Michael Noonan
Question:71 Mr. Noonan asked the Minister for Finance his plans to alter the present basis of contribution to or investment from the national pensions reserve fund. [25626/02]
Written Answers. - National Pensions Reserve Fund.
The National Pensions Reserve Fund Act places a statutory requirement on the Minister for Finance to make a payment of 1% of GNP into the fund each year. I have no plans to introduce amending legislation to change this requirement.
To leave discretion in the making of the 1% contribution would, I am convinced, undermine the whole basis of the fund. If discretion were left in the making of the payment of the 1% contribution, it is likely that future Governments would come under pressure to prioritise shorter term economic goals at the expense of making the payment. It is essential that the mandatory contribution be maintained. Once it is breached for one purpose, it is more likely that it will be breached again.