asked the Minister for Finance if he will state the considerations which caused the Government to agree that payments between this country and other European countries which are members of the European Payments Union, should continue to be effected through the Bank of England instead of through the union.
Ceisteanna—Questions. Oral Answers. - European Payments Union.
Payments between this country and other members of the European Payments Union are brought to account through the union as transactions of the sterling area. The procedure is in accordance with the European Payments Union Agreement, which contemplates that monetary areas should be dealt with as units, and, in existing circumstances, it is considered preferable to any alternative arrangements for settling payments with European countries, as these would entail considerable administrative difficulty and expense without compensating advantages. The position of the Irish Government was stated in the form of a reservation, in the following terms to signature of the agreement:—
"In the existing circumstances, as Ireland is a member of the sterling area, the provisions of the present agreement require no specific action by her and signature of the present agreement on her behalf is subject to the understanding that its operation will not modify the existing arrangements governing payments between her and the other contracting parties."
Can the Minister say if it is intended that this agreement will be submitted to the Dáil for approval?
I do not know whether it is one that should be.
I will give notice of the question.
I should have thought it was not.
asked the Minister for Finance if he will state whether the Government considers that the principles of commercial policy to be applied by and between members of the European Payments Union set forth in chapter 4 of the document approved by the Council of O.E.E.C. at its 102nd meeting on 6-7th July, 1950, entitled "Rules of nondiscrimination" require the Government to make any changes in existing import duties which provide for preferential rates; and, if not, why not.
The principles of commercial policy referred to by the Deputy are concerned with the elimination of discrimination as between countries which are members of O.E.E.C. in respect of imports of any products subject to quantitative restrictions and they do not require the Government to make any changes in existing import duties which provide for preferential rates.
asked the Minister for Finance if he will state what functions, if any, are imposed on the Central Bank by the agreement for the establishment of a European Payments Union.
No new functions are imposed on the Central Bank as a result of the agreement for the establishment of a European Payments Union.