Michael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Finance the progress made to date on the New Era project; and if he will make a statement on the matter. [43691/12]

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 National Treasury Management Agency. NewERA has a centralised shareholder advisory role from a financial and commercial perspective in respect of corporate governance matters for five commercial semi-state companies: the ESB, Bord Gáis Energy, EirGrid, Bord na Móna and Coillte. This role, based on the shareholder executive model already established in a number of developed economies, involves advising on 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 and 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 inenergy, water and next generationtelecommunications, with the long-term objective of employment creation and has commenced work with the relevant Departments in these areas. It is an important element of the Government’s strategy to promote economic growth and create jobs.

Officials of my Department are liaising with the National Treasury Management Agency in preparing proposals for legislation to put NewERA on a statutory footing. I expect to bring forward these proposals as soon as possible once that work is completed.

Michael McGrath (Cork South Central, Fianna Fail)
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As the Minister is aware, it was promised that some 100,000 jobs would be delivered during a five year period as part of the NewERA project. He poured some cold water on that promise, describing it as a PR add-on when the plan was launched. The establishment of NewERA was announced 14 months ago, but it has still not been placed on a statutory basis. The more important question, however, is what has it done in channelling investment to productive sectors of the economy. As I understand it, the intention is that the strategic investment fund will seek matching investment from third party investors. Will the Minister update the House on the success NewERA is having in attracting investment within Ireland or internationally?

Michael Noonan (Limerick City, Fine Gael)
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I refer the Deputy to the core activities of NewERA such as undertaking a centralised shareholder advisory role from a financial and commercial perspective in respect of corporate governance matters for five commercial semi-State companies, namely, the ones mentioned. NewERA provides advice for Departments on a range of financial activities in these commercial State companies, including on investment proposals, corporate plans, capital expenditure projects, financial statements, funding proposals and other items, as stipulated under relevant legislation and the code of practice for the governance of State bodies. It has also engaged with organisations with a similar purpose, commonly called shareholder executives, responsible for the oversight of state owned companies in the United Kingdom, France, Sweden, Norway and New Zealand, using the output of these discussions and taking account of EU rules on unbundling and existing OECD guidelines in this area in the establishment of a shareholder executive, which would be appropriate in the Irish legislative environment to reflect global best practices. This shareholder executive approach would provide the Government with a portfolio view of its assets and the investment returns on them. NewERA is also assisting, from a financial perspective, in the development and implementation of the Government plans for investment in energy, water and next generation telecommunications projects.

Michael McGrath (Cork South Central, Fianna Fail)
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The key question is when will we see investments being rolled out through the strategic investment fund? Late last year a commitment of €250 million was made through the NPRF to the new investment fund. We were advised at the time that it was seeking up to €1 billion from institutional investors. Will the Minister update the House on the success NewERA has had so far? When will we see viable, commercial investment projects being rolled out around the country that will lead to the creation of jobs?

Michael Noonan (Limerick City, Fine Gael)
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To give an example, NewERA is engaging with the Department of Communcations, Energy and Natural Resources on a range of potential projects across the telecommunications and renewables sectors, including broadband and biomass projects. As part of the broadband action plan, NewERA has been asked to assess the relevant assets owned and operated by State entities, both commercial and non-commercial, with a view to determining the extent to which there are opportunities to enhance the roll-out of high speed broadband on a commercial basis.

Pearse Doherty (Donegal South West, Sinn Fein)
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I have asked this question before. I hope to get some clarification on this occasion. As Deputy Michael McGrath said, the strategic investment fund is supposed to channel money from the National Pensions Reserve Fund into the productive economy. It cannot be done until the Government introduces legislation to amend the National Pensions Reserve Fund Act. The legislation in question will not be brought before us this year. It was announced in September 2011 that €250 million would be directed to a number of areas. The Government has not yet introduced amending legislation to allow the strategic investment fund to do this. There are real questions to be asked about the Government's commitment to stimulating the economy. Will the Minister clarify why legislation has not yet been introduced to give effect to the strategic investment fund that was announced in September of last year? We are now in November of the following year.

Michael Noonan (Limerick City, Fine Gael)
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NewERA is up and running on a non-statutory basis. It has been involved in assessing the possibilities associated with the disposal of Bord Gáis Energy, the non-strategic power generation capacity of the ESB and the sale of Coillte's harvesting rights. The Government has given a commitment to put NewERA on a statutory basis. We are working on that. We will bring a Bill to the House to that end some time in the new year.