Dáil Éireann díospóireacht -
Thursday, 12 Dec 1991

Vol. 414 No. 6

Written Answers. - National Treasury Management Agency.

Tom Enright

Ceist:

91 Mr. Enright asked the Minister for Finance if he has satisfied himself that the creation of the National Treasury Management Agency has been a worthwhile initiative; if he will outline the savings in the management of the national debt which have been achieved by the agency which would not have been achieved if the Department of Finance was still managing the debt; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

I am fully satisfied that the creation of the National Treasury Management Agency has been a worthwhile initiative. The agency was established to bring increased specialisation to the Exchequer borrowing and debt management operations, so as to ensure that debt service costs were kept as low as possible. I am satisfied that the agency are achieving this objective.

The 1991 budget included a target of £40 million for savings by the agency on debt service costs this year. This target will be achieved. In addition to debt management savings made by the agency the debt service outturn figure will include savings arising from lower interest rates. Details of the final outturn for debt service costs will be given in the end-year statement of Exchequer receipts and expenditure. It is impossible to make a comparison between the performance of the agency and how the Department of Finance might have performed the borrowing and debt management functions if the agency had not been established.