Martin Browne (Tipperary, Sinn Fein) | Oireachtas source

Sinn Féin is supportive of establishing of a sovereign wealth fund. With the significant growth in corporation tax receipts in recent years, it is important that the moneys collected in this regard are treated in a manner that protects them in order that they can be used to combat future challenges and crises as they may arise. The design of such a fund must take various factors into account, including how moneys are accrued and invested and the circumstances in which they can be drawn down and the purposes for which they can be used.

I will focus first on the matter of investing the assets of both funds. The legislation references how the assets of both funds may be held or invested inside or outside the State. However, there appears to be a shortcoming in the context of identifying the investments that could be made within the State that would assist the State while benefiting the fund.

Specific reference is made to the provision of the drawdown of funds between 2026 and 2030 for designated environmental projects in recognition of the climate crisis. Let me be clear that I have no issue with this. However, I take issue with omission of specific reference to other crises that are very real, such as that relating to housing. The Government's current targets in this area are deficient, as we are all aware. This has been intimated by the new Taoiseach, among others. I am concerned therefore that this legislation does not provide the flexibility to address the demands in the housing sector, or of other infrastructural demands.

When establishing funds of this nature we must also be clear on what constitutes a reason for pausing or restricting payments in or out of the fund. Take the future Ireland fund and the vague definition of the deterioration in the economy or fiscal position of the State. Right now, we have a substantial infrastructure deficit and a housing crisis but this legislation could prevent the drawdown of funds for infrastructural purposes if a modest surplus were to be protected. This could result in the Government's hands being tied in utilising money to fund or increase capital investments when there is an acute societal need for infrastructural projects such as social or affordable housing. We cannot leave such matters to chance. Funds of this nature have great potential and their primary purpose must be to preserve moneys for when they are required and to use them in the interests of the State when need arises.

The Bill is incomplete, lacks specifics and must be revisited. That is why we will not be supporting it.

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