asked the Minister for Finance if he will state if the Government are in favour of reducing interest rates on long-term Government borrowing; and, if so, what steps the Government proposes to take to bring about an effective reduction in interest rates on long-term Government borrowing.
Ceisteanna—Questions. Oral Answers. - Interest Rates.
All borrowers wish to obtain their requirements as cheaply as possible but satisfaction of their wishes depends on the co-operation of lenders which, in turn, depends on two fundamental factors: the extent to which resources are available for lending and the comparative attractiveness of alternative methods of disposing of such resources. The scope for Government action to reduce interest rates is limited by these factors, in other words, by prevailing conditions in the capital market, as well as by the responsibility of ensuring financial stability in the sense of a reasonable balance between the amount of savings obtainable voluntarily from private sources for Government use and the extent of Government spending in excess of current revenue.
Can the Minister state whether he was consulted before there was an increase in the bank rate and before the reduction took place in the bank rate recently?
That is a different question.
It is not, I submit.
It does not arise out of this. It is a separate and distinct question. If the Deputy wants to put down a question in regard to that matter, he will get an answer.
The question relates to rates of interest and it seems to me that a reduction in the bank rate would have a considerable influence on the rate of interest.
The question refers to long-term Government borrowing.