Dáil Éireann Debate, Wednesday - 20 November 2013
68. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which any consideration might be given to the launch of a Government development bond which might assist economic recovery with particular reference to the need to provide a channel whereby those with savings might obtain a reasonable return on their investment; and if he will make a statement on the matter. [49793/13]
View answer75. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which economic analysis has been undertaken with a view to identifying the best means of harnessing savings and investment funds at a time of low banking interest rates; and if he will make a statement on the matter. [49800/13]
View answerI propose to take Questions Nos. 68 and 75 together.
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. 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%. Savers have invested a total of over approximately €1.671 billion in the National Solidarity Bond to date.
The NTMA is responsible for the State Savings products and keep the suite of State Savings products and the interest rates paid on them under constant review to ensure that the products remain competitive and attractive to savers, while balancing the funding requirements and financing costs of the State.
In addition to the above, my Department is currently working on legislation to establish the Ireland Strategic Investment Fund (ISIF). The ISIF will have a commercial Ireland-focused investment mandate that supports economic growth and employment. Work is already underway by economic consultants (appointed by the NTMA) to assist in identify the linkages between commercial investment and economic growth and employment. Establishing the ISIF will unlock €6.6 billion of NPRF resources (as at end September 2013) for commercial investment in Ireland, ensuring that the State uses the resources available to it to support economic growth and employment in Ireland. I expect that the ISIF will be an important resource for Ireland in the years to come.
