Dáil Éireann Debate, Tuesday - 19 January 2016
150. Deputy Michael McGrath asked the Minister for Finance if he is satisfied with the pace at which the Ireland Strategic Investment Fund is investing the cash it has available and the economic impact of these projects; and if he will make a statement on the matter. [1887/16]
View answerThe Ireland Strategic Investment Fund (ISIF), managed by the National Treasury Management Agency (NTMA), has advised that it has committed €2.2 billion to investments in Ireland as at 31 December 2015. The Fund, which was established to invest on a commercial basis to support economic activity and employment in Ireland, committed €759 million to Irish projects in 2015 which are in addition to previous commitments of approximately €1.4 billion by its predecessor the National Pensions Reserve Fund (NPRF) made prior to 2015. The level of 2015 commitments is in line with the 2015 deployment target of €500 million to €1 billion. When combined with third-party capital, ISIF backed companies, projects and funds have attracted total investment commitments to date amounting to €5.2 billion.
Further information on the ISIF deployment objectives and targets is available at http://www.ntma.ie/business-areas/ireland-strategic-investment-fund/
The ISIF has also published its first semi-annual update of the economic impact of its investments, covering the six month period to 30 June 2015 (detail of commitments made as at 31 December 2015 will be published shortly):
- Over 12,000 jobs are supported directly and indirectly by the Fund's investments (In line with industry standards, an indirect employment multiplier is applied to direct jobs. The NTMA calculation of employment multipliers is based on Central Statistics Office methodology and has been verified by the CSO).
- The Fund's Irish investments are split approximately 50/50 between Dublin and the rest of Ireland.
- 85 Irish companies backed by the Fund generated turnover of €645 million in the first half of 2015.
- 35% of their turnover comes from exports.
- €218 million was earned in wages/salaries in the first half of 2015 by employees of these companies.
- Gross Value Added (GVA) from the Fund's investments was €276 million (GVA is a standard method to measure economic impact).
The full Economic Impact Report is available online at: http://www.ntma.ie/business-areas/ireland-strategic-investment-fund/
The Investment Strategy of the Fund published in July 2015 notes that deployment is subject to availability of suitable opportunities that meet the Fund's double bottom line mandate of commercial return and economic impact, that the nature of the opportunity set is uncertain and that investment by the Fund should not crowd out private investment. The Investment Strategy targets commitment of the full fund to investments in Ireland by end 2019.
I am satisfied with the pace of deployment and the economic impact achieved by the Fund to date and look forward to the future impact and benefits of the fund as its resources continue to be deployed in line with its investment plan.
