Dáil Éireann debate -
Thursday, 9 Feb 1995

Vol. 448 No. 8

Written Answers. - Financial Allocation.

Noel Dempsey

Question:

30 Mr. Dempsey asked the Minister for Tourism and Trade the reason the proposed allocation to the Department of Tourism and Trade for 1995 shows a reduction on the previous year; if he has satisfied himself that this reduction will not narrow his discretion in implementing Government policy in the area of tourism and trade; and if he will make a statement on the matter. [2920/95]

Minister for Tourism and Trade (Mr. E. Kenny)

The proposed allocation to my Department for 1995, including the provision of £2.3 million announced in yesterday's budget, shows a reduction of approximately £4.2 million on the 1994 net provisional outturn.

The primary reason for the reduction is the decrease of £5.8 million in the 1995 allocation under subhead D.1 "Export Credit Insurance (The Insurance Act, 1953 (as amended)) — Repayment to the Central Fund".

The provision under this subhead relates to advances made from the Central Fund to meet the actual cost of net liabilities incurred under the export credit insurance scheme. Therefore, the provisions are actual rather than estimated. The 1994 outturn of £5.916 million relates to net liabilities which were incurred under the scheme between 1 April 1992 and 31 March 1993 while the 1995 allocation of £103,000 relates to net liabilities which were incurred between 1 April 1993 and 31 March 1994. In simple language, what the 1995 reduction means is that substantially less in the way of liabilities under export credit insurance were met in 1994 than in 1993, which, I am sure the House will fully agree, is a very desirable thing.

I am satisfied that the allocation to my Department for 1995 does not narrow my discretion in implementing Government policy in the area of tourism and trade.