Consultation
66. The Reserve Bank of New Zealand, the Treasury, the Inland Revenue Department, the Registrar of Credit Unions and the Securities Commission were consulted about the proposals discussed in this paper.
67. In November 2002, the Ministry of Economic Development issued a discussion document that sought feedback on most of the issues considered in this paper:
- allowing credit unions to determine their own bond;
- incorporation;
- removal of the requirement on credit union association to seek ministerial approval for new services;
- shares;
- trust deed requirements, reserves, borrowings and investments;
- conversion mechanism; and
- competitive neutrality/taxation.
68. While most credit unions supported the changes sought by NZACU, the Law Society was more cautious about them. The New Zealand Bankers' Association and Financial Services Federation did not support any reforms unless credit unions' tax exemption is reviewed. A few credit unions favoured the introduction of a conversion mechanism. However, as previously noted, NZACU is opposed to it.
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