(Cavan-Monaghan) asked the Minister for Finance if his attention has been drawn to the increase in bank interest rates and in view of the serious implications for the economy and the cost of living, the action the Government intend taking in the situation.
Ceisteanna—Questions. Oral Answers. - Bank Interest Rates.
20.
The answer to the first part of the question is in the affirmative. As regards the implications for the economy and the cost of living, I propose to refer to these matters in the course of the debate which has been arranged for tomorrow.
(Cavan-Monaghan): Before the increases were announced, did the Minister make any approach to the banks about the increases? I ask him also whether the speech made by the Minister for Industry, Commerce and Tourism in Limerick represents Government thinking on bank interest and, if so, what action he proposes to be taken. Finally, will the Minister take steps to ensure that the increase in bank interest rates will not be passed on to house purchasers in the form of mortagage interest increases?
Most of the matters referred to by the Deputy will be covered in the course of the special debate which has been arranged for tomorrow. As far as one point is concerned, I can tell the Deputy that I had, as is customary with Ministers for Finance, consultations with the Governor of the Central Bank.
When?
Before the announcement of the increased interest rates, which has been the custom.
Could the Minister say how long before? That is what I am trying to pin down.
We have offered the Opposition a debate on this.
I asked the Minister when.
(Cavan-Monaghan): The boy is able to handle all right.
The Chair is concerned that we do not take up the time of the House with debate.
Would the Minister answer that question?
It was within the normal pattern of consultations. If the Deputy would consult with his own colleagues who were formerly in this position he would be aware of what the pattern is.
Is the Minister telling me that I should address to—I presume he means Deputy Richie Ryan—a question that I am now addressing to him as Minister for Finance?
If the Government of which the Deputy was a member were interested in this issue he would have been aware what the pattern is.
There are more people in this House than were members of any Government. I am asking on behalf of those how long before the increase took place the Minister consulted with the Director of the Central Bank.
Within days of the announcement.
Not weeks?
Not weeks.
Is that the record of the House, it was within days?
(Interruptions.)
I said with the Governor of the Central Bank. Let us not misrepresent what I have said.
Was it within days of the announcement to the public and not within weeks as was indicated in the press?
We are having a lot of argument.
(Cavan-Monaghan): Would the Minister tell me now whether the speech made by the Minister for Industry, Commerce and Tourism in Limerick represents Government thinking on this point? He seemed to make a very positive statement about the matter.
The Government are very much concerned about the impact of any increase of this nature, which is in line with patterns elsewhere, and we will deal with that tomorrow. We are very much concerned, as the Minister for Industry, Commerce and Tourism indicated, about the impact of these on employment both in industry and agriculture. The Government are very much concerned about that and the Minister for Industry, Commerce and Tourism was expressing the Government's view on that matter.
(Cavan-Monaghan): The Minister for Industry, Commerce and Tourism seemed to be suggesting that something should be done about it. Is the Minister going to do something about this?