asked the Minister for Finance whether he is aware that the commercial banks are restricting advances only to those regarded as of a productive nature; if he will state the reason for this restriction; and if this policy has his approval.

I am not aware that the commercial banks are restricting advances in this way.

Has the Minister not read the statements by the Governor of one of the banks and by the Chairman of another bank within the past few weeks, indicating, from both sources, it was proposed that the banks would restrict credit?

I read the statement of the Governor of the Bank of Ireland very carefully and he made no such statement.

33.

asked the Minister for Finance whether his attention has been drawn to a recent statement of the Governor of the Bank of Ireland in regard to wage increases granted to workers and to the emergence of a substantial budget deficit, and also to the restrictions on advances recently operated by the banks in general; if he will outline Government policy on these matters; and if he will take steps to safeguard the country's economy and in particular the earning power of the workers, against any ill-effects of restrictions imposed by the banks.

I have seen the statement referred to by the Deputy.

The Government's views on the growth of wages and incomes generally were outlined in Part II of the Second Programme for Economic Expansion (pages 11-13) and in the Taoiseach's statement in the Dáil Debate on Government Policy on 16 December, 1964.

I am not aware of any restrictions imposed by the banks that would conflict with the interests of wage-earners or of the community as a whole.

As regards the Budget outlook, Government policy in the matter will be set out in the forthcoming Budget Statement.

Is it a fact that the statement made recently by the particular individual referred to is simply an echo of a statement made in England by the Governor of the Bank of England, for which he was chastised by the British Premier? Would the Minister say whether our Government have any right to decide what credit should be given or whether credit should be decided by the banks as a matter of policy or by the Government as a matter of policy?

I do not remember the statement by the Governor of the Bank of England or whether he was reprimanded——

The Minister must not be reading the papers.

——but I read the statement by the Governor of the Bank of Ireland. He did not say anything approaching what the Deputy tries to convey here. Quote his words.

The Minister did not even read the words of the British Premier or of the Governor of the Bank of England. I do not believe he has read what the Governor of the Bank of Ireland said.

I read the statement of the Governor of the Bank of Ireland. He did not say anything such as Deputies have tried to infer.

Is the restriction of credit or the policy on credit not a matter for the banks here and not one for the Government? Is that true or not?

It is technically, if you like, a matter for the Central Bank to recommend what should be done.

Is it not a fact that the Central Bank have no power to direct any of the commercial banks in a matter of such vital importance as this? Therefore, can we not accept the view that the Government's programme for a period of years can be put in complete jeopardy by the banks which have the control over the necessary credit?

No, it cannot.

There was no mention of a restriction on profits.

There was no mention of a restriction of credit.

There was a mention by the Governor of restriction on wages.

Question No. 34.

He said he was very pleased with the ninth round, as a matter of fact.

Is the Minister serious?

Question No. 34.

He must have got the benefit of it himself, so.

Could we have Question No. 34?