A longstanding member of the cooperative credit union movement is encouraging the more than 190,000 cooperative credit union members to elect the Democratic Labour Party (DLP) in next week's basic election, after the party guaranteed to present a suite of relief steps aimed at the credit movement.In its manifesto released last night, the DLP promised that should it emerge triumphant in the May 24 survey, it will get rid of the possession tax on cooperatives which it presented in 2014; re-introduce the income tax deduction for cooperative credit union shares and deposits; supply insurance on deposits at cooperatives; and support the establishment of a credit union owned and run industrial bank.It also promised to reform the different Reserve bank assurance plans to consist of the cooperative credit union cooperatives in facilitating small and medium sized enterprise (SME)funding; seek worldwide partnerships for the facility of an equity capital financing for SMEs through the cooperative credit union motion; and incentivize the cooperative credit union movement to develop crowdfunding platforms, mobile banking and other monetary innovation services intended at SMEs.Ashton Turney, the former president of the Barbados Co-operative and Credit Union League Ltd told Barbados TODAY he completely supported the proposed procedures, which he said would help to increase membership." I am stating based upon this as a previous president of my credit union and likewise the League, I am of the view that the subscription of the movement ought to elect the DLP so that they can take advantage of these measures,"Turney stated. "My view is that these moves will really help the movement. I am not saying there may not be need for more modifications
in the future, however at this time they will be extremely helpful to the motion ... They need to choose the DLP, "he insisted.The previous Barbados Workers Union Cooperative Credit Union president singled out the promise to provide protection for credit union deposits, arguing that a variety of experts were refusing to join the movement due to the fact that there was no such system in place.Over the years Federal government has actually been appealing-- however has yet to provide-- a deposit insurance fund for the cooperative credit union movement-- much like that which commercial banks
currently take pleasure in-- which secures every account holder as much as $25,000, must the bank stop working."Any reintroduction of the income tax allowances [and] the provisions for insurance coverage on deposits will trigger the cooperative credit union movement to grow ... You have people who have not
joined a cooperative credit union since their funds are not protect, "Turney said.The credit unionist, who is also a previous president of the Caribbean Confederation of Credit Unions, said if it were up to him the insurance on deposit would be the very first procedure to be executed,
followed by the remediation of earnings tax deduction.Pointing out that cooperative credit union were providing more than the virtual zero per cent interest on deposits currently being offered by business banks, Turney stated he was pleased with the efficiency of the cooperative credit union movement at this time.
"The banks are even crediting have nearly whatever. This is not taking place in the credit union. We are more user-friendly in regards to getting loans. We have a more listening ear to members, "he stated, adding that the DLP needs to also think about the facility of a special fund to assist credit union members safe home loans."That is a location that members come for support. As you understand the credit union can not provide out more than it has. So we would like a center whereby we can assist the subscription with those funds. That is maybe the only thing I can see might be added ... where cooperative credit union could get moneying to help their membership, "he said.It was in the 2014/2015 Budget plan that Government introduced a 0.2 per cent tax on the properties of financial institutions, including cooperative credit union. In 2016, Minister of Finance Chris Sinckler announced the tax would rise to 0.35 per cent in an effort to raise $14.3 million in profits.