Grace Boland (Dublin Fingal West, Fine Gael)
Link to this: Individually | In context

11. To ask the Minister for Finance how the Future Ireland Fund is being used and if he will make a statement on the matter. [27604/25]

Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context

The Future Ireland Fund is a very important planning instrument for the future of the economy, particularly in light of shocks we know are coming down the track. Will the Minister outline how the Future Ireland Fund and the Infrastructure, Climate and Nature Fund are being used and their status at this stage?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

The Future Ireland Fund and the Infrastructure, Climate and Nature Fund were established in 2024 following the passage of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act through the Oireachtas. The majority of the Act commenced on 30 July 2024. The funds seek to future-proof the public finances and deal with future challenges such as our country growing older, decarbonisation and the use of new technologies.

As the Future Ireland Fund is a long-term savings fund, drawdowns from the fund will only begin from 2041 onwards. The purpose of Infrastructure, Climate and Nature Fund is to support the economy in times of exceptional need and support the funding of designated environmental projects. Funding can be drawn down from 2026. The drawing down of this fund is managed by the Department of public expenditure.

Both funds are to be capitalised by annual transfers from the Exchequer - 0.8% of GDP per annum from 2024 onwards in the case of the Future Ireland Fund and €2 billion per annum from 2025 onwards in the case of the Infrastructure, Climate and Nature Fund. Over €10 billion has already been transferred to the funds in 2024. This year's transfer to the funds was announced during budget 2025. By the end of this year, the Future Ireland Fund will hold approximately €12.5 billion and the Infrastructure, Climate and Nature Fund will have €4 billion - a total of €16.5 billion.

Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context

It is very important to acknowledge the importance of these funds. The Minister mentioned demographic change. We know a crisis is coming in terms of the shift from those who are working to those who are retired and how the working population here will have to support those people. I want to put on record my support for and acknowledgement of the importance of these funds and the fact that they will be here in 16 or 17 years time to deal with whatever difficulties the economy might face at that point.

I note the National Reserve Fund transferred to the Future Ireland Fund last year. The National Treasury Management Agency is responsible for the management of these funds. How are they managed? How close an eye is kept on them on a day-to-day basis by the Department? Can the Minister say anything about where those funds are or how he anticipates they will develop over the next 16 to 17 years?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

The day-to-day management of the funds is done by the National Treasury Management Agency. The NTMA is preparing long-term investment strategies for both funds that will then be subject to consultation with the Minister for Finance and the Minister for Public Expenditure, National Development Plan Delivery and Reform. These strategies are being reviewed and will then be signed off on by the two Ministers. The current investment strategies are being managed in a low-risk way. The funds are only invested in highly rated liquid securities with a low level of inherent risk such as the bonds of countries, as we develop these strategies.

Barry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context

I appreciate that. To what extent does the Department keep an eye on the appropriateness of those financial vehicles in terms of any human rights element? Is this a consideration?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

I would expect those kinds of issues to be considered carefully by those involved in investing this money, which we are now building up. We had a debate last night on this topic in the Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach where I said that I am reluctant to put in place lots of legislation and restrictions regarding how decisions are made by the NTMA because it does a really good job on our behalf in managing the various funds we already have in place. Instead, officials in my Department are responsible for engaging with the NTMA on strategic and operational matters and do so regularly. My Secretary General sits on the board of the NTMA along with the Secretary General from the Department of public expenditure. We work with the NTMA on those two levels. To answer the Deputy's question about how we deal with investment overall, it is through authorising the long-term strategy and that process is under way.