asked the Minister for Finance if he will state whether payments made between this country and other European countries which are members of the European Payments Union, are effected through the Bank of England; and, if so, when this agreement was made and by whom the agreement was ratified on the part of the Government.
Ceisteanna—Questions. Oral Answers. - E.P.U. Payments.
Payments between this country and the other European countries which are members of the European Payments Union are not as individual transactions effected through the Bank of England. Such payments are brought to account through the Union as transactions of the sterling area. The procedure is set out in detail in reply to a parliamentary question on 29th November, 1950.
The net balance in respect of payments between Ireland and the non-sterling members of the European Payments Union is included in the periodic settlement by the Bank of England on behalf of the sterling area as a whole through the clearing mechanism of the Union as operated under the agreement. Owing to the present deficit position of the sterling area with the non-sterling members of the Union the periodic settlement is made by the Bank of England in gold or otherwise in accordance with the agreement.
The agreement was singed for the Republic of Ireland by the Ambassador at Paris on the 19th September, 1950, subject to the following reservation:—
"In the existing circumstances, as the Republic of 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."
The agreement did not require any ratification other than signature by a plenipotentiary duly empowered. As it did not involve a charge on public funds, approval by Dáil Éireann under Article 29.5 of the Constitution was not necessary.