asked the Minister for Finance what proposals, if any, the Government have for the establishment of a money market in this country.

Following examination of the matter in the light of the report by a committee set up by the Central Bank, steps have been taken to create a money market. These steps include centralisation of external reserves under the Central Bank, arrangements for the acceptance of term deposits from the Associated Banks by the Central Bank, activation of the market in Government securities with the support of the Central Bank so as to facilitate dealings by the banks and others and provisions of more shortdated stocks.

Agreement in principle has also been reached between the Central Bank and the Associated Banks for the adoption of liquidity rations which will complement the other measures I have mentioned. Thus, a basis has been laid for the development of a money market adequate to our requirements.

Further action will be taken as considered appropriate.

Has the Minister received any complaints that it is difficult to differentiate the 50 penny piece from the equivalent of the 2/- piece because of its size? I am referring now to Question No. 39 which I did not hear the Minister answering.

In view, particularly, of British reports that there is a considerable prospect of——

The Ceann Comhairle will not allow me to answer this. We are now on Question No. 40.

Deputy O'Connell.

I have no doubt the Minister's expertise will enable him to obtain a formula to reply. Is he entirely satisfied in view of British reports on the design problems of coins, and so on, that the prospects of forgeries are not all that marginal?

One of the steps which will facilitate the establishment of a money market here would be the introduction of a suitable decimal coinage: this is in reply to Question No. 40. I am satisfied there is a considerable amount of discussion in Britain at the moment as to the desirability of the introduction of the new 50 pence coin. We are watching the discussion with considerable interest but so far we have not been influenced to change our decision.

Question No. 41.

Does that mean——

I asked for a supplementary on Question No.40. The chair actually called me.

On Question No. 40. Deputy O'Connell.

Would the "certain steps" that have been taken in this matter also include the repatriation of our external assets? I have in mind moneys invested in British bonds, and so on.

I would hope that there would be a movement to that effect—perhaps, not so much repatriation of foreign investments as the retention at home in an Irish money market of money which at the moment goes over to London.

Would this not be in the best interests of the country and would the Minister not exhort some of our people who try to invest money abroad to invest it here?

I think there is a very welcome development taking place in banking and financial circles here generally in this regard. All are agreed on the desirability of creating a more flexible money market here. Indeed, the Central Bank is receiving very great co-operation from the financial institutions.

Is there much investment abroad by private individuals?

A money market is more concerned with short funds.

Is there any evidence of this change?

Yes, the banks and the stock exchange.

We are talking about money.

With regard to the interest from these investments abroad by individuals, does the Minister know how much money is invested abroad by individuals?

That seems to be a separate question.

There is a very considerable amount of foreign securities held by Irish people. That is not really what we are concerned with here. The creation of a money market here will be directed to ensure that short-term moneys are kept here in Dublin and are available for various purposes at home rather than being sent over to London. This is not really directed at long-term investment.

Has the Minister any evidence as to how it is developing?

These arrangements I have mentioned have been widely welcomed by the various institutions and are functioning very well.

With co-operation from the banks?

Yes.