asked the Minister for Finance if he will elaborate on his statement made at a Stock Exchange dinner on 6th November, 1969, in which he referred to a possible necessity for taking some type of corrective measures; and what type of measures are most likely to be taken should such necessity arise.
Ceisteanna—Questions. Oral Answers. - Statement by Minister for Finance.
34.
In the speech to which the Deputy refers I pointed out that whether corrective measures could be avoided would depend in large part on the outcome of the renewed discussions which the Minister for Labour and I would be holding with the Irish Congress of Trade Unions and the Federated Union of Employers this week. I emphasised that it would be this outcome which would determine the framework within which economic policy would be decided in the months ahead. These statements hardly require elaboration. It will be obvious to the Deputy that the future course of incomes is of crucial importance in determining the levels of consumer spending and industrial costs, two factors which are intimately connected with the rate of increase in prices and the size of the balance of payments deficit. If, therefore, future developments on the incomes front were such as to threaten the economy with an unsustainable balance of payments deficit, corrective measures would have to be taken to ensure that the longterm growth prospects of the economy were not seriously impaired.
The type of corrective measures required would depend on the nature and seriousness of the situation requiring correction.