Brian Lenihan Jnr (Dublin West, Fianna Fail)

It is premature to identify specific projects that may benefit from any additional investment in infrastructure by pension funds. I note that we are spending a considerable sum on capital this year, some 5% of GNP, one of the highest ratios in the world. This supports a substantial level of employment, while the reductions in tender prices mean we can do more with less.

Nonetheless, the Government is prepared to examine new ways to fund needed capital investment and support activity and employment in the construction sector provided the terms are right and in the taxpayer's favour, the investment makes economic sense, value for money is secured, and the private sector shares the appropriate level of risk such that there is not a disproportionate impact on the public finances.

If possible, I wish to see moneys currently invested abroad put to work in Ireland if a sensible, workable proposal emerges. My officials have actively engaged with representatives of the pensions industry and other interested parties to discuss alternative funding proposals. These discussions have focused on the possible sources of additional funding and on what steps would be required to access such funding. Several meetings have taken place and further meetings will be arranged in the near future.

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