asked the Minister for Finance the total borrowing by the State in the domestic market for the period from March to May; and the effects of Government borrowing in the domestic market on our interest rate.

In accordance with the usual practice the figures for Exchequer borrowing in the domestic market will be released in conjunction with the Exchequer returns for end-June 1986. The Exchequer's normal borrowing operations in the domestic market have not had an adverse effect on interest rates. The high rates in the early part of the year were caused by speculative pressures in advance of the recent EMS realignment. As these pressures have unwound they have allowed a significant fall in interest rates to take place.

Would the Minister agree that the realignment of our currency would have made the position more favourable for our exporters and made us more competitive on international markets?

This question is not concerned with realignment. It is concerned with total borrowing by the State on the domestic market. Therefore, that supplementary question does not arise.

Does the Minister not agree that a real interest rate of 8 per cent would be more realistic at present? Would he not agree that the present high interest rate — the lowest is 12 per cent — is a burden on Irish industry and on the export of Irish goods? We are totally out of line with the interest rate of our EC partners.

A question, please, Deputy.

The German Mark is now in the region of 4 per cent, Dutch Guilders, 5 per cent and French francs are in the region of 8 per cent. We are four per cent over the highest European rate.

Domestic borrowing by the Government in the first half of this year has had no significant effect on interest rates.