Dáil Éireann Debate, Wednesday - 16 January 2013
190. Deputy Kevin Humphreys asked the Minister for Finance if he has considered the use of retail bond such as those used in the United State of America like the Liberty Bond to fund infrastructure projects as part of future stimulus packages targeting areas with a potential for strong economic return; and if he will make a statement on the matter. [51429/12]
View answerAll monies raised through Government borrowing are paid into the Central Fund and used to fund Government spending as approved by the Oireachtas. It has never been the custom to link borrowing to specific projects as to do so would limit flexibility of the Government in managing the State’s finances. The National Treasury Management Agency (NTMA) offers a range of savings products to personal savers under the brand name State Savings. NTMA State Savings products have been an important and dependable component of Government borrowing for many years and make a valuable contribution to the national finances. While the funding raised from State Savings is not ring-fenced for expenditure on a specific project, it does provide an additional source of funding for the Government.
The suite of State Savings products includes Savings Certificates, Savings Bonds, Prize Bonds, the National Solidarity Bond, Instalment Savings and Deposit Accounts such as the Ordinary Deposit Account and the Deposit Account Plus.
The ten-year National Solidarity Bond was introduced in 2010 specifically to allow citizens an opportunity to invest and provide money to the State to stimulate economic recovery and to assist in the maintenance and creation of employment. A four-year National Solidarity Bond was introduced in 2011. The four-year National Solidarity Bond offers a fixed return of 12%, while the ten-year Solidarity Bond offers a return of 45%. Some 47,000 savers have invested a total of over €1 billion in the National Solidarity Bond to date.
