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Contact:
Office of the Prime Minister
Wednesday, February 18, 2009 – The St. Lucia Co-operative League met
recently with Prime Minister, Hon. Stephenson King to discuss issues critical to
the sustainability of the co-operative sector. Central to the discussion were
the Single Regulatory Unit and the New Draft Harmonized Co-operative
Legislation.
The discussion proved crucial as the Eastern Caribbean Central Bank and
Governments are being pressured by lobbyists of commercial banks and the
Caribbean Association of Indigenous Banks for the co-operative sector to be
regulated under the Banking Act.
In defense of the sector maintaining its own regulatory framework, Mr. Terrance
Charlemagne, President of the Co-operative League informed the Prime Minister
that during the downturn and restructuring of the banana industry, it was the
credit unions and various farmers co-operative that kept the rural economy in a
buoyant state. That was evident with the Rural Credit and low income housing
Facility respectively, when over seven million dollars was ploughed directly
into the economy. Additionally the economy is being buffered directly by the
co-operative sector through the payment of approximately six million
($6,000,000) dollars annually in dividends and patronage refunds to a membership
of 60,000.
The Prime Minister was informed that the existing regulatory framework for the
sector has worked. He further indicated that during the massive retrenchment of
workers in Barbados during the early 1990s, and the inability of the commercial
banks to act, credit unions extended special facilities to assist members in
dire need. Not one credit union incurred losses or needed rescue during the
banking sector meltdown of the mid-1990s in Jamaica. When the banks fled
Montserrat during the volcanic eruptions of 1996/7, the credit union kept its
doors open and served members at home and overseas. In Dominica
and Grenada, the credit union sector held the fort during natural disasters and
financial crisis experienced by these countries. The credit unions are NOT FOR
PROFIT BUT FOR SERVICE.
In response the Prime Minister reiterated his commitment to fully engage the
Co-operative Sector in the establishment of the Single Regulatory Unit and that
after meaningful consultation with the sector, the Harmonized Co-operatives Act
will be enacted during the first quarter of 2009. He also indicated that while
he is a team player, he may proceed with the passage of the bill despite the
wishes of the central bank and other OECS Governments if the process is being
unduly delayed.
The meeting also discussed other issues of critical importance to the
co-operative sector and the Prime Minister promised to meet with the League
soonest.
The St. Lucia Co-operative League now awaits the Prime Minister for convening
the meeting that was promised and for him to act on his words of commitment.
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