Committee Reports > List of Committees > Seanad > 1970 > Select Committee on Statutory Instruments > Report No. 01 - Statutory Instrument [1]

APPENDIX III.

Trustee Savings Banks (Interest on Deposits in Special Account Regulations, 1969) [S.I. No. 15 of 1969].

An Rúnaí,

An Roinn Airgeadais.

I am directed by the Select Committee on Statutory Instruments to refer to the Trustee Savings Banks (Interest on Deposits in Special Account) Regulations, 1969 which were made by the Minister for Finance on 30th January, 1969.

As the instrument prescribes the rates of interest payable during the periods from 1st January to 20th January, 1969 and commencing on 21st January, 1969 the Committee must determine in accordance with its terms of reference whether the special attention of Seanad Éireann should be drawn to it on the grounds “that it purports to have retrospective effect where the parent Statute confers no express authority so to provide.” The Committee would appreciate the assistance of your Department’s observations in the matter.

Cléireach an Roghchoiste.

17 Aibreán, 1969.

Cléireach an Roghchoiste,

Seanad Éireann.

I am directed by the Minister for Finance to refer to your minute of 17 Aibreán, 1969 regarding the Trustee Savings Banks (Interest on Deposits in Special Account) Regulations, 1969.

Up to the 31st December, 1968 the rate of interest payable was that laid down in section 31(3) (d) of the Finance Act, 1940 as amended. On and after 1st January, 1969 the matter is governed by section 9(2) of the Finance (No. 2) Act, 1968 and until the Minister made the above mentioned regulations the situation was that no rates stood prescribed for payment to the banks on the moneys paid by them to the special account. It was therefore necessary that the Minister should in exercising the powers conferred on him by section 9(2)(b) cover the whole period from 1st January, 1969.

The rate prescribed for the period to 20th January is that which was in operation up to 31st December. The 21st January was the earliest date on which it was practicable for the Trustee Savings Bank to implement an increase of the interest rate paid by them to their depositors which was announced by the Acting Minister for Finance in Dáil Éireann on 5th November, 1968 as one of a number of measures to improve the attractiveness of savings media. As you are probably aware, the deposits with these banks are redeposited by them with the Minister for Finance in the special account to which the regulations refer and in order that they might be able to give their depositors the increase of one-half per cent it was necessary as from the same date to increase the interest paid to them by a like amount.

The Minister hopes that this information will be of assistance to your Select Committee.

SEÁN F. MURRAY.

30 Bealtaine, 1969.