Noel Ahern (Dublin North West, Fianna Fail)
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Question 93: To ask the Minister for Finance if he will provide details in percentages of overall Government debt to GDP for a sample or range of years since 1980; the years in which it was at its highest in the 1980s and the way this compares with current levels; and if he will make a statement on the matter. [35670/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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There are two principal measures of government debt. The National Debt is the total outstanding amount of principal borrowed by Central Government and not repaid to date less liquid assets available for redemption of those liabilities at the same date. The General Government Debt (GGD) is the standard measurement of gross indebtedness used for comparative purposes within the EU. It also includes the debts of the non-commercial state-sponsored bodies, the extra budgetary funds, as well as the debt of local authorities. Also, the General Government Debt is a gross measure.

As the General Government measure was not used prior to the implementation of the terms of the Maastricht Treaty, National Debt is the appropriate measure when comparing the evolution of government debt since the 1980s. The National Debt peaked at 117.6% of GNP (106.8% of GDP) in 1987. From then it started to fall back to 99.4% of GNP (88% of GDP) in 1990, 73.2% of GNP (64.6% of GDP) in 1996 and 40.8% of GNP (34.8% of GDP) in 2000. It continued to fall to a low of 23.1% of GNP (19.8% of GDP) by 2007, one of the smallest in the EU and indeed in the world. Since the economic downturn National Debt has inevitably risen and had reached 57.3% of GNP (47.1% of GDP) in 2009. According to the National Treasury Management Agency, National Debt was approximately 70% of GNP (56% of GDP) by the end of September this year.

Restoring sustainability to the public finances is a necessary step in creating an environment that will facilitate growth in our economy. Increasing levels of borrowing mean more and more of the Government's resources must be spent on servicing debt as opposed to being used to support the economy and provide public services. The focus of all in Government is firmly fixed on improving the fiscal and economic position and at the same time on ensuring that, as far as possible, we protect the economy and generate employment.