Written answers

Tuesday, 28 March 2006

Department of Finance

Public Private Partnerships

11:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 222: To ask the Minister for Finance the amount which has been invested by the National Pensions Reserve Fund in public private partnership projects; and if he will make a statement on the matter. [12246/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I understand that, to date, no moneys have been invested by the Commission in any such projects. The National Pensions Reserve Fund Commission is independent of Government in the exercise of its functions. Under the National Pensions Reserve Fund Act 2000, it controls and manages the fund with discretionary authority to determine and implement the fund's investment strategy. This investment strategy is based on a commercial investment mandate with the objective of securing the optimal return over the long term subject to prudent risk management.

The independence of the commission is a cornerstone of the legislation which ensures that the commission will invest in a manner that maximises returns. Essentially, it is similar to the trustee arrangements that apply to private pension funds and places an obligation on the commission to act commercially and in the best interests of the fund.

With regard to commercial investment in public sector projects in this country, the annual report of the National Pensions Reserve Fund Commission for 2004 states that the commission made an initial allocation of €200 million for investment in public private partnerships in Ireland and will increase this allocation should suitable opportunities arise. The report also states that the commission will make equity and/or debt finance available to the winning bidder in the tender process for public private partnership projects, provided it is satisfied with the prospective rate of return.

On a more general note, development of the public private partnership process is not dependent on investment in PPPs by the National Pensions Reserve Fund Commission.

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