H e won’t admit it, but Creed has raised stakes

J UST how appropriate is it for a cabinet minister to lobby independent regulators in the Central Bank about a constituency matter?

That is the question thrown up by revelations that Agriculture, Food and Marine Minister Michael Creed went to the Central Bank to lobby on behalf of a credit union in his constituency, Charleville.

The Cork North West TD insisted he was attending the meeting in his capacity as a Fine Gael Dáil deputy for his constituents, and not in his capacity as a minister who sits at Cabinet. But is it really credible that anyone in the room would forget that he is a minister?

Charleville Credit Union is in a financial tight spot and needs all the help it can get from public representatives.

Although there appears to be no formal rules on what sort of lobbying cabinet ministers can and cannot do, it does seem to be inappropriate that such a senior politician should attempt to bring pressure to bear on the Central Bank on how it deals with a troubled credit union.

Political anoraks cannot remember a previous case of a cabinet minister lobbying the Central Bank in a face-to-face meeting on a constituency matter.

Mr Creed said he was not acting inappropriately and was acutely aware of the statutory obligations of the Central Bank.

He is understood to be concerned that Charleville risks being shut down if a suitable merger cannot be found for it.

There is massive support for the credit union in the area, with members stuffing extra savings into it lately in a show of solidarity.

The Central Bank’s options include facilitating a voluntary merger with a larger credit union, seeking High Court approval for a forced merger, getting the courts to appoint a special manager, or closing down Charleville.

Regulators are understood to see it as unlikely that it will be able to trade its way to a point where its reserves come up to regulatory requirements.

This is despite the fact it has now cleaned up its loan book and there is financial support available to it.

The lobbying by Mr Creed and three other politicians from the area now means that the Central Bank may be reluctant to make any move to close Charleville.

Even though Mr Creed is not admitting it, the intervention of a cabinet minister raises the stakes all round.