asked the Minister for Finance if, in future publications from his Department, when referring to the inward flow of capital into this country, he will ensure that instead of the term "sterling debt", as contained in paragraph 31 of the White Paper of External Trade and Payments, the term "capital imports", as used on page 9 in an article in the Statist International Banking Supplement of 24th November, 1951, will be employed.
Ceisteanna—Questions. Oral Answers. - Inward Flow of Capital.
The answer is "no". The term "capital imports" is used in the article referred to by the Deputy as a convenient expression for foreign borrowing, especially in the form of foreign investment in new Canadian issues to finance productive development. It would be wrong to use such a term to refer to transactions such as short-term borrowing by Irish firms from the London discount market to finance imports of consumer goods or the transfer of control of existing capital assets in this country to externs. These, however, are amongst the transactions which are recorded in the capital account of the Irish Balance of Payments Statements as "Inward or Credit Movements (Exports)". The use of the term "capital imports" as a generalisation for the incurring of financial indebtedness to externs or the receipt of foreign funds in exchange for domestic capital assets would, moreover, be likely to lead to confusion with imports for capital purposes in the physical sense, e.g., of producers' capital goods ready for use. I am satisfied as to the suitability of the phrase "incurring of dollar or sterling debt", which was used in paragraph 31 of the White Paper on the Trend of External Trade and Payments, 1951, to indicate two of the ways in which deficits in the Irish Balance of Payments have been financed.
Will the Minister say if he is in favour of the creation of this type of debt as a means of financing the deficit in the balance of payments?
I do not think that supplementary arises. I am in favour of telling the truth in statistics.
That is outside the question.
That is a new one for the Minister. It is a pity you did not think of that before you issued the White Paper.
It is a pity you did not think of that when you were in opposition.