Dáil Éireann Debate, Thursday - 3 October 2013
48. Deputy Niall Collins asked the Minister for Finance when he envisages the Ireland Strategic Investment Fund will commence investment of assets from the National Pension Reserve Fund; the scale of investment that can be expected in 2014; and if he will make a statement on the matter. [41448/13]
View answerAs recently announced, the Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb National Pensions Reserve Fund (NPRF). The discretionary fund of the NPRF, of approximately €6.4 billion currently, will be channelled towards productive investment on commercial terms in the Irish economy. Officials of my Department are currently preparing the necessary legislation which I hope to see enacted this year.
Using the Ireland Strategic Investment Fund, we will maximise our resources to enhance growth in the Irish economy and improve key infrastructure to maintain Ireland's attractiveness as a place to do business and to create jobs. It is not really possible at this time to estimate the expected effect on employment, although we do expect very significant economic activity and the creation of thousands of jobs. My Department is working alongside the National Treasury Management Agency (NTMA) to develop the broad parameters for the investment strategy for the ISIF, in parallel with developing the legislation, and it is envisaged that that work will align with the work being done by my Department and the Department of Public Expenditure and Reform on a medium-term economic plan.
It is envisaged that the ISIF will seek to leverage and maximise its resources by attracting private sector co-investment. I am conscious that it is important that a level of independence is maintained in order to attract that private sector co-investment. To do this, the fund will need to demonstrate clearly that it acts on a commercial basis, so that the very fact that it is prepared to finance a proposal will reassure other potential investors that the project is sound. While the need for the State to provide for social welfare and public service pensions obligations has not abated, fostering economic activity and employment is currently a greater priority and this will in turn put the State in a better position to meet its pension obligations in the longer term.
