Dáil Éireann Debate, Wednesday - 23 May 2012
39 Deputy Sean Fleming asked the Minister for Finance his views on the best use for the State of the remaining funds in the discretionary portfolio of the National Pension Reserve Fund; and if he will make a statement on the matter. [25591/12]
View answerThe Government is committed to ensuring a continuing level of investment in Ireland in the interests of boosting economic activity and generating employment. It believes that the National Pensions Reserve Fund (NPRF) can make a significant contribution to that objective through its involvement in the Strategic Investment Fund and through investment opportunities in Ireland such as the new Irish infrastructure investment fund, as well as through commercial investment in projects in this country, such as the €450 million the Fund has committed to finance the national roll out of domestic water meters, and the Fund's continuing participation in Innovation Fund Ireland.
The resulting greater concentration of investment in Ireland on the part of the NPRF is expected to require the amendment of the NPRF's investment policy, which is set out in the National Pensions Reserve Fund Act 2000. Officials of my Department are liaising with the National Treasury Management Agency, as the Manager of the NPRF, in identifying and drafting the necessary amendments to the legislation and I expect to bring forward proposals for amending legislation as soon as possible once that work is completed. It should be noted that the funds in the Discretionary Portfolio are not all readily accessible. The NPRF Commission has legally committed €1.2 billion to various fund investments, of which over €800 million is for investment in Ireland. The €800 million includes a commitment to provide funding on a commercial basis for the roll-out of the water metering programme subject to certain pre-conditions.
The establishment of the Strategic Investment Fund (SIF) was announced by the Government in September 2011. The SIF will channel commercial investment from the National Pensions Reserve Fund towards productive investment in the Irish economy. As well as money from the NPRF, the Fund will seek matching commercial investment from private investors and target investment in areas of strategic significance to the future of the Irish economy. It will comprise a series of sub-funds targeted at commercial investment in critical areas of the Irish economy, including infrastructure, venture capital and provision of long-term capital for SMEs. The NPRF will take a lead role in the development and implementation of each sub-fund.
