asked the Minister for Finance the proportion of Irish national reserves that were held in gold in the years 1969 to 1973 inclusive; and if he will make a statement on the Government's attitude to the restoration of gold as a major means for settling debts between nations which is at present under discussion between the Finance Ministers and the heads of central banks of the Common Market.
Ceisteanna—Questions. Oral Answers. - Irish Gold Reserves.
42.
The proportion of Irish official external reserves held in gold at 31st December in the years 1969 to 1973 was: 1969, 5.6 per cent; 1970, 2.3 per cent; 1971, 1.7 per cent; 1972, 1.6 per cent; 1973, 1.7 per cent.
In the discussions on international monetary reform in the Committee of Twenty of the International Monetary Fund and between the EEC Finance Ministers, in which I have participated, it has been generally agreed that the role of gold in the monetary system should be reduced. At the same time, it is recognised that gold is at present a significant component of total reserves and that arrangements are needed to enable countries to use gold to finance balance of payments deficits. I am in favour of such arrangements provided they are in keeping with the objective of reducing the role of gold.
May I take it that the Minister would agree the statement in this question to the effect that the EEC countries had agreed to the restoration of gold as a major means of settling debts between nations is not correct?
I think it would be an over-statement of the position. The EEC Finance Ministers considered the position of gold in the international monetary field and decided that in present circumstances it would be desirable to unfreeze those stores of gold which have remained frozen notwithstanding the right of central banks to dispose of gold on the market. Following the meeting at Zeist, consultations have taken place with non-EEC countries to see if a general pattern of agreement could be obtained to unfreeze the gold. One simple objective would be—I think there is general consensus about this—that the position of gold would be diminished rather than increased.
The Minister would want to be careful that Deputy Flanagan has not a hot line of his own.