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Dáil Éireann debate -
Wednesday, 8 Feb 1967

Vol. 226 No. 6

Ceisteanna—Questions. Oral Answers. - Hotel Development Investment.

20.

asked the Minister for Transport and Power if credit restrictions for hotel development projects have eased; and if facilities are now available for all hotel projects in the interests of the tourist industry.

When introducing the Estimate for my Department in the Dáil on 27th October last, I referred to the fact that the general shortage of credit was impeding progress in hotel investment and I indicated that I was endeavouring to ensure that adequate credit would be made available for this purpose. Having regard to the vital part played by tourism in the expansion of the economy the Minister for Finance has recently had discussions on the question of credit for hotels with the Irish Banks' Standing Committee whose member banks have provided a large proportion of loans for hotel development in recent years. The Committee have assured the Minister for Finance that the banks will continue to attach a high priority in lending policy to loans for hotel development and have affirmed the banks' willingness to assist in hotel projects which constitute sound banking advances. Furthermore, the Bank of Ireland Group and Allied Irish Banks Ltd. have intimated that, within the limits of the funds available to them, their member banks and merchant banking companies will be willing to assist in financing suitable hotel projects.

Under the Central Bank's latest advice to the commercial banks issued early in December, bank advances to the private sector may increase by about £10 million in the period mid-November, 1966 to end-March, 1967. The hotel industry should benefit from this easing in the overall credit situation.

The Minister agrees that this is a welcome development for the tourist industry?

I have been working to ensure that credit would be made available to hotels.

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