asked the Minister for Finance whether he is aware that the rates of interest charged on money borrowed by the State, by local authorities, and by State companies engaged in work of national development are excessive having regard to the fact that the State is the ultimate source of all money in circulation, and if he has considered to what extent these excessive interest rates affect the high cost of housing, electricity, turf, transport and other essential services; and, if so, with what result.
- Interest Rates.
I am not aware that the rates of interest on State borrowings are excessive or that the State is the ultimate source of all money in circulation. The second part of the question does not, therefore, arise; but I might point out that State aid for local authority housing is, in effect, equivalent to the provision of interestfree loans, that rural electrification is being relieved by the State of half the relevant interest and other capital charges, that advances for turf development are, in the initial five-year period, free of interest and, as regards transport, that the State has made large subventions to Córas Iompair Éireann to cover interest payments and operating losses.
Might I ask the Taoiseach, if the State is not the ultimate source of paper money, what is the source or on what authority is paper money issued?
At this stage I must ask the protection of the Chair. Questions, I understand, are not allowed for the purpose of eliciting matters of opinion.