Dáil Éireann debate -
Tuesday, 23 Mar 1993

Vol. 428 No. 1

Written Answers. - Balance of Payments.

Jimmy Deenihan

Question:

17 Mr. Deenihan asked the Taoiseach the part played by the Central Bank in supplying the data to the Central Statistics Office on which the statistics of the balance of payments surpluses from 1986 to 1991 were based; and if he will make a statement on the matter.

The Taoiseach

I dealt with the issues arising in the recent revisions to our balance of payments figures in the Adjournment Debate on 4 March. I made clear then that the balance of payments is in effect an accounting statement for a particular period of all transactions between residents of the State and non-residents. The estimates are based on information compiled from a wide variety of sources.

The Exchange Control system administered by the Central Bank previously provided data on the following items:

—outflows of profits, dividends, royalties, etc.

—imports of services — advertising, marketing and other technical services.

The Exchange Control system was not specifically designed to provide statistics for balance of payments purposes and the quality and completeness of the information had seriously deteriorated as Exchange Controls were relaxed in the lead-up to their complete elimination in January 1993.

A standing inter-departmental committee on balance of payments statistics considered the implications of this development. Following extensive investigation and consultations during 1990-91 with other countries and international experts, the committee recommended that a new bank-based general direct reporting system to be operated by the Central Bank for international financial transactions should be introduced — such systems are used in all other EC Countries with the exception of the United Kingdom.

Pending the introduction of this new system the CSO initiated a range of new statutory inquiries in late 1991 and early 1992. These inquiries have been very successful and have disclosed that the estimates previously based on the Exchange Control information had understated the scale of the transactions involved.