This Bill is a mere extension of the time upon which the old Act operated, with one consequential change in addition. It is a matter of no great consequence. If the House would be so indulgent, I would ask it to pass the Bill through all its Stages to-day.
SEANAD IN COMMITTEE. - TRADE LOANS (GUARANTEE) (AMENDMENT) BILL—FOURTH AND FIFTH STAGES.
AN CATHAOIRLEACH
There is nothing controversial in the Bill, and nothing that has excited any comment. Perhaps the House would agree to the request of the Minister, and if so, it would be necessary to suspend Standing Orders to dispose of the remaining stages.
I propose the suspension of Standing Orders.
Question put and agreed to.
I second.
Motion—"That the Bill be received for final consideration"—put and agreed to.
Could the Minister state what use has been made of the previous Act? Has it been utilised to any great extent, and have the difficulties created by the banks been overcome to any material extent?
The sum set aside under the old Act and continued by this Bill, is £1,000,000, divided in certain ways between the two types of guarantees that may be given. It is very difficult from day to day to state what is the amount of money involved, for there are four stages. The application has to be passed by the Advisory Committee. After that it has to be passed by my own Department; then it is further considered and has to be passed by the Minister for Finance, and finally an arrangement is made that the money is forthcoming on foot of a guarantee. Applications are received and recommended by the Advisory Committee. So many applications have been received that they will involve, if they pass the remaining stages, a guarantee by the State of £494,000, that is, nearly half the sum allocated under the old Act has been utilised. There have been difficulties, well known to the Seanad. These difficulties have been eased in two ways, one definitely by a new arrangement with the banks, and money is more readily forthcoming than it was; and there is on foot a project of a particular type of investment corporation which would still further ease the operation of the Act. The Act has been of considerable benefit, as will be understood by the fact that the money involved by way of guarantee is about half the sum under the old Act.
How much has the Minister passed?
There again I may get involved in difficulties. My Department has passed all the cases sent in by the Advisory Committee, but the Minister for Finance has not passed all these.
There are further cases in which recommendations have been made and passed by the Department of Industry and Commerce and the Department of Finance, in which, if they are told the applicant does not seem to consider it worth while to carry out the project on foot of which he gets the guarantee of money, it is impossible to give a statement as between all these things. The Senator will recollect that under the provisions of the Act which expires on the 31st July, there is to be a statement given to the members of the Oireachtas showing the state of things. That will be forthcoming sometime after the 31st July, and it will keep the Seanad up-to-date in its information.
The matter is of very great importance and should not be rushed. The Minister has referred to a new subject that has been introduced for the purpose of financing a company. I do not think the members of the Seanad understand what that company is or know anything about it. I happen to have seen the prospectus on the matter, and really it is not one which I think the members of the Seanad should consent to. It is the most unbusinesslike proposition I have seen. I have never seen anything so outrageous. The company was started with a certain nominal capital. Advances are made at the request of the Government.
AN CATHAOIRLEACH
Is this quite germane? This is, as I understand it, not a Government company.
The Minister made certain statements, and I want to let the House know what the statements are.
AN CATHAOIRLEACH
I do not think you should make statements that disparage a company on a discussion of a Bill which does not deal with the company at all.
I was only speaking of what the Minister said. I would not say a word about the company.
AN CATHAOIRLEACH
I thought you said they were outrageous.
The proposals which the Minister spoke of are outrageous. The guarantees would require a bank larger than a bank issuing notes in Germany at the time when you could buy 1,000,000 marks for a £. Repayment must be on a business basis. I do not think this country should antagonise the banks, which have done a great deal for the Government, and anything this House could do should be done in order not to antagonise the banking system of Ireland. If we lose our banks, we lose our whole credit system. I would not like the House to think that I was reflecting either directly or indirectly on any person or company. This is a thing which should be approached delicately. I think it has been approached in a wrong way.
Motion—"That the Bill do now pass"—put and agreed to.