asked the Minister for Finance if he is aware that private traders and manufacturers are at the moment severely handicapped by lack of banking accommodation; and what steps he has in mind to remedy this situation.
Ceisteann—Questions. Oral Answers. - Banking Accommodation.
37.
Taking manufacturers first, the position is that, as I have stated on a number of occasions, the guidelines issued by the Central Bank to the commercial banks provide that priority be given to productive projects, particularly the production of goods for export. I am satisfied that this is being done.
The Central Bank has, however, asked for restraint in the provision of credit to finance consumption expenditure and as a result private traders importing or selling consumer goods may not be able to get all the credit they would like. This is to be regretted but, given that the demand exceeds the available resources, it is inherent in the policy of priority for productive projects that other sectors may not be able to get all the credit they desire. It is the primary aim of credit policy, as of budgetary and incomes policies, to secure the largest possible increase in production and employment compatible with a tolerable external payments position and the avoidance of excessive price increases. I am confident that this is a sound policy.