andMr. T. O'Donnell asked the Minister for Transport and Power if his attention has been drawn to a report that a British air company (name supplied) acting with considerable foresight were able to save themselves a substantial sum of money by the prompt action of the Chairman in purchasing American aircraft immediately prior to devaluation of the pound sterling; and why similar action was not taken by Aer Rianta.
Ceisteanna—Questions. Oral Answers. - Purchase of American Aircraft.
1.
According to reports I have seen, the company in question purchased dollars for which they already had official foreign exchange approval in respect of aircraft already ordered and delivery of which was imminent. No such circumstances applied in the case of the Irish air companies.
Could the Minister say why the Irish air companies could not have made rapid dispositions, in the light of the fact that sterling devaluation appeared imminent?
Because payments allowed for airlines for planes that had been ordered relate to time scheduling on a very definite basis and it would not be for me to instruct the airlines to speculate on the sterling position.
Would the Minister not agree that, if the deal had been finalised, a considerable amount of money would have been saved to the State and to the company?
There was no money owed at the time to an American airline.
There was an actual deal, in fact, which was not finalised.
There was no payment due of the kind to which the Deputy refers.
Is the plain fact not that a State-run board has not the intelligence or the enterprise to make provision against future payments while any sane private company dealing in sums of this magnitude take precautions against currency fluctuations?
You cannot do that. It is against the regulations.
Could they not apply to you for permission?
They could apply only for a particular payment.
Yes. Could they not apply to the Minister for Finance? I can only ask the Minister for Transport and Power the question. The Minister for Finance usurps his function to reply. Was it not perfectly open to the State board to make suitable representations to the Minister for Finance to get permission to purchase forward dollars to provide against the contingency of any devaluation arising, in view of the magnitude of the expenditure they were undertaking, and are not such transactions of daily occurrence in the City of London by mercantile companies?
It would be a breach of the regulations.
If Deputy Dillon and Deputy Esmonde had displayed as much foresight as they are now displaying hindsight, would they now be at the left-hand of the Chair?
You are retired, too, remember: ancient monument.
Order. Question No. 2.