This is the substantive section which authorises the making of payments not exceeding £3,100,070 to the association. Section 3, subsection (2) of the 1960 Act shown in the table to section 1 of the Bill sets out the payments which may be made to the association on behalf of the Government. They are the payments provided for in the association's articles of agreement which are scheduled to the 1960 Act and are as follows: the initial membership subscription, an increase in subscription, payments to maintain the value of the subscription, including any increase, in terms of the US dollar in the event of depreciation in the exchange value of the Irish currency, and payments arising out of termination of membership. The 1971 Amendment Act added another paragraph (cc) to subsection 3 (ii) to authorise the payment of $4 million to the last replenishment of the IDA's resources.
Section 1 of the Bill adds to the list the proposed contribution of £3,100,070 to the association's resources. Thus the other provisions of section 3 of the 1960 Act will apply to the paragraph being included by this amendment of section 3, subsection (2). Thus payment will be made out of the Central Fund and non-interest bearing non-negotiable demand notes may be issued to the association should it not require cash immediately. The Minister will also have power to borrow any moneys required to pay the contribution and the Central Bank of Ireland are empowered to lend for the purpose. It is not in fact, envisaged that recourse will be had to borrowing.
