Northern Ireland Assembly debate on Credit Union Reform

Fresh concerns have been raised about yet more delays to the proposed legislative reform of credit unions in Northern Ireland. The Assembly heard of the possible difficulties that may arise as the consequence of an incoming Conservative Government which has stated its intention to abolish the Financial Services Authority (FSA).

The proposed reforms for Northern Ireland are based on the proviso that Credit Unions here are to to be placed under the regulation of the FSA. This in turn would allow credit unions to drastically expand the services they can offer to their members and it would also afford greater protection for those members' savings (an issue highlighted all too starkly by the Presbyterian Mutual Society collapse).

Obviously any abolition of the authority would throw these proposals into limbo.

The Minister did stress that she would press both the Treasury and the new Secretary of State on the reforms.

Credit Union Reform in Northern Ireland

The expansion of credit union powers is central to the proposed legislative reform in Northern Ireland. One of the more significant proposals put forth in the recently released joint Treasury/DETI consultation is the granting of investment powers which would allow credit union assets to be re-invested into community enterprises.

http://socialeconomylegal.blogspot.com/2010/04/credit-union-reform-in-northern-ireland.html

Credit Unions in the Republic of Ireland have had such powers for some time and have employed them to some effect, with the credit union movement now one of the biggest social finance providers in the state. Indeed the southern experience illustrates the relative merits of the proposed move in Northern Ireland

Aidan Stennett has compiled an insightful paper for the NI Assembly on the legislative framework underpinning these investment powers.

http://www.niassembly.gov.uk/io/research/2008/11608.pdf

This framework will undoubtedly provide a useful template for any legislative changes in Northern Ireland that may arise

Public Procurement & Social enterprises

The NI Assembly recently published a Report on its Inquiry into Public Procurement in Northern Ireland:

http://www.niassembly.gov.uk/finance/2007mandate/reports/Report_19_08_09R.htm

The Committee for Finance & Personnel have made a number of recommendations which will be of interest to social enterprises engaged in the public procurement process.

Indeed the Committee states that implementation of the recommendations will achieve the objective of developing the social economy in Northern Ireland.

One of the more interesting recommendations is the support for the establishment of a public procurement brokerage service for social enterprises as advocated by the Ulster Community Investment Trust (Para 174).

As most social enterprises are small in scale it can be extremely difficult to break into the complex area of public procurement. The brokerage service seeks to address the key resource and knowledge limitations by offering professional support for the tendering of contracts. It is certainly a service that social enterprises should be watching out for in the year ahead.