asked the Minister for Finance whether he is aware that the Minister for Industry and Commerce stated in the Dáil, on November 8th, that transactions on current accounts between this country and the monetary areas of other countries participating in the European Payments Union are estimated to have yielded credit balances of £10.9 million, £2.5 million and £10,000,000 in the years 1947, 1948, and 1949, respectively, and if he will state whether this country, if the Government had decided to participate in the European Payments Union on the same basis as other member countries, would not eventually have been entitled under the provisions of the agreement to receive gold or dollars against similar credit balances arising in the future; and, if so, the reasons for his opinion, expressed in the Dáil on November 29th, that the Government's decision to participate in the European Payments Union only indirectly, as part of the sterling area, does not result in benefit to Great Britain as the representative of the sterling area.
Ceisteanna—Questions. Oral Answers. - European Payments Union.
I am aware of the reply received by the Deputy on the 8th November to the question about the balance of payments on current account between this country and the monetary areas of other countries participating in the European Payments Union. The figures supplied to the Deputy refer to the net balance on current account with all members of the union, including the sterling area, and, as was stated in the reply, the whole of the balance unaccounted for was treated as current sterling earnings in arriving at the credit balance for the years 1947, 1948 and 1949. The figures indicate that our surpluses with Great Britain have been large enough in recent years to outweigh our deficits with the rest of the sterling area and with the monetary areas of the countries participating in the European Payments Union. It is extremely doubtful whether this position will be maintained. The deficit with continental European members has increased this year, while the credit balance in our transactions with the sterling area has dropped considerably. The indications are, indeed, that we shall have a deficit with the monetary areas of the European Payments Union countries as a whole of several million pounds in 1950. Countries which incur deficits with the union are liable to be called upon to discharge part of their debt in gold.
Apart altogether from the unlikelihood that any surpluses with the union would emerge to our credit or, in any event, would be of such cumulative amount as to attract "gold" payments, I invite the Deputy to refer to the provisions of the European Payments Union Agreement as to the manner, other than payment in gold, by which debts may be discharged by the union.
Am I to understand that the Government's decision not to participate in this European Payments Union on the same basis as other countries in Western Europe was due to this expectation of a deterioration of our trade with these countries?
It is due to the fact that we could not demand any payment in gold dollars in any circumstances. If the Deputy will read Article 14 of the Agreement he will see that where our balance is with the sterling area or with England then they can pay us in sterling or with their own currency bought with sterling, but there is no chance of getting gold.
asked the Minister for Finance if he will state, in respect of 1949 and of 1950 to date: (1) the total payments approved under exchange control Orders to other European countries which are members of the European Payments Union; (2) the percentage of such payments made (a) in Irish currency to the account in a bank in Ireland of a resident of the country concerned; (b) in sterling to the account in a bank in Great Britain of a resident of the country concerned, and (c) in the currency of the country concerned.
The total payments approbed under the exchange control Orders to countries which are members of the European Payments Union were: 1949, £15.47 million; first nine months of 1950, £17.75 million.
Of the 1949 payments (a) 13 per cent. were made in Irish currency to accounts in banks in Ireland of residents of the country concerned; (b) 71 per cent. in sterling to accounts in banks in Great Britain of residents of the country concerned, and (c) 16 per cent. in the currency of the country concerned. During the first nine months of 1950 the percentages were (a) 15 per cent., (b) 73 per cent., and (c) 12 per cent. respectively.
asked the Minister for Finance if he will state, in respect of 1949 and of 1950 to date: (1) the total amounts received in respect of exports to, and other transactions with, countries other than Great Britain which are members of the European Payments Union, and (2) the percentage of such receipts accepted (a) in Irish currency from the account in a bank in Ireland of a resident of the country concerned; (b) in sterling from the account in a bank in Great Britain of a resident of the country concerned, and (c) in the currency of the country concerned; and further, whether during 1949 and 1950, acceptance of payments in any other form was authorised by special exemptions under exchange control Orders; and, if so, in what circumstances.
The total amounts received in respect of exports to and other transactions with countries other than Great Britain, which are members of the European Payments Union, were: in 1949, £3.91 million, and in the first nine months of 1950, £4.05 million.
The percentages requested by the Deputy are as follows:—1949, (a) 53 per cent., (b) 42 per cent., (c) 5 per cent.; first nine months of 1950: (a) 45 per cent., (b) 49 per cent., (c) 6 per cent.
In 1949 an exchange of approximately 2,000 tons of Irish oats for an equivalent value of United States maize from Western Germany was approved (a) to dispose of surplus oats, and (b) to acquire maize without dollar expenditure.
In a few cases payments for exports to one of the European Payments Union countries was accepted in the currency of another for reasons of commercial convenience, and as there was no loss of exchange involved, the total value of such exemptions was small. In a few cases also payments for parcel post exports to United States personnel in Europe was accepted in dollars. The total value was insignificant.
asked the Minister for Finance if he will state in respect of 1949 and of 1950 to date the extent to which Irish bank requirements of currencies of countries other than Great Britain which are members of the European Payments Union were met (1) from customers' receipts sold to the banks; (2) by purchases from the banks' London agents; and, further, the extent to which receipts were (a) credited to the accounts of the Irish banks in the countries concerned, and (b) sold to the Bank of England.
Irish banks' requirements of currencies of countries other than Great Britain which are members of the European Payments Union were met to the extent of 7 per cent. in 1949 and 12 per cent. in the first nine months of 1950 from customers' receipts sold to the banks; and 93 per cent. in 1949 and 88 per cent. in the first nine months of 1950 by purchases from banks' agents. All the receipts were credited to the accounts of the Irish banks in the countries concerned and, as the above percentages show, there were no net sales to the Bank of England.