May 27, 2010
The following statement was given today in the House of Assembly by
the Honourable Kevin O'Brien, Minister of Government Services:
Credit Unions Have Record Year in 2009
Everyone is aware of the financial storm that existed in the last
year and the challenges it provided to many different groups and sectors
across the board. However, one group in this province met those
challenges head on. I am speaking of the credit union system of
Newfoundland and Labrador.
I am very pleased to stand in this Honourable House today and
announce that credit union assets grew by nine per cent or $63 million
in 2009 and this was also the first year in history that all
Newfoundland and Labrador credit unions were profitable.
This success can be directly attributed to the hard work of volunteer
directors, management and staff of credit unions. The Credit Union
Deposit Guarantee Corporation also had a role to play in this success
through the policies and procedures it has implemented over the years.
It is also reflective of the right decisions that the Williams
Government have made since 2003 to grow the economy in this province.
With over 55,000 customer/owners and $763 million in assets, credit
unions provide a full range of financial services to Newfoundlanders and
Labradorians. They are the only financial service provider in some rural
areas of the province and compete head-on with the large banks in other
areas. They are locally owned and controlled, meaning profits stay in
this province. Also, lending decisions are made locally, unlike some
financial institutions where they are made outside the province.
The credit union system is a key service provider in rural areas and
an employer of choice. Currently there are 11 credit unions with 40
locations across this province of which 31 are located outside the
northeast Avalon. These rural locations employ 203 employees earning
total salaries and benefits of over $8 million for an average of almost
$40,000 per employee. Provincially, they employ 317 people earning more
than $15 million.
As the minister responsible for the Credit Union Deposit Guarantee
Corporation, I am continually impressed with how in tune credit unions
are to the needs of their owner/operators. It is because of their
initiatives that credit unions are a viable and attractive alternative
I congratulate all credit unions on their
achievements in 2009 and I look forward to 2010 being another successful
2010 05 27 1:55 p.m.