asked the Minister for Finance if he will state the total sum of (a) dead-weight debt; (b) net debts of the State and local authorities at 31st March, 1933 and 1953.
Ceisteanna—Questions. Oral Answers. - State and Local Authority Debts.
As the reply contains statistical matter, I propose, with the permission of the Ceann Comhairle, to have it included in the Official Report.
Following is the reply:—
The difference between the gross liabilities and assets of the State, which is assumed to be what the Deputy means by "net debt", was as follows on the dates mentioned:—
|
£ |
|
|
31st March, 1933 |
18,600,000 |
|
31st March, 1953 |
114,248,000 |
For the reasons given in my reply to a similar question by Deputy Cogan on 13th December, 1951, the best way of indicating the extent of dead-weight debt is to compare the total charge for the service of State debt with the total return received by way of interest, dividends and capital repayments on the corresponding assets. The following are particulars of dead-weight debt estimated on this basis:—
|
Service of Debt |
Total Return from State Assets |
Gross Debt |
Approximate amount of Gross Debt the service of which has to be met out of taxation |
|
|
£ |
£ |
£ |
£ |
|
|
1932/33 |
2,725,000 |
963,000 |
36,490,000 |
23,590,000 |
|
1952/53 |
10,435 000 |
4,559,000 |
243,807,000 |
137,290,000 |
The figures for the service of debt in respect of 1952-53 include the subsidy paid from the Vote for Local Government towards housing loan charges of local authorities.
As regards the debt of local authorities (excluding harbour authorities, vocational education committees and county committees of agriculture) the estimated gross debt as at the 31st March, 1933, and 31st March, 1952, the latest date for which particulars are available, is as follows:—
|
31st March, 1933 |
31st March, 1952 |
|
|
£ |
£ |
|
|
Estimated Gross Debt of Local Authorities |
16,810,000 |
70,647,000 |
Taking dead-weight debt of local authorities to mean that part of gross debt, the service of which is an unrelieved charge on the ratepayer, the figures computed by reference to the proportion of the total service charge which has to be met from rates are as follows:—
|
Approximate amount of Gross Debt the service of which has to be met from Rates. |
|
|
£ |
|
|
1932/33 |
10,200,000 |
|
1951/52 |
36,550,000 |
"Net debt" in the case of local authorities may be taken as equivalent to dead-weight debt in the sense defined above.