Noel Ahern (Dublin North West, Fianna Fail)
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Question 66: To ask the Minister for Finance his views on the National Solidarity Bond announced in Budget 2010; the details of same; the position regarding same; and the timescale for its implementation. [14392/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I announced in Budget 2010 that the Government intended to introduce a National Solidarity Bond.

This bond will effectively be a new form of our state savings products which are aimed at the retail investor. We already have savings bonds and savings certificates, which are three and five and a half year investment products managed by the National Treasury Management Agency. The new bond will be a longer-term product which will be attractive to people who wish to invest for up to 10 years. Where an investor wishes to encash their investment before the final maturity date of 10 years they will be able to do so.

The structure is quite innovative — there will be an annual interest payment and a final redemption bonus payable. The final investment bonus will be payable to investors who encash their bonds after five, seven or ten years.

Legislative provisions relating to the introduction of the National Solidarity Bond were included in the Finance Bill which has now completed all stages in the Oireachtas and is scheduled to be signed by the President in the coming days. I expect that the bonds will be available for purchase in all Post Offices before the end of the month and information will also be available by telephone and on the internet.