asked the Minister for Finance where the moneys required to meet capital expenditure were obtained by his Department during the long closure of the commercial banks, in view of the fact that he had to obtained two credits amounting to £50 million from those banks during the financial year 1969-70.
Ceisteanna—Questions. Oral Answers. - Capital Expenditure.
25.
In common with all other accounts held in the commercial banks the account of the Exchequer could not be operated during the banks closure and it was not possible to make any issues from the Exchequer. In general it was not found necessary to make capital payments during the closure but money was provided for such essential payments as wages, salaries, social welfare payments and the servicing of foreign debt by borrowing temporarily from sinking funds, the savings certificate reserve fund and particularly from the savings banks' fund which received considerable additional deposits from the public during the period. These borrowings, which have since been repaid, amounted to some £110 million up to the delayed value date.
In regard to this £110 million, I do not understand how this transaction was effected. You borrowed from sinking funds. There had to be some financial transaction. I do see that the Exchequer, like the rest of us, wrote cheques for which there was really no money. This is quite obvious. I do not understand the machinery of this transaction which the Minister has described in such abstruse language.
Some of the transactions concerned, particularly those in relation to capital, were, as the Deputy said, financed by cheque but a great deal of cash was also issued, in effect, from the Central Bank which in turn was secured by ways and means advances from the Exchequer. As I pointed out the total amount was in the region of £110 million and it has since been repaid.
That is still not answering the question.
I understand the Minister's answer now.
The Deputy should explain it to the Minister as he does not understand it.
(Interruptions.)
The Minister was looking at his brief wondering what in the name of God it was all about.
If the Deputy does not understand, I am sorry. Perhaps Deputy O'Donovan would tell him.
We will meet in the restaurant afterwards and the Minister can bring his brief with him.