asked the Minister for Finance if he will furnish particulars of the dates and numbers of all Statutory Rules and Orders made by him or the Government relating to the Central Bank since the establishment of the bank.
Ceisteanna—Questions. Oral Answers. - Central Bank.
Following is the information asked for by the Deputy:—
(1) Statutory Rules and Orders, 1943. No. 93—dated 22nd March, 1943.
2. Statutory Rules and Orders, 1943. No. 94—dated 22nd March, 1943.
asked the Minister for Finance whether, having regard to the provisions of Section 3 of the Currency (Amendment) Act, 1930, and Section 64 of the Central Bank Act, 1942, he will agree that the statement made by him in reply to Question No. 30 asked by me on the 14th November, 1951, to the effect that the major part of the assets of the Central Bank is held in the Legal Tender Note Fund where, in accordance with the law, investment is limited to British Government securities was incorrect and misleading.
I do not agree that my reply of 14th November, 1951, was incorrect or misleading. If the Deputy considers Section 64 of the Central Bank Act, 1942, together with Section 3 of the Currency (Amendment) Act, 1930, he will see that any Order made under these sections has to be submitted to each House of the Oireachtas, in one case for positive approval by both Houses before it can become effective and, in the other, for tacit acceptance, or positive rejection, as either House may deem fit.
Was the Minister's reply not intended to convey that it was impossible for the Central Bank to invest any of its moneys in Ireland?
Not at all. I said that investment was limited in accordance with law.
The Minister said that investment was made in accordance with law and limited to British Government securities.
No, as they stood.
And limited to British Government securities. Was that not misleading?
In accordance with law. Of course, we know that the Deputy has no regard for law.
asked the Minister for Finance if he will state how much of the sum of £41,077 described in the Statement of Accounts of the Central Bank for the year ended 31st March, 1951, as salaries, wages and other remuneration is disbursed to persons in the employment of the Bank in (a) Ireland, (b) Britain.
The Central Bank has no employee outside of Ireland.
asked the Minister for Finance whether, in view of the statement made by the Taoiseach in the Dáil on the 14th November, 1951 (Volume 127, column 655), he is now prepared to furnish the following particulars concerning the expenditure of £120,621 by the Central Bank described in its Statement of Accounts for the year ended 31st March, 1951, as Other Expenses: (1) the amount of this sum which is expended in Ireland, (2) the amounts included in this sum for (a) printing, (b) brokerage fees, (c) other fees or commission, (d) rent, (e) travelling, (f) stationery, postage and telephone.
The extent of the information which the Central Bank ought to disclose about its transactions has been defined in a deliberate manner by legislation and provisions thereunder, regard being had to the legitimate requirements of the public for such information and to the desirability of protecting the bank against publicity that would not serve a useful purpose and also to the standards considered appropriate in such matters by central banks generally. The particulars asked for in the question are outside the scope of the information which it is necessary for me in the public interest to require from the Central Bank.
Does the Minister, therefore, decline to say how the Central Bank spent £120,000 under the heading "Other Expenses" and will he indicate if he knows of any other company, public or private, that would be allowed to produce an account describing its expenditure as "Other Expenses", £120,000?
The Deputy is possibly not aware that these accounts are audited by the Comptroller and Auditor-General. I am quite certain that he does his duty and that the money was properly expended.
Does the Minister decline to inform the House as to how this money is spent?
I decline to go outside what the statute empowers me to ask for.
The statute, with great respect, does not preclude the Central Bank from supplying this House with information and says nothing about the form of the accounts.
asked the Minister for Finance if he will state where the London agency of the Central Bank is situated.
By "London agency" I presume the Deputy refers to the powers given under Section 29 of the Currency Act, 1927, by which an agency may be established. This agency acts under the instructions of the Central Bank and its principal function is the redemption in London of legal tender notes on behalf of that bank. The appointment of the Bank of England as the London agency was notified in the Report of the Currency Commission for the year ended 31st March, 1929, which was presented to Dáil Éireann.
Do I take it from the long answer the Minister has given that the London agency of the Central Bank is the Bank of England?
The Deputy may take is that the London agency of the Central Bank acts under the authority of the Central Bank, and is the Bank of England. It is the agent and servant in this matter and not the master.
asked the Minister for Finance if he will state what amount of the £80,600,000 held by the Central Bank in British sterling assets was invested in (a) short-term (i.e., of maturity less than 12 months) British Government securities and (b) in long-term (i.e., of maturity of 12 months or over) British Government securities.
The precise information asked for in the question is not available. Under an arrangement of many years' standing the Central Bank publishes a statement as at 31st March showing in the case of securities held for the Legal Tender Note Fund the amount of the holdings of maturity exceeding 12 months, and the last such statement is given in paragraph 30 of the recent report.
The Minister has not answered my question. I asked the Minister to indicate the amount of the assets held by the Central Bank which are invested in long-term securities, and that information must be available.
I told the Deputy that it is available, as at 31st March last, in paragraph 30 of the recent report.
Only in relation to the currency fund.
The Legal Tender Note Fund.
What about the other £15,000,000 which the Central Bank has invested? Is it invested in long or short-term securities?
The Deputy had better look at the accounts before using figures, because he is quite inaccurate in this matter.
I am not going to be led astray by personal attacks or gibes of that nature. I have asked the Minister to state what proportion of the £80,000,000 is invested in long-term British securities and I am entitled to an answer to that question. Why conceal it?
The position in that regard is that the operations of the Central Bank have to be conducted in the normal way of banking business and they cannot be subjected to this day-to-day review here in this House. I could not encourage that sort of examination in relation to the operations of the Central Bank, as I think it would be contrary to the public interest.
As long as I am a member of this House, I am going to insist on getting this information and I will raise it day after day until I get it. I do not see why such information should be concealed from the country or the House. Either this is the Government of the country or the Central Bank is.
Has the Taoiseach nothing to say about it?
It was concealed for three and a half years.
Either this is the Government or the Bank of England is.
Why did the Deputy not ask that in the last three and a half years?
Has Deputy Gilbride wakened up?
The Deputy should stop the sham fighting.
The Minister should supply the information asked, instead of concealing it.
The Deputy had three years to get it.
I am asking for it now and I will keep on asking for it.
You added £40,000,000 to it.