Pearse Doherty (Donegal South West, Sinn Fein)
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Question 2: To ask the Minister for Finance his view on the use of the National Pension Reserve Fund discretionary portfolio for investment in job creation; if he has discussed the use of these funds with the Troika for this purpose; if so, if he will outline the specific schemes under discussion; and if he will detail his understanding of the Troika's view on this matter. [5892/12]

Michael Noonan (Limerick City, Fine Gael)
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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.

Pearse Doherty (Donegal South West, Sinn Fein)
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In four weeks it will be a year since the people went to the polls to elect a new Government. Central to many people's thoughts when they went into the polling stations was the need for change and particularly the opportunities for employment. Figures have been issued this week indicating that more than 439,000 people are out of work. We all know about people who are leaving our shores because they feel there is no hope for them on this island. The Minister spoke about NewERA and the potential for investment from the National Pensions Reserve Fund. When will we see an investment by the State, using the discretionary portfolio that exists within the National Pensions Reserve Fund of €5.4 billion, invested into job creation opportunities? What the Government is giving people in this city and other places is not satisfactory. People want to know whether there is a chance for investment in job creation and why the Government has not used any moneys from the National Pensions Reserve Fund to date to invest in jobs. We know the rest of the money totalling almost €19 billion or €20 billion has been used to bail out and recapitalise banks. People want to know whether the Government will bring forward real proposals to use the remainder, some €5.4 billion, to help to bail out them and to provide employment for the economy and for them.

Michael Noonan (Limerick City, Fine Gael)
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There has been an extraordinary change since the Government was elected ten months ago. The Government is working every day bringing forward initiatives to restore health to the economy and this has been recognised at home and abroad. The live register figures passed through Government yesterday and they were published today. They are the best set of positive figures since 2010. I do not suggest they are satisfactory because there are significant levels of unemployment in the country but things are moving in the right direction.

Our model is dependent on export-led growth and the projections for exports are up again on the figures published this week. On the figures for January, consumer sentiment, which affects the domestic economy, is up to 56.6 on the index. It was 49.2 in December and last January it was at 48.7. This represents a significant increase in consumer sentiment and the economy is lifting slowly. We would prefer if more significant progress was being made but the depth of the hole explains the tardiness of progress made.

NewERA will invest when it is satisfied it can make profitable investments with taxpayers' money and that there will be a real creation of jobs. It will not dig holes and fill them in again simply for the sake of activity.

Pearse Doherty (Donegal South West, Sinn Fein)
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Investment by the National Pensions Reserve Fund must be made in a certain way and EUROSTAT will dictate that. The Minister says we are moving in the right direction but young people are moving to Dublin airport and from there to Australia and it is not a lifestyle choice. The set of figures the Minister claims are the best yet represent 439,000 people unemployed. It is not acceptable.

When I met the troika as part of the Sinn Féin delegation, it informed me that at no point during its discussions did any Minister or Irish Government delegation discuss the use of the National Pensions Reserve Fund to invest in job creation, save for water metering purposes. It was never on the agenda of the troika. The Minister has failed to do this. Nevertheless, the Minister for Finance and the Taoiseach stand up in the House and declare that job creation is their No. 1 priority but never has the issue been raised with the troika except for water metering. In the Minister's view, how much of the National Pensions Reserve Fund, the €5.4 billion remaining in the discretionary portfolio, will be used for the purposes of job creation?

Michael Noonan (Limerick City, Fine Gael)
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Deputy Doherty has quoted the troika as stating as much to him previously but when we asked the troika at subsequent meetings it denied that it ever stated this to the Deputy. Deputy Doherty should sort out that with the troika.

I suspect the troika is right because on several occasions we raised with it the possibility not only of using the National Pensions Reserve Fund for job creation, but the possibility of using a proportion of the proceeds when State assets are sold for re-investment in projects that would generate growth and job creation. I am unsure where Deputy Doherty's quotation is coming from but that is not what the troika has said to us.

Pearse Doherty (Donegal South West, Sinn Fein)
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How much of the money will be used?