Mr Rocher asked the Treasurer, upon notice, on 1 May 1996:

(1) What were the total sums of Commonwealth borrowings at (a) 31 March 1995 and (b) 31 March 1996.

(2) What percentage of each total sum referred to in part (1) was subject to exposure to (a) the US$ and (b) each other foreign currency.

Mr Costello —The answer to the honourable member's question is as follows:

(1)(a) As at 31 March 1995, total Commonwealth Government securities (CGS) on issue, excluding the CGS holdings of the Loan Consolidation and Investment Reserve (LCIR) (which do not constitute a net Commonwealth liability), totalled $104,036.2 million. The Commonwealth Government's own share of that total CGS on issue (ie, excluding CGS on issue for the States and NT) was $95,086.5 million.

(b) As at 31 March 1996, the figures were $112,610.9 million and $107,856.6 million, respectively.

(2) At 31 March 1995, the Commonwealth Government's foreign currency exposure as a proportion of CGS was as follows:

At 31 March 1996, the Commonwealth's foreign currency exposure as a proportion of CGS was as follows:

(.. represents less than 0.01 per cent)

As part of debt management activities over the last nine years, the Commonwealth has undertaken swap transactions with respect to some of its CGS denominated in foreign currencies and also, in the past five years, in relation to some of its CGS issued in Australian dollars. Swaps are used, for liability management purposes, to change the currency and/or interest rate exposure associated with existing loans. As part of its portfolio management operations over recent years, the Common wealth has sought to maintain a small holding of $US in the debt portfolio. The option of obtaining this $US exposure through swapping $A debt raised domestically has proved more cost effective than the alternative of raising the funds direct in offshore markets.

The composition, at the two reference dates, of the Commonwealth's foreign currency liabilities, before and after adjustment for swaps, was as follows:

At 31 March 1995 (a):

(.. represents less than 0.1 per cent)

At 31 March 1996 (a):

(.. represents less than 0.1 per cent)

(a) Converted to Australian dollars at exchange rates for dates indicated.