The Birth of BCUOn 18th September 1970 the formation meeting for the Nambucca B.G.F. Members Credit Union Ltd. was held in the CWA rooms, Macksville. More than 50 BGF Members attended the 8 p.m. meeting chaired by Mr. H. M. [Bill] Ussher. After a short address by Mr. R. Swanson, the Chairman of the NSW Credit Union League, the formation statement was read and adopted on the motion of S. Perks and W. Wright. A motion by W. Wright and seconded by C. Goodwin to form the Nambucca B.G.F. Members Credit Union Ltd. was then carried unanimously by the meeting. The Board of seven Credit Union Directors elected that night were:
The meeting authorised an immediate application being made to the Registrar of Credit Unions for a borrowing capacity of $15,000 for the new entity. Following registration, the first meeting of the Board was held on the 9th November 1970. At this meeting, policy decisions on the governance and operations of the Credit Union were made. Mr. H. M. Ussher was elected Chairman and Mr. F. G. Hughes was elected Vice-Chairman. Having regard for Mr. N. J. [Neville] Spear's employment record and reputation as a director of the BGF, he was appointed as Secretary-Treasurer. These three positions were selected by the Board to constitute an Executive Committee, which was authorised to act on any routine or emergency situation that might arise between board meetings where it was not practical to arrange a meeting of the Board. The Credit Union joined the NSW Credit Union League, and entered into an equitable mortgage with it to access additional funds. The Board also authorised the opening of the Credit Union's first Bank Account with the Macksville Branch of the ANZ Banking Group. Interest rates were set for Members Savings - those rates (to be calculated on the minimum monthly balance) were to be Budget Deposits 4%, and General Deposits 5%. Interest on loans was to be charged at 1% per month on the unpaid balance of the loan. The Board directed that this was to be the only charge made to borrowing members, with the Credit Union standing all other expenses (except mortgage costs) with regard to security. The limit on unsecured loans was set at $400. Because the banana industry on the North Coast was so tightly knit, trust and reputation were the main criteria for assessing a person's credit-worthiness. Mr. A. Culhane was appointed as first Solicitor for the Credit Union and Mr. J. Davidson was appointed as its first Auditor. One week later on the 16th November 1970, the first operational meeting took place, with Norm Kelsey being added to the Executive Committee. A Credit Committee consisting of Bill Ussher, Norm Kelsey and Arthur Hanstock was also formed, and two loans of $400.00 each were approved. These loans (like all the early loans made by the Credit Union) were to be repaid at a rate of 20 cents per case of bananas sold at market. The BGF acted as agent for the growers, and members could assign away the right to certain moneys collected on their behalf, which were then credited to the account of the particular member at the Credit Union. Members could save in the same way, with the BGF deducting a specific amount from the proceeds of each case of bananas, and paying it to their credit at the Credit Union. It didn't take long for other banana merchants to fall in line and offer the same facility, because growers were increasingly favouring the BGF with their fruit consignments to gain the benefit. In providing this service, the Credit Union was flying in the face of a gale of protest from both its Association, and the regulators of the day. These were questioning the legal and practical appropriateness of making business loans. There was a vexed question of the Credit Union's legal right to make loans to Banana Growers for their business activities (as opposed to making consumer loans to them for a car or holiday - as per the North American Model). The Credit Union pressed home its right to provide business finance, making loans to Members as it thought fit, and thus became a pioneer in commercial lending by Credit Unions in Australia. While the Secretary-Treasurer handled the bulk of the Credit Union's business, each director would act as a volunteer worker for the Credit Union and deal with membership applications as well as accepting deposits and loan repayments. For instance, members would request the representative director for the area to call at their homes in the evening. The director would then ensure that any funds handed over were deposited to the credit of the respective Members at the Credit Union. The first registered office of the Credit Union was the Secretary's home at Grays Crossing, Taylors Arm. |