asked the Minister for Finance the foreign borrowing level of semi-State companies; the proportion this is of State foreign borrowing; and the comparative situation in 1970, 1975, 1980, 1982 and 1983.
Ceisteanna—Questions. Oral Answers. - Foreign Borrowing.
15.
As the reply is in the form of a tabular statement, I propose to circulate it in the Official Report.
Following is the statement:
|
Semi-State foreign indebtedness |
State foreign indebtedness |
Semi-State as % of State foreign indebtedness |
|
|
£m. |
£m. |
% |
|
|
end-1970* |
83 |
173 |
48 |
|
end-1975 |
217 |
779 |
28 |
|
end-1980 |
1010 |
3217 |
31 |
|
end-1982 |
1669 |
6959 |
24 |
|
end-1983 |
1960 |
8960 |
22 |
*Figures for 1970 relate to the financial year 1970-71 (i.e. as at 31 March 1971).
With regard to this question ——
It is a tabular statement.
I would like to ask a tabular supplementary.
I hope it is relevant.
Will the Minister say if the information contained in the tabular statement shows considerable acceleration of borrowing by State companies in the last year? Is he concerned about that acceleration? Is he now aware that semi-State companies account for £1.5 billion of the total borrowing of some £6 billion, and that they now account for 25 per cent of all foreign borrowing in the State? Is he satisfied with that situation? Will he confirm that it has accelerated considerably in 12 months?
I am under your direction in this matter.
My views on this are well known. I want to discourage as strongly as possible supplementaries on tabular statements. It is either a tabular statement answer or it is not. Those are my feelings.
Does the Minister share my concern at the rise? No doubt he has the tabular statement in front of him and a quick glance will show him that what I am suggesting is actually the situation and he should be concerned about it. An increasing proportion of State foreign borrowing is coming through semi-State companies. That to me is a matter of concern because it is not announced in the annual budget and the Minister should be concerned about it.
The proportion is declining.
16.
asked the Minister for Finance if he will ensure greater co-ordination of the foreign borrowings of our semi-State companies.
Existing procedures are effective in ensuring full co-ordination of the foreign borrowings of semi-State companies. Each semi-State company may borrow only with the approval of the relevant Minister and the Minister for Finance. Before such approval is given great care is taken in ensuring firstly, that the borrowing activities of the semi-State companies concerned, whether foreign or domestic, cannot conflict either with each other or with the Exchequer and, secondly, that the best possible terms are obtained in each case.
Would the Minister look at a suggestion which will entail a better co-ordination of the borrowings of the semi-State companies, whether a borrowing situation might be considered and, more particularly, whether companies that are earning foreign revenue might co-operate with those semi-State companies which are repaying loans in foreign exchange? Will the Minister look at a situation like that because I am not happy that the thing is co-ordinated to the best effect?
I appreciate the Deputy's concern about getting the best value for money in borrowing of this kind. As I said, I consider the existing arrangements for a co-ordination of borrowing of this kind to be effective. We have got a procedure which ensures that the semi-State companies, to the extent that they are borrowing abroad, get the best terms available. They have been known on occasion to get rather better terms than the Government get for particular types of borrowing owing to movement in the market. I do not think that bulk borrowing would necessarily get a better deal because that would lose us the advantages of tailoring the particular terms to the needs of the company in question.
Will the Minister carry out an inquiry in the Department into the position to satisfy himself that what he suspects is true is, in fact, true? From what I have seen the best co-ordination is not being applied and for that reason I am asking the Minister to have a look at it.
That matter is reviewed at frequent intervals throughout the year and I am satisfied that we have got the best possible terms for the semi-State bodies and, indeed, the Exchequer as a sovereign borrower.