THE HOURLY rate of €423 paid to the manager appointed to run the credit union in Newbridge, Co Kildare, was a matter for the Central Bank, Minister of State for Finance Brian Hayes told the Dáil.
Mr Hayes said Minister for Finance Michael Noonan and himself took the view that, “even though this is the first special manager to be appointed, the fees appear to be excessive”.
Ultimately, he said, it was for the Central Bank to work out a fair arrangement and pay a rate for the scale of work involved.
“The case involves a substantial credit union,” he added.
“These fees will have to be reviewed but that will have to be done in the first instance by the Central Bank and the special manager.”
Fianna Fáil spokesman on finance Michael McGrath said given this could be the first of a number of such special managers, there was considerable concern about the hourly rate.
Mr Hayes said provision for the resolution of credit unions, where necessary, was included in the EU-IMF programme of support.
The Government had already provided €250 million in funding last year to the Credit Institutions Resolution Fund to support resolution where necessary.
“We have also committed to making available further resources to deal with any resolution or restructuring of credit unions should it be required,” he added.
Mr Hayes said he could assure all savers in credit unions that their savings were secure. The Government’s deposit guarantee scheme insured savings in all financial institutions, including credit unions, up to €100,000 per saver per financial institution.
The Central Bank strategy, he said, was designed to be ready to take pre-emptive remedial action to maintain member confidence and protect the financial stability of the sector should issues arise.
Where a credit union had specific issues, the Central Bank would work closely with it taking the necessary and appropriate regulatory actions.
“In all cases the Central Bank will engage fully with those credit unions to seek an agreed solution where possible,” Mr Hayes added.
