asked the Minister for Finance the expected rate of inflation for 1981 used for the purposes of determining the adequacy of the provisions for expenditure made in the Book of Estimates.
Ceisteanna—Questions. Oral Answers. - Inflation Rate.
28.
No particular rate of inflation was used in determining the adequacy of the provisions for expenditure made in the Book of Estimates. The voted capital services received an average increase of 23 per cent; the pay and pension estimates allow for the cost of both phases of the 1980 national understanding pay agreement; and service of debt and similar items were provided for on the basis of actual requirements. The remaining items were settled on a cash basis which reflected generally the Government's intention to curb the growth in current expenditure. It should be noted, however, that many of the expenditures included in the last category, for example grants at fixed rates, do not automatically increase as prices rise.
How can one realistically have a Book of Estimates with projections for the following year if one has no projection as to what the rate of inflation between one year and the next is going to be?
This is normal practice with regard to the Book of Estimates. The Deputy amuses me in some of this insinuation or suggestion because his party have constantly been critical of the necessity for curtailing current expenditure. I have committed myself to do it. I intend to do it and I have said that there are items in the Estimates apart from pay, pensions and so on, grants for example, which do not necessarily have to carry any increase. In other words it is a genuine effort to contain within reason, without doing it too severely, Government spending. The Deputy will have adequate opportunity of discussing the details of the various items, the various subheads and the various votes when it comes to Estimates.
Would the Minister agree that the cost of these organisations to which he is making an allocation which has not reflected the rate of inflation will in fact be increased by the rate of inflation and that therefore he is proposing a reintroduction? In order to see the extent of the reintroduction it will be necessary for the Minister to make some projection as to the rate of inflation. Therefore, I ask him if he does not consider that Estimates which have no projection at all for the rate of inflation during the year to which they apply are not genuine Estimates.
I do not accept that. I am telling the Deputy what the practice has been. The Deputy cannot have it both ways. I agree that there is necessity for controlling current expenditure. A genuine effort has been made and I am determined that that be carried out. The details of each Estimate can be debated here and the Deputy and others will have a full opportunity of debating them.
I am not trying to have it both ways.
How many hundred millions does the Minister expect to be out this year?
Question No. 29 is for written reply and Question No. 30 is postponed.