Oireachtas Joint and Select Committees

Wednesday, 31 May 2023

Committee on Budgetary Oversight

Sovereign Wealth Funds: Discussion (Resumed)

Mr. Svein Gjedrem:

I think it is risky to base investment in the health sector and building up a better health sector on income that is uncertain and short term. If more money is invested or spent on hospitals and health in the municipalities in the context of a desire to build these services up, it is important that this investment is based on stable, long-term income and not on income that might last two, three, five or six years and fluctuate a great deal. That is an important point to bear in mind.

Additionally, what is important in all countries when it comes to long-term public investments is the need to establish in the fiscal budget a sufficiently high level of public investment to develop a country's infrastructure, energy system, road network, public transport system and so on and so forth, and to maintain this investment at a stable level over the longer term. Such investment should be financed with ordinary income through the fiscal budget and not through money accruing in the short term. That is an important point.