asked the Minister for Finance whether Irish merchant banks and industrial banks have been asked to make 25 per cent of their deposits available to the Exchequer through the purchase of Government paper; and, if so, if he will explain why.
Ceisteanna—Questions. Oral Answers. - Bank Deposits.
10.
For some years past the associated banks have been supplying part of the financing of the public capital programme by making substantial investment in Government securities. Last year they suggested that the non-associated banks should also be expected to participate in the financing of the programme as they too had become, to a significant degree, custodians of the people's savings. Conversations with some of these banks were initiated in April, 1970, but the matter was allowed to rest during the bank dispute. The conversations were reopened last month and extended to include some further banks. Agreement has not yet been reached with any of these banks as to what proportion of their domestically generated deposits should be invested in State securities. Discussions are still proceeding. These discussions are part of the general arrangements for financing the public capital programme.
If the Minister cannot get satisfaction with these banks will he consider introducing legislation to ensure satisfaction?
I think we could cross that bridge if we should come to it.