asked the Minister for Finance the instances in which the Government to date has availed of the Central Bank's resources; the purpose of such requests to the Central Bank to date; if, in respect of such requests, he will give the amounts and terms provided by the Central Bank; and the current amount of such reserves.
Ceisteanna—Questions. Oral Answers. - Central Bank's Resources.
10.
The Central Bank have provided funds to finance the Exchequer borrowing requirement on a number of occasions when they considered that the circumstances warranted this approach. These funds were provided by way of the purchase of Government securities, carrying normal commercial terms, by the bank. The bank advanced £20 million in this way in 1965, which was repaid in 1969; £28 million in 1974; £50 million in 1975; and £100 million in 1979; in all a net total of £178 million.
Also since 1974 the bank has provided normal overdraft facilities to the Exchequer; as at 19 August 1987 the Exchequer had no overdraft liability to the Central Bank.
The Minister for Finance also borrows from the Central Bank in respect of Ireland's subscription to the capital of the European Investment Bank, the World Bank and International Finance Corporation. As at 19 August 1987 the total amount borrowed under these headings was £22 million. The cost of these funds is related to the yield on Exchequer bills.
In 1985, the bank made available to the Minister for Finance a loan of £100 million for a period of 15 years for onlending to the insurance compensation fund in connection with the funding of the administration of the Insurance Corporation of Ireland. This loan involves no net payment by the Exchequer.
The total of the above, which I take it is what the Deputy has in mind in the final part of his question, is thus £300 million.
Will the Minister confirm that it is the intention of the Government to seek accommodation from the Central Bank reserves in respect of public service redundancies? Does the Minister regard such a request as being quite extraordinary? Will the Minister tell the House the amount involved?
I have already informed the House that my Department and the Central Bank are discussing the finances of the public service redundancy package. These discussions are still in progress and I have nothing further to add at this stage. As soon as they are concluded, I will be informing the House of details.
Does the Minister agree that it is extraordinary that the public service pay and lump sum payments relating to public service pay are being deleted from the public service pay bill of the Department of the Public Service and transferred on an undisclosed basis to Central Bank reserves? That is a practice which the Comptroller and Auditor General will not countenance and which should not be attempted by the Department of Finance or the Government.
No, but it was all right for the previous Government to do so.
We never did that.
What about the £100 million for the ICI? The Deputy has a short memory.
(Interruptions.)
The Government have grasped the nettle in relation to numbers in the public service and, because of the cost of the public service pay bill, are approaching the matter in a realistic way in the context of Exchequer finances.
Why is that money not reflected in the public service pay bill, thus distorting the current budget deficit figure?
We are encroaching on time allocated to questions nominated for priority.