Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 1 Jul 1970

Vol. 248 No. 2

Ceisteanna—Questions. Oral Answers. - Bank Dispute.

18.

asked the Minister for Finance if he is aware of the risk of the flight of capital from this country due to the continuing bank dispute; and, if so, if he will consider actively participating in the negotiations to ensure a resumption of bank business in the country.

19.

andMr. Timmins asked the Minister for Finance if, in view of the serious situation created by the continuance of the banks strike, he will consider intervening personally with a view to having the dispute terminated.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 18 and 19 together.

There are no indications of any outflow of capital arising from the bank dispute. Capital flows are likely to be determined primarily by such conditions as potential growth, interest rates and the adequacy of external reserves rather than short-term factors.

As regards participating or intervening in the negotiations now in progress, the position is that the parties are engaged in joint negotiation under their own joint industrial council with an industrial relations officer of the Labour Court acting as chairman. It would be outside my functions and, indeed, altogether inappropriate for me to intervene in the deliberations of this body.

Would the Minister not agree that the only banks at the moment to which money can be paid in are the non-national banks, banks with offices outside this country? Would he not further agree that there must be a considerable inflow of capital into such banks and that such capital will be invested overseas to the detriment of the national financial situations? Further, would he not agree to clarify the situation slightly more than he has done?

No. There is no reason whatever to believe that there is any outflow of capital. The banks to which the Deputy refers do not, in fact, operate on the basis he appears to think they operate. They are investing in this country.

Would the Minister not agree that money paid into these banks can be invested overseas and the Minister has absolutely no control over that situation and what he is, in fact, telling the House is not actually true.

I certainly would not agree at all with the last part of the Deputy's question. In reply to the first part, the position is as I have indicated that there are arrangements with those banks. They are investing in this country. Of course, it is true that money invested in the other banks which are closed at the moment could be invested abroad too.

Would the Minister be in a position to know what percentage of the money invested in those banks would go abroad? Would the Minister find this out?

Yes, I think we have that information.

(Cavan): Surely the Minister is aware that considerable sums of money are being placed on deposit in banks in Northern Ireland and perhaps in Great Britain due to the closure of the banks here? Is the Minister satisfied that this money will be repatriated here when the strike is over?

Yes to the second part of the question. As regards the first part, I am not satisfied that there are substantial sums involved in any capital outflow from our jurisdiction.

Question No. 20.

The Minister gave an assurance to the House that there would be sufficient money available in the economy at the present time. At the present time in the country it is almost impossible for people to cash cheques.

Has the Deputy a question to ask?

The Minister for Labour made some effort in the cement dispute and it proved to be reasonably successful. Would the Minister for Finance not agree that it is now necessary for him to intervene and try to settle this bank strike? There appears to be no effort on the Government's part to settle it.

I certainly would not agree that I should intervene. If there were to be any intervention it would be a matter for the Minister for Labour but, as has been made clear by both himself and myself, negotiations are at present taking place with an officer of the Labour Court acting as chairman between the parties. Surely it is obvious to Deputies it would be crazy at this stage for either the Minister for Labour or myself in any way to intervene or upset those negotiations.

That is ignoring the situation.

(Cavan): We heard all that before.

At present the whole economy is being upset.

Would the Deputy please allow Questions to proceed?

The people in the country are unable to cash their cheques. The whole business of the country is completely upset and the Minister is making no apparent effort to settle the dispute.

I wonder how many Deputies on the other side of the House accept that we have a system of free collective bargaining and that this means if there are strikes people are inconvenienced. If you are not prepared to accept that you want a different system and you should say so. Furthermore, I wonder do Deputies on the other side of the House accept that, if we have a system of a Labour Court and a method of dealing with disputes, we either support it or we do not? If Deputies do not want to support it they should say so openly and let us hear of an alternative.

(Interruptions.)

I am calling Question No. 20. I have allowed a sufficient number of supplementaries on this question.

In reply to a supplementary question by Deputy Fitzpatrick the Minister said he was satisfied there were not large amounts of money being deposited in banks in Northern Ireland. What position is the Minister in to know this?

In so far as we have information about what is happening. Of course, we cannot know precisely but any substantial outflow would become known to us.

Question No. 20.

How does the Minister get this information?

That is another question as to how we know.

That is the question I am asking.

20.

andMr. Cluskey asked the Minister for Finance if he is aware that a banking group (name supplied) which has substantial bank ownership in this country, is refusing, during the current bank strike here, to exchange more than £10 from Irish currency into British currency; if he is aware of the hardship caused to travellers from this country to Britain, where Irish currency is not acceptable; and if he proposes to take the matter up with the British Chancellor of the Exchequer to have Irish currency either made acceptable or exchangeable.

I understand that the bank mentioned by the Deputies has, for administrative reasons, been applying a limit of £10 at Heathrow Airport for the exchange of Irish currency notes into sterling. The limit is, however, under review following repretations and I am advised that it is likely to be relaxed.

I would draw attention to the fact that various travel agents provide facilities in the form of travellers cheques or sterling currency notes so that persons travelling to Britain have reasonable alternative facilities available to them.

Could the Minister give any reply to the latter part of the question? Does he propose to take this matter up with the British Chancellor of the Exchequer?

No. I think it is clear from what I have said that such action is not necessary in the sense that an approach has been made to the bank in question and they are taking steps to remedy it.

Do I understand that when Irish money is presented to banks in Great Britain it is honoured? Is this not still the case?

Yes, it is. There is no change here. This question relates specifically to one aspect of the operation at one particular bank in Britain.

21.

asked the Minister for Finance if he is aware that a firm (name supplied) which exports large quantities of steel tubing to this country which is processed by a number of firms in Dublin and Dún Laoghaire and re-exported, giving considerable employment in the firms here where it is processed and re-exported, have notified their customers here that because of the bank dispute no more steel will be supplied on foot of cheques sent from this country; and, in view of this serious situation, what action will he take to alleviate the position.

I have not received any representations from or on behalf of Irish firms such as those mentioned by the Deputy regarding difficulty in arranging payments to suppliers. It is understandable that cheques drawn on banks which are closed may not be acceptable to some British firms. Many importers have, however, been able to arrange for payment by other means, for example, by payment through one of the banks which have continued to operate or by way of credit obtained through a British bank or from the proceeds of exports. Such means appear a reasonable alternative in the circumstances. The latest trade figures do not support any suggestion that a serious situation is developing in the import sector. Indeed, on an overall basis the import figures have continued to rise.

Top
Share