CREDIT UNIONS' BAD DEBTS CAUSING SOME CONCERN - It was credit union time at the Oireachtas Committee on Finance yesterday. The Registrar of Credit Unions, Brendan Logue, took the opportunity to express his concern about lending practices in some credit unions, and particularly the build-up of arrears and bad debts. He was also concerned about the fact that some credit unions were getting into business lending.
The Irish League of Credit Unions represents the 430 or so credit unions in the Republic. Its CEO Liam O'Dwyer says that the Regulator yesterday indicated that a small number of credit unions have higher delinquency figures than he would like to see. He refused to be drawn on the exact number and pointed out that delinquency is an indication of how a loan is performing against its agreement. It does not take into consideration that in credit unions a substantial portion of all loans are already secured against the members' savings. He also says it does not take in the fact that 10% of all credit union lending is in relation to social finance.
Mr O'Dwyer says that credit unions are operating at a competitive disadvantage to banks because of the ancient credit union act, which the movement wants changed as soon as possible. He says the Minister has begun to make necessary changes.
***
LAUNCH OF O2 ABILITY AWARDS - Today sees the launch of the 2007 O2 Ability Awards. Caroline Casey, of the Aisling Foundation, is one of the promoters of the awards. She says the whole concept behind the awards is to get employers to embrace disabilities because it is good for businesses - both as a consumer and as an employer. An independent piece of research says that 74% of companies who have been involved in the awards have changed their practices and policies because of the O2 Ability awards. She says the awards are not just about a big gala night out, but are about trying to bring about change - by example - how companies deal with disabilities. Ms Casey says that those companies involved in the awards employ about 10% of the country's working population.
***
DELTA INDEX TO ALLOW MORE INVESTORS GET ON AER LINGUS BANDWAGON - For all those of modest means who do not have the €10,000 that at the very minimum is required to buy shares in Aer Lingus when it floats at the end of the month, a spread betting firm is to create a market to keep everyone happy. Paul Kenny, director of Delta Index, says that the company's minimum investment is €1,000. But he warns that financial spread betting should only be tried by those who knew what they were doing.
***
BLAIR REPRIMANDED BY STATS MAN - British Prime Minister Tony Blair has been reprimanded by the government's top statistician after he revealed a fall in unemployment figures a day before the data were published. Government ministers are given access to economic indicators ahead of time but are sworn to secrecy until after publication. In a letter to Gus O'Donnell, the country's top civil servant, the head of the Office for National Statistics Karen Dunnell said Blair's comments 'clearly contravened' the agreed code of practice. The reprimand may embarrass Blair but it will not lead to any further action against him.
