asked the Minister for Finance if he has established any guidelines or criteria for the semi-State bodies under his Department for equity participation in publicly-quoted companies on the Stock Exchange.
Ceisteanna—Questions. Oral Answers. - Semi-State Equity Participation.
25.
I have not established any guidelines or criteria for the semi-State bodies under the aegis of my Department for equity participation in publicly-quoted companies on the Stock Exchange.
In view of the growing concern that some semi-State bodies have speculated — that can be the only word — in oil shares at some considerable cost to the taxpayer, would the Minister not acknowledge that it is time there were guidelines as he is the majority shareholder on behalf of the taxpayer? Would he also acknowledge that it is very inappropriate for Irish Life to buy one million shares in Atlantic Resources as suggested by Independent Newspapers? Does the Minister agree that it is time that directions were given to all State and semi-State bodies, corporations and banks and the ICC to ensure that taxpayers' money cannot be gambled on oil shares as whoever else may gain it will not be the taxpayer?
The trouble is that all investment in the productive sector involves an element of risk or gamble. Many of us, probably the Deputy on occasion, would be in the forefront in urging insurance companies to invest in the productive sector and in wealth creation. Any investment by an insurance company in the productive sector or in wealth creation involves an element of a gamble. In regard to the guidelines to which Deputy O'Kennedy referred, I am a little afraid that the result would be that all the money would be invested in the nonproductive sector in gilt edged investments of one kind or another. They would certainly not be open to the charge of a "gamble" but the result as far as wealth creation and employment are concerned would not be as good as if there were a judicious mix of investment, some gilt edged and others in the productive or risk sector. Obviously oil exploration off our coast is part of the wealth generating sector of the economy and while it would be clearly undesirable that an imprudent proportion of the funds of an insurance company were to be tied up in one sector which is obviously sensitive to changes in the market, we should not say that no money should be put into it under any circumstances. Money should be invested in this area as long as it is done prudently and on a well spread basis.
Does the Minister acknowledge that this was blatantly imprudent at a time when the oil market was, to say the least, volatile and when world trends were showing a drop in oil prices? To have such a large participation by way of equity on behalf of a tax subsidised company is imprudent in the extreme. Which of us would regard that as productive? Will the Minister ensure that clearer guidelines are established to protect the taxpayer against unnecessary gambling or promotion of interests which are not always in the public interest but are sometimes in the interests of private promoters outside this House?
I do not control the investment policies of Irish Life and, therefore, I am not involved in any approval of investments which they may make——
They are held in the Minister's name.
I will start again. I do not control the investment policies of Irish Life — since the company were established they have operated on an independent basis — and in so far as that is concerned, I do not think it desirable that I should. Irish Life are a successful company working under the present relative freedom which they enjoy. They are not, as Deputy O'Kennedy suggested, a tax subsidised body and they operate on a self-financing free standing basis——
The company are guaranteed.
Their shares are owned by the Minister for Finance but there is no current subsidy as the Deputy alleged. However, I do not want to get into a big argument about that. There is, of course, supervision of the conduct of insurance companies generally, both privately owned and in relation to those owned by the Government, as in this case, by the Department of Industry and Commerce in the course of their normal supervisory remit.
Your time is up, Minister.
May I have a written reply to Question No. 26?
This morning I asked if I could raise a matter on the Adjournment in relation to a school in Tallaght. I wish to inform you that that matter has now been resolved. I do not know whether it was resolved because I sought to raise it on the Adjournment but we will give it the benefit of the doubt. However, I wish to raise on the Adjournment the question of vacant houses owned by Dublin Corporation in Tallaght.
You are too late, Deputy, 3.30 p.m. is the deadline for seeking to raise matters on the Adjournment.