asked the Minister for Finance the type of control which the Central Bank and the Government will retain over the general level of interest rates in Ireland upon this country's accession to the EEC; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Interest Rate Control.
28.
Present requirements in the EEC would not affect in any significant way the powers or policies relating to interest rates of the Government or the Central Bank following this country's accession to the Community. Exchanges of views on monetary questions, including the level of interest rates, take place in the Community's Monetary Committee and in its Committee of Governors of central banks, on both of which this country will be represented. A recent Community decision envisages that each central bank will take account of general EEC economic guidelines in deciding the interest rates policy for its country.
The Community has expressed the intention of achieving an economic and monetary union in stages over the period up to 1980. Progress has, however, been very limited so far. As a member country, Ireland will have a full say in the matter.
Are we to have all the disadvantages of being members of the EEC and none of the advantages? Our interest rates are about 2 per cent above what they are in the Common Market because the Government have no regard for financial matters at all.
The Deputy took an interest in the Central Bank Bill and this matter was gone into quite comprehensively during the debate on that Bill.
We got no reply.
When we become members of the EEC, as I am quite sure we will in 1973, we shall then have a full say and no decisions will be made by the EEC without our having the right of full membership.
Back to that old canard.
In reply to a Parliamentary question, the Minister for Finance told me it is necessary to have our interest rates slightly higher than those prevailing in Britain. If, on accession to the EEC, we are not allowed to have a higher interest rate than that prevailing in Britain this could cause capital outflow. I should like to know what control we are going to retain over this possibility? Does the Parliamentary Secretary understand the question?
This is one of the purposes of the Central Bank Bill which is now in the Committee Stage in the Seanad.