asked the Minister for Finance if his Department has contingency plans to break the Irish pound from its traditional link with sterling; and if he will make a statement on the matter.

3.

asked the Minister for Finance if the Government have given any consideration to contingency arrangements in the event of a break with sterling, arising out of the new European Monetary System.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 2 and 3 together.

The implications of a break in the traditional link between the Irish pound and sterling have been under constant review for some years past. As the Deputies will be aware, successive Governments have taken the view that a decision to continue or to change the present relationship must be based on an assessment of where the balance of economic advantage lies. The whole question of our exchange rate arrangements is currently being considered in the context of the proposals being elaborated for a new European Monetary System. I can assure the Deputies that all the implications, including operational aspects, will be fully examined.

Has the Minister contingency plans for the adverse effect that could result in the export section of our income if the Irish punt is revalued upwards against sterling?

As the Deputy is aware it is planned to have a debate in the House on this matter next week in the course if which I hope to outline the implications under various headings, including the one mentioned by the Deputy. It is difficult to go into it in detail at Question Time.