asked the Minister for Finance if, arising out of the recent run on gold with reference to the effects on Ireland, he has any statement to make.
48.
Ceisteanna—Questions. Oral Answers. - Monetary Crisis.
47.
asked the Minister for Finance what steps he proposes to take to allay public anxiety over the present international monetary crisis; and if he will make a statement on the matter.
I propose, with your permission, a Cheann Comhairle, to take Questions Nos. 47 and 48 together.
The recent run on gold had no direct effects on this country. As I have already indicated, developments are being carefully watched and I am not aware that they are causing undue public anxiety.
Deputies will have seen the statement issued by the governors of the central banks of the countries participating in the gold pool after their meeting in Washington on 16 and 17 March. I am hopeful that the decisions made at that meeting will help to stabilise the situation and restore confidence in the international monetary system.
Recent events, however, confirm the need for basic reform of the international monetary system. The proposed scheme of special drawing rights in the International Monetary Fund, the plans for which are at present being completed, would be a substantial move in this direction. As I stated at last year's annual meeting of the Fund, it is important that the new scheme be formally established and activated without delay.
The measures being taken by Britain and the United States to correct the disequilibrium in their external payments may create some temporary difficulties for exporters to these countries and for the tourist industry. It is now more important than ever, therefore, to ensure that our goods and services are fully competitive. The US and British restrictions on foreign investment underline the importance of increased investment of national savings in the economic development of this country.
I take it there is no particular action this country of itself can take other than the action which was taken by the Central Banks of the Sterling Area?
There are limited actions that we can take and are taking to protect our position as best we can, but in the main our effort is directed towards seeing to it that the reform of the international monetary system under the International Monetary Fund is proceeded with as rapidly as possible.
Could the Minister indicate what action we have taken in that respect?
No.
There is nothing we can do.
Do not be too sure of that. Why does the Deputy always want to denigrate our own country on every occasion?
I am simply saying what the position is.
(Interruptions.)