The death of credit unions.

This was how a proposed policy document for the Credit Union Act was described by stakeholders in the sector yesterday.

The Central Bank held a public consultation yesterday at the Hilton Trinidad, St Ann’s, as it presented a 67-page document to assume control of the financial operations of the country’s credit unions.

But the stringent measures outlined by the Central Bank were met with opposition from stakeholders at the consultation.

Hyder Ali, a former commissioner for Co-operative Development, criticised the proposal because it aims to deal with all credit unions, of varying sizes, in the same manner.

’This policy is one size fits all. But the small credit unions are not the ones that failed the people,’ Ali said.

During her opening remarks about the document, deputy Central Bank Governor Joan John said that of the 390 credit unions listed in 2000, only 113 were still in operation.

And of those 100-plus credit unions, the top ten credit unions were in charge of 74 per cent of the industry’s $8.5 billion worth of assets.

In addition to the blanket policy for credit unions, Ali said the policy was drafted in such a way that the ’unique’ nature of credit unions was not taken into account.

’There is something seriously wrong with this document. The credit unions are being treated like banks and insurance companies, when they are a unique beast,’ Ali said.

Ansley Pierre, president of the Institute of Chartered Accountants of Trinidad and Tobago (ICATT), said the increased cost for auditing services as a result of the blanket policy would severely weaken the financial position of small credit unions.

Ali’s and Pierre’s statements were met with applause from the majority of those present at the consultation.

And Brian Moore, president of the Cooperative Credit Union League of Trinidad and Tobago, who was at the head table for the consultation, spoke of his concerns on the document.

While this proposal may be better, Moore said: ’The original document was daggers aimed at the heart of the credit union industry... but this present position is more like pocket knives aimed at good credit union operations.

’We have to protect small credit unions... it doesn’t matter size, we all have an equal right to exist once we are serving a purpose... our smaller brothers have just as much a right as any of us to exist,’ Moore added.

Members of the audience believed their concerns would fall on deaf ears as the proposed document was already in the possession of Finance Minister Karen Nunez-Tesheira, who is expected to present it to Cabinet later this year for approval.

When host CCN journalist Andy Johnson asked the crowd if they thought there was a need for the process to be stalled for refinement, there was loud applause in agreement.

Hundreds of thousands of customers invest money, some of them their life savings, in the country’s credit unions.

Assets of the Hindu Credit Union, at one time one of the country’s largest cooperatives, are currently being sold off by a liquidator to repay millions of dollars of debt.