Dáil Éireann debate -
Wednesday, 5 Apr 1995

Vol. 451 No. 6

Written Answers. - National Treasury Management Agency.

Liz O'Donnell

Question:

22 Ms O'Donnell asked the Minister for Finance whether he has satisfied himself that the NTMA has the skills and resources to manage the indebtedness of semi-State or State-sponsored bodies that may be transferred to it; and if he will make a statement on the matter. [6960/95]

Helen Keogh

Question:

31 Ms Keogh asked the Minister for Finance whether he has satisfied himself that the NTMA has the skills and resources to manage the indebtedness of semi-State or State-sponsored bodies that may be transferred to it; and if he will make a statement on the matter. [6961/95]

Minister for Finance (Mr. Quinn)

I propose to take Questions Nos. 22 and 31 together.

The National Treasury Management Agency was set up under the National Treasury Management Agency Act, 1990. The principal functions of the agency are to perform, on behalf of the Minister for Finance, the functions of the Minister delegated to it by Order of the Government under section 5 of that Act. The functions that may be delegated to the agency are those relating to borrowing and management of the national debt. The national debt is the biggest portfolio of debt in the State and it requires specific attention. The National Treasury Management Agency was set up for this purpose. The entire portfolio managed by the agency consists of State debt.

The debt of semi-State or State sponsored bodies, even when it carries a State guarantee, is not part of the national debt. The management by NTMA of the liabilities of such bodies does not arise under the 1990 Act. Some of the debt of these bodies carries a State guarantee. Were any such guarantee ever to be invoked or were such debt to be assumed by the State, thereby becoming part of the national debt, it would then naturally fall to be managed by the NTMA. I am satisfied that the agency has the skills and resources to perform its functions. Given the scale of the agency's current operations, I am satisfied that it will continue to do so under all foreseeable circumstances.