asked the Minister for Finance the external Government debt for each of the year 1970 to 1981, inclusive.
Ceisteanna—Questions. Oral Answers. - External Government Debt.
3.
Mr. Treacy
(Clare): Since the reply is in the form of a tabular statement. I propose to circulate it with the Official Report.
|
Date |
Exchequer External Debt Outstanding |
|
£m |
|
|
31 March 1970 |
70 |
|
31 March 1971 |
90 |
|
31 March 1972 |
108 |
|
31 March 1973 |
126 |
|
31 March 1974 |
167 |
|
31 December 1974 |
312 |
|
31 December 1975 |
567 |
|
31 December 1976 |
1204* |
|
31 December 1977 |
1333* |
|
31 December 1978 |
1745* |
|
31 December 1979 |
2054* |
|
31 December 1980 |
2652* |
|
31 December 1981 |
4197* |
|
(Provisional) |
*includes non-resident holdings of Government gilt-edged stock. Prior to 1976 these holdings were not identified within total gilt holdings.
The national debt for 1977 was about £3,600 million and in 1981 it had reached almost £9,000 million——
It is over £10,000 million.
When we came into power in 1981 it had reached almost £9,000 million. Would the Minister not agree that between 1977 and 1981 the Government borrowed one-and-a-half times more——
The Deputy is asking about another question. This question deals with external Government debt.
It is Exchequer borrowing.
The Deputy is giving figures which are totally at variance with the Minister's reply.
What has external debt to do with——
We are dealing with Question No. 3. We took Questions Nos. 1 and 2 together.
Is the Minister aware that interest on foreign debt at the latest available date was absorbing 12 per cent of the exports of the public and private sectors, and had to be sent out again in the form of interest on foreign debt owed by the Government? In 1977 that figure was a mere 5 per cent. Does the Minister accept that this is a very worrying trend indicating a serious diminution of our national economic independence? What measures does he intend to take to reduce our dependence on foreign borrowing?
(Clare): There are two types of interest involved — 59 per cent floating interest and 41 per cent fixed interest. Whatever steps are needed to curtail borrowing are set out in the budget——
I thank the Minister for that information but is the 59 per cent floating rate loans the usual proportion of our total debt, or is a larger proportion of our debt having to be incurred in the form of floating rate loans at the moment than was the case a few years ago?
(Clare): That is the current amount subject to floating loans, but I cannot give the percentage comparisons for previous years because I do not have those figures available.
Would the Minister get those figures for me?
(Clare): Certainly.
Would the Minister accept that the rate of increase in interest on external debt is now such that it would be necessary for GNP to increase by 3 per cent per annum to maintain living standards and only increases beyond that will yield an increase in living standards?
(Clare): With regard to GNP it is possible but——
It is very disturbing because there is no prospect of that figure of growth being achieved in the foreseeable future.