asked the Minister for Finance if he has any estimates of the effect that high interest rates have had on unemployment.
Ceisteanna—Questions. Oral Answers. - High Interest Rates Effect.
19.
It is not possible to quantify the impact of interest rate changes on unemployment.
Has the Minister had representations on this matter from either the CII or the FUI, and if he has not does he know their views on this, on the effect of interest rates on employment?
First of all, our interest rate charges——
Do not answer a question I have not asked. It is as much out of order to do so——
Sorry, Professor.
Did the Minister get representations from the organisations I mentioned or does he know their point of view on this? I do not want him to make statements about anything else.
I think I am entitled to answer that question by putting some of the facts before the Deputy.
The Minister should answer yes or no.
I will answer as I see fit. I will put the factual situation on the record of the House. The prime commercial lending rate in the period from the end of April to the end of June 1980 was 18 per cent. From the end of October to date it is 14 per cent. That is a very substantial improvement. It would be impossible for me to quantify the impact of interest rate changes on unemployment because so many other factors have to be taken into consideration.
Does the Minister regard what he has just said as an answer to the question I put, namely, whether he had or had not had representations on this point from the CII or the FUE?
I have not had representations from the CII or the FUE.
Is the Minister aware of their point of view on this matter?
Of course I am aware of it but the Deputy should also take into consideration that there are many favourable aspects for industry here. Our corporation tax compares more favourably with our European counterparts. This is another cost factor for industry. We are now, I think, in fourth position with our interest rates and much lower than many of our European counterparts, which is progress.
With this Minister, as we can see from the fact that he actually delivers lectures to his European colleagues, anything is possible. There is no depth of impudence and ignorance to which he does not sink. Is it possible the Minister does not know that industry and business generally regard high interest rates as one of the prime causes for closures and redundancies over the last two years?
As I said, it is a contributory cost factor. I have also pointed out to the Deputy the improvement here in lending rates in a period over about nine months when it went from 18 per cent at the period end of April to end of June last year down to 14 per cent at present. That is a substantial improvement.
It took a very long time to answer the question.
If I were to receive a statement from the CII or the FUE to the effect that they had made representations about interest rates to the Minister, would I be correct in saying that the Minister misled the Dáil in what he said a few minutes ago?
Obviously.
Would that be hyperbole or exaggeration on my part? If I were able to produce to the Minister or to the public or to the House evidence that the CII or the FUE, or both of them, had made representations on this point to the Minister, would it be correct to say the Minister had misled the House just now?
I have always been available to the FUE and the CII. I have had meetings with them and that point was not raised at any of those meetings.
Question No. 20 is for written reply.