asked the Minister for Finance the financial limits on investment abroad by individual Irish investors under exchange control regulations as presently constituted.
519.
Written Answers. - Exchange Control Regulations.
518.
asked the Minister for Finance if he considers that if Irish workers in American companies in Ireland were allowed, through controlled procedures and amounts, to invest in a managed unit trust comprised of shares in the US parents of these Irish subsidiaries, this would facilitate American investment in future US market flotation of emerging Irish corporations and if he will make a statement on the matter.
520.
asked the Minister for Finance if he considers that the fact that under current Irish exchange control regulations there cannot be any on-going participation by individual Irish investors in the US public market for the Institute of Clinical Pharmacology shares reduces American investor confidence and if he will make a statement on the matter.
521.
asked the Minister for Finance if he considers that the fact that under Irish exchange control regulations there cannot be any on-going participation by individual Irish investors in the US public market for the Institute of Clinical Pharmacology shares, results in a situation where Irish nationals and other residents are denied spontaneous access to an investment, the shares and profit potential of which owe their existence to his support through the Enterprise Development Programme.
I propose to take Questions No. 518 to 521, inclusive, together. Under the exchange control regulations, which are designed to protect the external reserves, investment in stocks and shares abroad is, in general, restricted. However, securities issued by EC institutions may be purchased under special arrangements, and other foreign securities may be purchased as follows:
—by individuals and institutions, using the proceeds of sale of existing holdings of such securities;
—by insurance companies and pension funds, within limits which are settled annually;
—by individuals and institutions, where the purchase is financed by foreign borrowing.
I might mention that, in addition to the above possibilities for purchase of securities, the Central Bank permits Irish employees to acquire shares in their firm's parent company abroad under employee share option schemes. Also, under a scheme I introduced last year, Irish venture capital companies may obtain permission to take up shares in foreign companies establishing subsidiaries in Ireland, provided that the funds concerned are retained here for investment in the subsidiary. It will be clear from the foregoing that the controls do allow scope for foreign investment. I have no evidence that they are adversely affecting confidence in Irish firms who may issue shares in the USA.