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Dáil Éireann debate -
Thursday, 17 Jul 1969

Vol. 241 No. 6

Ceisteanna — Questions. Oral Answers. - Balance of Payments.

27.

asked the Minister for Finance the estimated balance of payments deficit by the end of this year; whether he proposes to take any remedial action now, and, if so, what measures he proposes to introduce.

In referring to the outlook for 1969 in my Budget Speech on 7th May last, I pointed out that the balance of payments deficit was likely to be about £55 million, or £40 to £45 million if one excludes imports of aircraft which will be financed in the first instance by foreign borrowing. Two further sets of monthly trade figures have become available since that statement and these accord with this forecast.

The present situation is not such as in my view to warrant remedial action. As I indicated at budget time, the expected deficit, although exceptionally large, must be seen against the background of such factors as our strong external reserve position, the likelihood of a continuing capital inflow and the upsurge in investment. If, however, developments took place in the coming months which seemed likely to raise the balance of payments deficit much above £55 million, a different situation would arise which could call for corrective measures.

Is the Minister not aware that the figures published this morning would indicate a balance of payments deficit of the order of £50 million for the months ended in June and that therefore £30 million of the £55 million increase forecast for the year has occurred in the first six months? Does he not think, in the light of that, that the £55 million forecast should now be reviewed?

The Minister proposes to wait until it is too late?

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