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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Farm Incomes.

Interest rates and inflation

Summary

Byrne asks whether falling inflation should lead to lower interest rates and whether the Agriculture Minister will press the Finance Minister. Deasy says the two do not automatically move together, but the Government would lower rates if it could.

Would the Minister agree that the third line of Question No. 5 asks the Minister to ensure that by proper planning each farm was developed to its full output potential. That relates to the farm modernisation scheme. It is quite obvious that this was part of the question. If what I say is so, in view of the fact that the Minister claims that inflation is down to 9 per cent, would he agree that interest rates should follow suit? This is not so at present. What do the Government propose to do about it?

Comment on this

The Minister for Finance will answer that question. I do not feel that one automatically follows the other.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

Deputy Byrne, a final supplementary.

Comment on this

Since this concerns the agricultural community, I ask the Minister not to dodge the real issue. Has he any input into what the Minister for Finance decides? Since the Minister has made great play of——

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

Without argument, Deputy.

Comment on this

——the fact that inflation has dropped to 9 per cent, would he not assume, following that, that interest rates should also drop? Has he, or will he have an input into seeing that that happens?

Comment on this

I have the same input as any other member of the Cabinet — hopefully a little more. I assure the Deputy that if interest rates could be brought down, we would see to it that they were.

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