The special arrangement whereby public servants may retire before the end of February 2012 with pension and lump sum calculated on the basis of 2008 salary levels is part of Government policy designed to achieve a significant reduction in public service numbers. It is of course open to any retiring public servant to invest all or part of their retirement lump sum in the State Savings products, the brand name used by the National Treasury Management Agency to describe the range of savings products offered by the NTMA to personal savers. Moneys raised through the sale of State Savings products are used to fund the Exchequer and repayment of all NTMA State Savings money, which includes principal, interest and bonus payments if due (or, in respect of Prize Bonds, cash prizes), is a direct, unconditional obligation of the Government of Ireland.
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. 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.
In relation to employment creation, I am confident that the measures introduced by the Government in May 2011 as part of the Jobs Initiative, such as reducing the rate of VAT in the high-value-added tourism sector, are playing a role. The Jobs Initiative is an important part of the Government's overall strategy to establish the correct conditions to allow our domestic economy to recover, while at the same time respecting the requirement to return our public finances to a sustainable position. It should be viewed as one element of a wider strategy to support economic activity.
The Government is giving priority to job protection, job creation and supporting the unemployed. In this regard, the Minister for Enterprise, Jobs and Innovation will soon publish an Action Plan on Jobs.
I might also mention that the Government announced in September 2011 the establishment of the New Economy and Recovery Authority (NewERA) within the NTMA and the establishment of the Strategic Investment Fund. As I have outlined in previous replies to this House, NewERA and the Strategic Investment Fund are important elements in the Government's strategy to promote economic growth and create jobs.
