asked the Minister for Finance if he will give to Dáil Éireann particulars of the estimates available to his Department of the total (a) gross and (b) net external assets held by persons, firms or corporations resident in Ireland (excluding such external assets as are held by the Government, the Central Bank and the associated banks) on the 31st March (or other convenient date) in each of the following years: 1938, 1944, 1945, 1946, 1947, 1948, 1949, 1950 and 1951.
Ceisteanna—Questions. Oral Answers. - External Assets.
I have already informed the Deputy that there is no official estimate of the sterling holdings of private persons, firms and corporations. The only estimates available to my Department are those published in the journal of the Statistical and Social Inquiry Society of Ireland for 1949-50 and earlier private estimates. Net external assets in public and private ownership at the beginning of 1949 were estimated in the paper printed in the journal at approximately £225,000,000. The following factors have since affected the value of Ireland's net external assets:—
(i) deficits of £10,000,000 and £30,000,000 in the balance of payments for 1949 and 1950 respectively;
(ii) increase in the market value of assets held by externs in this country;
(iii) appreciation of Irish private investors' holdings of British industrial and other securities as a result of higher yields offset by a fall in the value of gilt-edged securities in which the greater part of the sterling resources in Irish ownership are invested.
The external disinvestment in 1949 and 1950 referred to at (i) above was not reflected in a fall in gross external assets. These actually increased during these two years because dollar and sterling liabilities were incurred in excess of the balance of payments deficits.
If the prospective deficit in the balance of payments this year of £70,000,000 is realised, total external disinvestment in the three years 1949 to 1951 will amount to £110,000,000. Changes in external assets and liabilities are shown annually under various heads in the balance of payments statement.
asked the Minister for Finance if he will state the total (gross) external assets held by the associated banks on the 1st March (or other convenient date) in each of the following years: 1938, 1944, 1945, 1946, 1947, 1948, 1949, 1950 and 1951.
The gross external assets held by the associated banks on the reporting dates in March for each of the years concerned were:—
|
£Millions. |
|
|
1938 |
124.9 |
|
1944 |
215.5 |
|
1945 |
236.6 |
|
1946 |
258.1 |
|
1947 |
278.5 |
|
1948 |
255.3 |
|
1949 |
259.5 |
|
1950 |
259.1 |
|
1951 |
252.1 |
I should emphasise, however, that the gross figures given include assets held against bank liabilities to depositors, etc., outside the State. Accordingly the significant figures are the net and not the gross figures, since the net figures show the extent to which the external assets of the associated banks are held against liabilities within the State.
The net external assets of the associated banks in the March quarter of each of the years mentioned by the Deputy, as shown by the Quarterly Statistical Bulletin of the Central Bank, were as follows:—
|
£Millions. |
|
|
1938 |
66.9 |
|
1944 |
120.8 |
|
1945 |
137.2 |
|
1946 |
153.3 |
|
1947 |
161.9 |
|
1948 |
138.6 |
|
1949 |
133.7 |
|
1950 |
138.3 |
|
1951 |
119.8 |
Would the Minister agree that in any examination of the position of sterling assets it is necessary to have both the gross and the net figures?
The important factor to bear in mind is the net external assets. The difference between them, of course, represents our liabilities to depositors in branches of Irish banks which are outside our control; if the Deputy thinks he can play about with those he will do irreparable damage.
And the net assets are three times what they were in 1938.
And the value of money, according to Deputy General Mulcahy, is about one-fourth what it was then. (Interruptions).
Arising out of the Minister's supplementary reply, would he consider taking steps to ascertain the total gross sterling assets? I think the position is that he has said he had no official estimates; could he procure official estimates and lay them before the House?
That is quite a separate question.
And the group of gentlemen who are dealing with all that money are not responsible to this House or to the Government.
That is not a question.
Deputy Hickey, as usual, is talking nonsense. One-third, the greater part of the assets referred to in this question, are in the hands of private owners probably numbering about 100,000 persons.
It is not unusual for the Minister to imagine that Deputy Hickey is talking nonsense.
These people are answerable to no one but themselves.
Certainly, they own the money; 100,000 persons own a very large part of these investments in industrial equities in Great Britain. I know, however, that Deputy Hickey would like to get hold of them.
On a point of order, is it strictly in order for the Minister to say that Deputy Hickey is actuated by a desire to get hold of these moneys?
It does not surprise me what the Minister will say.
I assume that the Minister is referring to the Deputy as a member of the Dáil and not in his private capacity. (Interruptions.)
I assume that Deputy Hickey, like Deputy MacBride, believes that the State should own everything in this country. (Interruptions.)
Order! Question No. 8.