Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Professor Kinsella has given us a lot of food for thought. I ask him to discuss what he envisages to be the future for the national reserve fund. In case I did not convey my view, I believe that catch-up capital is required, which means it does not go into the fund and there is a role for investing in the domestic economy. How do we invest now to ensure we are secure in the next ten to 15 years?

Professor Kinsella spoke about third level education. Let us consider some challenges. Obviously there are challenges in the areas of infrastructure, energy and education because we have not made the necessary investments in third level education. Tomorrow, the Committee of Public Accounts will conduct hearings on the immigration investment programme. How many third level colleges have used the programme to attract badly needed investment? People had access to residency visas if they came here. Money from China was being pumped in and was holding up our universities. I do not know if UL was one of them but seven universities received millions of euro under that programme. As a State we create programmes which are closed and a bit controversial but support a lot of good developments not only in terms of universities but also in terms of social housing and community projects, etc. Oversight was more the issue in this case. We created programmes for access by wealthy individuals into our State and, in many of these programmes, they got a commercial return because part of the programme was charitable or philanthropic. Most people got a commercial return so it was a commercial investment. What if we have the ability to do that ourselves?

As to what is done by ISIF, Professor Kinsella is 100% right that ISIF seeks projects. I think we should give the NTMA a mandate or a bigger mandate and give it an extra €5 billion, €10 billion or whatever because I am sure that the NTMA will put the money to good use. That is my own thinking. It is not just a case of having a catch-up programme and not investing commercially in the Irish economy. I think that there is a role for that as well as part of the fund which is investing across the globe. What I say next will probably be a point of difference but I do not think the NTMA should be restricted and not allowed to invest in the State. It might be the case that the NTMA thinks that is not appropriate or there are better returns elsewhere. I am not suggesting directed investment. Those are my thoughts.

My last point was about the national reserve fund. We have €6 billion in the fund currently. By law, that amount can only increase to €8 billion. The fund has not had any return and may have lost value . What future does the professor envisage for the fund? Does he think the fund should be shut down and put into the new sovereign wealth fund? Where does he see the fund?