asked the Minister for Finance if he will state whether or not any of the assets of the Central Bank are invested in Irish securities; and, if so, the nature and amount of such securities and the rate of interest which such securities yield.
Ceisteanna—Questions. Oral Answers. - Central Bank.
The major part of the assets of the Central Bank is held in the Legal Tender Note Fund where, in accordance with the law, investment is limited to British Government securities. The information required to be furnished by the Central Bank in the accounts of the general fund is prescribed by statutory Order and does not extend to the publication of the details of any securities held.
Will the Minister say in what way the Central Bank is constrained by law to invest all its funds in British Government securities?
I think the Deputy will remember that in 1927 the Currency Act was passed, and that it was amended by Section 2 of the Currency (Amendment) Act of 1930. Under these Acts, subsequently amended by the Central Bank Act of 1942, a limitation is imposed as to the securities in which the resources of the Legal Tender Note Fund may be invested.
Will the Minister not agree that the Act was so amended in 1942 as to open the door wide to the directors of the Central Bank to invest in Irish securities?
I am not so certain that it opened it wide. However, in relation to the Legal Tender Note Fund I am perfectly certain that if the position is as the Deputy has described it, it was open to him to try and amend it.
Is it not a fact that the door was so opened by the 1942 Act that the Minister's answer is quite incorrect and misleading?
No.
May I ask the Minister, in view of his reply, whether he is prepared to take steps to ensure that in future the assets of the Central Bank will be invested, at least in part, in Ireland?
That question does not arise.
asked the Minister for Finance whether he is prepared to request the Central Bank to furnish a report of its "proceedings" for the year ended the 31st March, 1951, in pursuance of the provisions of Section 36 (1) of the Currency Act, 1927 (No. 32 of 1927) as adapted by Section 11 of the Central Bank Act, 1942 (No. 1922 of 1942).
The report referred to has already been furnished to me and I have presented it to each House of the Oireachtas in accordance with the provisions of the statutes mentioned in the question.
I take it the Minister has read the section under which this report is made. Does the Minister not consider that, though the report contains a lot of advice which has been rejected by all Parties, it does not give a report of the proceedings of the Central Bank? It is silent upon the one topic on which it is supposed to make a report.
It is supposed to give detailed data as well. It is supposed to give every piece of information which it thinks it right the public should have in its view for the safeguarding of the currency.
My whole submission is that this report is made under Section 36 (1) of the Currency Act, and that the only duty cast on the bank is to give a report of its proceedings— not advice—and that it has not given a report of its proceedings. Will the Minister now ask the Central Bank to give a report of its proceedings?
The Central Bank has furnished a very full and exhaustive report of all matters with which it is concerned.
That is not true.
Does the Minister not consider, with reference to meetings of the Central Bank, that a record of the business transacted at these meetings is part of the necessary data to be incorporated in the report of the proceedings of the bank? We do not know if the directors ever even met.
They met to tear up the £ notes.
asked the Minister for Finance if he will give particulars of how the sum of £161,699, described as the expenses of the Central Bank for the year ended the 31st March, 1951, was expended, stating the amount expended (a) in Ireland; (b) in salaries; (c) in rent; (d) in printing, and (e) in brokerage fees.
The information required to be furnished by the Central Bank in the accounts of the general fund is prescribed by statutory Order and does not extend to the publication of the details mentioned at (a), (c), (d) and (e) of the question. As shown in the accounts presented to Dáil Éireann, the sum mentioned includes £41,077 in respect of salaries, wages and other remuneration.
Surely the Minister does not decline to give information as to how much of this money is spent in Ireland and what it is spent on. Does he say that the Central Bank is not responsible to this House?
The difficulty about the Deputy is that he does not understand the Central Bank Act. He does not appreciate that the Central Bank is an independent institution. I know that he has desired to bring it under his authoritarian control in the past.
May I ask the Minister whether it is the policy of the Government to conceal information which this House is entitled to have in relation to the finances of this country, and if it is his purpose and the desire of the Government to conceal that information?
The Deputy is pursuing his tactics of imputation by innuendo in this House. He himself has said that innuendo is the lowest form of lie. The Deputy made certain definite charges in relation to certain procedure before 1948, and he ran away from them.
May I ask the Taoiseach if he stands over the refusal to supply information to this House?
There is no refusal to supply to the House the information it is entitled to get. As has been pointed out, the Central Bank was deliberately set up by statute as an independent body with independent responsibility. It is entitled to give its views on any matter that affects directly or indirectly the control of credit or the integrity of the currency, and in doing so it is carrying out its duties. We, on the other hand, have the right, as the people who are responsible for public policy, having examined these views, to decide for ourselves on the information that is presented to us and to everybody else. Any information with regard to the finances of the country which is within the power of the Minister for Finance to give will be forthcoming.
I am afraid the Taoiseach has misunderstood the question about which this controversy arose. I asked how the £161,699 described as the expenses of the Central Bank was made up, and how the Central Bank spent this money during the year. I respectfully submit that the House is entitled to that information.
It was contained in the report and accounts, or it can be elicited by a separate question.
That is my question. There is no information in the accounts beyond the fact that they spent £161,699.
The Deputy can ask for the information. If it is proper to give it, and if it does not impinge on the prerogatives of the Central Bank, he will get it. If the Central Bank thinks that this is information which it is not called upon to give and we, nevertheless, consider that it is of such public importance that we should get it, we can insist upon our view and make it effective—if necessary by legislation.
That is the information I am seeking in the House, and that is the information which has been withheld deliberately by the Government.
asked the Minister for Finance if he will state the number of meetings of the directors of the Central Bank which were held during the year ended 31st March, 1951, and the average number of directors present at such meetings.
I am not entitled to the information asked for in the question but, by courtesy of the board of the Central Bank, I learned that the number of meetings of the directors held during the year ended 31st March, 1951, was 49 and the average attendance was seven. I should explain to the House that the meetings were held under statutory regulations which were in operation under the previous Government.
The Minister is inclined to make a public speech when he is asked a simple question.
I do not mind what Government was in power but, bearing in mind the Minister's reply, it is amazing that we could not give the old age pensioners their 2/6.