself, is to rise to meet the challenges of
today/tomorrow, building on the strong foundation already laid
down by Irish credit union pioneers. All might accept that, to be
relevant to the lives of our members, their families and the
community, we must “adapt, adopt and improve”. However
whilst growing we must ensure we remain firmly focused on our
members, since we exist only to serve their needs. After all, that
is our “raison d’etre”.That is why we work together; and that is
the true credit union difference.

Don’t tell them, show them!

Editorial Committee: Kevin Helferty, Nick Cashin, William Breen, George O'Driscoll. Volume 3 Issue 11 ©.
ILCU ISSN 1649-377X. League Board: Brian McCrory, President; Charles Murphy, Vice President; John Mullen, Treasurer; Ciaran Bishop, Nick Cashin, Pat Fay, Margaret Heffernan, Seamus Kilgannon,
Blanche Ronayne, Eamonn Sharkey, Martin Sisk, Gerry Thompson, Jim Toner Supervisory Committee: Fintan Boggan, Michael Doyle, Terry Redmond Life Director: John Hume

Design & Print: Outburst Design. Please Note: The deadline for the next issue of CU Focus is Deadline 9th November 2015. Please mark for the attention of the editor, CU Focus Communications Department.
The views expressed in this issue of the CU Focus are not necessarily the views of the Irish League of Credit Unions. Advertising: The placement of an advert does not imply endorsement of the product or
service advertised, either by the magazine or its publisher. The CU Focus will not knowingly carry false or misleading advertising. Articles The CU Focus would like to hear your news and views. Send in any
newsworthy stories or photos. The CU Focus tries to publish all appropriate information submitted, but may be precluded by space constraints.
Published By Irish League of Credit Unions 33 – 41 Lower Mount Street Dublin 2 Tel: 353 (0)1 614 6700 Fax: 353 (0)1 614 6701 Email: [email protected] Website: www.creditunion.ie

CU FOCUS AUTUMN 2015 :: 03

IRISH NATIVE NAMED FIRST EVER

FEMALE CHAIR OF
WOCCU

04 :: CU FOCUS AUTUMN 2015

During the World Conference in Denver, Anne Cochran, President and CEO of
Louisiana Credit Union, was named the first ever female chair of World Council
of Credit Unions board of directors. We caught up with Anne to learn more
about her Irish roots and find out what her priorities are for her term as Chair.

Anne, Congratulations on being named the making available other products and membership growth. It is my goal for World
first ever female chair of WOCCU's board of services needed or desired to enhance their Council to be a valuable resource to make
directors, we realise you must be very busy so ability to successfully meet their members' this happen on a global scale. Growing the
thank you for taking the time to meet with us. needs. Additionally, LCUL offers a wide movement from within is also important to
Thank you very much, and it is my range of networking groups to help credit our sustainability, and this begins with
pleasure to meet with you. I was born in union professionals and volunteers connect building relationships and partnerships
Ireland so always have time for the Irish and cooperate. Whether you are responsible worldwide. I've seen first-hand what credit
Credit Union movement. for marketing and business development, a unions can do for other credit unions, both
young professional looking to connect with professionally and personally, and would
You were born in Ireland, what part? peers, or a compliance officer writing a like to see us build on that success. Another
I was born in the Mater hospital in Dublin. policy, there’s something for just about top priority as incoming Chair is increasing
We lived on King Street, right across from everyone. our project development activities. By
the Gaiety Theatre. We later moved to expanding donor funding to developing
Kilmainham when I was 7 years old. “Belfast will be countries, they are able to develop credit
unions for their residents, allowing them to
How did you come to move to the U.S? special as it’s the borrow at fair rates and provide much
We went on holiday to Germany and stayed first conference I needed financial education.
with my cousin, who had married an will be acting as
American Air Force Policeman. I met my chairman Are you looking forward to travelling to
husband there in July and we married the Belfast for WOCCU Conference in 2016?
following February and later moved to What key challenges does it face? I have been attending the Irish League's
America. LCUL faces typical organizational annual meeting for several years now, so I
challenges, such as regulation, laws and know some of the attendees. They always
How did you first get involved in the credit advocacy, growth and sustaining small asset make me feel very welcome and I love the
union movement? credit unions, merger of credit unions, and opportunities to travel home. Belfast will be
I was working at a bank in a small town proving value with lawmaker activities to special as it's the first conference I will be
called Wellsboro in Pennsylvania. Corning large credit unions. Additionally, we see acting as chairman. I also think the Irish
Glass Works had a one person credit union declining third party income and a delegation is equally as happy.
at the time. That one worker damaged her challenge to meet a positive bottom line
hand and could not post payroll for the without decreasing services to credit unions. You are involved in WOCCU’s Women’s
factory workers. They hired me to help and Leadership forum, can you please tell me
the rest is history. How did it feel to be named the first female more about this initiative?
chair of WOCCU board of directors? Due to other WOCCU obligations, I have
You are the CEO of Louisiana Credit Union It was one of the most surreal experiences not been able to attend the global
League, how many members does LCUL of my life. It has been a long, hard road women's forum the past few years.
serve? getting to get where I am. I am thrilled to However, I do keep up with the network’s
The Louisiana Credit Union League (LCUL) have this opportunity to represent CUNA latest accomplishments and news. Today,
serves nearly 200 credit unions with and the United States as well as my native most of us women have similar
approximately 1.3 million members. country of Ireland. challenges. When we are given an
opportunity to get together and discuss
What key services does LCUL offer? What are your priorities for your term as these challenges, we are able to find
LCUL is dedicated to promote, protect and chair? correct solutions and turn them into
perpetuate the credit union movement in Like many of us throughout the movement, success stories. By joining this network of
Louisiana. We achieve this by providing I believe one of our top priorities should be proactive, professional women, members
member credit unions with quality can enhance their own strengths through
leadership to achieve positive results in the networking and educational opportunities
areas of: governmental affairs, advocacy, as well as utilizing the online resources
research and information, education and made available. I encourage interested
training, professional development, professionals to visit
community and public relations, and by http://www.cuwomen.org/ to learn more.

CU FOCUS AUTUMN 2015 :: 05

DISABILITY
SECTOR

There are 600,000 people living in the Republic of Ireland today with a
disability or chronic illness. This represents 13% of the entire population of
the country. Nationally, one in every eight people in the Republic of Ireland
have a disability. Disability is a community issue – it affects people of all
ages and their families directly and indirectly. And when one considers that
each and every person who is living with a disability is also a family
member – a son, daughter, sibling, mother or father – it is clear that concerns
relating to the lack of supports and services for people with disabilities
encompasses a far larger percentage of our national population.

A mistake that is often made is to define families are not left behind. The recovery standard of living as a non-disabled
disability as an issue for “a sector.” The needs to be fair and it needs to person. In a fair society, it is important
reality is that disability should concern deliberately give a lift to those who have that we recognise that no impediments –
every one of us. It is a key community been left behind by the downturn. financial or otherwise – should be imposed
issue that will affect nearly everyone at on any citizen because they were born
some stage in their life, especially as The Minister for Finance, Michael with or acquired a disability.
disability increases sharply with age. Noonan, recently confirmed that he has
almost €1.5 billion available for tax cuts A wide range of national and
The recession hit Ireland hard and it and spending increases in the forthcoming international research highlights that
seriously impacted on people with Budget. Now that there is funding people with disabilities (and their families)
disabilities. Since 2008, there has been a available, it has to be invested in those face many extra living costs directly arising
steady erosion of services and financial who need it most. from their disabilities, such as heating,
supports for people with disabilities. As a disability aids and equipment, medical
result, people with disabilities are more The Irish League of Credit Unions has costs, care costs and additional transport
likely to live in poverty than others. done valuable work in recent times in costs to name but a few. The Disability
highlighting the back to school costs faced Federation of Ireland believe that it is a
The most recent Survey on Income and by many hard-pressed Irish families. The fundamental matter of fairness that people
Living Conditions in Ireland found that Disability Federation of Ireland, working in with disabilities have an adequate income
over 53% of people who were not at work conjunction with others, have been that supports them to live with dignity, in
due to disability or illness experienced undertaking similar research in regard to accordance with their human rights.
enforced deprivation. For everyone who the Cost of Disability and the huge
cares about living in a fair society such financial burden this is placing on many People with disabilities are amongst the
facts are a cause for grave concern. individuals and families. most vulnerable in our society and it is
crucial that their needs are now prioritised.
As Ireland now enters into a critical Put simply, Cost of Disability is defined Now that, in the Taoiseach’s words,
stage in our economic recovery, it is vital as the monetary amount it would cost a economic “recovery has taken hold,” it is
that people with disabilities and their disabled person to achieve the same

06 :: CU FOCUS AUTUMN 2015

time to address an urgent situation – originally recommended by the 1. Restore the respite care grant by €325
compounded by years of austerity, cuts Commission on the Status of People with per annum.
and rising prices – which has left many Disabilities in 1996. In 2004, the National
people trapped in a bleak hand to mouth Disability Authority urged Government to 2. Introduce a disability tax credit, similar
existence. introduce of a cost of disability payment, to the Blind Persons tax credit.
arguing that: “A cost of disability payment
The most recent Survey on Income and would help equalise the cost of living 3. Grant medical cards based on medical
Living Conditions (SILC) in Ireland, which experienced by people with disabilities, need, not income.
is the official source on household and whether they were in employment or not.”
individual income, highlights that disability The Disability Federation of Ireland 4. Make all employment activation
costs one-third of an average weekly believes that a Cost of Disability payment programmes eligible to people with
wage. The ESRI’s research indicates that would be an important anti-poverty disabilities.
living with a disability in Ireland can have measure, designed to offset the extra cost
extra costs ranging from €207 to €276 per of disability and create a more equal A key reason for the economic
week. The result of these exorbitant costs society for all. disadvantage of people with disabilities is
is that many people with disabilities are their difficulty getting a job. However,
enduring significant levels of poverty or As an interim measure, DFI is calling for people with disabilities can and want to
have relatively little disposable income. an increase of €20 to disability payments work where possible. It should be the
in Budget 2016 to offset some of the unequivocal commitment of all of the
People with disabilities are not second- additional costs of disability, as well as the political parties at the next election to lead
class citizens. Like everyone else in our protection of all supplementary benefits. on delivering jobs, training, and
nation, they have an entitlement to be In order to take steps towards ensuring employment supports for people with
fully included in Irish society, but they can that disabled people have an adequate disability.
only live life to the full with an adequate income, we are also campaigning for the
income. Budget to John Dolan is the CEO of the Disability
Federation of Ireland.
A Cost of Disability payment was

CU FOCUS AUTUMN 2015 :: 07

STARK FINANCIAL
REALITIES AHEAD OF
THE ACADEMIC YEAR

Brian McCrory ILCU President

After a lot of hard work and a very have spent the last couple of years borrowing have said that they consider a
nervous wait, 58,000 leaving certificate focusing their attention on getting moneylender a viable option.
students around the country received through the leaving cert, and have given
their results last month. Students and little thought as to how they will fund life As for the students, in the aftermath
their parents have invested a lot of time after secondary school. Luckily for them of the celebrations comes the reality that
effort and energy to try and get the 94% of Irish parents are on hand to they will soon leave the comfort of their
results they want, but that is not the end support their children with college family homes and go off into the big bad
of the story by any means. Having done related costs by contributing an average world in search of student
all of the hard work to earn their places, of €453 per month per child. 64% of accommodation. Our research found
students need to find the funding to parents said that family budgets have that students living away from home are
actually get them there. It is just like been adversely affected by the spending on average €1,033 per month
buying your first car, you have it outside increased registration fees and 41% of on rent, transport, living and college
the door and you are dying to take it for a parents find covering the costs of related expenses. Students are paying
drive, but actually putting it on the road accommodation particularly stressful. an average of €380 in rent per month.
is a costly business. As they will soon discover money does
In terms of how parents cover the not grow on trees, and many of these
In order to help us understand the costs – not surprisingly the results show young adults will find themselves in
difficulties that students were facing the that monthly income and savings are search of part time employment for the
Irish League of Credit Unions the most popular way in which parents first time. The results show that 69% of
commissioned some unique fund their child’s third level education, students will work to fund or part fund
independent research to look at the cost credit union loans are the next most college. Students are working an
associated with going to college. We popular method, followed by a bank average of 26 hours per week, getting
asked parents just how much it costs to loan. A huge 59% of parents expect to paid an average of €11.50 an hour.
send their children to college in Ireland. get into debt in order to finance the cost
The results of this survey highlight the of third level education for their children. The findings, particularly the financial
financial impact that college has on €5,030 is the average debt per child, realities facing parents and students,
family spending and budgets as well as per annum that parents will incur. are stark. It is clear that students and
the challenges and concerns parents Worryingly 10% of those considering their parents are experiencing very
have in relation to finance, grants, living significant pressure in trying to fund
away from home and job prospects. The third level education. The increased
students were asked about working registration fees combined with monthly
throughout the term, job prospects in rent and bills, books and materials and
Ireland, course choice and emigration. day to day expenses are a significant
The results are very similar to the stories financial burden to many families.
that we hear across our counters in
credit unions every year, which is why As always we would urge people to
we place so much emphasis on avoid moneylenders and talk to their
ensuring that we provide very local credit union first. Credit unions are
competitive loan rates and advice for available to support both parents and
families who are dealing with this students as they prepare for the
particular expense. academic year. Some financial
institutions try to attract students by
Those parents who already have offering short term gimmicks to open an
children in 3rd level education know account or offer an interest free period
only too well the financial challenges to on a loan before a higher rate kicks in.
be faced in the coming weeks, months This is not how credit unions operate.
and years. However, these students Credit unions offer loans at fair rates
with flexibility to meet members’ needs.

08 :: CU FOCUS AUTUMN 2015

Chapter 2 Does Time
in Crumlin Road Gaol.

Don’t be getting alarmed by the room for supper. Jack Gorman, Keith Savage and Kevin
headline it’s just another ploy This year it was a debate held in Loughnanne.
by Chapter 2 of the Irish
League of Credit Unions to grab Crumlin Road Gaol. The debate was Sharon Farrell, Billy Breen and Paul Patton.
your attention and let you know designed to focus on the “Compliance”
of its latest tactic in educating function within credit unions. The title Former Chairman Aidan McCormack and
its members and enabling them was “Compliance: Asphyxiation or the Former League Liaison Officer Rosemary
to take part in the ongoing Kiss of Life”. Two teams were ‘selected’-
debates surrounding issues our Chairman is very persuasive – and O’Doherty
affecting credit unions today. an independent Chairman, Nick Garbutt,
a former editor of the ‘Irish News’ who
Crumlin Road Gaol has for several years has been assisting ILCU in its lobbying
ceased to function in its original role as a activities, was appointed. The teams
prison, one that had a long and were Sharon Farrell of CUCC, Paul
controversial history especially because Patton, Manager of Ballymena Credit
of its association with political events in Union Limited and Billy Breen, Chapter
Ireland. For the past few years it has Treasurer, who proposed the motion that
been operated as a visitor attraction and Compliance was indeed the kiss of life
centre for conferences and business for credit unions. Opposing the motion
meetings. It was in the latter role that it were Kevin Loughnane of CUCC, Keith
was being used by Chapter 2 for its June Savage, Manager of Antrim Credit Union,
meeting. and Jack Gorman, a Supervisor with
Derry Credit Union Limited and a former
Chapter 2 has taken seriously its Field officer with ILCU.
responsibility to educate its members
over the years and it has always sought Nick Garbutt explained the ground
to do this in a way which would be rules and encouraged the audience to
effective and at the same time enjoyable. ask questions or make comments at the
For the past few years the June meeting end of each presentation and so it
has abandoned the formality of most began. The craic was great as speakers
Chapter meetings to become something delivered their set pieces and dealt with
more entertaining. Last year this was in interventions and questions from the
the form of a play written and performed other speakers and from the floor. There
by members entitled “The Visit” and were quotes from various philosophers,
staged in a small local theatre. This prime ministers, TDs and credit union
looked at the situation where a credit leaders and at one stage the Bible –
union was receiving a visit from the illustrating perhaps the width of the
Regulator and through the humour of speakers knowledge and the fact that
the dialogue and interactions of various “Even the devil can cite scripture”.
parties helped delegates to decide what
training programmes the Chapter should At the end there was the summing up
put in place for the incoming months. by the Chairman and a word of thanks
The previous year it was a mock trial and congratulation to all the speakers
held in a real courthouse which saw the and then the vote among the audience.
credit union in the dock accused of The motion was lost 27 to 11 illustrating
failing its members by the lack of perhaps that credit union members do
services it offered. There was a guilty not see Compliance in a positive light or
verdict which certainly would ensure that that the speakers against the motion
no credit union in Chapter 2 should feel were more persuasive on the night. In
complacent. On another occasion any event it was a very enjoyable evening
“Question Time” was held in Lissan and it was rounded off by a lovely supper
House, a former stately home, when a served by the Gaol’s catering service.
panel discussed topics of relevance in Those present also took the opportunity
the Ballroom before retiring to the Dining to talk and enjoy the atmosphere long
after the formal proceedings had closed.

They did all eventually escape and are
presently back working in their own
credit unions.

CU FOCUS AUTUMN 2015 :: 09

Focus on …
Ardboe Credit
Union Limited

From humble beginnings in November 1969
in a rural part of County Tyrone, Ardboe
Credit Union Limited was formed by 23
local people under the guidance of PA Duffy
who was responsible for the formation of
many credit unions in the area. Now, 46
years later, things have moved on
significantly. Last year saw the opening of
our new state-of-the art building. We now
boast a membership of 2,400 adult
accounts and 700 minor accounts with
shares totalling £6 million.

Being a rural credit union has benefitted us greatly as
there is a great sense of community in our area and
people remained loyal to us during the banking boom
years. This also meant that we retained them as good
members during the economic downturn. We have
been blessed to have had very progressive and forward
thinking boards of directors over the years, all of
whom have steered us to the position we are in today.

10 :: CU FOCUS AUTUMN 2015

We currently enjoy 68% of shares out on Members of the board & staff from Ardboe Credit Union Limited pictured with Brian McCrory
loan, and still manage to keep a very low
delinquent list. Careful management of
investments over the years by our
Investment Committee have also help
ensure we got the best return on surplus
monies being invested.

We regularly visit our local primary
schools, with weekly collections in both
schools. We believe that if we encourage
and nurture this age group we will gain
them as adult members in the future. As
well as the Art Competition and Schools
Quiz organised by ILCU, we also have
various draws and competitions within the
schools. We have our own mascot, whom
the children love to see visit the school.

To celebrate the opening of our new
premises last year we held a Members
Only Car Draw. This was a great way to
publicise our credit union and increase
our membership at the same time. It
proved so successful that we repeated it
again this year.

Over the last number of years we have
thought very carefully about succession
planning and made a conscious decision
to try to involve younger people both on
our board of directors, and as volunteers.
Not only does this give us a broader
spectrum of experience on our board, but
we have volunteers in the wings being
trained up to take over roles in the future.

As a board we try to take part in
chapter and ILCU events as much as
possible. We are part of a very active
Chapter 2, chaired by the very able Patsy
McShane. Indeed Patsy helped us
several years ago to formulate a 5 year
Business Plan, which we have been able
to use to gauge our growth in comparison
to our predictions. Many of our board
and staff completed the ACCUP exams
and training is kept as up to date as
possible.

Whilst we might not be the biggest
credit union on the island, we are happy
with our progress and proud of our new
building. We have extended the use of
our premises to ICE Computers and ILCU
for any training or meeting they want to
have locally. Indeed we would be glad to
show anyone around our facilities.

CU FOCUS AUTUMN 2015 :: 11

Personal
Micro Credit

The History At the launch of Georges Glouoviezoff’s research ‘Creating Credit, Not Debit’
L to R: Brendan Whelan (SFF), Georges Gloukoviezoff, Angela Black (CIB),
The origins of the Personal Micro Michael Culloty (MABS).
Credit (PMC) project date back to
2013 when discussions took place credit pilot scheme. The target individuals to gain a credit history and
between the Citizens information Board audience was those excluded from become an active member of the credit
(CIB), MABS and the Social Finance mainstream credit, who typically must union over time.
Foundation (SFF) on the burgeoning rely on the money-lenders for any form
moneylending industry in Ireland. A of credit. The initial focus was The project goal is for a pilot launch
draft report was produced and sent to narrowed to social welfare recipients before the end of this year, with each
the Minister for Social Protection in late who are willing to use the Household credit union in the pilot originating
2013 recommending the introduction Budget Account (HHB) as the approximately 50 loans at an average
of a PMC scheme operated by credit repayment method. This audience value of €500 per loan (min €100, max
unions as an alternative to the includes both existing and new credit €2,000). The pilot will be for a
moneylending industry. The League union members. It is intended that the duration of up to six months.
was very supportive of such a proposal scope of the scheme will subsequently
and worked closely with CIB, MABS be widened to those on low incomes Project Developments
and SFF during 2014 to lobby who are not social welfare recipients. It
politicians and departmental officials to was felt more prudent to get the As mentioned, the project is grounded
support such a scheme. scheme up and running successfully, in research conducted by Georges
before broadening it out to a wider Gloukoviezoff, ‘Creating Credit, Not
Simultaneously, a research project audience. Debit - Towards a personal microloan
had been funded by SFF and the scheme in Ireland’
Central Bank of Ireland which The PMC loan aims to provide a (http://www.sff.ie/portfolio-
examined the experience of such PMC credible alternative to moneylender item/breakfast-briefing-on-report-
schemes internationally. It reported in loans. It is designed to incentivise creating-credit-not-debt/). The
May 2015 and concluded that these individuals to join credit unions where research examined international
international schemes had been they can build a long-term mutually experiences and the relevance to
successful and endorsed the PMC beneficial relationship. The ultimate Ireland. Two major myths were
proposal for Ireland. By early 2015, the goal is to provide a platform for debunked in this research which
support of the Minister of Finance and showed that:
his Minister of State was secured and
by mid-2015, Kevin Humphreys,
Minister of State at the Department of
Social Protection was assigned
responsibility for its implementation. It
should be noted that on the ground,
there had been evidence of a number
of “PMC-type” initiatives by individual
credit unions and in particular a micro
lending proposal from a number of
credit unions in Limerick.

March 2015

The PMC project kicked off in earnest
in March of this year with the goal of
gaining stakeholder support for the
launch and roll out of a personal micro

12 :: CU FOCUS AUTUMN 2015

Michael Culloty(MABS) Angela Black (CIB) Brendan Whelan (SFF)

• Lending to a low income person unions were asked to express their meeting with the League, they
does not necessarily result in a high interest in being a pilot site for the PMC discussed the importance of the
default rates initiative. Over 30 credit unions project and the alignment with the
volunteered to become pilot sites, League’s Six Strategic Steps policy
• Lending to a person already in which was the target set. document.
default does not necessarily
compound indebtedness The credit unions are one of many Detailed discussions are ongoing
stakeholders involved in this project, as with An Post, who manage the HHB
The key to a solution is the credit can be seen from the diagram below. system for the DSP, to agree the
union movement. The project has process for processing repayments and
been working closely with a number of Since the July event in the Red Cow ensure that they can be applied
credit unions to develop the optimal Hotel, there have been a number of automatically to the loan in the credit
solution and tease out issues, while developments, the most important of union. Finally, conversations with the
keeping sight of what is needed to be which is that the Department of Social Registry of Credit Unions (RCU) are
consistent with Ireland’s regulatory Protection (DSP) has formally ongoing so that the project can get
framework. As such, the League has approved the proposal that repayments formal confirmation from them that the
been and continues to be a welcome can be made via the Household PMC initiative operates within their
and vital support to ensure the success Budget Account (HHB). The DSP is regulatory framework. This is very
of this venture. also in the process of forming an important as it is needed to reassure
Implementation Group. This group will credit unions that such lending is
In July, an information and workshop consist of all key stakeholders recognised to be distinct and RCU
session at the Red Cow Hotel was held including the League (represented by inspections will treat it accordingly.
to which all credit unions were invited. John Knox) and will be represented at
There was a very good turnout of 74 credit union level by Declan Benson Future Plans
credit unions and strong interest was from Desmond Credit Union Limited in
subsequently shown by attendees and Limerick. The project is working to create a
those who could not attend on the day. realistic offering to counter the
This event provided the opportunity to Minister for State at the Department “convenience and ease” advantage the
outline progress to date and it of Social Protection, Mr. Kevin moneylenders have. Many lessons will
facilitated direct and honest feedback Humphreys T.D. has been assigned be learned during the pilot and it is
on the challenges facing the initiative. political responsibility for the initiative expected that any enhancements
At the close of the session, credit and has publically voiced his support needed before a full national rollout will
on a number of occasions. In a recent be identified. In particular, the area of
character referrals from DSP, MABS
Credit and local NGOs (such as St. Vincent
Unions de Paul, One Family, Threshold and
Barnardos) will be explored.
BPFI/ An Post ILCU
Banks We would like to say thank you for
Customer CUMA CUDA your engagement to date. We look
Dept of forward to what will hopefully be a
Finance CIB SFF Charities successful pilot and ultimately a full
MABS and local national rollout in 2016.
Other non-profits
Political John Knox, ILCU
Registrar of CBI: Brendan Whelan, Social Finance
Dept of Credit Unions Consumer Foundation
Social Protection Angela Black, Citizens Information
Protection Board

U FOCUS AUTUMN 2015 :: 13

COFFEE MORNINGS

AT CREDIT UNIONS
THROUGHOUT THE COUNTRY

In a bid to promote credit union loans, Castlebar Credit Union
money management skills and personal Castlebar Credit Union
finance literacy the ILCU ran a series of free
coffee mornings throughout the country, for
mums, dads and families. For families, July
and August have two big financial events –
back to school and college. The financial
burden placed upon families at these times
can be immense and credit unions around
the country wanted to work with their
members to help them to manage what can
be a challenging financial time …

The coffee morning series was a great
success and we received extremely
positive feedback from the general
public all around the country. The
coffee van visited the following 25 credit
union locations across the island
throughout July & August:

• Dundrum Credit Union
• Community Credit Union
• Progressive Credit Union
• Cavan Credit Union
• Drogheda Credit Union
• Athlone Credit Union
• Naas Credit Union
• Letterkenny Credit Union
• Derry Credit Union
• Omagh Credit Union
• Ballymena Credit Union
• SAG Credit Union
• Newry Credit Union
• Castlebar Credit Union
• Sligo Credit Union
• Portlaoise Credit Union
• Tralee Credit Union
• Mitchelstown Credit Union
• Bishopstown Credit Union
• MPCC Credit Union)
• Clonmel Credit Union
• St Dominics Credit Union
• Wexford Credit Union
• St Columba’s Credit Union
• St Francis Credit Union

14 :: CU FOCUS AUTUMN 2015

Cavan Credit Union Coffee Morning Launch

Ennis Credit Union Omagh Credit Union Mitchelstown Credit Union

SAG Credit Union Sligo Credit Union

Newry Credit Union Naas Credit Union Letterkenny Credit Union
CU FOCUS AUTUMN 2015 :: 15

COFFEE MORNINGS AT CREDIT UNIONS
THROUGHOUT THE COUNTRY

Tralee Credit Union Tralee Credit Union

Mitchelstown Credit Union Clonmel Credit Union Naas Credit Union

Bishopstown Credit Union Castlebar Credit Union

St Dominics Credit Union St Dominics Credit Union
16 :: CU FOCUS AUTUMN 2015



LAUNCH OF

ILCUs YOUNG PEOPLE’S
NETWORK

The ILCU has established a Young People’s
Network (YPN), a forum designed to support
the development of young people, both staff
and Board members/ volunteers within the
movement. The network is principally aimed
at those who are under 35 years of age.

Background to the Development Keith Winters- National Youth Committee speaking at the Young People’s Network Meeting.
Feedback from the Irish League of Credit
Unions’ National Youth Conference and the meeting by welcoming the attendees internationally. Initiatives such as the Young
from the Young People Development present. He outlined the vast changes People’s Network can offer a great deal of
Programme has highlighted that young which have taken place in the movement in support to our young people”.
people within the credit union movement recent years and noted that it was time for
would like more opportunities to meet with fresh thinking or a different perspective on Keith Winters (ILCU National Youth
their peers from across the island, be some issues. Committee) was the first of the speakers at
facilitated in sharing information and have the meeting. He outlined his own
an opportunity to be apprised of the key Brian referenced the weCU2 initiative, background in getting involved in the
issues which are affecting the movement on which was recently launched by the World movement and discussed the opportunities
a national level. In many instances, these Council of Credit Unions. The initiative for young people to find careers within the
are issues which they may not be exposed provides information to credit unions about credit union. The follow on discussions
to at local level. millennials (people born between 1982 and noted that the organisational structure
2004) and also introduces millennials to within credit unions can make it difficult for
In order to address this issue, the ILCU’s credit unions, not to sell or to push credit young people to rise within the ranks. The
National Youth Committee has examined union services, but to inform them about importance of learning and education was
how other overseas movements support the the unique role credit unions have. Mr underlined by a number of contributors, as
progression of young people. The creation McCrory noted that it was important to well as the need for individuals to sell
of a dedicated forum or network to support ensure that young people themselves are themselves and carefully plan their career
the development of young people has familiar with the role in which credit unions development.
proven successful in other movements. As play and equally that credit union personnel
a result, fully appreciate the requirements of younger Dean Alford from Clondalkin Credit Union
members. He noted that young staff Ltd was the next speaker to address the
Core Objectives members and volunteers have particularly meeting. He highlighted that he had initially
important part to play in this regard. got involved with Clondalkin Credit Union
The YPN aims: Ltd during his time in secondary school,
• To provide a forum for young credit union He added: when he availed of the opportunity get
“We very much need our younger credit some work experience. He remained
staff and volunteers to network, union people to play an even stronger part involved with the credit union during his
collaborate and share information. in the development of the movement, time in secondary school and indeed in
• To assist and encourage more young locally, regionally, nationally and indeed third level, before he accepted an invitation
people to develop and progress into
more senior roles within the movement.
• To support young people to act as
influencers and opinion leaders on
important issues which affect the credit
union movement
• To encourage more young people to
become involved within the credit union
movement as volunteers.

Inaugural Meeting
On 22nd August 2015, the inaugural
meeting of the Irish League of Credit Unions
Young Peoples Network took place in the
Red Cow Hotel in Dublin with 45 attendees
from credit unions all over the island.

ILCU President Brian McCrory opened

18 :: CU FOCUS AUTUMN 2015

ILCU President, Brian McCrory addressing attendees at the Young Peoples Network Meeting.

to go forward for a position on the board of unions in Australia are effectively mutual The inaugural Young Peoples Network
the credit union. Dean engaged the banks. Therefore, Australian credit unions Meeting was very successful and it was
audience with a discussion about the offer a wide array of services that would heartening to see so many young people
importance of getting young people typically be offered by banks such as being actively interested and involved
involved in credit unions as early as debit/credit cards. However, he noted that within the credit union movement. The
possible, the skills that young people can this brought challenges in seeking to meeting also provided the opportunity for
bring to credit unions and the benefits to ensure the ethos of the credit union and those present to ask questions, create
credit unions of getting young people the connectivity with credit union discussions and importantly, to network
involved. members is not lost. with each other.

Liam Grant from Waterside Credit Union Debra Histon from Cois Sionna Credit The further development of the network
Ltd highlighted some of the key differences Union Ltd and ILCU’s National Youth will be guided by feedback received from
he has seen from working in a credit union Committee was the final speaker. She delegates at the meeting. It is hoped to
in the Republic of Ireland and one in outlined why Cois Sionna Credit Union Ltd expand the network to encourage
Northern Ireland. In particular, he have recently on boarded with CUSOP to additional young credit union personnel to
highlighted how the regulatory structures offer electronic payments. She outlined get involved. It is also planned to enable
are different and noted some of the that offering new electronic services is a those involved within the network to stay
restrictions which credit unions in strategic imperative for credit unions as it connected between meetings via social
Northern Ireland face. Liam highlighted critical to offer the services that members, media.
how other credit union movements differ particularly our younger members, both
from the Irish movement, using the want and more importantly expect. There For further information on the Young
example of the Australian movement in was a wide ranging discussion and debate People’s Network, please contact Kieran
particular. He noted that the number of on the future development of services and McDonnell, Comms. Dept., ILCU
credit unions have decreased over recent the importance that all credit union ([email protected])
years due to mergers and that credit personnel are aware of the issues at hand.

CU FOCUS AUTUMN 2015 :: 19

CUSOP

The Future of Consumer Payments, CUSOP
a Cashless or Less Cash Society? User
Group
Can we envision a future in today’s digital age transaction except it’s much more secure, Forum
where cash will no longer be used for day to day quicker and even more convenient.
payments? Or will cash remain as a preferred 60 + Credit Unions attended
payment method? As consumers purchase goods and services the CUSOP User Group
the payment will be more seamless than before Forum in Portlaoise on 24th
First of all we have to understand that cash and in many cases embedded in the June 2015. As part of the
has been with us for centuries and still remains transaction. Applications such as Hailo, the taxi service that CUSOP provide
the payment instrument of choice for the app, take the experience even further. It is an to users, they hold regular
majority of consumers in Ireland. We are so integrated experience whereby the payment is User Group Forums. The
comfortable with cash that we often overlook its just a simple tap on a phone at the end of the aim of these forums is to
downsides: these include its being unsafe to journey, the card payment details having been bring the operational staff
carry in large amounts, relatively expensive to pre- loaded to the app. of Credit Unions together to
lodge, is unhygienic and when it’s lost, it’s lost! share their experiences and
Another very important factor in facilitating a more importantly influence
Decline in cash usage revolution in payments is the pace of customer CUSOPs future direction.
adoption of new technology. As we have seen The packed agenda for the
Recent statistics issued by Banking & earlier from the statistics on online and mobile day included:
Payments Federation Ireland (BPFI) confirm banking, consumers will adopt new technology
this trend: over one million customers logged once they are convinced that it’s secure, more • An update from CUSOP
into their accounts per day in 2014, with almost convenient and ideally cheaper. • Q&A session with the
half of these logins recorded via mobile phone
or tablet banking apps. Since 2008 the volume Regulatory changes CUSOP Operations team
of cash withdrawn from ATMs has declined • Presentation on the
from €28.7 billion to €20.3 billion per annum, A number of very important regulatory changes
while debit card transactions have increased are currently underway or anticipated in the SEPA Direct Debit
over the same period from €11.5 billion to near future which will help accelerate the move Service
€19.9 billion per annum. On current trends the away from cash payments. The biggest change • Getting members to use
value of debit card usage will outstrip ATM will be experienced with the introduction of the CUSOP
withdrawals this year for the first time. revised Payments Services Directive (PSD2) • Presentation from
which is due to be published by the end of this Danske Bank
But is there a revolution around the corner year. This will open banks’ infrastructure to
that could render cash almost as obsolete as ‘Third Party Payment Providers’ for account This forum has proved very
cheques are today? What would it take for this information and payment initiation services. successful and popular with
to happen? When combined with the FinTech investment Credit Unions and CUSOP is
surge this Directive will lead to the next committed to continuing
Technology matters generation of ‘ways to pay’. with these forums to allow
Credit Unions to influence
Probably the most important factor that will In summary, it is fair to conclude that its development.
drive a revolution in payment habits is payments made both online or at point of sale
technology. FinTech is the current buzz word are secure, transparent, and convenient and Our next CUSOP User
and we are witnessing unprecedented mirror electronically the characteristics and Group meeting is scheduled
investment in new technology in financial advantages of cash. However it is doubtful if for October and all CUSOP
services. we will ever abandon cash entirely. It still retains live credit unions will be
one characteristic that technology cannot advised of the venue and
Take card payments for example. We are now emulate, namely anonymity. date.
very comfortable using cards for point of sale
purchases and are increasingly comfortable John Rice is Head of Payments Strategy
using cards for online purchases. The recent with Banking & Payments Federation Ireland.
introduction of ‘contactless’ technology brings a BPFI is the voice of banking and payments in
new dimension to the customer experience at Ireland, representing over 70 member
the point of sale. In this environment the institutions and associates, including licensed
consumer does not need to enter a pin number domestic and foreign banks and institutions
at purchase but simply presents his/her card at operating in the financial marketplace here.
the terminal for an instant transaction. It is John will also speak and take part in a panel
quick, convenient and gives certainty of discussion on this topic at the CUSOP
payment to the retailer. It sounds like a cash Stakeholders Forum at the Sheraton Athlone
Hotel on 19th September.

20 :: CU FOCUS AUTUMN 2015

CUSOP update for Northern Ireland
Credit Unions

CUSOP recently held a ‘clinic’ for regulators (FCA & PRA) and outlined Danske bank as well as the two
Northern Ireland credit unions over 2 its approach in terms of our Due clearing systems in NI,
days in the Glenavon Hotel Cookstown. Diligence. This due diligence has now FasterPayments and BACS.
Individual meetings were had with a been carried out in 2 NI Credit Unions
number of interested credit union and a follow up meeting has been held Technical: CUSOP is working with all
managers and board members .The with the regulators on the outcome of our technical suppliers to develop the
aim of these clinics was to update this. The recent CRED's consultation interface to this new clearing system.
credit unions on the roll out of CUSOP will have a significant effect on Credit Meetings have taken place between
NI. In addition CUSOP presented at Unions wishing to offer a service such CUSOP and all the interested parties to
Chapter 17 meeting on July 7th in as CUSOP and requires more agree a project plan and from this the
Irvinestown. The presentation and discussion with the stakeholders. costs can be assessed.
discussions were based around the 3
main pillars to CUSOPs development in Operational: Following extensive due CUSOP is committed to providing an
NI: diligence undertaken by Danske on the All-Ireland service, subject to its
proposed operating model for viability to Credit Unions, and is
Regulatory: Credit Unions were payments services for NI credit unions, working closely with all stakeholders to
advised that we were engaging with the CUSOP is engaged in discussions with achieve this. Further updates will be
provided on an ongoing basis.

CUSOP’s 1 Millionth transaction

For Ms Tracy Farrell, a visit to her local
credit union in Cobh, Co Cork turned out to
be a ‘one in an million’ event.

“When the call came through, I thought
I’d made a mistake transferring money
from my account into my son, Bailey’s,
account.

“I have been a member of the credit
union since I was a child. Indeed, I still
have my first book from all those years ago.
Its different today and I love the flexibility
of the new electronic system. I can get
things done quicker,” Tracy said.

Celebrating its one millionth transaction,
Mr Kevin O’Donovan, CEO says that
CUSOP is “recording very significant
growth with a 55% increase in transactions
in the last quarter alone and we are now
processing well in excess of 200,000
transactions a month and growing. “

Speaking about this milestone, Michael
Carlin, Manager Cobh Credit Union, said
“Our credit union has seen the benefits of
the CUSOP electronic payments platform
as we are now offering our members more
services.

CU FOCUS AUTUMN 2015 :: 21

ILCU

FOUNDATION

INTERVIEW WITH

Elvana Sharkaj

CEO of Jehona, the Apex Organisation of
the Albanian Credit Union Movement

Elvana thanks for meeting with the CU Focus team terms of financial support, they provided us with some small
Thank you for providing me with an opportunity to speak with capital to help to develop buildings and to take part in training
you it’s such a pleasure to meet with the CU Focus team. initiatives. The reality is that without the support provided by the
ILCU Foundation we would not have been able to develop
Elvana can you tell us a little bit about yourself? properly and we wouldn’t have reached where we are today.
I began working for Jehona, the Union of Credit Unions of
Albania, in my capacity as general manager since 1996. Prior to Credit union membership in Albania grew by more than 6% in
this I obtained my third level degree in economics from Tirana 2014, what do you attribute to this success?
University. Yes that’s true; the membership of the movement grew by more
6% in 2014. We have around 13,000 members across 21 credit
How did you become involved with credit unions? unions. A lot of this growth is attributed to the fact that the
Before I was involved with credit unions or savings and credit service and products offered by our credit unions are very
associations as they’re called in Albania, I was engaged with a competitive against other providers such as banks or
microcredit program of the World Bank where I met an Irish microfinance institutions.
consultant from the United Nations Development Programme -
Sinead White. Credit unions will always be in competition with other service
providers, what is your movement doing to ensure that your
Sinead at the time was working closely with Albanian women members will talk to their local credit union first?
association groups who were producing traditional handicrafts,
such as textiles, mosaics and carvings, with the intention of The credit unions constantly promote their services locally and
selling these products abroad. It was difficult during this time in differentiate themselves from the domestic and foreign banks
Albania to obtain credit from banks or other institutions, and the and microfinance institutions - the public understands that we’re
group needed more materials to continue to produce their here to provide a service which is not for profit.
handicrafts. Sinead then proposed the idea of forming a credit
union with the group, and from there she contacted the ILCU Do credit unions in Albania sponsor local clubs and societies, like
Foundation to ask for support on how to create them. credit unions in Ireland?
In general our credit unions are still in a developmental phase,
Can you provide us with a small bit of history about the movement their main focus at the moment is to build their reserves and
in Albania? increase their performance, saying that, larger credit unions
As I have mentioned the movement started in 1996 as a very have collaborated with farming associations and local football
small project to establish six credit unions, and part of that teams. They’ve been able to sponsor the jerseys for the youth
project was also to create an embryonic apex body to provide teams which are greatly appreciated by the entire community.
services to support those credit unions.

Only very recently had Albanian experienced the transition
from a communist government to a democrat government and
during this time the Republic of Albanian was founded. There
was only one state bank in operation at the time and its remit
was to provide payments services and to collect deposits; there
were no credit facilities available.

So as you can probably guess there was huge need for credit
unions. From there the movement grew and they were able to
withstand the collapse of the Ponzi pyramid banking schemes,
in which nearly one third of the country’s population had
invested.

How did the ILCU Foundation support the Albanian movement at
the start?
The support from the ILCU Foundation was present from the
very beginning of the movement and that support, both financial
and technical assistance, was absolutely crucial. In terms of
technical assistance, the ILCU Foundation provided us with two
technical advisors with a vast range of experience between
them. They worked with our credit union establishment group for
the first six years until our movement was off the ground. In

22 :: CU FOCUS AUTUMN 2015

ILCU

FOUNDATION

What are the key challenges facing the movement today? And Haba Savings and Credit Association
what do you think the challenges will be in the future? sponsored jerseys and five footballs for the
Presently we’re in a phase of changing regulation, there’s a new children's football team in Divjaka, Albania.
draft Credit Union Law being presented to Parliament. Like most
of the world, the financial sector is becoming more and more VeIz Hoxha – A member of Gramash Credit Union /
regulated, and naturally credit unions are subjected to this Savings and credit association
increased regulation. We are working with the ILCU Foundation
to build a strategy to adopt these new regulatory changes. Mr. Veiz Hoxha lives and works in Gramsh, a village of Lushnje.
He emigrated to Greece and Italy at the beginning of the ‘90s,
As your previous questions alluded to, one of our main where he worked in the farming sector. The experience which he
challenges to stay competitive is to provide the necessary gained during these years gave Mr. Hoxha the confidence to start
technology for credit unions to be able to provide different his own farm in Gramsh, where he subsequently moved to with
services for our members. his family. Although he had the necessary skills to start a farm, he
lacked adequate capital and financial assistance. In 2011, he
What have been the most important elements of support which the became a member of the credit union in Gramsh and asked them
ILCU Foundation has given to the successful development of the for their support. With his first micro-loan, he successfully
Albanian movement? enlarged his farm from two cows, which he initially had, to eight.
The most important elements of support provided by the ILCU Mr. Hoxha is now supporting his two sons who work with him on
Foundation was that of technical support; this was critical during the farm. Due to his active engagement in rural development, Mr.
the establishment of the movement, and as the credit unions Hoxha has recommended other farmers to join their local credit
grew so did their complexity - they advised us how they should union, as an opportunity for obtaining competitive loans and
function when they reached this stage. The financial support access to savings opportunities. Mr. Hoxha emphasizes “As a
was also important to help us to spread the idea of credit unions farmer, you understand that some things take time and that what
in bigger communities of Albania. It also helped us to build up you get out of something depends on what you put in. Not only
reserves in some cases and this allowed us to become self- does the credit union share that philosophy, but they also take
sustainable pretty quickly. Not only were these important but the pride and pleasure in seeing my little farm grow steadily.”
partnership as a whole, having the ILCU Foundation as a
partner, has allowed us to network with other movements which
has also helped us to grow.

What have been your key achievements during your time as CEO?
I’ve been fortunate enough that I have been in this position for a
long time and with that I have seen our movement grow from
what was just an idea on a piece of paper to a fully functioning
movement. To see the establishment of our first credit unions, to
the formation of our apex body and to see it becoming self-
sustainable has been one of my key achievements.

What is your vision for the movement?
The vision for our movement in Albania is to reach out to areas
where there are no credit unions and we wish to grow our
products and services which will satisfy the needs of all of our
members.

What does the credit union movement mean to your country and
most importantly your members?
The credit union movement in Albania offers the best and fairest
alternative to obtain financial services, our members trust our
credit unions.

Any other comments?
Finally I want to use this opportunity to thank all the Irish credit
union members and their respective credit unions that have
contributed to the ILCU Foundation to support the movement in
Albania, it means a great deal to us. I would not be in this
position to speak with you today without the support provided by
the ILCU Foundation.

Want to hear more news from the ILCU Foundation?

Email your name to [email protected] with the word E-ZINE in the subject line to join our mailing list.

CU FOCUS AUTUMN 2015 :: 23

Quick Guide to the

Risk Appetite

Statement

In both Northern Ireland and the Republic of Ireland, credit
unions are becoming familiar with a new term – the risk
appetite statement. It is something that has been requested by
the Prudential Regulation Authority (PRA) or the Registry of
Credit Unions (RCU) for an increasing number of credit unions.

However, the risk appetite statement is not Very Low Low Moderate
just a regulatory requirement, it is also a
core component of an effective risk ■ Adherence to ■ High standard ■ The growth of
management system. By failing to define its legal & of service to the loan-book
risk appetite, a credit union has omitted regulatory members
the primary building block of such a obligations ■ Provision of new
system. In this article we will explain the ■ Robust online services
purpose and structure of the risk appetite ■ Prevention of governance to members
statement, as well as providing a checklist financial crime structure
for the credit union’s board of directors and
risk function to consider in relation to ■ IT systems &
same. infrastructure

Risk appetite can be defined as the Diagram: The business objectives of a credit union represented in terms of its risk
level and types of risk a credit union is appetite
willing to take on in pursuit of its
strategic objectives. In other words, it is appetite for each area, the board and practice suggests the number of
a method of defining how much risk the management are clearly articulating its categories should be relatively low
organisation is willing to be exposed to in expectations on how each area should (usually no more than six). The board
different areas of the business. Every be operated. and management then analyses
decision that the board and information such as:
management take will always carry with Overview of a Risk Appetite ■ Operational and financial targets in
it a degree of uncertainty, therefore every Statement
decision exposes the credit union to the strategic / business plan;
some element of risk. In order to Generally, the risk appetite statement ■ The risk capacity (the amount of loss
implement the strategy or business plan breaks down the credit union into
it is important for the board and different categories or areas. This is an organisation can sustain and still
management to establish an agreed usually based on: remain financial stable) of the credit
position on their appetite for risk, ■ Strategic / business objectives; or union;
because a different approach is required ■ Services; or ■ Financial and non-financial resources
for different areas of the organisation. ■ Risk categories (e.g. governance, available; and
For example, it is unlikely that a credit ■ Consequences of failure in each
union board would be comfortable in operations, etc.) defined in the risk category.
taking on the same level of risk regarding register of the credit union; or The financial position of the credit
employee health and safety as it would to ■ A combination of all three. union will largely dictate its capacity to
say increasing the number of new loans It is important that the risk appetite take on risk. If the credit union is
issued per annum. By setting a risk statement is simple and easily maintaining a high level of reserves, this
understood by all officers, therefore good means it has a greater financial buffer to

24 :: CU FOCUS AUTUMN 2015

absorb loss than a credit union with a RISK VS RETURN
lower level of reserves. This analysis
allows the board and management to Return Low Risk High Risk
make an informed decision regarding the Apetite Apetite
level of risk which is appropriate to each
defined area. This is usually expressed VERY LOW LOW MEDIUM HIGH VERY HIGH
in simple terms such as: very low risk
appetite, low risk appetite, moderate risk Risk
appetite and high risk appetite (however
as a financial institution, it may not be have emphasised the importance of Benefits of a Risk Appetite
appropriate for a credit union to adopt a quantifiable measures in credit unions’ Statement
high risk appetite in any area of its risk appetite statements. In other words,
business). a credit unions’ descriptions of “very low, The development of a meaningful,
low and moderate risk appetite” must concise risk appetite statement can be
The first reaction of many to have supporting information as to how easily achieved as part of the next review
establishing a risk appetite is “Why don’t these defined levels were arrived at. of the credit union’s strategic or business
we just set a very low appetite for risk Without these, it becomes difficult to plan. It is certainly worth the investment
across all areas of the organisation?” measure whether the credit union is of time by the board and management.
However, this misses the central purpose operating within its own defined risk Some key benefits include:
of risk management. In reality, operating appetite. To address this concern, a 1. Establishing risk and financial
within a very low risk appetite is not credit union can apply specific measures
practical because of the relationship to each definition. Again this usually parameters (or KRI’s) for key areas of
between risk and return. The less risk takes the form of certain financial the business to operate within e.g.
the organisation takes on, the lower the indicators and if necessary non-financial lending, investments, IT systems and
return will be. Therefore the more risk it parameters. Some organisations refer to secondary credit union services.
takes on, the greater the potential these measures as key risk indicators 2. Enabling the risk function to develop
returns. In most cases “return” for a (KRI’s). The approach is similar to how informed risk tolerances which leads
credit union means income, growth and the risk function attaches specific to more meaningful risk analysis.
cost savings; so it is a business-necessity measurements to the impact and 3. Fostering a shared vision amongst the
to take on a greater degree of risk in likelihood scores used in the analysis board and management of the credit
certain areas. Risk management is about of risks to the credit union’s risk union’s approach to managing key
finding the appropriate balance between register. areas of its business.
risk (prudential priorities) and reward 4. Increasing the likelihood of strategic /
(business priorities). The risk appetite business objectives being achieved.
statement is a documented analysis of
where this balance lies across different
areas of the business.

What differentiates a strong risk
appetite statement from a weak one is
the meaning attached to the different
levels of risk appetite established by the
credit union. The PRA, for example,

Checklist for Developing a Risk Appetite Statement

✓ Ensure the involvement of both the board of directors desirable risks attached to each defined area.
and management team. ✓ Document the credit union’s approach to escalating and

✓ Clearly establish the strategic / business priorities of the responding to risks which fall outside of its risk appetite.
credit union. ✓ Use an appropriate method of defining the level of risk

✓ Segment the credit union into its main areas, services appetite for each area.
or strategic / business objectives. ✓ Adopt appropriate measures (KRI’s) for the definition of

✓ Use financial data (e.g. PEARLS reports) to define the each level of risk appetite.
risk capacity of the credit union. ✓ Ensure that the risk appetite statement is concise, clear

✓ Identify if any significant risk interlinkages exist (e.g. a and easily understood by all on the board and
relationship between a number of key risks which could management team.
increase the overall exposure). ✓ Review the risk appetite statement each time the
strategic / business plan is revised.
✓ Identify if there are any unavoidable, undesirable or

Would your credit union benefit from further support in risk management?
The Credit Union Compliance Centre (CUCC) is launching its new Risk Advisory Service for credit
unions in September 2015. If your credit union is interested in subscribing, please visit www.cucc.ie
for further details and keep an eye out for our free information webinars taking place this September
or email [email protected].

CU FOCUS AUTUMN 2015 :: 25

Inaugural CUCC Conference
“Compliance Through Communication”

On 18th August 2015 delegates from credit Ciaran Bishop, John Long & Nick Cashin.
unions across Ireland came together at the
Edmund Burke Theatre in Trinity College
Dublin, for the inaugural Credit Union
Compliance Centre (CUCC) conference. As
well as providing a platform for discussion on
regulatory compliance issues, the conference
saw the official launch of a ‘Risk Advisory
Service’ for credit unions.

The landscape for credit unions has
changed dramatically and credit unions are
now operating within an increasingly
unpredictable environment. A robust risk
management system is a fundamental part
of a credit union’s continued success. The
CUCC, through its new Risk Advisory
Service, aims to enhance the quality of
decision making at all levels within the credit
union through supporting the development
of an embedded, robust and practical risk
management system for credit unions.

Along with the launch of the Risk Advisory
Service, the aim of the inaugural CUCC
conference was to bring together in one
venue credit union compliance professionals
to discuss topical legal and regulatory
compliance issues and to continue to
encourage a culture of compliance within
the credit union movement. The theme of
the conference was ‘Compliance through
Communication’. Delegates consisted of 300
compliance and risk management officers
and board members from credit unions
across the country, along with
representatives from:

• Central Bank of Ireland
• Credit Union Managers Association
• The Credit Union Restructuring Board

(ReBo)
• Irish Credit Bureau
• National Supervisors Forum
• National College of Ireland
• University College Cork

Delegates heard presentations from a Prof. Donal McKilop, Brian Hayes, Ed Farrell & Brian McCrory.
number of key speakers including Marian
Harkin (MEP), Prof. Donal McKillop,
(Queens University), Dr. Jyn Schultze-
Melling (Facebook), Ger Deering (Financial
Services Ombudsman), Prof. Blanaid Clarke
(TCD), Brian Hayes (Moore Stephens

26 :: CU FOCUS AUTUMN 2015

Marian Harkin MEP Giving her opening address.

Nathans), Brendan Nagle (Department of Delegates enjoying the days proceedings.
Finance) and Denise Farnsworth (Microsoft
Ireland). Discussions centred around risk
and compliance, corporate governance, and
communications.

The Credit Union Compliance Centre
(CUCC) was first established in July 2014
by the Irish League of Credit Unions as a
central point of contact for credit unions.
CUCC is an on-going subscription service
which provides support to officers
responsible for compliance within the credit
union. CUCC assists credit unions in
meeting their legal and regulatory
obligations, establishing an effective
compliance programme and implementing
a robust risk management system. Within
just 12 months, the CUCC has grown into
the professional compliance advisory centre
for a growing number of credit unions on
the island of Ireland. It was announced at
the conference that the CUCC will be
expanding to provide a new risk advisory
service to credit unions in September.

Speaking at the opening address of the CUCC conference is about finding positive unions operate has changed dramatically,
Conference Marian Harkin (MEP) said: "I was outcomes to these changes through and these changes are no more evident
extremely pleased to be given the compliance. Compliance is a pivot point for than in the area of compliance. There are
opportunity to speak at the inaugural CUCC credit unions to improve performance and increasingly demanding requirements on
conference. I would like to say a big well sustainability. Compliance can be credit unions to demonstrate compliance,
done to everyone involved in the Irish Credit transformative however it is a challenge, but satisfy regulatory obligations and keep up-
Union Movement, you have weathered the credit union's are not alone, help and to-date with continual regulatory changes.
storm. You have stood solid and strong support is available in the form of the Today’s conference was a great opportunity
whilst gale force winds toppled other extremely progressive Credit Union for compliance specialists to come together
financial institutions. I have witnessed first Compliance Centre" to share information, learn from one another
hand the unprecedented and unparalleled and discuss topics that are vital when it
changes that the Credit Union movement Commenting at the Conference Ed Farrell comes to managing regulatory change and
has had to deal with over the years. This CEO of the Irish League of Credit Unions reducing the risk of non-compliance within
added: “The landscape in which credit credit unions.”

CU FOCUS AUTUMN 2015 :: 27

HR

IMPLICATIONS OF
A TRANSFER OF
UNDERTAKINGS

Introduction not occur in the case of a compulsory • A list of all active employees (using
The following article highlights the key HR liquidation of the undertaking / employee/staff number rather than
considerations which a Credit Union will business. name), to include details of employees
need to examine prior to a transfer/ contract type e.g. full-time, part-time,
merger decision being taken. Due In essence, the new employer is required casual staff, fixed-term and specific-
diligence is the first step in a long and to step in to the shoes of the original purpose contracts, and agency workers,
complex internal process which is employer in relation to the employees. with their terms and conditions of
normally done in two phases. The first employment.
phase looks at Loans, Fixed Assets and HR Due Diligence
Investments. While the second phase The following information will assist in • A list of employees who left the
examines a host of other areas such as obtaining a complete picture of the HR company in the past 2 years should be
HR, IT, Operations, Legal, Governance landscape which requires consideration provided along with their date of
and Compliance. by credit unions proposing to termination and reason for leaving.
transfer/merge. It should highlight any
The relevant employment legislation in differences between the credit unions • Personnel files should be examined to
dealing with a transfer of undertakings is: involved regarding employee contracts, establish if there are any claims pending
the European Communities (Protection of HR policies, custom and practice, how / likely against the credit union.
Employees on Transfer of Undertakings) change has been accepted in the past
Regulations S1 131/2003, This area of law and any potential claims / liabilities that • Self-employed sub-contractors
is commonly referred to as “TUPE”. may be pending from an employment agreements should be examined so as
point of view. Both credit unions should to rule out the possibility of any claims
Definition compile a list of the relevant information in for employee status. The transferee will
A transfer of undertakings takes place order to compare and if necessary want to reassure themselves that no
when a business or part of a business is negotiate a rationalisation of same. claim for employee status exists or is
taken over by another employer as a result likely to be made.
of a merger or transfer. The Regulations 1. Company Organisation & Management
implement an EU Directive 2001/23/EC • An up-to-date organisational chart 4. Contracts of Employment
aimed at safeguarding the rights of Contracts of employment should be
employees in the event of a transfer of an showing management structure, examined to establish who has or has not
undertaking, business or part of a reporting hierarchy and staff groupings. a signed contract; how old it is and how
business to another employer as a result robust it is.
of a legal transfer or merger. 2. Changes to working practices/culture
• What changes have been implemented Key things to look for include:
For a transfer of undertaking to take • Date of Commencement
place: in recent years? What was the process? • Salary and benefits that are contractual
• There must be a change in the person How easily was the change or new
products/services introduced and was e.g. salary, bonus, overtime, allowances,
(either an individual of a company) there Trade Union involvement? overtime premium rates, sick pay,
responsible for running the undertaking pension, insurance (medical, PHI),
/ business; 3. Employee Lists & Terms & Conditions of travel allowances, expenses, any other
• The previous economic activity of the Employment allowances and/or any existing
undertaking / business must be carried examples of custom and practice
out by the new employer; TUPE legislation specifically protects the • Working hours and conditions that are
• The undertaking / business must be transferred employees from any changes contractual
transferred as a “going concern”; and to their Terms and Conditions which are to • Collective agreements and/or new
• A transfer under the Regulations does their detriment. custom and practice
• Mobility clause
• Retirement age
• Redundancy terms

28 :: CU FOCUS AUTUMN 2015

Check to ensure that there are no terms original employer immediately before being properly applied should be
and conditions of employment which have the transfer. Their continuity of service is referred to the Pensions Board.
been superseded by changes to terms preserved and existing collective
since the contract was introduced. agreements must be honoured. • Staff have a minimum legal right to be
Employment terms and conditions and informed and consulted with through
5. Collective Agreements all existing employer’s obligations in the their representative at least 30 days in
• Any collective agreements should be contract of employment are advance of the merger/transfer date.
automatically transferred to the new
examined in addition to any employer, except for pensions. • This must include discussion on the
employment court determinations and reasons for the transfer along with the
agreements • Employee pension rights, apart from legal implications for employees.
those provided for by Social Welfare
6. Employee Handbook Legislation, do not transfer to the new In summary, it is important to be aware of
• The employee handbook should be employer. However where there is a any differences in the contractual
pension scheme in operation in the arrangements within credit unions involved
examined and compared, listing any key original employer’s business at the time in a transfer so as to be able to foresee
differences. of transfer, the legislation provides that: and put a plan in place to address the
• Items to be examined include any potential issues. All too often it is left too
policies related to pay, benefits, leave, - If the scheme is an occupational late and research in other sectors shows
sick leave, redundancy terms, as well as pension scheme covered by the that if you ignore the HR issues you will
a whole host of policies covering leave, Pension Acts, then the protections regret it.
sick leave, disciplinary and grievance given by that legislation apply;
prevention of bullying and harassment, There are Guidelines relating to TUPE
IT Usage (this is not a definitive list). - In the case of other pension schemes, available in the HR Section of the ILCU
the new employer must ensure that Website. In addition the HR Department
7. Transfer agreement rights are protected. Queries / are happy to assist and guide you in the
• Arising, from a HR due diligence, the complaints regarding the protection above areas or deal with any query you
afforded by the Pensions Acts not may have.
transferor and transferee may wish to
proceed to draw up a transfer Telephone: Margaret Davern Maura Behan
agreement. Email: HR Adviser HR Executive
• Employment issues factor into a number Mobile: +353-1-6146974 +353-1-6146941
of the provisions in any thorough [email protected] [email protected]
transfer agreement, because +353-87-1468939
employment liabilities transfer in a
TUPE situation to the new employer.

Credit Unions and Employee Rights
When a transfer takes place there is a legal
obligation on the part of the new employer
to take on the existing staff of the business
or the part of the business concerned.

• All employees, whether full-time; part-
time; permanent; or temporary, who are
employed at the time of the transfer are
protected by the Regulations. Any
changes to the employee’s terms and
conditions of employment must be
negotiated and agreed with employees
in advance of the transfer taking place.

• If there is a collective agreement the
new employer must contribute to its
terms and conditions until it expires or is
replaced. It is not possible to contract
out of the Regulations.

• Dismissal of an employee by reason of a
transfer is prohibited.

• An employee is entitled to terms and
conditions of employment with the new
employer which are no less favourable
than those he/she enjoyed with the

CU FOCUS AUTUMN 2015 :: 29

Pathways

The New Accredited Learning Pathway for Credit Unions

IT MANAGEMENT
FOR CREDIT UNIONS

IT is vital to organisations in business. For function? Pictured here is 2014 Diploma in Credit Union
credit unions, delivery of services to • Could other potential providers quickly Operations graduate of the year Dorothy Barrett of
members is dependent on an efficient and Newmarket Credit Union Ltd receiving her award
well organised IT system. IT enables provide the same service if the current from Tom McCarthy.
credit unions to maintain their current provider fails or closes down?
business and is vital to future development • Competency - Is the provider, its people or
and growth. However, reliance on such an 2. Due Diligence its process competent?
essential support brings its own challenges Assess the provider’s ability to meet your
and responsibilities. requirements and their financial ability to • Consistency - Does the provider produce
deliver. a consistent output?
Effective IT management empowers
credit unions to control costs, drive service Question their operational issues, staffing, • Control of process - Can the provider
excellence and mitigate risks to gain value expertise, and internal controls. Consider control its process and offer flexibility?
from IT investment. A compliant IT system their financial condition by analysing any
protects members; their data, their funds available audited financial statements or • Commitment to Quality - Does the provider
and their credit union. Governance of IT balance sheets. effectively monitor and manage quality?
infrastructure must be strengthened by
adequate controls and policies which 3. Documenting a contract • Cash - Has the provider got a strong
support business processes, a considered All contracts should be in writing. Include: enough financial base?
IT plan which integrates the credit union • Expectations and responsibilities
strategy and provision for risks and security. • Scope of work and fees • Cost - Is the product or service offered at
Compliance requirements must be central • Type and frequency of reporting on the a competitive price?
to IT governance for credit unions.
status of work • Culture - Are the provider and the credit
Relationships with services providers is • Process for changing scope of work union cultures compatible?
an integral part of IT management. More • Ownership of any work product
than just negotiating the lowest price, credit • Acknowledgement the provider is subject • Clean - is the supplier ethical, funded
unions should consult and challenge legitimately, doesn't engage child labour
providers to come to mutually beneficial to regulatory review etc.?
agreements. An informed, well-managed • Privacy and information security, and
relationship with a provider results in * Carter 9C model
reduced costs and better quality for the supervision and dispute resolution
credit union and excellent service from the Legal counsel should review all Dermot Bradfield lectures in IT in National
provider. significant contracts. A service level College of Ireland (NCI). Dermot’s
agreement (SLA) is essential to establish experience includes working in IT within
Steps to Successful IT Provider the performance standard and service financial services.
Relationship Management quality expected. Also, consider the
contract term. CU Learning & Development has
1. Risk Analysis partnered with NCI to host ‘Managing IT
Identify the importance of the function, the 4. Ongoing Supervision and Monitoring Compliance’ seminars, available on the
nature of the activities the IT provider will Designate someone to review and be Autumn 2015 Programme. To book, visit
perform, and the inherent risk within that accountable for the performance of the www.culearn.ie.
activity. provider. Monitoring and supervision should
include ongoing (at least annual) reviews of
Consider: the provider’s financial condition and
• What would be the effect if the IT system insurance coverage. Contingency plans
should be reviewed and adequately tested.
failed or did not perform adequately? Evaluation – before contracting providers
• Will outsourcing cause dependency on and ongoing assessment*
• Capacity - Does the provider have the
the third-party provider for an essential
capacity to deliver?
30 :: CU FOCUS AUTUMN 2015

The Role & Skills of a Successful Risk Management Officer Pathways Programmes Graduate of the Year
Awards for the Academic Year 2013/2014
Risk management officers in credit unions in the Republic of Ireland have
their responsibilities clearly set out in the Credit Union Act, 1997 (as The inaugural Award Ceremony for graduates on the
amended). They are responsible for “identifying, assessing, reporting pathways programmes for the academic year 2013/14 took
and monitoring all internal and external risks that could affect the place at the recent UCC Summer School on Saturday 13th
credit union to which the risk management system referred to in June, 2015. Awards were presented for both Certificate and
section 76B relates, including risks to its employees, members, Diploma programmes and the recipients were as follows:-
reputation and assets, and assisting the manager with managing and
mitigating those risks.” [Section 76(C)]. To fulfil these responsibilities the COURSE STUDENT CREDIT UNION
risk management officer is required to perform a wide set of activities NAME
such as; design, implement and maintain the credit union’s risk
management system, conduct the necessary risk management training Diploma in Credit Liston, Rathkeale &
for other officers, suggest amendments to the risk management policy to Union Governance Michael M. District Credit
the board (or risk committee), bring any serious risks or breaches of the (October conferring) Union Ltd
risk management policy to the attention of the board (or risk committee)
in a timely manner, co-operate and assist the audit committee and to Diploma in Credit Barrett, Newmarket Credit
support the board in fostering a strong risk management culture in the Union Operations Dorothy P. Union Ltd
credit union. (October conferring)

To perform these duties successfully, the risk management officer has Certificate in Credit Mc Kenna, Monaghan Credit
to have a core set of risk management technical skills. Hopkins (2012) Union Governance
lists these skills as the ability to: evaluate the organisation, develop a (March Exit) Martin G. Union Ltd
strategy, design the risk management architecture, develop processes,
build awareness, facilitate assessments, evaluate controls, improve Certificate in Credit Brennan, ReBo
controls, evaluate the framework and design reports. Active Risk Union Operations Martina
(Robertshaw, 2013) conducted an online psychometric survey of 1,000 (March Exit)
risk professionals and found that 60% of risk managers surveyed had
personality traits typically associated with risk managers – the ‘Reactive Certificate in Credit Johnstone, Clogherhead
Introvert’ personality type. This indicates that these respondents Union Governance Paul Credit Union Ltd
demonstrated the following personality traits; expertise, strong analytical (July Exit)
skills, were logical, and cautious regarding accuracy and precision when Hughes, East Meath Credit
dealing with complex subjects. This research supports the concept that Certificate in Credit
there is a connection between roles, skills and personalities i.e. risk Union Operations Gabrielle M. Union Ltd
managers are attracted to this role because of their personality traits. (July Exit)

There is also a growing recognition that the successful risk manager Ms. Noreen Byrne, Academic Director, Centre for Co-Operative Studies
must now also have certain soft skills. Hopkins (2012) recognises the UCC; Dr Seamus O Tuama, Director Adult Continuing Education, UCC;
increasing importance of interpersonal skills; communication, Mr Michael Liston Diploma in Credit Union Governance Graduate of
relationship, analytical and management skills and notes that the risk the Year, Rathkeale & District Credit Union Ltd; Kevin Loughnane,
manager will require a blend of technical and soft skills and personality ILCU; Guest of Honour Mr Tom McCarthy; Ms. Helena O’Connor
traits to be a successful practitioner. In the Active Risk survey mentioned Pathways Programmes Co-Ordinator, UCC; Mrs Dorothy Barrett,
above, the remaining 40% of those surveyed were found to have non- Diploma in Credit Union Operation Graduate of the Year, Newmarket
traditional personality traits – the “Proactive Extroverts” personality type. Credit Union Ltd; Mr Martin McKenna, Certificate in Credit Union
They were found to be “evangelists, with natural communication and Governance Graduate of the Year, Monaghan Credit Union Ltd; Dr
social skills and capable of using an endless supply of argument and Carol Power, Centre for Co-Operative Studies UCC.
charm until the task is achieved. Significantly, they are also prone to
exaggeration.” (Robertshaw, 2013). For Robertson (2013) this indicates CU Learning & Development Training Offered
a significant shift in the risk manager profile reflecting the changing
environment for risk managers and the rising importance in cultural • Certificate in Credit Union Compliance & Risk (NCI)
change and communications. It is not surprising that given the current • Pathways Certificate, Diploma, Degree, Masters (UCC)
scope of the credit unions risk management officer’s role, a successful • Risk Management Explained (e-learning)
risk management officer will be required to have a range of both technical • Overseeing Risk Management (classroom based)
and soft skills. • The Credit Union Acts (e-learning)
• Implementing Fitness & Probity (classroom and e-learning)
References • The Essentials of Anti-Money Laundering (classroom and
Hopkins, P. (2012) 2nd Ed. Fundamentals of Risk Management, Koogan
Page Ltd., UK e-learning)
Robertshaw, P. (2013). The Personality Traits Needed for the New Risk • Data Protection for Credit Unions (classroom and e-
Managers. ENR.com.
http://enr.construction.com/opinions/viewpoint/2013/0130-the- learning)
personality-traits-of-a-risk-manager.asp

To support your risk management officer, CU Learning & Development
provide e-learning, classroom based and accredited programmes. Below
is a list of the courses offered by CU Learning & Development, for
additional information please contact CU Learning & Development on
+353 1 6146753 or [email protected]

CU FOCUS AUTUMN 2015 :: 31

Focus on …
CASTLECOMER
CREDIT UNION LIMITED

In March, Castlecomer Credit
Union Limited celebrated the
contribution of a volunteer who
retired in December 2014 with
48 years of service rendered.
The story began on Feb 15th
1967 at Castlecomer Parochial
Hall – it was the birth of
Castlecomer Credit Union
Limited and Christy McGrath was
one of the founder members.

To put the longevity of Christy’s service in bond was further expanded to include The 1990s saw the appointment of a
context, the same week a single featuring Coon and Muckalee; the premises full time manager reflecting the
Penny Lane and Strawberry Fields was currently in use was gradually acquired increasing complexity and scale of the
released. As the Beatles sang their way to and developed. credit union operation. 2002 had us
fame and fortune, as the world focused change to using the Euro as our unit of
on Vietnam and the Moon, Castlecomer In April 1975 Castlecomer Credit currency; Ireland experienced the growth
Credit Union’s feet were firmly on the Union Ltd employed its first paid and prosperity of the period to 2008 –
ground. Its focus was local – it was to employee - a young lady whose and endured the difficulties which
create in the area an organisation of a commitment has withstood the passage followed. Castlecomer Credit Union Ltd
group of people who save together and of time admirably – that is Nellie continued to serve its members as
lend to each other at a fair and Callinan. Christy was on the board who fortunes changed. It has been said that
reasonable rate of interest. took this leap also. Nellie has just ‘To give real service you must add
celebrated 40 years as an employee of something which cannot be bought or
In 1969 – the coalmines, the most the credit union. measured with money, and that is
significant local employer, closed, the sincerity and integrity’ – Christy McGrath
credit union served the community Ireland had now joined the EEC and as has given 48 years of such service, 13 of
through the ensuing difficulties. It the country looked abroad more and more them as Chairperson.
maintained a finger on the local pulse for markets, the people of North East
and helped sustain the community Kilkenny expanded the scale of their The credit union has the privilege of
through challenging times. In 1971 for credit union. In 1979 the parity between having on its current board another of the
example, members could get a loan of £2 the Irish punt and sterling had been members from the very early years –
to fund a ticket for the credit union broken – but Castlecomer Credit Union Frances Bradley – and Frances made a
dinner dance. The credit union grew as Ltd was a constant, taking all these presentation to Christy in appreciation of
industry replaced the mines – a different changes in its stride. And Christy was his contribution over the lifetime of
local economy developed. part of the group who from its initiation Castlecomer Credit Union Ltd on March
had constantly stewarded its progress 21st last.
By 1971, the Board was meeting in a and continued to do so.
rented premises –Feb 15th was
significant again – Decimal Day when ds
became ps, 10 shillings 50p, 2 shillings
10p and 1 shilling 5p; lots of change but
some constants – Castlecomer Credit
Union Ltd and its stalwarts including
Christy McGrath.

In February 1972 the credit union
opened its own office – and by now the
common bond was extended to include
neighbouring Clogh and Moneenroe;
through the 70s and 80s the common

32 :: CU FOCUS AUTUMN 2015



New look Nenagh Credit Union

The 23rd of May 2015 marked a new era for Nenagh Credit Union the Nenagh Credit Union offering 6.5% car loans with an APR
Limited, they unveiled new look offices, new high spec IT of 6.7%. Other loans are typically offered at 9.9%, APR 10.4%.
Systems and their highly trained staff.
“Nenagh Credit Union is actively lending to members at
The future bodes well for Nenagh Credit Union Ltd, which competitive rates. There is an excess of €40 million available to
has strong reserves of €14 million. It has some 14,000 be taken up in loans. This money is presently held in bank
members with savings of €42.7 million. Manager Margaret deposits and investments but is readily available when
Grace says there has been good take-up of loans of late, with required.”

Belfast Teachers Credit

Unions 50th Anniversary

celebrations continue

Belfast Teachers Credit Unions have organised a number of events
this year to celebrate their 50th anniversary. One of the events
organised to celebrate their 50th Anniversary was a History outing
to the Walls of Derry and Fort Dunree in Donegal. Dr Eamon
Phoenix of Stranmillis College, Belfast led a large group of
members throughout the day. He was very informative and
entertaining. The group walked the walls of Derry, were treated to
Lunch at Custom House and afterwards headed on to Fort Dunree,
where Irish forces were stationed during World War II. Members
thoroughly enjoyed the event.

34 :: CU FOCUS AUTUMN 2015

WBR Credit Union Ltd Launch Castlecomer
CluedIn in Local School Credit Union Ltd
celebrate Nellie
Callinan

St. Mark's High School Warrenpoint, in sources of credit, to understanding how In April 1975 Castlecomer Credit Union Ltd,
conjunction with the staff of WBR Credit to have a positive relationship with money. then in its eight year, employed its first paid
Union Ltd last month announced that they Above all, if money skills are learned at an employee - a lady whose commitment has
are looking forward to addressing the early stage, it is likely that they will stay withstood the passage of time admirably. This
recent ILCU finding that just over 7 in 10 with you for life. year Castlecomer and Nellie Callinan
Irish parents think schools in general do celebrate her 40 years’ service as an
not do enough to educate young people Mr. Raymond Beggs, Six Form Pastoral employee. Nellie Callinan had been a
about how to manage their money. Team, and Supervising Director of the volunteer prior to that.
WBR Credit Union Ltd; who was
St. Mark's, like all schools, see a pupils' instrumental in securing this unique Nellie has been part of the growth of the
ability to read, write and count as being Private/Public partnership is convinced credit union – a growth which has witnessed
integral to their ability to get on in life and that the health of a person’s relationship expansion in membership, in services
take an active part in society. The area of with money is not determined by how provided and especially in its modus
financial literacy is one which has much a person earns. Rather, financial operandi from the books and records
received scant attention by the education health is having a conscious and sensible manually maintained to the IT systems of
system in the past. attitude to money that is satisfying and today. Firmly of the belief that one of the
doesn’t put an unnecessary burden on credit union’s best marketing tools is its front
However, newly appointed Principal, the individual. It is about being in control office staff, Nellie excelled in this role until
Mrs Una McNullty sees financial literacy of the amount of money available to you. recent years. As the challenges of the
as a distinct skill from those of maths and downturn called for action Castlecomer
reading. "Financial capability; the ability The school which enjoys a positive appointed Nellie to undertake the job of
to understand how money works and relationship with its local Credit Union who Credit Control Officer – here she has
make informed and effective decisions recently sponsored their Winning Ulster combined her experience and her personal
about using and managing it are essential Hurling Team are confident that this new qualities to manage a challenging workload
for our pupils in today’s world." scheme, that involves the entire Six Form, whilst maintaining a high level of customer
will be so successful that its pupils will see service and satisfaction. Working with the
So strong is the belief in the need to Financial Literacy as every bit as Credit Control Committee, she established a
develop financial literacy amongst their important to them as their capability to structure which has ensured fair and
pupils, that they have announced that all Read, Write and Count. efficient management of difficulties. The
Six Form pupils will have their Curriculum response of members who are addressing
suspended on specific days over the year. their arrears as their circumstances are again
This will allow specific teachers from the improving is testament to the professionalism
Pastoral Team alongside the WBR Credit with which Nellie embraces her role.
Union Staff the opportunity to deliver the
new "Cluded-In" online resources Recently a presentation was made to
developed by the ILCU. Nellie to acknowledge her lifetime of service.

Mrs Tanya White, Head of the Post 16, CU FOCUS AUTUMN 2015 :: 35
believes that for young people especially,
the ability to oversee their finances has
never been more important: from learning
how to budget to managing their
borrowings; understanding forms and

Lurgan Credit Union Ltd celebrates
Investors in People accreditation

Lurgan Credit Union Ltd, employing 23 people, was among 34 Pictured with Employment and Learning Minister Dr Stephen Farry and
organisations celebrating Investors in People (IIP) accreditation at Head of Investors in People Paul Devoy, is Fiona Clarke from Lurgan Credit
a presentation ceremony held in the Long Gallery, Parliament Union. Also pictured are staff and directors of Lurgan Credit Union.
Buildings on 26 June.
and enables leaders, managers and employees at all levels to build
Employment and Learning Minister Dr Stephen Farry, special their skills, improve their performance and achieve their potential.
guest at the event, speaking before the presentation of awards said: We’d like to congratulate all the organisations here in Northern
“This is a very special occasion as it celebrates Northern Ireland’s Ireland on their achievement.”
businesses going above and beyond excellence, through Investors in
People. Obviously it is satisfying to receive your IIP accreditation, Based on a tried and tested methodology of leading practice and
but the real cause for celebration is the improvements in your a rigorous process of assessment, organisations that achieve
organisations brought about as a result of hard work and Investors in People, like those who celebrated on 26 June, proudly
commitment in effectively managing and developing your most display their accreditation to the world.
important asset – people. Those organisations achieving IIP
accreditation have demonstrated a clear commitment to continuing
to invest in their people - and are indeed seeing the business benefits
of doing so.”

Since 1991 Investors in People has set the standard for better
people management. The standard defines what it takes to lead,
support and manage people well. Successful accreditation against
the Investors in People standard is the sign of a great employer who
understands that it is people that make the difference.

Paul Devoy, Head of Investors in People, said: “Achieving the
Investors in People standard is something that any organisation
should be truly proud of. Working with Investors in People inspires

Portarlington and Clondalkin Plays
Host to Ukrainian Delegation

Portarlington Credit Union Ltd management, staff & directors pictured Manager Mick O'Conaill & Chairman Kieran Carroll pictured with the
with Ukranian study tour group. group at Clondalkin Credit Union Limited

Portarlington Credit Union Ltd and Clondalkin Credit Union Ltd and regulations which are due to come into force soon.
played host to a high level delegation of credit union leaders’, Petro Kozynets, President of the National Association of
representing the Ukrainian credit union movement recently, as part
of a study tour to Ireland. Ukrainian Credit Unions said: “This is an excellent opportunity to
learn from the Irish credit union movement and on behalf of the
The visit by staff and volunteers of National Association of Ukrainian credit union movement I would like to thank
Ukrainian Credit Unions, the apex body which represents credit Portarlington Credit Union and Clondalkin Credit Union, their
unions in Ukraine, visited Ireland to gain an understanding of staff, volunteers and board of directors for providing us with this
how Irish credit unions’ have adapted to the new regulatory occasion to learn from their experience and their immense
environment as the Ukrainian system braces itself for new rules hospitality during our time in their credit union’s”.

36 :: CU FOCUS AUTUMN 2015

St Dominic Credit Union & Junior Achievement Ireland

Four staff from St. Dominic Credit Union Limited, regardless of income; when and how to use Joe Busher Manager of St.Dominics Credit
based in Waterford City and South Kilkenny, credit wisely and how to become ‘smart’ Union Ltd said: “I speak for all of the credit
taught three Junior Achievement workshops in shoppers!. union staff involved when I say that it was a
Our Lady of Mercy Secondary School in ■ Economics of Staying in School privilege to be able to work with Junior
Waterford in term 2 of the school year 14-15. The programme comprises several activities Achievement and the wonderful teachers
The programme covered 3 different topics; to help students understand the cost of and students in Our Lady of Mercy.
Finance your Future, Economics of Staying in early school leaving and the benefits of Afterwards we were able to bring some of the
School and Sum It Up. The staff visited the staying in education. groups into the credit union to speak with
school for 40 minutes per week for six ■ Sum It Up staff members about the type of work we do
weeks. This is a classroom based programme, and help them relate their learning to a
■ Finance Your Future - This programme aims designed to build on students’ knowledge working environment. We are looking forward
of mathematics and to demonstrate the to the next school year when we will be able
to give students an understanding of the subject’s uses in everyday life. The goals of to help deliver further programmes to help
benefits of successfully managing their Sum-It-Up are to supplement the develop our very talented local young
personal finance when they leave school. secondary Project Maths curriculum, people”.
During the programme students gain an enhance knowledge of key mathematical
insight into how education provides better concepts, demonstrate the practicality of Junior Achievement is a non-profit
choices and options in terms of career and mathematics and its everyday use and organization and its aim is to create a culture
future earnings. Students identify their own introduce the students to the importance of of enterprise within the education system. For
skills and interests and complete a career this subject in their future academic and further information contact Helen Halpin,
interest inventory. Students also learn the working lives. Development Officer, Junior Achievement
importance of keeping a balanced budget, Ireland – [email protected] or 086 8339710.

The Lough Credit Union
Ltd promote Blood for
Life Cycle 2015

The Lough Credit Union Ltd were delighted to be
involved with the Blood for Life Cycle 2015. To help
promote the need for blood donations, 18 gardai
cycled from Cork to Geneva. They set off on the 9th of
June and arrived on WORLD BLOOD DAY 14th of June
2015. The Garda Blood for Life Cycle is one of many
key donor engagement initiatives that ensure that the
Blood Supply in Ireland remains at healthy levels. The
Irish Blood Transfusion Service requires 3000 units of
blood each week in order to meet the country's
demand for blood

CU FOCUS AUTUMN 2015 :: 37

Legislative
Update

Personal Insolvency

Personal Insolvency (Amendment) Act both the debtor and creditors. Justice, Defence and Equality
2015 Applications to appeal the recently published a report
The Personal Insolvency recommending that the term of
(Amendment) Act 2015 (the “Act”) rejection of a PIA proposal must be bankruptcy be reduced from three
was signed into law on 28 July 2015. taken to the Circuit Court by years to one year (which can be
It introduces a number of changes to personal insolvency practitioners on extended up to three years in certain
the Personal Insolvency Act 2012 behalf of debtors and must be made circumstances). If implemented, this
(the “2012 Act”). These changes promptly (generally, 14 days after will bring Irish bankruptcy law more
include: the creditors’ meeting rejecting the in line with the UK provisions.
• the establishment of a Circuit PIA proposal). Applications will be
heard by specialist Circuit Court Private Security (Licensing and
Court review mechanism where judges who have been assigned to Standards) (Private Investigator)
creditors reject a proposal for a deal with personal insolvency cases. Regulations 2015
Personal Insolvency Arrangement The Department of Justice and
(“PIA”) Debt Relief Notices Equality has recently made
• an increase in the amount of debt These provide debt relief for people regulations which will take effect
which may be covered by a Debt who have little disposable income or from 1st November 2015, and which
Relief Notice from €20,000 to assets and no prospect of being able provide that contractors providing
€35,000 to repay a debt in the next three security services as a private
• an increase in the functions and years. Under the 2012 Act, Debt investigator must hold a license from
powers of the Insolvency Service Relief Notices facilitated the write-off the Private Security Authority (PSA).
of Ireland (“ISI”) of qualifying debt up to €20,000,
subject to a three year supervision It will be an offence for any
Circuit Court review period. This amount has now been contractor to offer a service as a
Under the 2012 Act, a debtor could increased to €35,000. There is no Private Investigator without a licence
seek to enter into a Personal return to creditors in the case of a after 1 November 2015. In addition,
Insolvency Arrangement (PIA) and debt relief order. only those licensed by the PSA will
before the PIA proposal could be able to advertise or represent
become binding, it had to be Functions and powers of the ISI themselves as a Licensed Private
approved by a majority of creditors. The Act increases the functions and Investigator.
In circumstances where a PIA powers of the ISI significantly. A
proposal was rejected by creditors, greater emphasis has been put on It will also be an offence for a
there was no provision for a review promoting the use of insolvency person to engage or employ an
or appeal. arrangements, data collection, unlicensed Private Investigator.
analysis and dissemination of
The Act has now been amended information and statistics. The ISI The PSA maintains a register of
and permits an application to be also now has significant powers to licence holders on its website,
brought before the Circuit Court supervise personal insolvency www.psa.gov.ie and it will be
when a PIA proposal is not practitioners in the performance of necessary to ensure that a private
approved. The Circuit Court can their functions, including the ability investigator is licensed by checking
then review the PIA proposal and to appoint authorised officers for this the details on the register before
make an order imposing the PIA purpose. entering into or continuing an
proposal if it considers that a fair outsourcing arrangement with them.
and equitable solution is offered to In additon, Joint Committee on

38 :: CU FOCUS AUTUMN 2015

Legislative
Update

Review of CREDS

On 24th June 2015 the Prudential 2018. The ratio will rise to 9% on 1 Governance
Regulation Authority (PRA) and the October 2017 with full compliance The board of a credit union will be
Financial Conduct Authority (FCA) by relevant credit unions of the 10% required to report at the AGM which
issued a joint consultation paper ratio by 1 October 2018. The new of the additional activities it is
(PRA CP22/15 FCA CP 15/21) with 10% capital to total assets carrying on and disclose to members
proposals to reform the legacy Credit requirement will also apply to any whether it is complying with the
Union sourcebook (CREDS). The credit union that undertakes certain ratios and other mandatory
PRA and FCA believe that the additional activities (i.e. additional requirements in relation to those
current CREDS is not suited to lending, mortgage lending and activities.
developments in the credit union additional investments).
movement, leads to confusion as to The Board will also be required to
which provisions are solely Savings disclose:
prudential (and therefore fall under The PRA proposes a member’s • the credit union’s compliance (or
the PRA) or purely conduct related aggregate shares or deposits must
(and the responsibility of the FCA). be limited to the Financial Services otherwise) with any requirement
Compensation Scheme (FSCS) relating to the Single Customer
One of the main proposals of the guarantee limit in force (currently View (SCV). Credit Unions
consultation paper is the £85,000 until 31 December 2015). Rulebook Part 10.1; and
replacement of the historical version • that it has maintained the
1 and version 2 model for credit There will be no requirement to required level of insurance against
union activities with a framework repay shares or deposits already fraud and dishonesty throughout
based on a credit union’s specific held in excess of that limit. However, the year Credit Unions Rulebook
business model. As such where a it will not be possible for any further Part 10.1).
credit union wishes to undertake deposits or shares to be added.
certain additional activities (e.g. The credit union must also have an
payment services, mortgage lending, Bad debts up to date financial risk
more flexible lending and The requirement to maintain a management policy statement
investments), they will need to general provision (currently 2%) of (where carrying out any additional
adhere to certain additional bad debts is removed. Specific activity).
prudential requirements and provision is to be made by credit
financial ratios. unions as follows:

Other proposals contained in the • provision of 35% where a loan is
consultation paper include: more than three months in
arrears;
Capital
Where a credit union has total assets • provision of 60% when a loan is
of £10 million or more than 10,000 more than six months in arrears;
members it must maintain a capital
to total assets ratio of 10%. This • provision of 80% when a loan is
replaces the 8% risk adjusted ratio more than nine months in arrears;
and the PRA intends to allow for a and
provisional transition to reach the
10% requirement by 1 October • provision of 100% where a loan is
more than twelve months in
arrears.

CU FOCUS AUTUMN 2015 :: 39

Economic
Commentary

Overview

The Central Bank of Ireland (the Central Bank)
now expects GDP to expand by 4.1% and 4.2%
in 2015 and 2016, respectively. Similarly, the
Central Bank expects GNP growth to be 4.2%
and 3.8%. The labour market has continued to
improve and it is expected that employment
will increase by 2.3% this year and next. This
should see the unemployment rate averaging
9.7% in 2015, with a decline to 8.5% expected
for 2016. The employment outlook is
supported by the increasingly positive
contribution to growth arising from domestic
sources.

Domestic demand will become the main has also been evident in monthly Employment increased on an annual
driver of growth with average annual Exchequer data and specifically VAT basis by 41,300 (+2.2%) in the first three
volume increases of 3.8% expected by the receipts, which are up 7.9% in the first months of the year based on the most
Central Bank; this reflects a robust outlook half of 2015. recent Quarterly National Household
for personal consumption and investment Survey (QNHS).
expenditure. This would mark the The Labour Market
strongest rate of growth in domestic The Central Bank expects employment This growth was once again broadly
demand since 2007. growth to average 2.3% per annum in based, with 10 out of 14 economic sectors
2015 and 2016. recording gains. The largest increases in
Personal consumption expenditure is employment were recorded in
forecast to grow by 2.3% in both 2015 This should see the number of people construction and financial sectors which
and 2016, on a year-on-year basis. This in employment reaching the two million accounted for just over half of all jobs
outlook is predicated on a continuation of mark over the forecast horizon, the last created. As well as the broad based
the momentum evident in indicators of time this threshold was reached was in nature of the recovery, growth in
consumer spending in the first half of this 2008. With average annual labour force employment is now predominantly being
year. Retail sales were up 9.3% in the growth of 0.8% envisaged over the recorded in full-time jobs (reversing the
first five months of 2015 driven in part by forecast horizon, the unemployment rate pattern of the early stages of the recovery).
strong car sales. Core retail sales have is projected to average 9.7% in 2015 and
also been robust, increasing for a 19th 8.5% in 2016. The labour market has More recent data from the Live Register
consecutive month (by 5.7%) in the year been improving for a number of quarters confirms the on-going recovery in the
to May. This has been helped by strong now and the rebalancing in growth away labour market; numbers on the Register
increases in spending on household from net exports to domestic demand declined to 344,900 in June, down from
goods and electrical equipment. The should further stimulate employment 363,700 at end-2014, marking a 36th
apparent strength in consumer spending growth this year and next. consecutive month of decline.
Furthermore, the seasonally adjusted

40 :: CU FOCUS AUTUMN 2015

unemployment rate was 9.7% in June negative on a year-on-year basis in June, 2015. The pace of growth is somewhat
(down from 11.4% a year previously). albeit on an upward trajectory, rising to - faster in the Dublin region, where prices
0.1%. HICP inflation is expected to are 15.2% higher on a year-on-year basis,
Pay recover further during the second half of though the rate of increase has
Compensation per employee is forecast to 2015 to average 0.5% in annual terms; decelerated over the last number of
increase by 2.2% in 2015 and by 2.3% on a CPI basis, an annual average rate of months. Outside Dublin, prices grew by
in 2016. As labour market conditions 0.4% is currently projected. 11.9% in year-on-year terms in May. On
tighten and inflationary pressures pick the supply side, there were 2,629 house
up, there could be some upside potential Looking ahead to 2016, a pronounced completions in the first quarter of 2015,
to this outlook. The latest Earnings and pickup in headline HICP inflation is 25% more than in the same quarter of
Labour Cost Survey reported a 0.4% rise envisaged by the Central Bank driven 2014.
in hourly earnings in the first quarter of solely by a recovery in the goods
2015. The rise in earnings was again component. A recovery in HICP goods Commercial Property
driven by the private sector. Public sector inflation seems set to be further The latest data (Q1 2015) from the
earnings growth has been negative in supported by the impact of the lower euro Society of Chartered
recent years but the recently announced exchange rate. HICP inflation is Surveyors/Investment Property Databank
Lansdowne Road Agreement should projected to rise sharply next year, to show that commercial property prices
result in positive earnings growth from average 1.7%, with a corresponding CPI continued to grow strongly. The pace of
2016. inflation rate of 1.6%. growth in both retail and office capital
values, at 22.3 and 32.9% on a year-on-
Inflation Residential Property year basis respectively, eased during
Owing to downward pressure from Residential property prices increased by Q1compared with the final quarter of
mortgage interest rates the CPI remained 13.8% in year-on-year terms in May 2014.

CU FOCUS AUTUMN 2015 :: 41

The Irish League of
Credit Unions Six
Strategic Steps

by Gerard Howlin Lobbyist for the ILCU

Lobbying by ILCU constituency co-ordinators is underway across the
country. The League Board earlier this year prioritised a national lobbying
campaign, in advance of the next election. Polling day is still most likely to
be early next year, but in reality an election might take place at any time
after the budget on October 13th. Credit unions have a once-in-the-
political-cycle opportunity to play to their greatest strength as a national,
membership based organisation.

The strategy agreed by the board, on the basis of the Six The credit union agenda is being put on the political
Strategic Steps policy document is to lobby key stakeholders agenda, exactly at the point in the cycle – before an election -
at national level, and develop important relationships on the when it matters most. The Six Strategic Steps offer a positive
basis of credible policy offerings that answer Ireland’s basis for conversations about the much-more credit unions
pressing social and economic needs. Simultaneously the can do. This top-level agenda has been bolstered by further
local lobbying campaign is engaging with TDs and candidates in-depth analysis on the social housing and small business
in every constituency. The tactical objective is to lobby now points, in the Six Strategic Steps, commissioned by the
on current issues while strategically to lay the basis for a League CEO, Ed Farrell. Progress has been made on the
much stronger credit union influence in the next Dáil, when it issue of credit for the most vulnerable, and the League has
is elected. met with the Minister responsible Kevin Humphreys TD, and
has been invited to join a working group to develop a
Thanks to the work done by constituency co-ordinators Personal Microcredit Scheme under the auspices of the
significant progress has been made in reaching out locally to Department of Social Protection.
candidates in the upcoming general election. Their work is
reinforcing the League’s efforts to establish and maintain In parallel with pursuing strategic goals, current issues
relations with political parties nationally. All parties are now including CP88 and the Deposit Guarantee Scheme are
very aware of the Six Strategic Steps. Our goal is to see these pressing. The League’s lobbying at national level is
objectives included in party manifestos, and subsequently addressing those issues. In terms of CP88, the objective now
incorporated into a Programme for Government. The ILCU is to persuade the Minister for Finance Michael Noonan TD
Six Strategic Steps are based on: not to proceed with signing the commencement order
required under the relevant 2012 legislation, to allow CP88
• Credit for the most vulnerable; be brought into effect. This has been requested formally by
• Regulation; the League. By advocating locally to as many TDs and
• Easing lending restrictions; candidates as possible, particularly Government TDs, as we
• Developing small business can reach, credit unions have a final opportunity to influence
• Investing in credit unions the outcome.
• The housing crisis
The priority credit unions give locally now to the lobbying

42 :: CU FOCUS AUTUMN 2015

campaign will ensure that as a movement they are more their time for a cause they believe in. The role of the League
influential in shaping policy in the next Dáil. Lobbying now is two-fold. Firstly it is to lobby at national level, and it is
also provides an opportunity to stress the critical importance doing that. Secondly it is to support constituency co-
for credit unions of issues such as CP88 and the Deposit ordinators with information and advice. Much has been done
Guarantee Scheme. already, and the coming months, the time that remains
before an election, is crucial. We have to use this time
A highlight of the campaign to date was the Dáil debate on assiduously, because it will not come again.
credit unions held on 23rd and 24th June. It galvanised
opposition awareness, and facilitated extensive outreach to A highlight of the campaign to date was
government TDs. Critically the Minister for Finance Michael the Dáil debate on credit unions held on
Noonan and the Minister of State Simon Harris TD both
referenced the Six Strategic Steps in their speeches. A strong 23rd and 24th June. It galvanised
attendance from credit union members in the public gallery opposition awareness, and facilitated
underlined the fact that credit unions are a national, and a extensive outreach to government TDs.
mass membership organisation, not to be ignored.
Ireland is slowly recovering economically. Credit unions,
The premise of our campaign, as set out from the unlike banks, were there for the people in the hardest times.
beginning, is to create an echo chamber whereby everything Now credit unions, if allowed and supported, can play a
being said nationally by the League is being advocated for much bigger role in the recovery. The League has set out its
locally. In the highly localised Irish political system, constant, vision. It is about the positive difference credit unions can
disciplined messaging from the ground up is powerful. It is make across a whole range of areas. As a membership
particularly so in the run-up to an election. based, not-for-profit, cooperative movement, the League’s
agenda is about credit union members and local
The campaign which is in progress can be delivered on communities. The credit union movement has a lot to offer.
successfully with a continuous, clear messaging nationally to The job in-hand is to lobby hard and to lobby now for the
key people, backed up with a relentless delivery of the same changes that will allow credit unions do more, and deliver on
messages in constituencies nationwide. The key people their potential.
nationally are Ministers, opposition spokespersons and their
advisers. Backbenchers and candidates coming back from
meetings with credit unions locally are the essential backup,
to driving our agenda home successfully.

Many of the ILCU constituency co-ordinators and others
involved in lobbying locally are volunteers. They are giving of

CU FOCUS AUTUMN 2015 :: 43