asked the Minister for Finance if he intends to allow the associated commercial banks to charge interest on overdrafts outstanding during the banks dispute; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Bank Dispute.
104.
The banks have announced that they propose to charge interest on overdrafts outstanding during the period of the dispute.
Since persons having overdrawn accounts had the use of the money they obtained from the banks, it would not seem unreasonable that they should be charged interest. In various cases the banks' customers would not have been able to reduce their overdrafts, or to reduce them appreciably. In so far as persons concerned had cash or other instruments negotiable during the dispute, they could have earned interest on the funds by lodging them in one of the deposit taking institutions not affected by the closure. The indications are that this has been done in many cases and these persons now have earned interest available to set against bank interest charged to them.
The circumstances would, of course, vary from cases to case. If there should be bank customers who are dissatisfied for good reason with the basis on which interest is charged on their accounts, it will be open to them to make representations to their banks. I understand that the banks will consider such representations sympathetically.
I am keeping the situation under review.
Can the Minister say what is the position of persons who had fairly substantial sums in current accounts on the date the banks closed and could do nothing about them since? Will they get any consideration by way of interest on the money which was tied up?
The question relates to interest on overdrafts.
I know, but this is tied up very much with it.
I think this is a different matter.
That is a separate question.
105.
asked the Minister for Finance if he will make a statement on the profits earned by the associated commercial banks during the recent banks dispute.
I have no information regarding the profits earned by the Associated Banks during the period of the recent dispute. The accounts published by the banks related to the calendar year and information regarding profits earned in 1970 will not be available before next year.
I would point out that, under the proposed prices and incomes legislation, dividends payable by the banks will be subject to control; that is, they will be restricted to the rate paid in the preceeding year or the average for the previous three years, whichever is the greater.