asked the Minister for Finance if the Government has considered the observation in paragraph 18, page 17, of the Report of the Central Bank of Ireland for the year ended 31st March, 1953, that agricultural and industrial prices are inflated beyond economic levels by means of guarantees, subsidies, quotas, tariffs and other arrangements; and, if so, if he will make a statement in the matter.
Ceisteanna—Questions. Oral Answers. - Central Bank Report.
As the House has been informed on several occasions, the Central Bank is an independent institution with specific statutory duties, the board of which is entitled to express its views on economic and financial matters. These views are worthy of serious public attention since they come from a body charged with the duty of taking such steps as it may "from time to time deem appropriate and advisable towards safeguarding the integrity of the currency and ensuring that, in what pertains to the control of credit, the constant and predominant aim shall be the welfare of the people as a whole." The Government, however, are under no obligation to offer comments.
Will the Minister say if the observation in the paragraph referred to, in the report of the Central Bank, is, in fact, well founded?
The paragraph, as the Deputy will see, deals with the question of the balance of payments. It is true that we keep agricultural produce here, from time to time, at a higher price than we could get it from other countries. The Government and this Dáil have supported the policy of giving more for agricultural produce— for wheat, say, and sugar—than the price at which we could get them from other countries. The Government and the Dáil in doing so take into consideration the general social and security advantages to be derived. They cannot concentrate purely onthe narrow financial point of view. The fact is that it is true that we do that but we do it with our eyes open, and for very good reasons.
And that is a way of saying that we are right.