I take it that the Deputy is referring to the pension fund investment study commissioned by the Irish Association of Pension Funds and supported by the Irish Association of Investment Managers, the Irish Insurance Federation and my Department.
I am quite satisfied with the thrust of the report's conclusions and recommendations. In order to gain the support of pension fund trustees in the initiative, it was important that an independent source should demonstrate that there was a gap on the funding side of the venture and development capital market which needed to be filled and that pension funds could respond to that need on a commercial basis thus meeting the prudential obligations of trustees.
On these key issues, the study reached positive conclusions. In summary: it indicated that a gap does exist on the "supply side" of the venture capital market, particularly in respect of projects that require funding in the £0.3 million to £4 million range; it estimated the size of that gap at £10 million to £15 million per annum and it stated that there is no necessary reason why, if venture capital investment is underpinned by appropriate specialised skills and expertise, trustees' responsibilities cannot be fulfilled through such investments.
The study concluded by stating that it is appropriate that pension fund money should be made available by trustees for investment in venture and development capital, if investments are made on commercial criteria.
The way is now clear to put the study's findings into effect — in other words, to get the initiative up and running. There is an onus on all concerned to get the necessary investment vehicles into place as quickly as possible, so that funds can begin to flow into the businesses which need them, and have the promise of a return commensurate with risk, that is, a return which meets commercial criteria.