Ivor Callely
Question:64 Mr. Callely asked the Minister for Finance his views on the encouragement of confidence for international investors to invest in Ireland; and if he will make a statement on the matter. [1657/95]
Written Answers. - International Investment in Ireland.
I believe that the recent strong performance of the Irish economy itself, has provided a major boost for the confidence of international investors to invest in this country. In the five years to 1994, GNP growth averaged over 5 per cent per annum, the fastest growth rate in the European Community. At the same time, inflation remained subdued, at an average of about 2.7 per cent per annum over the period.
In addition, budgetary management has been responsible. Exchequer borrowing has been well under 3 per cent of GNP each year since 1988. A similar trend is evident in the General Government Deficit, which was established in the Maastricht Treaty as a primary measurement of budgetary convergence in the run-up to European Monetary Union. Since 1988, this deficit has not exceeded 2.3 per cent of GDP, comfortably below the 3 per cent level that is prescribed as the reference value in the treaty. The General Government Debt to GDP ratio has also been on a firm downward path, falling from 116 per cent in 1987 to below 90 per cent last year.
The Government is committed to continuing responsibility in budgetary management, to price stability and, through investment, to the upgrading of physical and other infrastructure vital to business success. These Government policies are underpinned from the investor's viewpoint by the moderate pay terms which have been agreed between the social partners under theProgramme for Competitiveness and Work, and the real prospects for a lasting peace on the island.
All of these factors are contributing to making Ireland a very attractive location for potential foreign investors.