asked the Minister for Finance if he will indicate the likely outcome of the balance of trade and the balance of payments for 1970; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Trade Balance.
43.
Because of uncertainty resulting from recent events such as the cement strike, the bank closure and, more especially, the British dock strike, it is difficult at this stage to make any firm forecast of the outturn on merchandise trade or of the overall balance of payments for the full year 1970. Assuming a fairly speedy settlement of the British dock strike, the deficit on the balance of payments should, however, be fairly close to the estimate of £50 million made earlier this year. The import excess on merchandise trade in the first six months of 1970 was £5 million less than in the corresponding period of 1969.
Is the Minister satisfied with a deficit of £50 million? Does he think the economy can sustain such a continuous debt?
I would be very happy if the deficit this year turned out to be £50 million. I have gone into a lot of detail on this matter on the Second Reading of the Finance Bill and in connection with the Budget debate and I have explained how this figure was arrived at and how, if we are to attain it this year, we will have made considerable improvement.
Is the Minister aware of the comment in the annual report of the Central Bank and the comments of other Government bodies and Government assisted bodies that a continuous high deficit in our balance of payments poses a very serious problem for the economy and is the Minister satisfied just to allow things to jog along?
I am aware of the contents of the Central Bank report. I am not aware that it said that a deficit this year of £50 million would be one that the economy could not stand because it did not say so. Of course I am not allowing the matter to drift because if the Deputy will take time to examine what I have previously said on this matter he might see the thing in clearer perspective.