Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - National Debt.

Ivor Callely

Question:

182 Mr. Callely asked the Minister for Finance the national debt figure which each new Government inherited when it assumed office since 1989; the national debt when each Government left office; the likely national debt figure in the year 2002; and if he will make a statement on the matter. [7865/01]

Minister for Finance (Mr. McCreevy):

National debt figures are published on an end year basis. The figures over the period covered by the Deputy's request are as follows:

1989	£24,828 million.
1990	£25,083 million.
1991	£25,378 million.
1992	£26,344 million.
1993	£28,357 million.
1994	£29,227 million.
1995	£30,209 million.
1996	£29,912 million.
1997	£30,688 million.
1998	£29,541 million.
1999	*£31,383 million.*
2000	£28,755 million.

*There was an increase of £2,713 million in the nominal value of the debt in 1999 as a result of the bond exchange programme. Under the programme which was introduced to improve the competitiveness of Irish bonds in the post-EMU trading environment, investors were offered the opportunity to exchange old bonds for new bonds which had coupons close to market rates and technical conventions analogous to those in other EU markets. This increase in debt will, however, be compensated for by a reduction in debt service costs as lower coupons are paid on the increased amount of debt. In other words, the market value of the debt was not affected by the exchange of bonds.

The Deputy should also note that £4,865 million, comprising the net proceeds of the flotation of the former Telecom Éireann and 1% of GNP in 1999 and 2000, was set aside for pension pre-funding in the temporary holding fund for superannuation liabilities. These moneys will be transferred to the national pensions reserve fund shortly.

The likely national debt figure for end 2002 is dependent on a number of factors of which the most important is the Exchequer balance out-turn for the years 2001 and 2002. The projected general Government debt/GDP ratio for end 2002, as published with Budget 2001, is 28%. This compares with an end 2000 ratio of 39.1%