He also mentioned several matters arising out of our entry into the EMS. He made the point that we are tied to British markets. However, in negotiating this borrowing we want to go beyond the London markets and avail of the benefits which will accrue in time from the operation of the EMS.
Deputies will appreciate that it takes time to bring these welcome developments about. The Deputy also mentioned the provision of guarantees and referred to the reference in my speech. Nowadays more and more guarantees are being sought. However, as guarantees represent a liability contingent for the Exchequer we are slow to respond automatically to guarantee demands. However, if it is shown to my satisfaction that there is no alternative but to avail of loans which require guarantees then naturally we do not raise objections. I would stress again that the borrowing which is the subject of this Bill is for productive purposes. The Deputy also raised the question of future policy regarding the exchange risk, and suggested that the foreign exchange risks should be assumed by the Exchequer in future similar cases. It would not be proper for me to discuss this matter at this stage. Future policy would have to depend on our assessment of prevailing conditions at the time.
In relation to hotels finance, which was also raised by the Deputy, the Deputy will be glad to hear that the Industrial Credit Corporation have been active in this area and loans of approximately £6 million have been approved by the Industrial Credit Corporation in their financial year ending 31 October 1979. Since November 1978 further EIB loans of £5 million and £10 million have been negotiated by the Industrial Credit Corporation for the benefit of investment in small industries. I am sure the Deputy will welcome this.
I take note of the suggestion regarding the Shipping Finance Corporation Limited and Mergers Limited about the need to keep the House fully informed. These companies are wholly-owned subsidiaries of ICC and as such are subject to the overall regulations of that company. In relation to the control of monopolies this is a function of the Minister for Industry, Commerce and Energy and he is quite active in that field.
I thank Deputy Horgan for his constructive contribution. In regard to his point that ICC money and other public money is being recycled into profits, I would like to inform him we must not forget, as he acknowledges that this money creates jobs and leads to more investment.
On the question of the length of interval at which ICC matters are discussed in the House I would inform Deputy Horgan that the ICC will appear before the Joint Oireachtas Committee on State-Sponsored Bodies early in the new year. I am sure we will have an opportunity to bring some of the Deputy's points to their attention.
The purpose of the Bill is to consider the provision of much needed credit for industry by the ICC. I assure the Deputy that the functions of the ICC are continuously under review in my Department, and we will take any decision consistent with policy to develop industry and to ensure that all aspects of industry are adequately financed. As Deputies know, the ICC is one of the most successful bodies here and they are to be commended on their activities. Our congratulations on the wonderful work and dedication of the management and staff of that body should go out from this House.
