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

The Ireland Strategic Investment Fund, ISIF, was established in December 2014. The creation of ISIF was a commitment in the last Government's programme for Government. The previous Government gave ISIF a unique double bottom line mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland. This mandate sought to demonstrate that the State was prepared to invest its limited investment funds in projects that would yield a commercial return, thus demonstrating its confidence in the future of the Irish economy. The intention of this investment was to leverage additional private sector investment, which I am pleased to state has been higher than expected to date.

Given ISIF's new and unique mandate as a sovereign development fund and because of the uncertainty regarding investment opportunities in Ireland, it was agreed at the time that a formal review of the ISIF investment strategy would take place after 18 months. This was to allow a sufficient period of time to elapse before considering the operations and impact of the fund. The investment strategy review which is due to be completed shortly is examining the performance and impact of ISIF. The review includes an appraisal of the success of ISIF's mandate to the end of December 2016 and requires engagement by both my Department and the Department of Public Expenditure and Reform as part of the process.

I am sure the Deputy shares my view that ISIF's double bottom line mandate represents a unique strategic opportunity for Ireland. The mandate is designed to ensure that ISIF's investment generates a return, attracts investors and recycles funds. Without wanting in any way to pre-empt the review that is currently under way, I am encouraged by the quality and impact on the Irish economy of ISIF's investments. ISIF has built up momentum already, including through its future pipeline. ISIF has already committed €2.7 billion and acts as a catalyst for other investors to invest in Irish projects. This includes a commitment of €361 million for infrastructure investment essential to the future competitiveness of the economy. In addition, ISIF's ability to attract co-investment from the private sector means that €7 billion of total investment has been committed to the end of December 2016.

Additional information not given on the floor of the House

It is apparent from the investments already in the public domain that, as envisaged at inception, ISIF is utilising its unique investment characteristics of scale, long-term perspective and flexibility to target high economic value investment in Ireland in a way that other funds cannot. ISIF has made investments in the following key economic sectors, namely, housing and construction, SME credit, venture capital and equity funds, connectivity, renewable energy, water provision, forestry and agriculture. The fact that the proceeds of ISIF investment can, unlike State spending, also be recycled to support future economic activity in Ireland illustrates the potential that the ISIF model offers and on which ISIF is currently delivering. I look forward to receiving the ISIF investment strategy review as it will be a useful opportunity to consider ISIF's work to date and the most appropriate use of the fund to help meet the forthcoming challenges that the State faces.

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