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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Postal Dispute Effects.

Postal dispute effects on Government revenue

Summary

The Minister estimated that the dispute delayed revenue collection by about £200 million, though some Post Office revenue—perhaps £4–5 million—might be irrecoverable; Exchequer spending was not significantly affected. He said the estimate was tentative and excluded interest charges.

Jim O'Keeffe Mr. O'Keeffe Fine Gael

asked the Minister for Finance the effects of the postal dispute on (a) collection of income tax, and other Government revenue and (b) the disbursement of Exchequer payments.

27.

Comment on this

asked the Minister for Finance the total estimated shortfall in Government revenue caused by the postal dispute, to the latest date for which figures are available.

Comment on this
George Colley Minister for Finance (Mr. Colley) Fianna Fáil

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 25 and 27 together.

The collection of Government revenue and the disbursement of Exchequer payments were held up by the Post Office dispute. It is estimated that revenue was reduced by about £200 million. This backlog will now be followed up without delay with the resumption of Post Office services, but the arrears may not be made good in full before the end of 1979.

Exchequer expenditure as shown in the end-June statement of Exchequer receipts and issues was not significantly affected by the dispute. However, a significant element of the expenditure shown represents payable orders prepared for issue but which, because of the dispute, could not be transmitted to the payee for encashment. These payable orders will be cleared fairly quickly.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

How much of the £200 million does the Minister expect he will not get in at all?

Comment on this

That is difficult to estimate. It relates primarily to Post Office services, things like telephone calls not made and telegrams not sent. Any figure I would put on it would be extremely tentative. It might be in the region of £4 million or £5 million.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

About six or eight weeks ago there was mention of the figure of £11 million in lost revenue to the Post Office. Would almost the entire sum be irrecoverable at this stage, apart from any further losses which have occurred in the intervening period?

Comment on this

Figures in regard to the Post Office would be quite different. The question relates to non-recoverable losses. The answer I have given is the best I can give at the moment. It is very tentative and I should not like to be tied to it.

Comment on this

Could the Minister say whether any element of these losses might be related to interest charges which the Government have had to pay and which may not be recoverable from any other source?

Comment on this

No.

26.

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