Dáil Éireann Debate, Wednesday - 20 November 2013
56. Deputy Terence Flanagan asked the Minister for Finance the reason it is appropriate for the National Pensions Reserve Fund to be used as a source of current Government spending when persons are either denied or given very limited access to their pension fund arrangements; and if he will make a statement on the matter. [49673/13]
View answerThe National Pensions Reserve Fund (NPRF) was established on 2 April 2001 under the National Pensions Reserve Fund Act 2000 for the purpose of meeting as much as possible of the cost to the Exchequer of social welfare pensions and public service pensions to be paid from the year 2025 until the year 2055, or such other year as may be specified by order.
The Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the NPRF. The discretionary fund of the NPRF, worth some €6.6 billion at end September 2013, will be channelled towards productive investment on commercial terms in the Irish economy.
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.
