asked the Minister for Finance his attitude to the balance of payments deficits recorded in 1980 and 1981; and whether such deficits are consistent with maintaining the value of the punt within the EMS in 1982 and subsequent years.

Our balance of payments deficits in 1980 and 1981 reflected a number of factors, notably the massive increase in oil prices and the resulting international recession. The deficits of oil importing countries generally were high over that period. The Government are firmly committed to maintaining the value of our pound within the EMS and will take all necessary measures for this purpose, including steps to control the balance of payments deficit.

Is the Minister aware that the ERSI forecast for our balance of payments on current account in 1982 is in the direction of £1,200 million or 10 per cent of GNP? Does the Minister accept that anything less than a steady reduction of our balance of payments debt over the next four years must bring further devaluation? Does the Minister accept these figures——

I do not accept it. I totally reject it.

What does the Minister not accept?

All commentators have agreed that within the budget deficit of the Deputy's order of £750 million and the Exchequer borrowing requirement of 14 per cent of GNP the balance of payments deficit this year will fall relative to GNP. The Deputy is speaking only about the balance of payments deficit on current account. Capital inflows, including the processing of foreign borrowings by the private and public sectors, have also to be taken into account. Notwithstanding our current deficit our external reserves are being maintained at an adequate level. The Government are firmly committed to maintaining the value of our pound within the EMS and will take all necessary measures for this purpose.

The Minister has power to reject anything. The balance of payments on current account which I have mentioned is that of the ESRI, a respected and impartial institute. Does the Minister reject that?

I did not say that. I said I rejected the suggestion the Deputy made that arising from that report it would lead to——

This is a rather important subject.

Of course it is and a very responsible one from every Deputy's point of view.

The repayment of foreign debt interest on capital is likely to be £400 million or one-third of the balance of payments deficit. Does the Minister accept that foreign borrowings must be stabilised if we are to protect our currency and to defend against devaluation and cuts in employment in the years ahead?

The balance of payments deficit generally will be influenced by the budget and I will be taking account of that tomorrow.