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Central Bank role in Newbridge Credit Union fiasco should be independently investigated: Doherty

13 November, 2013 - by Pearse Doherty TD

Sinn Fein Finance Spokesperson Pearse Doherty TD has said in the Dáil that the fiasco at Newbridge Credit Union requires independent investigation into the role played by the government, the Special Manager and the Central Bank.

Speaking in the Dáil Deputy Doherty said:

“I believe there is a need for an independent examination of how the Newbridge Credit Union issue was handled by the Government, the Central Bank and the special manager, as I believe they made a dog's dinner out of it, to say the least.

“It is unacceptable that 22 months into the Special Manager’s rule the Credit Union was brought to the point where it was on the edge of liquidation. The Central Bank’s affidavit implies that a leak to a national newspaper sparked a run on the banks which ultimately required this resolution to be put into place.

“The cost of the Special Manager at over €2m is immense. Under his reign, and in conjunction with the Central Bank, the account holders in Newbridge went from being members of a democratic Credit Union to being a customer in a bank that only exists because the state bailed it out with taxpayers’ money. How that situation came about must be investigated.

“There were other options on the table such as dealing with this issue within the Credit Union movement. What we have been left with is a troubled, bailed out bank swooping in on a Credit Union after 22 months of failure to come up with an alternative. That failure and the use of this legislation in the case of a Credit Union must be examined independently. I will be raising this issue with the Minister for Finance next week in the Dáil.”

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