asked the Minister for Finance if he will state (a) the amount of money held by the Central Bank in British securities; (b) the annual interest received thereon, and (c) whether he has considered if some or all of this money could be used to finance housing and rural electrification schemes in this country; and, if so, with what result.
Ceisteanna—Questions. Oral Answers. - British Securities.
The information asked for by the Deputy at (a) and (b) is contained in the accounts of the Central Bank for 31st March last which have been laid before Dáil Éireann. As regards (c) the administration of the assets of the Central Bank is at the statutory discretion of the board of the bank. The Irish notes issued against the assets of the Legal Tender Note Fund are in use for the general purposes of domestic circulation. Financial considerations are not impeding progress in housing and rural electrification. Adequate provision is being made through Exchequer grants, advances and subsidies, for these as well as for other capital purposes. In the current financial year a sum of £13,000,000 is being made available for housing and a sum of £1,000,000 for rural electrification.
Arising out of the Minister's reply, is the Minister aware that local authorities are paying 4 per cent. on money borrowed, while from what I can gather from the Minister's statement in relation to the Central Bank, we are receiving a little more than 1 per cent. on the millions we have in securities? Is the Minister satisfied that that position should continue?
Is the Minister satisfied that it is good business for us as a nation to get 1 or 1½ per cent. on money invested by the Central Bank in foreign countries, while local authorities have to pay 4 per cent. on money they borrow? Would he not consider it preferable that money should be made available at 2½ per cent. to local authorities in order that rents of working-class houses could be reduced correspondingly? I ask the Minister when will the House get an opportunity of fully considering this entire matter?
Put down a motion.
The authority has answered. The rate of interest payable is an entirely different matter from that contained in the question. I have answered on the matters raised in the question. The rate of interest at which money should be lent to local authorities is a matter for the Minister for Local Government after consultation with me.
Is it not a fact that money is not available to local authorities at 4 per cent.? Is it not a fact that by utilising Government moneys, otherwise invested, local authority housing could be financed at a rate of 2½ per cent.?
In view of the importance of this matter, I propose raising it on the Adjournment.
Is the Minister not aware that both Deputy Hickey and Deputy Lehane have given practical proof that they are well satisfied with the financial policy of the Government by supporting the Government in the Division Lobby?
So did the people in Donegal.
Let us have no hysteria about it.