BREAKING: Fears mount for three Laois credit union branches as Kilkenny parent draws up cuts plan

Local fears are mounting for the long term future of credit union branches in three Laois towns.

Three towns are to have the opening hours cut at their local credit unions, towns which have already suffered the closures of banks.

Mountrath, Rathdowney and Durrow are all branches that were taken over by St Canice's Credit Union in Kilkenny in the past decade.

St Canice's claims to be the biggest community-based credit union in Ireland with 65,000 members across Kilkenny, Laois, Carlow and Tipperary.

However, staff have been told in recent weeks that their opening hours are under consideration for cutbacks. Rathdowney would be open just one day a week down from three, Durrow for two days down from three, and Mountrath for three days, down from four.

Speaking to the Leinster Express / Laois Live, the CEO of St Canice's, Carmel Butler, confirmed that the cuts to open hours are being considered but played down the impact and insisted that the decision was not being taken to save money.

"It is not as drastic as it sounds. Of the three offices, the opening days would be down from 10 to six overall. There is a consultation period yet to start and we will look at the feedback from staff. But it is not finalised. We haven't made a final decision," she said.

She spoke about the impact on staff.

"There will absolutely not be staff losses... We had a communication meeting with staff to update them on our strategy. We have given a commitment to redeploy them in other roles. There will be no changes to their working hours, their salary or their general location.

"This is not a cost-cutting exercise. This is a redeploy of resources to meet demand. I am very conscious of the distance to work.

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"We are not closing any of our offices. I would be very firm, that is not the intention at all.

"We are not like the banks. We will be keeping a presence in every community. There is a need for us in these communities, and we will continue to stay while there is a need and support for us there," Ms Butler said.

She gave the reason for the planned cut to open hours.

"We are reacting to the change in customer behaviour. These are quiet days when very few customers come in. Activity has changed dramatically since Covid with electronic online activity," she said.  

The cuts would not come into effect until Autumn, Ms Butler said.

"We don't plan to do it until September or October. There is a potential things may change," she said.

One other office in Kilkenny is also in line to have opening hours changed the CEO confirmed. 

However local Laois councillors are concerned.

Cllr Ollie Clooney from Durrow, Cllr James Kelly from Mountrath and Rathdowney based Cllr John King are due to meet with the CEO next week to discuss the plan. They fear it could result in closures long term.

Cllr Clooney was a founder member of Durrow Credit Union before it amalgamated.

"A lot of people do business online and that may sound lovely but what happens to branches if no-one comes in? There won't be a need for rural credit unions and that would be an out and out tragedy.

"People look forward to seeing the friendly face, a lot don't go online.

"There are two staff in Durrow, there were three. This is death by 1,000 cuts, the way the banks started. It's too late if it happens. One day is unacceptable, after a little while it's no day at all, it's gone. Rural places are under pressure. It's just a wipeout, an out and out wipeout," Cllr Clooney said.

Cllr John King agrees.

"If they reduce it from three days to one, the next thing it'll be closure.

"It's grossly unfair if they are going to go ahead with this. We won't give up without a serious fight.  A lot of people in Rathdowney who are farming, in business and the public have little accounts. They could have €2 million in shares. This is a small bank for ordinary people. We haven't even a bank. The credit union in Rathdowney serves a radius of seven to 10 miles," he said. 

Mountrath may only lose a day but it is still too much says Cllr James Kelly.

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"Mountrath has been very badly affected and doesn't have any bank branch or any other public ATM. The credit union is very important, it's very busy serving a big market town. I know everything is going online but the older generation is increasing and they go in with their book to meet a friendly face. 

"I would be asking them to leave everything as it is. We don't want to lose any days," he said.