asked the Minister for Finance if, on the assumption that Ireland becomes a member of the European Economic Communities, he will state the net savings to the Exchequer in 1972-73, 1973-74 and 1974-75; the various headings under which these savings will accrue; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Membership of EEC.
22.
I would refer the Deputy to the White Paper entitled "The Accession of Ireland to the European Communities" which was laid before each House of the Oireachtas in January this year. The overall implications for the Exchequer of accession to the Communities are dealt with in paragraphs 44 to 47 of Chapter 5 which also indicates the various headings under which savings to the Exchequer will accrue.
With regard to the estimate of an annual net saving to the Exchequer of the order of £25 million to £30 million which is given in paragraph 46 of Chapter 5 of the White Paper, I should like to point out that this estimate was based, inter alia, on the then current annual estimate of the cost of agricultural export subsidies. Since the White Paper was published a revised estimate has been prepared based on present prospects for agricultural export prices in 1972-73. On this basis it is now estimated that the net annual saving to the Exchequer would be about £5 million less—say, of the order of £20 million to £25 million— if present prices on the export markets are maintained.
Exchequer savings arising from membership of the European Communities will be available to finance economic development and improvements in the social services. Increases in social welfare payments to compensate the less well-off section for any increases in food prices arising from membership will clearly be a priority claim on such savings.
23.
asked the Minister for Finance which EEC countries have (a) a pension parity policy and (b) a policy for automatic adjustment of pensions for cost of living increases.
24.
asked the Minister for Finance if he is aware that full parity exists for civil service pensioners in most member countries of the EEC, including automatic adjustments for cost of living increases; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 23 and 24 together.
Up-to-date information in regard to the Deputies' questions is not at present available. If the Deputies would repeat the questions in about a fortnight's time, I hope to have the necessary information.
25.
asked the Minister for Finance if he will make a comprehensive statement on the recent EEC monetary agreement; and if he will state its implications for Ireland upon accession to the EEC.
As I informed the Deputy in reply to somewhat similar questions on 16th March last, the monetary arrangements to which he refers are an early stage in the EEC programme of action for the development of an economic and monetary union. This programme and its implications are summarised in the White Paper on the Accession of Ireland to the European Communities.
The recent agreement covers specifically two aspects apart from matters of a technical nature. The first relates to the narrowing of exchange rate margins in currency dealings between the member countries. It has been agreed that the dealing margin in transactions between any two of the Community currencies, will not exceed 2¼ per cent at any one time, that is, broadly speaking 2¼ per cent above or below the relevant parities of the currencies in question. This is a first step towards stabilising the exchange rates as envisaged in the programme for monetary union.
From the monetary viewpoint the agreement has no significant implication in relation to our currency. The Irish pound will be maintained at its present fixed parity with the pound sterling and the question of margins in that respect does not arise. However, stability of the EEC currencies is desirable and, indeed, necessary for the orderly and efficient functioning of the Common Market, particularly the common agricultural policy. The latter has, of course, a special interest for this country and the agreement reached on the narrowing of currency margins is to be welcomed as helping to smooth the operation of that policy.
The second matter covered by the agreement relates to the control of undesirable international capital flows. Agreement has been reached on measures for the introduction and coordination of capital controls necessary to prevent or neutralise capital flows damaging to the economies of the member states. So far as this country is concerned, we already exercise exchange control in relation to capital transactions with countries outside the sterling area and no difficulty is anticipated in complying with EEC requirements in due course. The objective in view, as in the case of the narrowing of currency margins, is the stability of exchange rates and it is in our interest to co-operate in achieving this objective.
Would the Minister not agree that in the circumstances of our application to join the EEC any agreements, no matter under what heading, whether monetary, agricultural or otherwise, should be explained in a memorandum sent to Members of both Houses of the Oireachtas indicating the details of any such agreements? Such information would be of vital importance and of substantial help to Members of the Houses instead of having to read of such agreements in the papers, or get information from second or third hand sources.
That appears to be a different matter from that raised by the Deputy.
Is the Minister not going to reply to me?
That is not the question put by the Deputy at all.
What a way to treat this House!
The Deputy should put down a question seeking the information he requires.
The Minister is treating the Members of the House as second-rate citizens.