asked the Minister for Finance if he is now able to state the outcome of his inquiries concerning the present credit restrictions and consequent shortage of money for business and commerce; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Provision of Credit.
15.
I cannot usefully add anything at this stage to the statements on the credit situation which I made in reply to questions last week.
Responsibility for the treatment of individual cases must rest with the banks and I have no reason to doubt that the consultation procedures to which I referred last week will ensure, as far as possible, that such cases are dealt with in conformity with the general principles of the advice given by the Central Bank.
Has the Minister received any complaints—I think Deputies have—of individuals being notified that overdraft facilities which had previously been sanctioned must be reduced? That appears to be a general direction.
No such general direction was given by the Central Bank to the Associated Banks nor, indeed, was any such direction approved of or sought by me. As I stated very explicitly last week, the position was that the banks were advised not to increase their lending as fast as they increased last year and that they should give priority to purposes of a productive nature and, in that category, purposes connected with the export of industrial and other goods. I am not aware that any other direction was given to the banks. I know it was not.
I do not mean from the Central Bank but the board of individual banks appear to have given a direction to individual bank managers to operate a more restricted scheme of lending on a reduced basis.
It is not possible to inquire into every individual case. In fact, I discussed that with the Central Bank. That is the information I got. I have no information about the type of case to which the Deputy refers.
Is it not a fact that the Central Bank have written to all other banks to the effect that no further loans are to be issued? I have a letter here from a bank manager——
That is completely untrue and if the Deputy——
Might I quote the letter for the information of the Minister?
Would the Deputy please let me have a copy of it?
The letter states that no further loans may be given. I shall let the Minister see the letter.