asked the Minister for Finance whether his attention has been drawn to a statement by the Chairman of the Royal Bank of Ireland in which he is reported as saying "we are having to restrict advances only to those of a productive nature"; if so, if he is aware as to whether this policy is a policy being adopted by other banks; and if such a policy has his approval.

I have seen the statement referred to by the Deputy which was published on 20 February, 1965. The actual terms of the text, so far as relevant to the matter raised in the question, were, however, as follows:

An increase of some £2,000,000 in our resources although less than in 1963 may we think be regarded as very satisfactory. With so many competitive institutions offering very high rates for deposits it is becoming more difficult for the Banks to expand their credit resources. It is of course only from that source that we can expand our advances.

You will have seen that the increase in advances was almost £3,000,000. This was an exceptionally high figure for us and we are finding it necessary to regulate our advances so as to give main priority to those of a productive nature.

I have no function in respect of the conduct of the affairs of the Royal Bank of Ireland Limited, but I am of opinion that a credit policy which gives main priority to advances of a productive nature is in the public interest and should meet with general approval.

The Minister has not quite answered the question which was asked. I asked if in fact he was aware that the policy enunciated by the Chairman was also being adopted by other banks and I would be glad if the Minister could answer that question.

I am not aware of that. I do not know whether any such statement was issued by any other bank.

I have before me a letter from a bank in which reference is made to the fact that there is a general credit tightness, and the public would like to know whether or not a policy of credit restriction is at present being imposed by the banks and, if so, whether this has the approval of the Government and what are the reasons for it?

The Deputy should be satisfied with the reply I gave him. The Government have not been asked for approval, nor does it need Government approval, and therefore there is no policy as far as the Government are concerned.

Is it, in fact, approved by the Government?

The statement issued by the Chairman of the Royal Bank would be approved by the Government because he said that in the main they favour productive applications for currency above others. I do not think any bank could do any better than that.

The statement to which I have referred——

The part quotation.

—— is from the Irish Times of 20th February this year in which the Chairman is quoted as saying: “We are having to restrict advances only to those of a productive nature.” I wish to know, and I think the public would like to know, whether or not there is at present a policy of restricting credit by the banks. I think there is evidence that such a policy exists. I wish to know whether in fact the statement by the Chairman is a statement of policy which the other banks are following and also whether or not this has the approval of the Government?

The Deputy is misquoting, and I think purposely misquoting, the Chairman. He has not said that they are restricting credit to productive purposes. He said no such thing.

It is in the Irish Times of 20th February, if the Minister wishes to look at it.

The Deputy had better go to a more reliable paper.