Dáil Éireann debate -
Thursday, 5 Nov 1992

Vol. 424 No. 10

Ceisteanna — Questions. Written Answers. - Public Capital Programme Projects.

Alan M. Dukes

Question:

12 Mr. Dukes asked the Minister for Finance the steps, if any, which have been taken to ensure that the State receives the benefit of the relative appreciation of the punt against the pound sterling in cases where UK firms have tendered successfully to carry out projects under the Public Capital Programme; the savings, if any, he expects to accrue to the Exchequer from this currency movement in the course of this year; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

The general practice with regard to Exchequer-funded PCP contracts, whether with locally-based suppliers or otherwise, is to try to express such contracts in Irish pound terms. This is to avoid the uncertainty arising from exchange rate fluctuations.

If UK firms have tendered successfully for such contracts and if such contracts were expressed in pounds sterling, then the benefit of the Irish pound's appreciation against sterling would accrue automatically to the Exchequer.

If, however, such contracts were expressed in Irish pound terms, the question of whether the benefits resulting from the fall in sterling would accrue to the UK supplier or the Exchequer would depend on whether a price variation clause applied to the contract and to the terms of any such clause. To the extent that such contracts have not yet been signed, there would be scope to review the matter in the light of the new currency situation and Departments will take all possible steps to achieve this.