The Standing Committee on Economic Affairs yesterday tabled its review of the Credit Union Bill 2025, recommending 102 amendments after extensive consultations and concerns raised by credit unions across the country.
Committee Chair Sakiusa Tubuna said credit unions have operated in Fiji for more than 50 years, but growth has been slow due to an outdated legal framework.
“The legal framework has not evolved in line with developments in the credit union movement, both domestically and internationally,” Tubuna said.
“This reform aims to strengthen the safety and soundness of credit unions while avoiding undue regulatory burdens.”
During its deliberations, the Committee received multiple requests from credit unions for more time to prepare submissions.
It was also revealed that the version of the Bill presented by the Reserve Bank of Fiji during consultations differed from the version referred to the Committee, prompting an extension to ensure fairness.
The Committee highlighted several major issues, including the absence of a clear dispute-resolution mechanism, concerns about excessive oversight by the Reserve Bank of Fiji, and inadequate provisions addressing the differing capacities of small versus large credit unions.
Double taxation was also flagged as a serious issue.
“The Bill proposes subjecting credit unions to income tax, despite their commercial activities already being taxed,” the Committee noted.
“The Bill must be reviewed to prevent instances of double taxation and ensure fairness within the financial sector.”
Concerns were also raised about overly severe penalties, ambiguity in definitions, the viability of allowing fewer than 30 members to register a new credit union, and rising loan delinquency linked to members switching credit unions to avoid repayment.
Public consultations were held nationwide, supported by notices in local newspapers, the Parliament website, and social media platforms. Stakeholders making submissions included credit unions, government agencies, unions, schools, statutory bodies, and business groups.
Tubuna expressed appreciation to all contributors.
“Their valuable contributions have played a crucial role in shaping this bipartisan report,” he said, also thanking the Reserve Bank of Fiji, the Solicitor-General, and the Committee secretariat for their support.
The Committee has recommended that Parliament consider the amendments to ensure the Bill is fair, practical and reflective of stakeholder concerns.
