asked the Minister for Finance if it is proposed to apply to the EEC Markets Executive Commission for financial aid to offset this country's present balance of payments problems.
Ceisteanna — Questions. Oral Answers. - EEC Financial Aid.
5.
Mr. Kenny
The answer is in the negative. It is expected that the current deficit in the balance of payments this year will be adequately covered by capital inflows.
Is there any connection between the Executive Commission's recommendation that we should apply for this help to offset our balance of payments problem and the fact that this morning it was announced in the papers that the Government were floating a very big loan on the international market?
Mr. Kenny
I do not believe there is. It states here that the net capital inflow in 1974 is expected to be in excess of £200 million. This would more than cover the expected current deficit in the balance of payments of £160 million, of which about £100 million is attributable to the effects of higher oil prices. Included in the expected capital inflow is foreign borrowing for the Exchequer amounting to approximately £125 million.
I am grateful for that comprehensive reply but surely the Parliamentary Secretary must realise that oil prices may escalate again this year. Are we to go on borrowing to meet that next year?
Mr. Kenny
The Deputy is anticipating that there will be an escalation in oil prices. We do not know.
I am hoping that there will not be but it could happen.
(Cavan): The Deputy seems to be hoping that there will.
I have to pay the increased price the same as the Minister.
(Dublin Central): The Parliamentary Secretary said that the balance would be overcome by capital inflow. Would the Parliamentary Secretary agree that since the publication of the White Paper on Capital Taxation there has been a big increase in capital outflow?
Mr. Kenny
The Parliamentary Secretary would not agree with that statement.