Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697805777773.pdf (Ireland)
AN BILLE UM RIALU IOMLAOIDE (BUANU AGUS LEASU), 1978 EXCHANGE CONTROL (CONTINUANCE AND AMENDMENT) BILL, 1978 EXPLANATORY MEMORANDUM ,Va, Summary 1.

The Bill is designed to continue the existing exchange control legislation in operation for a further period of four years.

The present legislation, which is contained in the Exchange Control Act, 1954, is due to expire on 31 December, 1978.
The Bill also makes the amend­ ments necessary to enable the Minister for Finance, by regulation, to extend exchange control to transactions with the United Kingdom, if the need should ever arise.

This extension would not, of course, take effect unless and until the Minister has made the necessary regulations.

Continuation of Present Act 2.

The Exchange Control Act, 1954 is the basic legislation enabling the Minister for Finance to control foreign exchange transactions.
The Act applies to financial transactions with countries other than Northern Ireland, Great Britain, the Channel Islands, the Isle of Man and Gibraltar, which at present, with Ireland, comprise what is known as the “ scheduled territories ” for the purposes of exchange control.
In general, the Act prohibits, except with the permission of the Mini­ ster, payments to and on behalf of non-residents of the “ scheduled territories ”, dealings in gold, foreign exchange and securities, the importation of United Kingdom currency notes from places outside Northern Ireland, Great Britain, the Channel Islands and the Isle of Man, and the exportation to such places of currency notes generally and of other financial instruments.

3.
3.

In exercise of his powers under the Act the Minister has, by regulations, granted general permissions to enable normal com­ mercial and other current transactions to be carried on.

The day-to- day administration of exchange control has been delegated by the Minister to the Central Bank which, in turn, has delegated authority to the commercial banks for the approval of a wide range of trans­ actions.

4.
4.

The Exchange Control Act, 1954 was originally given a life of four years in the hope that it might be possible eventually to dis­ pense with exchange control.

This hope has not been realised and the Act has been continued in force at four-yearly intervals.

Under the Exchange Control (Continuance) Act, 1974 the Act was con­ tinued in force until 31 December, 1978.

The Government is satis­ fied that it is necessary to retain the existing powers for a further period.
It proposes, therefore, in Section 2 erf the Bill that the Act again be continued in force for a further four years to 31 December, 1982.

Amendments to enable Exchange Control to be extended to the United Kingdom by regulation 5.

The “ scheduled territories ” are at present defined in section 3 of the Act as including (a) the State, (b) Northern Ireland, Great Britain, the Channel Islands and the Isle of Man, and (c) such other territories as may be prescribed by the Minister for Finance by regulations.
The proposed amendment in Section 3 of the Bill would allow the Minister to alter the definition, by regulation, and thus to exclude the territories at (b), either in whole or in part, from the “ scheduled territories It would thereby enable exchange control to be applied in transactions with the United Kingdom.

It would, of course, also be possible to bring the United Kingdom or other areas bade within the scope of the “ scheduled territories ”, if they had been removed at any point.

6.
6.

The Bill also provides in Sections 4, 5 and d for a number of consequential amendments to the Act to enable existing exchange control powers in relation to the importation erf currency notes and the exportation of currency notes and other financial instruments to be broadened, if necessary, particularly as regards the United King­ dom.
The amendment in Section 4 would thus remove the existing limited prohibition in section 15 (2) of the Act—in respect erf which an exemption has in fact been given by regulations—on the im­ portation of United Kingdom currency notes from outside the United Kingdom.

Instead it would allow the Minister for Finance to pro­ hibit the importation, except with his permission, of such “ scheduled territory ” or foreign currency notes as might be prescribed by him by regulation.
Imports of notes by tourists and other travellers would normally be allowed.

7.

Similarly, in relation to section 16 (2) of the Act, the amend­ ment in Section 5 would allow the Minister, should the need arise, to control the export of currency notes, postal orders and assurance policies to the United Kingdom.

The subsection at present allows the Minister to prohibit the export of currency notes and other financial instruments to any place other than the United Kingdom.
The enabling provision would not come into effect immediately but would depend on the making of a commencement order by the Minister.

8.

Section 6 is a consequential technical amendment to sections 18 and 19 of the Act to ensure that any import prohibitions intro­ duced under the proposed amendment to section 15 (2) of the Act are covered by the Customs Acts in the same way as existing im­ port and export prohibitions.

An Roinn Airgeadais, Samhain, 1978.

P soft fr-0 , Wt.

122096/F/11.1,000.

11/78.


Cahill.

(6775).

G.16.