Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

As recently announced, the Government has decided to establish the Ireland strategic investment fund, ISIF, which will absorb National Pensions Reserve Fund, NPRF. The discretionary fund of the NPRF of approximately €6.4 billion will be channelled towards productive investment on commercial terms in the Irish economy. Officials of my Department are currently preparing the necessary legislation, which I hope to see enacted this year.

Using the Ireland strategic investment fund, we will maximise our resources to enhance growth in the economy and improve key infrastructure to maintain Ireland's attractiveness as a place to do business and to create jobs. My Department is working alongside the National Treasury Management Agency, NTMA, to develop the broad parameters for the investment strategy for the ISIF in parallel with developing the legislation, and it is envisaged that the work will align with that being done by my Department and the Department of Public Expenditure and Reform on a medium-term economic plan.

It is envisaged that the ISIF will seek to leverage and maximise its resources by attracting private sector co-investment. I am conscious that it is important that a level of independence is maintained to attract that private sector co-investment. To do this, the fund will need to demonstrate clearly that it acts on a commercial basis in order that the very fact that it is prepared to finance a proposal will reassure other potential investors that the project is sound. Any income, capital or other benefit received in respect of ISIF investments will be repaid into the fund and held or reinvested for the benefit of the fund. Whereas the need for the State to provide for social welfare and public service pensions obligations has not abated, fostering economic activity and employment is currently a greater priority and this will in turn put the State in a better position to meet its pension obligations in the longer term.

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