asked the Taoiseach if he will state the reasons for the increase last year of nearly £2,000,000 in the income from the investments abroad, shown at item 15 of the Balance of International Payments Statement, when the external holding of the banks, the Central Bank and Government Departments were reduced by a total of over £43,000,000 as shown at items 1, 2 and 3 of the statement.
Ceisteanna—Questions. Oral Answers - Income from External Investments.
An important element in the increase, in 1955 as compared with 1954, in the estimated inflow of profits and interest from abroad included in item 15 of the Balance of International Payments Statement, relates to the income derived from investments in British joint stock companies. I would point out to the Deputy that (a) a very important determinant of the inflow of profits, etc., in respect of the non-publicly held securities is the current rate of dividend distribution by British joint stock companies, (b) the main part of the reduction in the external holdings of Government Departments and of the banks took place in the latter part of the year and (c) short-term interest rates in London were higher in 1955 than in 1954.
It must, of course, be pointed out also that the figures included for this item are at present provisional, and in accordance with normal practice will fall to be revised later when more adequate information becomes available.