Brian Lenihan Jnr (Dublin West, Fianna Fail)

Legislation may be required for taking over the assets of semi-State and public bodies as announced over the summer. With regard to the liabilities, the position is that the State already undertakes them. This is why the State came to this arrangement.

I asked the former Governor of the Central Bank, Mr. Maurice O'Connell, to prepare a report on the operation of the National Pensions Reserve Fund. I recently received it and it is under consideration in my Department. I share Deputy Burton's concern that the fund has lost a substantial sum, 17% of its value, in the past year. That loss mirrors those which have occurred in stock markets across the world. As it is a pension fund, it is invested in accordance with commercial criteria, so a small proportion of the fund is invested in Ireland.

Borrowing for the 1% of GNP contribution to the fund was also examined by Mr. Maurice O'Connell's report. When I have finalised my consideration of the report, I will announce a decision in that regard.

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