Brian Lenihan Jnr (Dublin West, Fianna Fail)

I understand the concerns expressed by Members but we should focus on the realities rather than on abstractions. The reality is I fear the House would know all about it had I to invest or give a direction on a sum in excess of €7 billion. The Minister must be given freedom of manoeuvre regarding this legislation because it concerns investment in particular institutions. Currently, the pension fund does not seek prior parliamentary approval for the investments in which it engages, which is crucial.

When this investment is completed, the remainder of the fund will consist of ordinary shares in companies all around the world, which have been acquired for the fund or on its behalf. I have made it clear in public debate and on the record of the House that the rapid disposal of those assets would result in a considerable loss to the pension fund. A decision on my behalf to give a further direction would entail a loss to the fund itself and, therefore, would take place in considerably difficult circumstances for the State. That is the reality of the position relating to a sum in excess of €7 billion.

Deputies could retort about the borrowing option available to the pension fund to finance credit institutions. As I made clear on Second Stage, we have frontloaded the Exchequer contribution to the pension fund for the next two years to secure the bank capitalisation and, therefore, that option could not be invoked for two years at the earliest.

With regard to the practicalities of the position, a theoretical issue has been raised. The Minister must have some freedom of manoeuvre in this matter. Were circumstances so grave that the ordinary shareholdings the State holds in the fund had to the disposed of to fund further investment in credit institutions, that operation would have to be conducted in secrecy prior to its disclosure.

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