asked the Minister for Finance the outflow of funds from this State to Britain since the beginning of this year; whether he proposes to take steps to reverse this trend; and, if so, the nature thereof.
Ceisteanna—Questions. Oral Answers. - Outflow of Funds.
2.
In view of the freedom with which monetary transactions take place within the sterling area and especially between this country and Britain, it is not possible to estimate the outward transfers of capital funds since the beginning of the year.
I may say, however, that last year there was a net inflow of capital from all sources of £36 million and that the indications are that the net inflow continues but at a reduced rate.
Does the Minister agree that about £15 million annually goes out of the country to foreign insurance companies?
That is wrong; it is not correct.
There is a good sum going out.
We have to take the premiums plus investments and the investments, less premiums, are in our favour.
I was asking about premiums. Would the Minister say there is the sum I mentioned going out in premiums? It may be offset by investments.
There is a sum going out in premiums but I feel sure the Deputy is aware that an arrangement has been come to whereby the non-Irish life offices agree to invest in Ireland over a period up to 1970 a certain proportion of their premium liabilities.
Is the net balance a debit or a credit one?
Credit.
What is the amount?
It does not arise out of the question.
Has the Minister made any inquiry into the flow of money to Britain to take advantage of the interest rates of seven to ten per cent now being offered in Britain by some local authorities?
I am aware of suggestions to that effect but it is not possible to say to what extent, if any, the Deputy's suggestion is correct.
Have there been any substantial withdrawals from building societies, apart from loans, in recent weeks?
The Deputy is going into much more detail. I should have to get notice of such a question.
Is it not a fact that within the past week the Minister for Industry and Commerce informed people whom he invited to meet him that the flow of money out of the country has reached alarming proportions and that, taken with the adverse trade balance and the balance of payments position, it is creating a critical situation?
I read two reports of meetings with employers and representatives of the trade unions but I cannot remember reading that specific statement.
Does the Minister agree that if that were the tenor of the communication of the Minister for Industry and Commerce to these bodies, behind closed doors, it is odd the same information is not vouchsafed to the House in answer to a question couched in the terms of Deputy Ryan's question?
I am not accepting that that was the tenor of the statement.
Is the Minister denying it?
I am saying I cannot remember having read that specific statement.
Perhaps the Minister would be kind enough to inquire from his colleague.
There was no published report of the meetings.
Who is flying the kite now?
The closed doors must not have been completely closed.
Providentially not; otherwise, we would never have heard it.