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Dáil Éireann debate -
Wednesday, 5 Mar 1969

Vol. 238 No. 15

Ceisteanna—Questions. Oral Answers. - Legal Tender Note Redemption.

61.

asked the Minister for Finance the amount at present provided for the redemption of legal tender notes; and if he will consider adopting a policy similar to that in Britain whereby corresponding Bank of England notes are entirely a fiduciary issue.

The amount provided for the redemption of legal tender notes as at 1st March, 1969, was £130.5 million.

As regards the second part of the Deputy's question, our circumstances differ from those which prevail in Britain and it does not follow that the British arrangements would be suitable here. Our present arrangements as laid down in the Currency and Banking Acts, were settled after very careful consideration and are generally recognised as promoting confidence in and stability of our currency. Apart from certain minor changes which it is intended to propose in the banking legislation now being prepared and which are largely in the nature of tidying up operations, I do not at present intend to seek the authority of the Oireachtas to make any changes in the existing arrangements.

Would the Minister see any good point in considering it?

It has been considered from time to time but the arrangements which we have have stood the test of time. They have ensured that our currency is amongst the strongest in the world and I would not be tempted lightly to interfere with these arrangements.

Would the Minister have any idea as to the prevailing situation in other countries in western Europe?

Yes; the situation varies enormously from country to country depending on the particular country's circumstances.

Would the Minister not agree that we should adopt a policy similar to the British system?

Would the Minister agree that the words "fiduciary issue" on occasion have been used as a euphemism for another operation?

I certainly agree with that.

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