Catherine Noone (Fine Gael) | Oireachtas source

I welcome the Minister of State and congratulate him on his elevation and no doubt he will do a superb job in what is a senior junior Ministry. I am sure it is a great day for him and his family and I wish him the very best of luck.

I welcome the Bill, as the purpose for which it is being introduced is an important one. It goes without saying that in the past the National Treasury Management Agency showed that it could perform admirably with the responsibility put upon it, to which other Senators have alluded, even though at times very difficult tasks were given to it. The NTMA was set up to cater for and manage State debt, to rearrange investment in such a way as to be of benefit to the economy. It did so admirably and is to be lauded for what it has done. Since then it has been expanded greatly. For example, it now manages the National Pensions Reserve Fund, about which Senator Crown has just spoken at length, and acts as Ireland's agent for the purchase of carbon credits as well as handling the State's liabilities under the auspices of the State Claims Agency. Its functions have increased greatly as has its scope and its personnel. Its personnel has expanded to a larger degree than would be ideal. I would not have the same exposure, on a professional basis, to the other areas in the NTMA as I have had to the State Claims Agency. Even though, on the face of it, it does not seem appropriate for it be a part of the NTMA, the fact that it has real experts in the areas of litigation is to its credit. It handles claims extremely well and in a very professional manner. These liabilities to the State are a potential debt to it and I think it is fitting it is there. It does more than handle costs, it handles claims in a very intricate and hands-on type of way. That is something of huge benefit to the State.

As has been mentioned, this Bill will therefore work to streamline and simplify the structures of governance at the National Treasury Management Agency to enable a more integrated approach to the performance of its functions which have grown considerably since it was established in 1990. When the agency began in 1990 it was not envisaged that it would have either the number of functions or personnel that it has today. The agency will be reconstituted as a body with the chairperson and other members who will have overarching responsibility for the agency's existing debt management and State Claims Agency functions, the role in regard to infrastructure projects currently filled by the National Development Finance Agency, the Ireland Strategic Investment Fund and NewERA. There will be no change in its role of providing business services and staff to the National Asset Management Agency which will continue to have its own separate board.

This is important, as unsteadying NAMA's processes could be detrimental to its work.
The Bill also converts the NPRF into the Ireland strategic investment fund, ISIF, and gives it a statutory mandate to make commercial investments in Ireland that support economic activity and employment. I agree with my colleague, Senator Michael D'Arcy, that it is the only show in town. It must be encouraged by NAMA. This provision is positive. While I understand that some Members have reservations, it will allow us to unlock capital funding and enable businesses across the country through investment.
A concern was raised about the possibility of the ISIF being used for political pet projects and its board being stuffed. As the then Minister of State, Deputy O'Dowd, pointed out in the Dáil, this is a commercial fund; it will not invest in political pet projects and the public assets entrusted to it will not be frittered away. The Secretaries General of the Departments of Finance and Public Expenditure and Reform and the chief executive of NAMA will be ex officiomembers of the ISIF's board, thereby increasing transparency. Board members would not be involved in political pet projects. This is an important point, and the governance structure of the National Treasury Management Agency, NTMA, is vital to its future success.
The agency's board will be appointed by the Minister, but the members of the investment committee, those who will discuss the investment processes, will not be appointed by the Minister. Two must be members of the board, with the remainder appointed by the board of the NTMA with the consent of the Minister for Finance. This secures the committee from direct political appointments.
I have every confidence that the ISIF's commercial mandate will be measured by its ability to attract private sector co-investors. It seems the Bill will provide for the streamlining and simplification of the NTMA's governance structure, allowing it to continue performing as ably as it has to date and ensuring future successes. I commend the Bill and thank the Minister of State for attending the House on his first day in office.