168 Mr. Cox asked the Minister for Finance the savings to the Exchequer in debt redemption costs for each 1 per cent reduction in the nominal interest rate.

It is assumed that the Deputy is referring to debt service costs.

The effect of a 1 per cent interest rate reduction in 1994 would depend upon the timing and duration of the change in interest rates.

On the basis of the fixed/floating interest rate composition of the national debt at 31 December 1993 it is estimated that there would be £108.5 million in debt service savings for each 1 per cent reduction in nominal rates where the reduction was effective for a full year.