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Dáil Éireann debate -
Tuesday, 16 Jul 1935

Vol. 58 No. 5

Rates on Agricultural Land (Relief) (No. 2) Bill—Money Resolution. - Approved Investments (Amendment) Bill, 1935—Second Stage.

I move that the Bill be now read a Second Time. In 1933, the original Act was passed and the operative clauses of that Act were to have effect for a period of three years. Accordingly, the position has now arisen that, unless amending legislation be introduced, these operative clauses will become ineffective in September next, so that for practical purpose very little work could be done under the Act. Under the original Act, a Committee was set up, called the Investments Advisory Committee, the object of the Committee being, in accordance with the original Act, to make recommendations when called upon to the Minister for Finance under Sections 6 and 7 of the Act. Under Section 7, the proposal was that any person responsible for the issue of any security could apply to the Minister for the latter's approval of such security as a security suitable for the investment of Government funds and Government moneys. Under that section, action was taken in 1934 by the Dublin County Borough Council for the approval of securities.

The procedure that was adopted, in order to facilitate the advisory committee and to enable them to map out their own procedure, was to send them a single application instead of the ten applications received, this application being in connection with the single fund, the National Health Insurance Fund Investment Account. The application was formally referred to the Committee on the 10th January, 1935. The Committee disposed of it, and of subsequent references with regard to the nine other inquiries, on the 25th April, 1935. The appropriate notice indicating that the Minister for Finance has approved of the six securities in question was duly published in Iris Oifigiúil. It is proposed to refer the same securities to the Committee for consideration in connection with the National Health Insurance Central Fund Investment Account and, in fact, the matter is being prepared at the present moment in the Department of Finance.

This was the only series of applications which came under Section 7, sub-section (1). Under sub-sections (1) and (2) of Section 6 the Minister for Finance is empowered to request the Committee to advise him as to the suitability of specified securities for the investment of any specified Government fund, or any specified Government money. In neither case has any request been made by the Minister for Finance, so that as regards the actual operation of the Bill, it must undoubtedly be conceded that the positive results that have accrued have not been very great. It must be pleaded, in extenuation, that the Committee took considerable time to settle down to work. A great deal of preliminary work had to be done. As the work is of special importance and very technical, it was deemed necessary to take plenty of time and to do things in a proper manner. In actual fact, the Committee was not formally constituted until the 12th February, 1934. It held its first meeting on the 5th of March, 1934.

Regulations under Section 7 were framed on the 10th September, 1934, and were agreed to by the Committee on the 29th September, 1934. The applications from the Dublin County Borough Council were made on the 15th of October, 1934, and in January, 1935, the application, as I have already stated, was referred to the Committee. In April of this year the Committee made its decision, so that in actual fact the work is only being planned out at the present time. It cannot, therefore, be said that sufficient experience has been gained to enable the Department to make definite and final proposals, but it is quite certain that the Committee constitutes a most valuable piece of machinery. Even though the preliminary work has been somewhat slow, very good results have been achieved. The position no longer exists that a decision cannot be taken under the laws with regard to a particular Irish security. There is definite machinery there at any rate, although not final machinery, by which the question whether a security should be admitted as an approved security or not can be definitely referred to the Committee for a decision, and a decision arrived at. It is considered that further experience of the work of the Committee will, however, be necessary.

In addition, as the House is aware, a Banking Commission is sitting at the present time. It is very likely that that Commission, when it makes its report, which it may not do for some time yet, will have some observations to make on the question of trustee securities and of the field of investment in the Saorstát for securities of native origin. But, even when that report is in hands its consideration will take a considerable amount of time. It is to be expected that it will deal with a great number of very important issues. The Government will require time to digest its recommendations and, if necessary, to prepare legislation. In the meantime, the proposal is made in this Bill that the operative powers which the Minister for Finance has under the existing Act should be continued for a period of two years. Under the Bill no other amendment of the Principal Act is being proposed. In view of the rather limited amount of work that has been done, and of the fact that the work of the Committee has been largely experimental, it has not been considered wise to amend the Act other than by giving the Minister for Finance power to extend the period further. It is expected that, at the expiration of the two years proposed in this Bill, the Government will have definite proposals to bring forward. If not, then I think that under Section 4 of the Bill the Minister for Finance will have power to make a further Order if it should be found necessary to do so.

Question put and agreed to.

If there is no objection, perhaps the House would give me the remaining stages of the Bill now. There is no question of principle raised in the Bill.

This Bill came on rather unexpectedly. It may be that members not present for the Second Reading may desire to ask some questions on the Committee Stage. I suggest, therefore, that Committee Stage be not taken before Thursday, when all the remaining stages can be taken.

If there is time on Thursday.

I do not think that the Bill will take very much time. I think it is better that it should remain over until Thursday.

Committee Stage ordered for Thursday, the 18th of July.
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