asked the Minister for Finance if he will state the principal items of imports from the non-sterling area which it is proposed will be reduced in the second half of this year, and the estimated amount of each reduction.
Ceisteanna—Questions. Oral Answers. - Reduction of Imports.
In my statement to the House on 12th March I said that the Government are taking steps to adjust our balance of payments with the dollar area so that the net deficit arising during the second half of 1951-52 will not exceed $16,000,000. The original estimate for that period of six months amounted to approximately $27,000,000. The reduction in the original estimate arises mainly from the elimination of imports of American coal and from the contemplated curtailment of purchases of tobacco leaf, oils and fats and sugar, as well as from the consequential reduction in dollar expenditure on freights.
As regards transactions with countries which are outside both the sterling area and the dollar area, I said in my statement that our aim is to reduce the deficit with these countries so that in the latter part of this year the deficit will not be accruing at a rate in excess of £18,000,000 per annum. The provisional estimate of the balance of payments for 1952 indicated that the deficit with these countries during the second half of the year might be of the order of £14,000,000 and, as stated, we aim at getting a result which we hope will not be materially greater than £9,000,000. The whole question of the measures that can be taken to achieve that result is under examination and I regret that I am not at present able to give particulars as to the imports from these countries which will show a reduction.