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Dáil Éireann debate -
Thursday, 25 Oct 1956

Vol. 160 No. 2

Ceisteanna—Questions. Oral Answers. - State Control of Credit.

asked the Minister for Finance whether the Government have given any further consideration to the question of bringing the issue of credit under State control, and, if so, what action it is proposed to take in the matter.

I have nothing to add to my reply to the Deputy on 27th October, 1955.

Does the Minister not think or do the Government not think that the time is ripe to extend the powers of the Central Bank, so that the control of credit and interest rates may be exercised within the State, in the national interest——

That is the question on the paper.

——rather than in this manner where this control is exercised from outside the State?

That is the question on the paper which has been answered.

No such control is exercised outside the State.

Is the Minister aware that at the present time the banking concerns within the State have refused credit to local authorities and also to private interests which are trying to expand their economy, on the basis, according to these banks, that it is in the national interest to reduce expenditure at the present moment? Is the Minister aware that this is causing serious unemployment and emigration in the rural areas, and in the city areas as well, and does he think that that type of credit restriction is in the national interest?

The supply of capital is dependent on the amount of savings. For that reason, every effort should be made to expand savings.

We are sending most of our money along with our emigrants abroad.

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