asked the Minister for Finance if he will comment on the likely outcome of the balance of trade and the balance of payments for 1970.
Ceisteanna—Questious. Oral Answers. - Trade Returns.
11.
The external trade returns for the first ten months of 1970 show an improvement in the balance of trade of £3.6 million as compared with the corresponding period of 1969. It is likely that the balance of trade for the year as a whole will also show an improvement as compared with the calendar year 1969.
In regard to the balance of payments there is as yet no official estimate available of the trend of net invisible receipts in 1970. There are indications, however, of a further increase under this head which, taken together with the outturn on merchandise trade, should lead to a sizeable reduction in last year's deficit of £69 million.
Does the Minister not realise that his statement is a frightful reflection on the case he has been making in this House in the past three weeks?
No.
Is the Minister not aware that this improvement was brought about entirely by increased exports? This pulls the rug from under the case he has been making, that our exports are being seriously affected by increases in wages.
I had already pointed out to the House some time ago the trend that appeared to be coming in regard to the balance of payments and that we were hopeful we would reduce substantially last year's deficit of £69 million. In regard to the second part of the Deputy's question, the fact that exports improved does not eliminate the difficulty of inflation from which we are suffering, nor does it show that we would not have had greater exports if we had not an inflationary situation. It does not show that the unemployment, of which we are all aware, is not due to the loss of exports which we might otherwise have had.
It proves we are not pricing ourselves out of the export market which was the allegation made by the Tánaiste and the Minister.
It does not actually prove that.