Michael Noonan (Limerick City, Fine Gael)

In September 2011 the Government announced the establishment of the New Economy and Recovery Authority, NewERA, within the NTMA and the establishment of the strategic investment fund. NewERA will centralise the management of Government holdings in the commercial semi-State sector - initially the companies within NewERA's remit are ESB, EirGrid, Bord Gáis Éireann, Bord na Mona and Coillte - from a shareholder perspective. This role, based on the shareholder executive model already established in a number of developed economies, will involve oversight of activities such as capital expenditure plans, corporate strategy, acquisitions and disposals. NewERA is already working closely with the relevant Departments and companies in this regard. The shareholder executive approach is designed to provide the Government with a portfolio view of investment returns from the sector with a means of assessing the likely impact of commercial developments in the sector on long-term Government investment plans.

NewERA is also charged with assisting the development and implementation of Government plans for investment in energy, water and next-generation telecommunications with the long-term objective of employment creation and has commenced work with the relevant Departments in these areas.

The strategic investment fund will, following appropriate legislative changes to the investment policy of the National Pensions Reserve Fund, channel commercial investment from the NPRF towards productive investment in the economy. As well as money from the NPRF, the fund will seek matching commercial investment from private investors and target investment in areas of strategic significance to the future of the economy. It will comprise a series of sub-funds targeted at commercial investment in critical areas of the economy, including infrastructure, venture capital and provision of long-term capital for SMEs. The NPRF will take a lead role in the development and implementation of each sub-fund.

Additional information not given on the floor of the House.

In November 2011, the NPRF announced a commitment of €250 million to a new infrastructure investment fund which is seeking up to €1 billion from institutional investors in Ireland and overseas and which will invest in infrastructure assets in Ireland, including assets designated for disposal by the Government and commercial State enterprises and also new infrastructure projects.

NewERA and the strategic investment fund are important elements in the Government's strategy to promote economic growth and create jobs.

The fifth quarterly review mission under our EU IMF programme took place from 10 to 19 January. All actions were met for the fourth quarter of 2011 in terms of both policy reforms and quantitative targets. The troika's overall assessment was positive.

During the mission, the Minister for Public Expenditure and Reform and I both engaged with senior officials from the EU, ECB and IMF - the troika - and separately assured them that the Government will take all the necessary measures to ensure a successful implementation of the programme. The Government is continuing its commitment to the fiscal targets set out in the EU-IMF programme.

In its concluding summary of the mission, the troika team noted that our programme implementation continues to be strong. The fiscal deficit target was comfortably reached and was well below the target of 10.6% of GDP. Major progress in strengthening and downsizing the banking system was made in 2011. Steps to support growth and job creation are being put in place. However, Ireland continues to face considerable challenges.

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