The effects of the Draft Credit Union Bill 2014 and the Co-operative Societies Amendment Bill 2014 are destructive to the Co-operative Movement. If these Bills are passed into law, ordinary citizens and persons of modest means will not have a say in their economic destiny as we will see the elimination of small, medium and community based credit unions.
The Bill will prevent ordinary members from becoming a director or a member of the Supervisory and Credit Committee because it requires a very stringent academic qualification. Could you imagine this after over sixty (60) years?
The Bills will impose severe, stringent and excessive reporting requirements to the Central Bank, which will swamp credit unions with administrative costs. They will also restrict the type of business activities in which credit unions can participate, thus reducing the possibility for the credit union to earn a surplus for distribution among the members. This will REDUCE OR ELIMINATE DIVIDENDS TO MEMBERS. Members will be forced to get 0.20% or less on their hard earned income. Now, members enjoy a minimum of 4.5% annually!
The Bills will impose High Court Action against Board and Committee Members and will give the Central Bank through an Inspector the powers to vary, restrict and revoke the operating certificate of a credit union; dissolve the Board of Directors and voluntarily wind up of a credit union.
The Bills are designed to treat credit unions like banks where they would now be required to have limits on lending and investments and have stringent capital adequacy requirements. This is inappropriate and would inhibit the growth of existing credit unions and prevent the start-up of new credit unions. It will see the demise of credit unions and the ‘small man’ will suffer. Members will no longer be able to acquire low cost loans and enjoy their rights to ownership of their credit unions. To obtain a loan will mean the payment of high fees like other financial institutions. This is a frightening development and we must resist it.
The Bills will drive credit unions away from their ideological imperatives towards a more commercial/corporate orientation. This will destroy the co-operative principles that provides the foundation for the sustainability of the co-operative movement. This will be the most severe impact on this indigenous, noble people oriented movement.
We ask all credit unions to take note of this development and to join us in our protest against a Bill that has several daggers aimed at the hearts of our credit unions.
Over 1,000 persons were present at our protest on February 10, 2015 at the Parliament Building, Wrightson Road, Port of Spain. We move to Tobago on Friday February 27, 2015 at the Esplanade, Scarborough, Tobago at 3pm. where we will continue our protest against this draconian piece of legislation. These photos of February 10th depicts our disgust.
