Vol. 521 No. 1
149 Mr. Broughan asked the Minister for Finance if he will project the likely income from the investment account of the social insurance fund over the years 2000 to 2005; the reason more of the surplus was not invested in 2000; and the way in which this investment account will interact with the new social welfare reserve fund. [15044/00]
The future income from the investment account of the social insurance fund will be a function of the resources that can be set aside for investment and the return that can be obtained from such investment. Both elements are subject to a considerable level of uncertainty. The resources available for investment will be determined by the interaction of the respective income and expenditure dimensions of the fund, including future budgetary decisions in relation to social insurance contribution rates and benefits; on the other hand, the rate of return will be determined by variable factors such as interest rates and the type and duration of investment which may be undertaken. Against this background, any figures for the period to 2005 that could be given at this time could, at best, only be viewed as indicative. The Deputy can be assured, however, that the objective will continue to be the generation of the optimum return to the SIF consistent with the security of the funds put aside.
At the end of 1999, the estimated cumulative surplus on the SIF stood at £329 million at which point, and bearing in mind cash flow requirements, some £235 million was invested with the NTMA: the balance remained on overnight deposit with the Central Bank. Since then, in the light of continuing buoyancy of PRSI receipts, the total sum invested with the NTMA has increased to some £388 million, with the position being kept under regular review.
