The Irish League of Credit Unions (ILCU) has said it is disappointed at the Government's failure to resolve the issue of the taxation of credit union savings or even to meet the league to discuss matters.

The ILCU says nothing has been done since the report of a working group on the issue was submitted to the Minister for Finance nearly 14 months ago.

"Obviously we are disappointed that after entering in good faith into a Government-appointed working group with an independent chairman to deal with this issue, the Government has still not implemented the recommendations," said Mr Jim McMahon, vice-president of the ILCU at the presentation of the movement's pre-Budget submission yesterday.

"What is more disappointing is the fact that, despite making repeated representations to the Government to meet and discuss the report, we have been ignored."

This week the movement has again sought meetings with both the Taoiseach and Mr McCreevy to discuss the 12 points outlined in its Budget submission, and the tax issue in particular. It is urging the Government to implement the working group recommendations. "It is time to give us something concrete to acknowledge our special role, not just mere words," Mr McMahon said.

The movement wants the Government to exempt the first £375 of dividends on credit union savings from taxation, where a member's return is £750 or less. The proposal has received the backing of a majority of members of the working group, which was set up to examine the issue after the political furore that erupted after Mr McCreevy's last attempt to address the subject in the 1998 Finance Bill.

Although the current proposals involved a compromise on its original position, the ILCU says it has received support for the proposals from 95 per cent of credit unions in the State. In its first Budget submission to Government, entitled "Credit where it's due, for the many not the few", the league also calls for the setting up of a task force to examine the rising levels of personal debt.

The ILCU says a rapid rise in debt levels is worrying, particularly against a background of rising interest rates. Evidence among its 1.9 million members in the Republic indicates rising levels of credit card and mobile phone debts. The league wants the Government to undertake an in-depth examination of the scale of the problem and what can be done about it.