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Dáil Éireann debate -
Wednesday, 18 Jun 1986

Vol. 368 No. 2

Ceisteanna — Questions. Oral Answers. - Exchequer Foreign Debt.

33.

asked the Minister for Finance the total State foreign debt in 1982 and 1985; and if he will make a statement on the Government's policy in the matter.

The Exchequer's foreign debt was IR£5,290 million at the end of 1982 and IR£8,441 million at the end of 1985.

As indicated in the national plan, the Government's policy objective is to stabilise the Exchequer's foreign debt as a proportion of GNP by 1987. In fact, this has already happened. At the end of 1985 Exchequer foreign debt was 54.2 per cent of GNP, practically the same as at the end of 1984 when it was 54.0 per cent of GNP. That satisfactory outcome was helped by a weakening of the US dollar in Irish pound terms but resulted also from significant reductions in new foreign borrowing by the Exchequer since 1982, from 9.3 per cent of GNP in that year to 5.2 per cent of GNP in 1985.

In view of the figures the Minister has given, which show that the total foreign debt has increased by 54 per cent since this Government took office, in 1982 the gross figure was £6,708 million and this year it is likely to be about £11 billion and the fact that for the first three months of this year the Government have accumulated a net foreign debt of £703 million, is it not clear that this Government are aggravating our foreign debt problem at a rate which none of their predecessors did? If the Minister disputes those figures I am prepared to give way to him, but if he tells me the figures are correct, how does he reconcile that with the case which he and his Government colleagues continue to make that they are reducing the level of foreign debt when it represents something of the order of £7,500 per worker? Are the Government letting foreign borrowing rip without any control?

A large part of the gross foreign borrowing undertaken by the State is to re-finance existing loans when they come up for renewal——

Are my figures right?

—— or when the Government choose to do so. The actual position is——

Are the figures correct?

—— that net new foreign borrowing by the State was 9.3 per cent of GNP in 1982 and has been reduced in 1985 to 5.2 per cent, virtually halving the amount of new foreign borrowing undertaken by the State during the term of office of this Government. I have to admit that that is not good enough and that we should aim to go further, but it represents a significant movement in the right direction; whereas all the movements were in the wrong direction when the Deputy's party held office and were attempting to tackle this problem.

Question Time has concluded.

Does the Minister suggest that when our total net foreign debt reaches £11 billion——

Question Time has concluded, the Minister may not answer.

(Interruptions.)

Order, please.

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