Vol. 425 No. 8
5 Mr. Cox asked the Minister for Finance if he will give an estimate of the net budgetary cost arising from the recent 10 per cent devaluation of the Irish pound; and if he will give details of the income and expenditure side of the budget upon which that estimate is based.
31 Mr. J. O'Keeffe asked the Minister for Finance the additional cost to the Exchequer, the Central Bank and the National Treasury Management Agency of devaluation of the pound in January, 1993, as opposed to a devaluation three months earlier.
52 Miss Harney asked the Minister for Finance the Government's estimate of the change in the net Exchequer position arising out of the devaluation of the Irish pound.
I propose to take Priority Question No. 5 and Questions Nos. 31 and 52 together.
As regards Question No. 31, the issue raised is a purely hypothetical question to which no real answer can be given. The impact of devaluation depends crucially on the subsequent reaction of interest rates and exchange rates. No one knows what would have happened to interest rates and exchange rates had we decided to devalue three months earlier than we did and there is no basis therefore for any quantified reply.
As regards the main Exchequer budgetary effects of the devaluation, my Department has estimated the net cost at about £13 million in 1993. Details of this estimate are being finalised, and will be subject to changes, as all elements are not yet confirmed.
Full details of the Exchequer's income and expenditure will be set out in the White Paper on Receipts and Expenditure, which will be published on the Saturday prior to the budget.
