Dáil Éireann Debate, Tuesday - 7 December 2010
66 Deputy Terence Flanagan asked the Minister for Finance if he will provide a breakdown of income and expenditure from the National Pensions Reserve Fund over the past five years; the effect the EU and International Monetary Fund deal will have on the fund in the coming years; and if he will make a statement on the matter. [46181/10]
Amharc ar fhreagraThe National Pensions Reserve Fund (NPRF) was established on 2 April 2001 under the National Pensions Reserve Fund Act 2000 with the objective 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 at least 2055. The National Pensions Reserve Fund Commission — who control and manage the Fund — publish a report on the performance of the NPRF at the end of each quarter, as well as the annual reports of the Commission, on the Commission's website www.nprf.ie/home.html . The most recent quarterly report, to 30 September 2010, valued the Fund at €24.5 billion. A breakdown of income and expenditure of the National Pensions Reserve Fund over the past five years as detailed in the annual reports of the Commission from 2005 to 2009 is set out as follows.
|
2005 |
2006 |
2007 |
2008 |
2009 |
|
|
Opening Balance |
11,689 |
15,419 |
18,900 |
21,153 |
16,142 |
|
Exchequer Contributions |
1,320 |
1,446 |
1,616 |
1,690 |
3,993* |
|
Investment Return |
2,434 |
2,064 |
661 |
(6,676) |
2,222 |
|
Total Expenses |
(24) |
(29) |
(24) |
(25) |
(22) |
|
Closing Balance |
15,419 |
18,900 |
21,153 |
16,142 |
22,335 |
*Including €993 million in assets transferred from university and non-commercial semi-state pension funds.
The Government announced on 28 November 2010 that it had agreed in principle to the provision of
€85 billion of financial support to Ireland by Member States of the European Union through the European Financial Stability Fund and the European Financial Stability Mechanism; bilateral loans from the UK, Sweden and Denmark; and the International Monetary Fund's Extended Fund Facility on the basis of specified conditions.
The State's contribution to the €85 billion facility will be €17½ billion, which will come from the National Pension Reserve Fund (NPRF) and other domestic cash resources. This means that the extent of the external assistance will be reduced to €67½ billion.
The purpose of the external financial support is to return our economy to sustainable growth and to ensure that we have a properly functioning, healthy banking system. We have agreed to use resources available to us to make our own contribution to the programme. The Programme for the Recovery of the Banking System will be an intensification of the measures already adopted by the Government. The programme provides for a fundamental downsizing and reorganisation of the banking sector so it is proportionate to the size of the economy. It will be capitalised to the highest international standards and in a position to return to normal market sources of funding, and it is appropriate that we should play our part in this through the National Pensions Reserve Fund.
In relation to fiscal policy and structural reform, the Programme for Support endorses the Government's budgetary adjustment plan of €15 billion over the next four years and the structural reforms contained in the National Recovery Plan which will underpin a return to sustainable economic growth over the coming years. The NPRF's commitment to infrastructure development as outlined in the National Recovery Plan is unaffected by the Fund's contribution to the financial support package.
