asked the Minister for Finance why the Government has not approached the Central Bank for funds this year rather than borrow £225 million in foreign currencies; if he is aware that the Central Bank has made an offer of funds to this extent; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Government Borrowing.
1.
The question of the financing of the Exchequer's borrowing requirements is the subject of continuing discussions with the Central Bank. It was arising out of these discussions that the bank has indicated that it is prepared to help in financing the Exchequer borrowing requirements subject to certain conditions.
The amount which will become available to the Exchequer from the Central Bank will be decided during the year in the light of economic and monetary conditions.
Would the Parliamentary Secretary indicate the sources from which the Central Bank would make available such money as it does make available for Government borrowing? Would the Parliamentary Secretary indicate that there is no basis at all for the suggestion which was tried out in the newspapers some time ago that the Central Bank might print money for the purpose of financing intervention beef? Would he indicate that there is no such intention on the part of the Central Bank in relation to intervention beef or any other money required by the Government?
Mr. Kenny
In reply I can do no better than quote the Central Bank report. That report states that the immediate effects on the money supply and bank liquidity of financing Government expenditure in part through the Central Bank are much the same as when recourse was had to external borrowing. The report states that the bank is, therefore, prepared to help in financing the Exchequer borrowing requirement on the basis of substantial adherence to the budgetary disposition and in the context of the objectives of monetary policy set out in the statement on Monetary Policy, 1975, reproduced in the report.
(Dublin Central): I hope the Central Bank will not take it from the Associated Banks as was done some years ago thereby robbing the private sector.
2.
(Dublin Central) asked the Minister for Finance the total amount borrowed from external sources for the year 1974; and how this figure compares with the amounts borrowed for the years 1972 and 1973.
Mr. Kenny
The net amount borrowed externally by the Government in the year ended 31st March, 1973, was £19 million, in the year ended 31st March, 1974, it was £41 million, and in the nine-month financial period ended 31st December, 1974, it was £143 million.
(Dublin Central): Would the Parliamentary Secretary give us an idea of the countries this external borrowing came from?
Mr. Kenny
I have a full list; will I read it out?
(Dublin Central): There cannot be that many countries involved.
The Government have scraped every pot in the world.
As long as there is a pot to scrape what is wrong with it?
Mr. Kenny
From the USA, Germany, the Bank of Nova Scotia, the Bank of the Netherlands, Belgium, Kuwait, UAE Dirham Bonds and the Dutch guilder notes. They are the only countries mentioned in my report.
What period does that cover?
Mr. Kenny
It covers from 1970 to 1974.
(Dublin Central): Did any of these countries make suggestions about corrective measures regarding our economy before lending money?
That is a separate question.