Eoghan Murphy (Dublin South East, Fine Gael)
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To ask the Minister for Finance if he has considered ways of incentivising Irish based pension funds to invest in the economy here in a sustained way. [53149/12]

Michael Noonan (Limerick City, Fine Gael)
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I understand the Deputy is referring to tax incentives. I should explain in the first instance that pension funds approved by the Revenue Commissioners are exempt from tax on any income or gains derived from their investment activities. Officials of my Department and of the Department of Public Expenditure and Reform continue to engage with third-party investors on how investment deals could be structured to facilitate the provision of funding for new infrastructure projects. With regard to tax-based incentives for investment in the economy, pension fund investments should be executed at a level of return comparable to that earned by other investors accepting the same level of investment risk. I am conscious that there are aspects of such investments, such as maturity, liquidity and risk appetite, that may be of particular concern to pension funds and engagement is continuing with the sector on these issues.