asked the Minister for Finance the present members of the board of the Central Bank; if, in view of the fact that the Central Bank is the supervisory agency for the commercial banks, he considers it appropriate that persons who are directors of commercial banks should also be on the board of the Central Bank; if there are any plans to change the role or structure of the Central Bank; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Board of Central Bank.
5.
The present members of the Central Bank board are given in the statement, which will be circulated in the Official Report.
The presence on the board of two banking directors is in accordance with present legislation.
As regards the Deputy's question about plans to change the role or structure of the Central Bank, new legislation is being prepared and will be presented to the Oireachtas as soon as possible.
The present members of the Central Bank Board are: Mr. Maurice F. Doyle; Mr. Seán P. Cromien; Mr. Vincent A. Ferguson; Dr. Liam St. John Devlin; Mr. R. Ian Morrison; Mr. John F. McHenry; Mr. Stephen O'Connor; Mr. Bernard E. Somers; Dr. Dermot F. McAleese.
I note the Minister says that there are two banking directors at present on the board of the Central Bank. Is the Minister satisfied that the Central Bank can live up to their obligation under the provisions of the Central Bank Act, 1942 in what pertains to the control of credit, that their dominant aim should be the welfare of the people as a whole when some directors on the board are banking directors, business directors and others, whose interests are being pushed within the Central Bank? In that case can the Minister say how the Central Bank can live up to that Central Bank Act directive?
I can assure the Deputy that there is absolutely no evidence to suggest that there is any such conflict between membership on the board of two banking directors and the overall role of the board of the Central Bank.
Is the Minister satisfied that in issues such as the disastrous ICI collapse — even prior to the collapse of the ICI — in which the AIB were directly involved and who had a director serving on the board of the Central Bank, the Central Bank were not influenced in any way in their decisions by that fact? Prior to the collapse of the ICI is it a fact that the Central Bank were not aware of what was going on, which leads one to pose the question whether they were properly fulfilling their watchdog role or were influenced by the fact that an AIB director was serving on their board?
No, I do not accept at all that they were so influenced. That was a matter for the Government of the day.
Would the Minister then consider having a director serve on the board of the Central Bank who would represent the interests of workers, salarywage earners, whose moneys the associated banks are using? Would the Minister consider having such people represented on the board?
As I said, legislation is being prepared and will be introduced shortly. All aspects of the Central Bank are under review within the context of that impending legislation. All relevant matters will be examined in that context.