CREDIT UNION ACT INTRODUCED

Released on May 11, 1998

Premier Roy Romanow today announced legislation that will enhance the

ability of Saskatchewan credit unions to compete in the rapidly

changing financial services environment.



"Many Canadians are wondering what bank mergers will mean - for jobs,

for service fees and for availability of financial services -

especially in smaller centres," Romanow said in announcing the

introduction of The Credit Union Act, 1998.



"Well this government believes that the people of Saskatchewan should

have choice in financial services - especially in rural areas. That's

why we're working together to strengthen credit unions and to prepare

them for the future.



"This legislation is a made-in-Saskatchewan response to mega-bank

mergers and all the tremendous changes facing the financial services

sector," Romanow said.



Romanow said the Act "will allow Saskatchewan credit unions to

continue their great tradition of modern, democratic financial

services for the people of Saskatchewan."



Justice Minister John Nilson said the Act provides community-based

credit unions with the legal framework that will allow them to compete

effectively and to continue to provide services to urban and rural

citizens of this province.



"Saskatchewan credit unions have worked in co-operation with our

government to bring forward a new legal framework to take them into

the next century," Nilson said.

Credit Union Central CEO Sid Bildfell said he is pleased with the

Act.



"We've been working closely with government officials and with

the credit union system to ensure the Act meets the future needs

of credit unions, their members and the communities they serve,"

Bildfell said.



"The Act gives us the same flexibility provided to other

financial institutions operating in Saskatchewan, while

maintaining the co-operative principles of credit unions," he

said.



The Act is the result of two years of extensive review, analysis

and consultation with industry groups throughout the financial

services sector.



The Credit Union Act, 1998:



modernizes business powers to allow credit unions to offer a

broad range of financial and other services to members and

non-members;



provides access to non-member investment capital for credit

unions;



ensures that members retain control over credit union

affairs;



allows credit unions to use electronic communications to

conduct meetings of directors, members and shareholders and

to file documents;



establishes market practice codes; and



modernizes the regulatory roles and responsibilities of

credit unions, the Deposit Guarantee Corporation and the

registrar.



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For more information, contact:



Debi McEwen

Justice

Regina

Phone: (306)787-6043

e-mail:

dmcewen@justice.gov.sk.ca



Marjorie Strandlund

Credit Union Central

Regina

Phone: (306)566-7484