Vol. 314 No. 2
asked the Minister for Finance if he is aware that citizens of the Republic of Ireland now encounter severe difficulties in having Republic of Ireland currency and cheques cashed in Northern Ireland and Great Britain and if he will make a statement to clarify the matter.
177.
asked the Minister for Finance if he is aware of the grave difficulties being experienced by business firms, traders and casual shoppers as a result of the break with sterling; that firms who entered into agreements to purchase and import goods are being forced to pay substantially more because the contracts were negotiated in sterling; that apart from the loss in the exchange rate there is a 35p transfer fee being charged on each business transaction; that firms dealing with Northern Ireland business fear financial difficulties as a result; and if he will make a statement on the matter.
178.
asked the Minister for Finance if he is aware that (a) Republic of Ireland citizens, particularly in Border areas, who traditionally have had their banking accounts in Northern Ireland banks, are being asked to transfer their accounts to a branch of the same bank in the Republic; (b) where the account is overdrawn customers are being charged the difference in the exchange rate causing further financial stress on business and industrial customers; and if he will make a statement on the matter.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 176, 177 and 178 together.
I do not accept that the situation is as represented by the Deputy. A small number of reports of difficulties in cashing Irish notes and cheques abroad have come to my notice. These are being looked into.
Imports and other transactions denominated in sterling at present cost somewhat more in terms of Irish currency but there would be corresponding gains in respect of exports. Since December last forward cover has been available in respect of sterling transactions directly related to the movement of goods and services.
I am not aware that the banks are charging a 35p transfer fee on each business transaction. Since 2 April 1979 the Associated Banks, with the agreement of the Central Bank, have applied to Irish pound-sterling operations the charges normally applicable to foreign exchange business. I am advised that similar charges are made by the banks in the North. The actual charge in a particular instance would depend on the service rendered and the amount involved.
Overdrafts on bank accounts in Northern Ireland and Britain would normally be denominated in sterling. At present, interest and repayments on such overdrawn accounts would cost more in terms of Irish currency because of the exchange difference. The transfer of an account from a bank branch in Northern Ireland to a branch in the State would not affect the liability as expressed in Irish currency. In this connection, I would point out that, under exchange control, Irish residents were required to close bank accounts in Northern Ireland and Britain and repatriate the proceeds by 18 March 1979 unless permission had been obtained from the Central Bank to retain the account. Without such permission an account may not now be maintained with any bank or financial institution outside the State.
Some problems were to be expected arising out of the discontinuance of the one-for-one exchange parity between the Irish pound and sterling. I have no evidence that they are general or widespread and I am satisfied that they will disappear as people adjust to the new situation.
