Last week we received confirmation from the Central Bank that Newbridge Credit Union is to be merged with the Naas branch at the end of this year. Details of the Central Bank statement are available on its website.
While any information provided is a welcome change to the limbo like status given to members up to now, there are still a number of important questions which need to be answered.
We now know that in April of this year, Naas CU furnished the central bank with the conditions under which it would accept a merger with the Newbridge branch. It is important that the general members of both Naas and Newbridge are made aware of the exact details of these conditions and how it will affect members interests in both branches.
When answering the question on how members (of Newbridge) will be affected, the Central Bank says:
“All credit union members would hold full membership rights in a combined credit union, including to a dividend, should one be paid.”
As a result of a decision to double reserves against loan losses, Newbridge CU have not paid a dividend to its members despite having the funds to do so. If we are now looking at a combined union, should the Naas members expect similar treatment?
I have written to the manager of Naas Credit Union outlining my concern over the merger, the impact it will have on Naas members and have asked for clarification on these issues.
I received a brief reply from Sean Murray, Manager of Naas CU:
While Naas Credit Union appreciates the comments expressed in your email it would not be appropriate for us to make specific comments at this time. Naas CU will be making a general comment next week on the possible combination.
We’ll await next week’s announcement with interest!
(Original Post Aug ’13)