asked the Minister for Finance the way in which fees paid for the management of Government stocks is to increase by 14 per cent in 1987; the reasons for such an increase; whether he has satisfied himself with the level of fees paid for such services.
Written Answers. - Government Stocks.
19.
Fees payable in 1987 for the management of Government stocks as included in Subhead D of the Vote for my Department consist of the following:
|
1987 Estimate |
+Increase -Decrease |
|
|
£ million |
£ million |
|
|
D.1 Fee payable to Central Bank in respect of national loans and land bonds; and |
1.159 |
+0.191 |
|
Fee payable to Bank of Ireland in respect of prize bonds. |
1.569 |
+0.542 |
|
D.2 Fee payable to banks in respect of external loans |
0.780 |
—0.284 |
|
D.3 Fee payable to Government Broker |
0.116 |
+0.006 |
|
3.624 |
+0.455 |
The net increase of £455,000 under these categories amounts to approximately 14 per cent on the 1986 outturn.
The reasons why the 1987 payment to the Central Bank shows a sizeable increase, as compared with the previous year, is that the 1986 figure was exceptionally low due to the effects of an industrial dispute at the Bank. The increased payment on the Prize Bonds Scheme is due in the main to additional staffing and other administrative costs, as well as a significant provision of £200,000 on the modernisation of the scheme.
I am satisfied with the level of fee payable for the services in question.