asked the Minister for Finance if he will state the total sum of (a) dead-weight debt; (b) net debts of the State and local authorities at 31st March, 1932, 1948 and 1951.
Ceisteanna—Questions. Oral Answers. - Debts of State and Local Authorities.
As the reply contains statistical matter, I propose, with the permission of the Ceann Comhairle, to have it included in the Official Report. Following is the reply:—
The gross liabilities of the State at 31st March, 1932, are shown in Account No. XXVI of the Finance Accounts for 1931/32 and the corresponding figures for 1948 and 1951 in Account No. XXV of the Finance Accounts for 1947/48 and 1950/51 respectively. These accounts also show the assets held against the gross liabilities. The difference between gross liabilities and assets, which is assumed to be what the Deputy means by "net debt", was as follows on the dates mentioned by the Deputy:—
|
31 March, 1932 |
£20,798,000 |
|
31 March, 1948 |
56,389,000 |
|
31 March, 1951 |
80,671,000 |
Dead-weight debt is ordinarily understood to mean debt, the service of which is an unrelieved charge on the taxpayer. A number of objects on which State debt has been incurred yield either no direct return or a return which is not sufficient to meet the service charge on the relevant borrowing but, as the deficiency varies in degree, the best way of indicating the extent of dead-weight debt in the sense already defined is to compare the total charge for the service of State debt with the total return received by way of interest, dividends and capital repayments on the corresponding assets.
Following are particulars of the charge for the service of debt and the total income from State assets for the financial years which ended on the dates mentioned by the Deputy:—
|
Service of debt |
Total return from State Assets |
Gross Debt |
Approximate amount of Gross Debt the service of which has to be met out of taxation |
|
|
£ |
£ |
£ |
£ |
|
|
1931/32 |
2,501,000 |
1,222,000 |
36,490,000 |
18,660,000 |
|
1947/48 |
4,821,000 |
1,599,000 |
100,113,000 |
66,910,000 |
|
1950/51 |
7,247,000 |
2,482,000 |
176,327,000 |
115,940,000 |
The figures for the service of debt in respect of 1947-48 and 1950-51 include the subsidy paid from the Vote for Local Government towards housing loan charges of local authorities.
As regards the debt of local authorities (excluding harbour authorities, vocational education committees and county committees of agriculture) the following information may be of service; it is regretted that particulars as at 31st March, 1951, are not yet available.
|
31st March, 1932 |
31st March, 1948 |
31st March, 1950 |
|
|
Estimated Gross Debt. of Local Authorities |
£15,711,000 |
£35,918,000 |
£47,763,000 |
It is not clear what distinction the Deputy has in mind between the net debt and the dead-weight debt of local authorities. Dead-weight debt in their case might be defined as that part of gross debt the service of which is an unrelieved charge on the ratepayer. If the dead-weight debt of local authorities be computed by reference to the proportion of the total service charge which has to be met from rates, the following are the figures:
|
Approximate amount of Gross Debt the service of which has to be met from rates. |
|
|
£ |
|
|
1931/32 |
10,220,000 |
|
1947/48 |
18,940,000 |
|
1949/50 |
29,220,000 |