asked the Minister for Finance whether the shortage of dollars is likely to precipitate an economic crisis in this country; and if so, whether it is proposed to consider the desirability of seeking a loan from the United States of America.
Ceisteanna—Questions. Oral Answers. - Dollar Position.
The shortage of dollars is likely to create economic difficulties in this as well as many other countries but it is not anticipated that it will cause a grave crisis in our economic life.
The necessity for considering the suggestion in the second part of the question has not arisen.
Is it not the case that, up to the development of what is commonly known as the recent dollar crisis, we have received from Great Britain annually a sum in dollars substantially in excess of the quantity of dollars that we paid into the dollar pool? Is that arrangement to continue, or has there been any agreed reduction in the surplus dollars to be made available to us hereafter from the dollar pool by the British Government?
As already indicated by the Taoiseach, no full statement on that particular aspect of the conversations in London can yet be made. It is true to say that, prior to convertibility, in all the years since the beginning of the war, we drew a substantial number of dollars from the dollar pool, but those dollars added to the amount of sterling goods we received, did not fully repay us for the goods we sent and the services that we rendered.
Services that we rendered?
Yes, the services that we rendered.
During the war?
Services that we rendered. We have certain services and invisible trade with Great Britain— investments on which we get interest. We perform services postal and otherwise of all kinds.
I understand that earlier, the Minister for Industry and Commerce when answering a question spoke of a certain curtailment in relation to certain goods which we have been purchasing from hard currency countries. Would it not be reasonable and feasible for the Government to seek a loan from America and not have the rationing of goods which we require?
How would we repay the loan?