Vol. 407 No. 2
13 Tomás Mac Giolla asked the Minister for Finance if he has any plans, in future appointments, to make the board of the Central Bank more representative of the community as a whole in view of the major influence that the bank have over economic developments; and if he will make a statement on the matter.
The board of the Central Bank are not appointed on a representative or sectional basis. Nonetheless, the composition of the board, reflects a reasonable balance of persons drawn from different aspects of the commercial and financial life of the community. As the Deputy is no doubt aware, the Government have made important changes in the legal provisions governing the composition of the board in the Central Bank Act, 1989, by increasing the size of the board and by removing the statutory requirement that two of the directors must be directors of an associated bank.
Would the Minister agree with the Milton Friendman dictum that regulatory bodies set up to monitor private institutions end up being the captives of the very institutions they are supposed to be monitoring? With regard to recent controversy concerning interest rates between the Minister and the Central Bank, has the Minister ever considered calling in his nominees to the board of the Central Bank to ask them to represent his point of view having regard to the fact that regrettably from the point of view of mortgage holders and business, he is so ineffectual in having his way with the Governor of the Central Bank?
The Deputy seems to enjoy this assertion that I am not having any success. I have no intention of accepting the Deputy's allegations calling into question the integrity of the members of the board of the Central Bank. The members represent a point of view. The fact that they come from the private sector does not add up to the conclusion Deputy Rabbitte seems to come to, that they represent a narrow sectional view of the operations of their obligations under the Central Bank Act. I said on many occasions that Irish economic activity can be progressively advanced by the lowest possible inflation rates and the lowest possible interest rates that are appropriate and prudent as the Central Bank see fit.
Question No. 14.
A Leas-Cheann Comhairle——
A Leas-Cheann Comhairle——
Every Deputy who tables a question naturally looks forward to getting a reply. I will try as far as possible to confine supplementary questions to the Deputy in whose name the question appears, in the matter of equity to the Deputies.
I put down two questions relating to the Central Bank——
(Limerick East): That is not in order.
I will decide what is in order, Deputy.
(Limerick East): Standing Orders——
I know Standing Orders well.
(Limerick East): As the Chair knows quite well, we are confined to two oral questions per Deputy and quite frequently questions are put down in the names of other Deputies and they are pursued by the party spokespersons. That is the normal procedure in the House. If the Chair rules out anybody who is not here, in whose name a question is down and who quite clearly expected one of the party spokespersons to pursue the question, I suggest the Leas-Cheann Comhairle is not operating in accordance with Standing Orders.
The Standing Order does not indicate that anybody other than the Deputy who puts down the question is entitled to ask a supplementary. I did not regard Deputy Allen as a spokesperson for Finance in the Fine Gael Party. The Chair is aware of many submissions from Deputies who have tabled questions who expressed their understandable agitation that because invariably Question Time is now leading to debate their questions are not answered.
(Limerick East): The Leas-Cheann Comhairle is establishing a very dangerous precedent if he rules out every supplementary by Deputies who are not actually named on the question. That would put the House in an impossible situation.
I am striving in that regard and I hope——
I represent people who have been taken for a ride by banks. I had two questions down in relation to the performance of the banks and they were ruled out of order because the Minister said he had no responsibility for the Central Bank.
You should have been here earlier when there were questions which more directly related to what the Deputy is talking about.
The Deputy was not here.
How does the Minister of State know what I am talking about?
The Deputy has just come in.
I was watching for this on the monitor.
Deputy Allen, would you allow me to proceed with the question?
The Minister will not answer my questions.
I will answer them.
Deputy Allen will you allow me to proceed with questions? The question tabled has been answered by the Minister and I am proceeding to the next question——
In pursuance of——
——in the name of Deputy John Bruton. Will the Minister kindly answer the question from Deputy John Bruton?
May I ask one supplementary?
I am proceeding to the next question.
