asked the Minister for Finance if he will state whether he has considered the suggestion, made at the annual meeting of the Cork Savings Bank, that local savings should, as far as possible, be invested locally, and, if so, what are his intentions in regard to the matter.
Ceisteanna—Questions. Oral Answers. - Investment of Savings.
The uses to which local savings are put are, of course, determined primarily by the savers themselves who are free to invest in local enterprises or such local securities as may be offered from time to time. So far as the suggestion to which the Deputy refers relates to the investment of savings deposited with savings banks, I may point out that these deposits contribute to the total of small savings which is drawn upon year by year by the State for the financing of national development projects. The arrangement ensures that capital is made available where it is needed and at the same time provides the individual with absolute assurance of immediate repayment of his deposit. To make local development exclusively dependent on the accrual of local savings would hamper national development and throw away the advantages of the present system whereby every locality contributes to, and receives assistance from, the national pool of savings. It is not apparent that it would be to the interest of any particular locality to seek financial autonomy and abandon its claim to participate in the national distribution of resources.