The head of the Credit Union Development Association (CUDA) is in talks to leave the organisation after a number of member credit unions passed a motion of no confidence in him last week, reports Arthur Beesley, Senior Business Correspondent.

Bill Hobbs has been the public face of CUDA since he joined the body as chief executive in October 2005. The organisation, whose 16 members include some of Ireland's largest credit unions, styles itself as a break-away body from the Irish League of Credit Unions, the dominant credit union group.

"Negotiations are at a sensitive stage following a divergence of views as to the future development of CUDA between the chief executive and some of the member organisations," said a spokesman for Mr Hobbs.

The spokesman offered no further comment. The CUDA spokeswoman said no one was available to respond to queries.

However, the talks on Mr Hobbs' departure come three weeks after CUDA members rejected a funding proposal for 2007 which was linked to a shift in the focus of the organisation.

CUDA members are believed to have held a further meeting last week in Newbridge at which they discussed that development. The organisation's members include big localised credit unions such as those in Tullamore and Newbridge and bodies such as the Prison Service and Comhar Linn INTO credit unions, which have members throughout the State.

It appears that a motion of no confidence in Mr Hobbs was proposed at the Newbridge meeting and passed by a majority of voters. Mr Hobbs is believed to be vigorously questioning the legal standing of that motion.

CUDA's management committee was also instructed to terminate Mr Hobbs' contract, an instruction whose legal standing he also questions in very strong terms. In addition, it is believed that the talks on his departure from CUDA do not involve his dismissal from the organisation.

A former head of business strategy and customer value with ACC Bank, Mr Hobbs has worked in the financial sector for 27 years. He also worked as an area manager with Norwich Irish Building Society and Bank of Ireland.

In a CUDA paper last year, he said the Government should include credit unions in the statutory scheme that compensates depositors if banks or building societies go bust.