Richard Bruton (Dublin North Central, Fine Gael)
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Question 253: To ask the Minister for Finance if it remains Government policy to establish a National Transformation Fund into which once off revenues accruing to the State would be placed. [27709/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Under the objective Delivering Major Capital Programmes, the Programme for Government states:

Where significant once-off revenues accrue to the state through for example, the sale of assets or the restructuring of the Central Bank, we will use these revenues to create a National Transformation Fund. This fund, which will be managed by the NTMA, will be used to finance multi-annual infrastructural development programmes.

The proposal to establish a National Transformation Fund was aimed at facilitating the delivery of major capital programmes in a coherent manner while maximising efficiency, value for money and appropriate risk transfer across complex multi-annual programmes. This has been overtaken by events and while a National Transformation Fund has not been established it is clear that the overall objective behind the proposal is being achieved.

There have been a number of developments since the proposal was made which meet the overall objectives envisaged. These developments include:

∙The multi-annual capital framework

∙Transport 21

∙The National Development Plan.

For some years now, public capital investment under the capital envelopes has been about 5% of GNP. This is around twice the EU average level.

The introduction of multi-annual capital envelopes in Budget 2004 has progressed and continues to progress investment in infrastructure, thereby ensuring continued economic progress, national competitiveness and better quality of life for the public in general.

The Government is committed to maintaining this level of investment. Under the 2006-2010 capital envelope, some €43.5 billion is being made available, an increase of €7.2 billion on last year's capital envelope.

Transport 21 will deliver €34 billion of infrastructural improvements in the transport sector over the 10 years 2006-2015.

The next National Development Plan covering the period 2007-2013, which sets out the Government's investment strategy and indicative financial allocations for enhancing Ireland's infrastructure, human resources, enterprise sector as well as promoting social inclusion will be launched next November.

Besides these developments it should be noted that monies from the Central Bank and the sale of State assets would be taken in by the Exchequer as Non-Tax Revenue and would therefore be available for investment having regard to the Government's capital investment framework. In this context, the Central Bank restructured its reserves and investment portfolio in the period 2000 to 2003 and the proceeds were paid into the Exchequer as part of the normal payment of surplus income of the Central Bank. This has contributed to the achievement of the sound public finances strategy pursued by the Government.

In all these circumstances, the objectives which were envisaged for a National Transformation Fund are being achieved.