asked the Minister for Finance if he will, in the national interest, introduce amending legislation to provide for a nominated representative of his Department and an elected staff representative on the board of each commercial bank and on the board of each bank holding group.
Ceisteanna—Questions. Oral Answers. - Bank Board Representation.
45.
I am not prepared to introduce amending legislation for the purpose the Deputy has in mind.
Would the Minister not agree that the introduction of such a statutory provision would bring about a much-needed State influence over the monetary and personnel problems of the commercial banks? More particularly would he agree that the introduction of such staff on the very limited basis proposed on to the boards of these banks would be conducive to effective joint consultation in the industry?
As regards control for fiscal or economic purposes this is at present exercised through the Central Bank. The Deputy will be aware that there is a Central Bank Bill on the Order Paper with which I hope the Dáil will deal next session which will strengthen even further the control from that point of view. As regards the question of joint consultation or better personnel relations it has yet to be demonstrated that the method suggested by the Deputy would achieve the aims he has in mind in that regard.
Would the Minister accept that the influence of the Central Bank over the commercial banks has not been particularly conspicuous since the 30th April, 1970, or indeed in many aspects of their operations, and therefor would he not accept that this practice of having nominees from the Department of Finance on the boards of the commercial banks, which is a fairly universal practice—it is common particularly in Scandinavian banks—is not unconventional? I would ask him to do no more than to exert the alleged influence of the Government?
I think I have already dealt with that question.