asked the Minister for Finance whether repatriation of assets held abroad for investment in the home economy is under consideration, in view of the decrease in foreign investment in the economy.
Ceisteanna—Questions Oral Answers. - Repatriation of Assets.
12.
There is no evidence that a decline in the inflow of capital has hindered industrial or other basic development. Indeed, there was an exceptionally high inflow of funds in 1971 and, while this may not be repeated in the present year, the indications are that there is still a substantial inflow. Apart from this, Irish banks have resources to enable them to lend more money for sound productive investment if the demand should be forthcoming.
With the background as indicated, the question of special action to secure the repatriation of Irish-owned assets abroad does not arise.
The matter has been examined, however, from time to time. Assets held abroad can be divided between those held by companies and individuals and those held by the banking system, in particular by the Central Bank. In the case of assets held by companies and individuals, it is not apparent how such assets could be effectively repatriated except on a voluntary basis. Attempts to achieve this by other means would be difficult if not impossible to implement successfully and could easily discourage foreign investment in this country in the future. The foreign assets of the Central Bank are the country's official external reserves and, of course, they are held to finance any adverse development in external payments. The question of repatriation does not arise in the case of the Associated Banks and non-Associated Banks as they are no longer in a net foreign asset position.
It should, of course, be remembered that our foreign investments earn a valuable income for the country.
In regard to the part of the Minister's answer about there being no evidence to suggest that there was any dimunition in the amount of foreign investment in this country, could the Minister give any further information to the House about the evidence which suggests that there has been no let-up in the inflow of investment?
The inflow for 1971 was, as I said, exceptionally high. This was partially distorted by the bank strike but, leaving that aside, the indications so far in the current year are that there is a substantial inflow still going on. I would not expect that the inflow this year would be as high as last year for the reasons I have mentioned. Nevertheless, as of now there is no indication of any difficulty in this regard. The indications are that the inflow is still substantial.
There is no evidence of any withdrawal of investment already planned?
No, there is not at the moment.