asked the Minister for Finance in view of the continuing uncertainty on the commencement date of the EMS if he is reviewing the present exchange control regulations between this country and Britain in view of the complaints that investment capital is held up.
Written Answers. - European Monetary System.
156.
The introduction of exchange controls was necessary to counteract the possibility of speculative currency movements as a result of the decision of the UK authorities not to enter the EMS for the present. The delay in the start of EMS does not remove the need for the controls. The principal control measures are in respect of capital outflows. The measures in relation to inward movements of capital are merely designed to monitor possible speculative movements and they do not hold up the flow of investment capital into the country. As I indicated in my budget statement on 7 February, my Department and the Central Bank are keeping the operation of the controls under close review, bearing in mind the desirability of introducing relaxations whenever possible, consistent with the national interest.
157.
asked the Minister for Finance if he will make a statement on the latest developments in relation to the negotiations on the EMS.
The commencement of the EMS is still delayed because of the problem of dealing with monetary compensatory amounts in agricultural trade. Efforts to find a solution are continuing. The matter is to be discussed again at the meeting of the EEC Agricultural Council on Monday and Tuesday next, 5 and 6 March.