asked the Taoiseach if he will state the main constituents of the figures for "other service trades" and, if possible, their order of magnitude in respect of gross domestic fixed capital formation for the years 1949 to 1956.
Ceisteanna—Questions. Oral Answers. - Fixed Capital Formation.
The item "other service trades" includes wholesale and retail trade, banks and other financial institutions, real estate agents, recreation and personal services, and any activities which cannot be assigned to a more specific heading. Since the figure for gross domestic fixed capital formation in other service trades is derived as a residual (i.e. by deducting the sum of the other items from the total gross domestic fixed capital formation) it is not possible to give figures for the main constituents of the item. As has already been stated, the amount of gross domestic fixed capital formation allocated to this heading is inflated by the short fall in the figures for other items.
asked the Taoiseach if he will state gross fixed capital formation in 1956 by (a) State and semi-State boards and companies, (b) other companies, (c) unincorporated businesses, (d) State and local authorities and (e) others.
The estimate of gross domestic fixed capital formation is based on the value of the home production of capital goods and of imports of producers' capital goods ready for use. As a result, while incomplete information is available in respect of certain sectors mentioned by the Deputy, it is not, in general, possible to give complete data covering the value of capital formation under the categories mentioned by him since this would demand a knowledge of the actual sector purchasing the capital goods in question.
asked the Taoiseach if he will state how gross fixed capital formation in 1956 was financed, giving separate details for (a) statutory depreciation allowances, (b) company reserves, (c) public issues by companies and (d) Exchequer advances.
It is estimated that gross domestic fixed capital formation in 1956 was financed to the extent of £32,000,000 by current savings, £20,000,000 by provision for depreciation and £14,000,000 by net foreign disinvestment.
As regards the items mentioned by the Deputy, (a) income-tax wear and tear allowances on plant and machinery amounted to about £11,000,000, (b) it is estimated that undistributed company profits after tax were about £14,000,000, (c) receipts from public issues by companies were £0.5 million, (d) total expenditure financed from the State capital budget for 1956-57 was £37.5 million. Details of this expenditure are shown in the reply to a parliamentary question by Deputy Sweetman on 12 February, 1958.
It must, however, be understood that these items are not additive since, for instance, company reserves may be invested in Government securities, the proceeds of which may be used by the Exchequer to finance capital expenditure.