asked the Minister for Finance if he is aware that present Government financial policy has led to a lack of banking accommodation for farmers, industrialists and others who are trying to increase production, with a consequent recession in trade; and what steps he proposes to take to improve the position.
Ceisteanna—Questions. Oral Answers. - Bank Accommodation.
8.
In reply to the debate on the motion on the Report of the National Industrial Economic Council on the Economic Situation, 1965, I expressed the Government's policy regarding the need for restraint on credit expansion and public expenditure.
The advice of the Central Bank was to the effect that in moderating the rate of expansion of credit, the banks should give priority to productive purposes and particularly to purposes related directly to the expansion of exports. I do not accept the Deputy's suggestion that there has been a recession in trade since exports since May last have increased by £9.8 million and imports by £6.2 million. I would point out that, as indicated in the White Paper on Public Capital Expenditure, additional finance has been provided by the Government in the current financial year for the purpose of providing credit for agriculture and industry through the Agricultural Credit Corporation and the Industrial Credit Company.
The Government took back what the Agricultural Corporation received in deposits.
The deposits go towards easing the public capital bill.
They took it from agricultural credit in Ways and Means Advances.