andMr. Crowley asked the Minister for Finance if he will consider the introduction of prohibition measures to prevent Irish citizens spending their holidays abroad, with a view to saving over £30 million on the balance of payments.
Ceisteanna—Questions. Oral Answers. - Holidays Abroad.
29.
I assume that the Deputies have in mind restriction of the currency facilities available to persons spending holidays abroad. The position in this respect is that under our obligations to the International Monetary Fund and OECD we are required to make reasonable currency facilities available for foreign travel. These arrangements are made on a reciprocal basis. Any attempt on our part to derogate from them would bring the risk of retaliatory action by other countries which would have the effect of restricting the flow of tourists to Ireland.
I may mention that in 1970, the most recent year for which figures are available, the total expenditure abroad was £42 million of which as much as £34 million was spent in Britain and Northern Ireland so that only £8 million was spent in other countries. On the other hand, our earnings from tourism that year amounted to £99 million of which £63.5 million came from Britain and Northern Ireland.
In the case of Britain and Northern Ireland, it would be impracticable to restrict the availability of currency facilities for travel as there is free movement of funds between the two countries. We derive considerable benefits from this.
The Minister for Finance is admitting that it would be impracticable to do this?
I do not know what the Deputy means by "admitting". I am stating.
Would the Minister not agree that in taking any decision with regard to travel outside these islands he should have regard to the experience elsewhere as to whether these restrictions do significantly reduce the number of people going as distinct from reducing the amount of spending and in so far as the purpose of any restriction is to try to ensure that more people remain in Ireland unless the evidence is that such restrictions do have that effect, as distinct from reducing spending, there would not be much point in them?
That is, of course, a fact to be borne in mind. Another is the not very secret information that it is very easy to get around such regulations.