Noonan and Central Bank have questions to answer in Newbridge Credit Union case: Doherty
Sinn Fein Finance Spokesperson Pearse Doherty TD has said the Minister for Finance, Credit Union Registrar and the Central Bank have serious questions to answer following the collapse of the proposed merger of Newbridge Credit Union with Naas Credit Union.
Deputy Doherty said:
"I am concerned to hear of the great uncertainty for the future of Newbridge Credit Union. I have been following the situation closely and believed the potential existed for an outcome that would guarantee the future of the Credit Union as an independent Credit Union.
“Clearly today's news will come as a great shock to the members of Newbridge and all Credit Unions. Questions must be asked too of why the proposed merger with Naas Credit Union was still being spoken of as a realistic alternative only this week. I understand that a bank is to take over the Credit Union's running.
“There are serious questions that need to be asked of the Credit Union Registrar, Minister Noonan and the Central Bank. I will be raising this matter with Minister Noonan in the Dáil this week. He has failed to grasp the gravity of the crisis at Newbridge. The role of the Special Manager from Ernst and Young must be part of the investigation into what went wrong.
“This is an incredibly difficult time for the Credit Union movement and a failure to save Newbridge as a sustainable Credit Union owned by its members will cause great concern across the movement.
“Minister Noonan needs to act quickly to ask the hard questions of the regulators and make sure there is no repeat elsewhere. The secrecy and lack of information available to the members of the union was unsatisfactory from day one of the appointment of a Special Manager. The cost of the Special Manger of over €2m must also be reviewed.
“The unfortunate situation at Newbridge shows the government and Central Bank do not recognise the special ethos of the Credit Union movement. They must answer the hard questions about what is happening at Newbridge and why the future looks so bleak for a vital part of Newbridge and Kildare's community infrastructure.”