asked the Minister for Local Government if, in view of the increased rates to be paid to depositors by Irish banks, it will be necessary to increase rates to depositors in building societies.
Ceisteann—Questions. Oral Answers. - Building Society Deposits.
32.
I understand that the building societies are keeping the general situation in relation to interest rates on deposits under close review but that they have not made any decision on whether an increase in the rate paid by them will be required.
How soon does the Parliamentary Secretary think they will make a decision?
It is a matter for the building societies.
Could the Parliamentary Secretary say if my prediction that the interest rates would go up to 14 per cent is a reasonable assessment?
(Dublin Central): Is it not a fact that building societies have to give three months' notice before increasing interest rates?
Yes. It takes three months before the increase comes into operation.
33.
asked the Minister for Local Government if the Government will give an assurance that all moneys invested by small investors in building societies will be protected.
It is not the practice for the Government to give assurances in the manner requested in respect of deposits, large or small, with any private financial institution.
In view of the recent statement by the Minister for Finance —I cannot remember his exact description of building societies—can small investors be reasonably sure that established building societies will continue and there is no danger of any of them going into liquidation?
The building societies have a good name and I hope we could not take it from anything the Minister said that he is casting a slur on them.
I would like to get an assurance from some responsible member of the Government or from a Parliamentary Secretary that there is no danger of a liquidation within the building societies. If the necessary assurance is not given, the small investor might be inclined to take his money out.
It is very irresponsible on the part of the Deputy to make that sort of insinuation in this House.
I can assure the Minister for Agriculture and Fisheries that any few pounds I have is in a building society and I will get it out unless I receive this assurance.
(Interruptions.)
The Chair has called Question No. 34 and the Chair will be obeyed in this matter.