asked the Minister for Finance how the Exchequer finances losses incurred through guaranteeing the exchange risk on foreign currency borrowings of non-Exchequer agencies.

(Clare): It is assumed that, in referring to non-Exchequer agencies, the Deputy is referring to semi-State and private sector concerns. Losses incurred in guaranteeing the exchange risk on foreign currency borrowings of such concerns are met in different ways. On certain World Bank loan facilities arranged in the early 1970s for the ICC and the ACC, exchange losses are met from the Central Fund. Certain later facilities such as those of the European Investment Bank for the agricultural, manufacturing and tourism sectors are met by voted moneys. Losses on other facilities, the ACC's Productive Investment Scheme for Agriculture, are financed, in the first instance, by premium payable by the borrower, any shortfall to be made good by the Exchequer from voted moneys.

For the ICC's Working Capital Loan Scheme the former Tripartite Committee on Employment allocated £2 million from the Employment Guarantee Fund against exchange risk; in addition an exchange risk premium is payable by borrowers.

Does the Minister's reply indicate that all of the losses on such loans will be met out of current taxation?

(Clare): They vary from borrower to borrower. As I mentioned in the reply, a premium is charged. This applies to some but not to all.

When the Minister says "voted moneys" is that voted capital services or current? Is it met from taxation or further capital borrowings?

(Clare): Taxation.

In respect of the second last category of loan to which the Minister referred and on which a premium is being charged to the person using the loan, how much money has been collected by means of that premium? Has any been used to meet the cost of exchange losses?

(Clare): The percentage premium charged in two instances is seven-eights of 1 per cent and 1? per cent. As regards the second part of the question, I do not have that information.

Is it not the case that if there was no exchange loss and a premium has been charged significant sums of money are building up in somebody's pocket? Would the Minister indicate how much money has been collected and how it is to be used in the event that it is not necessary for meeting exchange risks?

(Clare): Total losses incurred up to December 1981 were £4.8 million. The bulk related to World Bank facilities. I do not have any information about gains.

I am not asking about World Bank loans but the second last category, which are EIB loans, upon which a premium is charged. There is no premium charged on World Bank loans. I am interested in what is happening to the proceeds of the premium which has been charged on one of the categories of loan.

(Clare): There is a 2 per cent premium on that loan.

Where is the money? What is being done with it?

(Clare): It is charged to the borrower. If there is any loss above this figure it will have to be made good by the agricultural vote.

Have there been any losses?

(Clare): I do not have that information. It is not very long in operation, as the Deputy knows.

Is there any foundation in newspaper reports that the Government are considering extending the guarantee scheme for a further £200 million of semi-State and private sector borrowings?

(Clare): I am not aware of any plans to extend it.

That was only election talk.