Dáil Éireann - Volume 131 - 01 May, 1952

Ceisteanna—Questions. Oral Answers. - Financial Statement, 1952.

Mr. Dillon Mr. Dillon

Mr. Dillon asked the Minister for Finance, with reference to Note 1 in Table V of Tables in connection with the Financial Statement, 1952, whether the liabilities gross total can properly be read as £162,941,853 and £173,112,059, after having made allowance for double reckoning referred to; and, if so, what consequential adjustment should be made in corresponding total assets figures.

Mr. MacEntee Mr. MacEntee

Mr. MacEntee: The note referred to by the Deputy draws attention to the inclusion in the total of gross liabilities of both the following items: (i) the equivalent of the proceeds of dollar borrowings under the United States loan agreements; and (ii) the Exchequer liability in respect of Ways and Means Advances obtained from the American Loan Counterpart Fund. The relevant figures at 31st March, 1952, were: (i) £40,671,086 and (ii) £40,500,000; in other words, of the counterpart of dollar borrowings from the United States Government at that date namely, £40,671,086, the sum of £40,500,000 had been lent to the Exchequer in the form of Ways and Means Advances which are repayable to the American Loan Counterpart Fund.

When both parts of Table V in the tables in connection with the Financial Statement 1952, are read together, no adjustment is necessary on account of the double reckoning to the extent of £40,500,000 in the figure of total gross liabilities. This double reckoning is offset by the inclusion in the figure of total assets of the full proceeds of dollar borrowings, whether represented by cash, by investments in mortgage bonds of the Agricultural Credit Corporation, or by Ways and Means Advances to the Exchequer. As the Ways and Means Advances from the American Loan Counterpart Fund feature in the table in both the liabilities and the assets statements, a true figure of the net excess of gross liabilities over assets is obtained by subtracting the totals as shown in the table.

842

[842] As the note points out, it is only when the liabilities statement alone is being considered that it is proper to make the adjustment suggested by the Deputy. If this adjustment is made, it is necessary to make a corresponding adjustment in the assets statement by excluding from the “balance of American Loan Counterpart Fund” the Ways and Means Advances from that fund to the Exchequer.

Dáil Éireann 131 Ceisteanna—Questions. Oral Answers. Financial Statement, 1952.

Questions

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