asked the Minister for Finance if he is aware of the present monopolistic practice of the Irish commercial banks by which such banks have agreed not to take over from each other existing overdraft accounts with another bank; and, if so, what steps the Minister proposes to take to arrest this anti-social practice.
Ceisteanna—Questions. Oral Answers. - Irish Commercial Banks.
I am informed that no such agreement between the banks exists.
Does the Minister believe that?
Mr. O'Higgins
By whom was the Minister informed?
I have no reason to misbelieve it. After all, they are not politicians like some of the members of the Opposition.
Is the Minister not a politician?
asked the Minister for Finance if he is aware of the policy of restricting credits at present adopted by the Irish commercial banks and if such practice is in accordance with present Government financial policy.
I have no reason to believe that the banks have adopted an unusual or unjustifiable attitude in the matter of making new advances. In all such cases it must be understood that the responsibility for ensuring that the advances made can be justified by sound practice rests with the banks themselves. Published figures, however, would seem to indicate that accommodation to customers has been so extended that prudence and caution should be exercised in making additional accommodation available for non-essential or unproductive purposes.
Am I right in saying that the Minister is standing over the policy of the banks in restricting credit?
I am merely saying that the injunction which my predecessor gave to the banks, that they should not advance money for non-essential or un-productive purposes, was a wise one in present circumstance.
Is the Minister aware that coincident with the change of Government, the policy of the banks materially changed, and that credit has been restricted, in fact?
May I suggest that the idea behind the whole of the Central Bank report is one of credit restriction, and that every Party in the House has refused to accept the advice given by the Central Bank. Will the Minister instruct the banks that credit restriction is not in the interests of the country?
Now we know why the Tánaiste changed yesterday.
Interruptions.
I do not know whether I am going to be allowed to reply to the supplementary questions.
Another convert.
Interruptions.
Mr. O'Higgins
Are you overthrown now?
If I am I will be able to swim which is more than some of the Deputies on that side can do.