Vol. 432 No. 3
6 Mr. Yates asked the Minister for Finance if he will confirm that total public expenditure up to May 1993 has increased by more than 12 per cent over the same period in 1992; and the steps, if any, he is taking to ensure that public expenditure remains within the budgetary targets for 1993.
I assume that the Deputy is referring to figures in the Exchequer statement dated 18 May last which showed that supply services expenditure as of 14 May 1993 increased by 12.7 per cent over the corresponding period in 1992. The equivalent increase for the end of May Exchequer statement was in fact 18.4 per cent.
I wish to inform the Deputy that for technical reasons it is not valid to compare the 1993 supply services figures with the corresponding figure for 1992. Up to now the only time such a year-on-year comparison could be validly made was at end-quarter and end-year. To improve this position, a technical change was made at end of October last to the basis for calculating the Exchequer issue for supply services for inclusion in Exchequer statements published between end-quarters. However, this will not provide comparable year-on-year figures until the end of October of this year. In the meantime, the only valid 1993 year-on-year comparisons relate to the figures for supply services published in the Exchequer statements issued at the end of each quarter.
The 1993 end-March quarter Exchequer statement showed an increase in supply services expenditure over the corresponding period of 1992 of 5.7 per cent. This was in line with the budget forecast.
Does the Minister not accept there is now serious concern about the position of the public finances? Is he aware of the Central Bank report last week which indicated that borrowing was now stretched to the limits of what was prudent, a 3.4 per cent EBR of GNP? A total of £130 million will be given to Aer Lingus, no money will be provided for the double Christmas bonus for social welfare recipients and £20 million minimum will be required to cover the costs of the Beef Tribunal. In addition to this there are budgetary commitments for next year in relation to the levy, £260 million for pay and the Minister is facing a black hole of £500 million of an opening deficit next year in addition to his existing commitments between what he has done with the receipts from privatisation and the other matters I have mentioned. Will he give an absolute commitment to the House that what the Central Bank has outlined as prudent will be adhered to and that the ceiling will not in any circumstances be breached?
The figures for the first quarter were on target and while there are still some weeks remaining in the second quarter they are on target also. I am confident that the figures outlined in the budget will be more or less on target at the end of the year. The question the Deputy originally asked was in regard to improving the position so that the figures are always in order. The figures are produced for the purpose of determining the borrowing requirement and central supply figures during each quarter, so that the markets can make an accurate assessment of them. They are the changes that are made. I am sure the Deputy is pleased that public expenditure for this year is in line with the budgetary figures.
Deputy Yates rose.
This should be a brief question. I want to dispose of the Deputy's next question and a final question from Deputy Sargent.
The question asked the Minister to give a categoric commitment that the 3.4 per cent Exchequer borrowing requirement as laid down in the Maastricht guidelines and advised by the Central Bank will not be breached. Will the Minister give a commitment that as long as he holds his present office that figure will not be breached?
I know Deputy Yates would be delighted if it was breached because when he took over the Finance brief he said the figures were way out of line until the quarterly figures were produced.
Spending is out of control and the Minister knows that. The Labour Ministers are not disciplined.
Unfortunately for the Deputy spending is not out of control. I know he would love to see headlines to that effect but that will not be the case. The figures are spot on.
The Minister did not answer the question.
He is running rings around the Labour Party.
