Vol. 434 No. 4
82 Mr. Yates asked the Minister for Finance if he still intends that pension funds should be obliged to invest £100 million in Irish venture capital projects; and the progress, if any, that has been made to date in talks with pension fund representatives in this regard.
As the Deputy will be aware from my reply to an earlier question on this matter, the Irish Association of Pension Funds, following discussions with myself and my officials, endorsed the principle of the initiative announced in my budget speech to encourage increased investment by pension funds in Irish venture and development capital projects.
The Deputy will also be aware that, as a result of these discussions, it was agreed that a detailed study should be carried out under the auspices of the Irish Association of Pensions Funds and supported by other interested parties including my Department to assess, among other things, the opportunities for investment in this area and its suitability having regard to the prudential requirements of pension fund trustees. This study is expected to be completed shortly. During my Second Stage speech on the Finance Bill I indicated that the Government proposed that pension funds should work towards a target investment of £100 million in this area over and above their existing level of investments in unquoted companies, to be phased in over a five year period. This target figure will be subject to the outcome of this study and to sufficient suitable projects being brought forward.
