asked the Minister for Finance if in so far as is in his power he will indicate to the commercial banks the need for liberalisation of credit, so that the economy may expand and so offset the risk of an increase in emigration and unemployment.
Ceisteanna-Questions. Oral Answers. - Liberalisation of Credit.
8.
I am satisfied that the commercial banks are providing credit to the maximum extent possible having regard to their resources and the need to give priority to purposes of a productive nature.
As indicated in reply to a question on 16 June, 1965, the temporary moderation in the rate of expansion of credit is necessary and desirable in order to preserve our capacity to finance a steady future growth of the economy.
I might add that the credit situation is being kept under constant review, both in my Department and in the Central Bank, and that care is being taken to minimise the risk mentioned by the Deputy.
Is the Minister not aware that there is less credit available now than there was 12 months ago? Could he indicate the reason for that?
The fact is that there is more credit available now than there was last year.
Is the Minister not aware that it is practically impossible for people in rural Ireland to get any credit? It may be different in Dublin.
In the first four months of this year, the increased credit extended is almost double compared with last year.
Surely the Minister knows that it is almost impossible to get credit?
In the Minister's estimate of double the amount, does he include credit for Government purposes?
Yes.
That is the answer. The Taoiseach admitted that yesterday.