May I say, in replying to Deputy Cosgrave in the first instance, that when the provision in the Finance Act of 1963 was introduced, I, like him, heard some comments from bank managers throughout the country that the obligation on banks to disclose deposits bearing £25 interest per annum and upwards would cause a flight of deposits and, therefore, of capital from the country. Being the then Minister for Industry and Commerce and being apprehensive to some degree of that suggestion, I raised it with the Minister for Finance of the day, Dr. Ryan, and he assured me that there was little, if any, flight of capital as a result of that provision. Nevertheless, I acknowledge that there may be something in that contention and, in the last Finance Act I raised the £25 to £50 as being the interest earned by deposits which would have to be disclosed by banks. I have continued to make inquiries about it and I am assured that there has not, in fact, been any significant disappearance of deposits or capital reserves in this country as a result of the 1963 Finance Act, or the 1965 Finance Act. But, of course, in the 1956 Finance Act, there was already a provision whereby deposits earning £15 interest per annum or more would have to be subject to income tax, so the 1963 provision was not entirely a new one.
However, the point I want to answer specifically is that, notwithstanding my inquiries—and, I will admit, my apprehensions—at the time, I am convinced, as a result of the advice I have been given, that this has not in any significant way diminished the availability of capital in this country.
As Deputy Dillon rightly pointed out, this is an enabling Bill. Its origin lies in the background that, by reason of the economic advance of this country, there appeared to be an interest in outside banking interests taking over existing Irish banking interests. The Bank of Ireland, as the Deputy is aware, acquired the interests of the Hibernian Bank and the National City Bank some years ago but there was still a continuing interest in the banking interests of this country by outside banking interests. The Central Bank and, indeed, the Government openly expressed concern about this trend and expressed it in the positive way that it was desirable that the banking business of the country should be held, in so for as was possible, by Irish interests. I think it was consistent with that policy that the Bank of Ireland sought to acquire the interest of the National Bank. Deputy Dillon was, unfortunately, absent, even if he has acknowledged reading my introductory speech on the Second Reading last week, but I mentioned on that occasion that the National Bank, as far as their holdings were concerned, were properly assessed as to the current value of the buildings, the bank premises, throughout the country and as to the current value of its business generally by an independent firm of accountants whose reputation, I believe, is international.
The Bank of Ireland and the National Bank of Scotland are the two other interests involved—the Bank of Ireland decided to acquire the interests of the National Bank in Ireland and the National Bank of Scotland the interests of the National Bank in England and Wales, which had an independent finance house advising it. The question was raised why the National Bank itself did not have such independent finance house advice. I think that question was answered in the press today by the Governor of the Bank of Ireland.