Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

Section 3 places an €8 billion cap on the value of assets and the money that may be held in the fund but allows any return on the fund to be held in the fund. In our current interest rate environment, we can expect a near zero rate return or a small carry cost for holding the fund as near cash as is practicable. However, the fund is unlikely to reach the €8 billion cap for some years and it is to be expected that the interest rate environment will normalise over that period. While the current interest rate is zero or almost zero, we think it prudent to make an €8 billion amount cap available toward some external shock that is unanticipated.

We do not want to go beyond that. A sum of €8 billion is large. It is not earning money and is not working on behalf of taxpayers. We think that is a sufficient amount and we do not want to go beyond that. There is also a capital surplus. I refer to a cash amount of approximately €15 billion. If the fund gets to €8 billion, in addition to that current €15 billion, that will be a large amount not working and not earning. We are satisfied to accept the amendment.