We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil

Ceisteanna—Questions. Oral Answers. - Bank Interest Rates.

Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan) asked the Minister for Finance if his attention has been drawn to the increase in bank interest rates and in view of the serious implications for the economy and the cost of living, the action the Government intend taking in the situation.

Comment on this

The answer to the first part of the question is in the affirmative. As regards the implications for the economy and the cost of living, I propose to refer to these matters in the course of the debate which has been arranged for tomorrow.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): Before the increases were announced, did the Minister make any approach to the banks about the increases? I ask him also whether the speech made by the Minister for Industry, Commerce and Tourism in Limerick represents Government thinking on bank interest and, if so, what action he proposes to be taken. Finally, will the Minister take steps to ensure that the increase in bank interest rates will not be passed on to house purchasers in the form of mortagage interest increases?

Comment on this

Most of the matters referred to by the Deputy will be covered in the course of the special debate which has been arranged for tomorrow. As far as one point is concerned, I can tell the Deputy that I had, as is customary with Ministers for Finance, consultations with the Governor of the Central Bank.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

When?

Comment on this

Before the announcement of the increased interest rates, which has been the custom.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Could the Minister say how long before? That is what I am trying to pin down.

Comment on this

We have offered the Opposition a debate on this.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

I asked the Minister when.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): The boy is able to handle all right.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

The Chair is concerned that we do not take up the time of the House with debate.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Would the Minister answer that question?

Comment on this

It was within the normal pattern of consultations. If the Deputy would consult with his own colleagues who were formerly in this position he would be aware of what the pattern is.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Is the Minister telling me that I should address to—I presume he means Deputy Richie Ryan—a question that I am now addressing to him as Minister for Finance?

Comment on this

If the Government of which the Deputy was a member were interested in this issue he would have been aware what the pattern is.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

There are more people in this House than were members of any Government. I am asking on behalf of those how long before the increase took place the Minister consulted with the Director of the Central Bank.

Comment on this

Within days of the announcement.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Not weeks?

Comment on this

Not weeks.

Comment on this

Is that the record of the House, it was within days?

Comment on this

I said with the Governor of the Central Bank. Let us not misrepresent what I have said.

Comment on this

Was it within days of the announcement to the public and not within weeks as was indicated in the press?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

We are having a lot of argument.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): Would the Minister tell me now whether the speech made by the Minister for Industry, Commerce and Tourism in Limerick represents Government thinking on this point? He seemed to make a very positive statement about the matter.

Comment on this

The Government are very much concerned about the impact of any increase of this nature, which is in line with patterns elsewhere, and we will deal with that tomorrow. We are very much concerned, as the Minister for Industry, Commerce and Tourism indicated, about the impact of these on employment both in industry and agriculture. The Government are very much concerned about that and the Minister for Industry, Commerce and Tourism was expressing the Government's view on that matter.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): The Minister for Industry, Commerce and Tourism seemed to be suggesting that something should be done about it. Is the Minister going to do something about this?

Comment on this