Written answers
Tuesday, 26 March 2013
Department of Finance
National Pensions Reserve Fund
Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance if he will set out in tabular form the impact on the general Government balance of revenue earned and gains/losses realised by the National Pension Reserve Fund in each year since its inception; and if he will make a statement on the matter. [15146/13]
Michael Noonan (Limerick City, Fine Gael)
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The NPRF is classified within the general government sector. Its contribution to the general government balance (GGB) is shown in table 21a of the National Income and Expenditure 2011 published by the CSO. The table below sets out the net lending/borrowing of the NPRF; the amounts transferred to the NPRF from the Exchequer; the amount transferred from the NPRF to the Exchequer in 2011 following the disposal of Bank of Ireland (BOI) shares; and the consolidated impact of the NPRF (excluding these intra-government transactions) on the general government balance for the years 2001 to 2011.
There is no impact on the general government balance through gains and losses on investments.
| - | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net lending (+) /borrowing(-) of the NPRF €millions | 1,281 | 1,253 | 1,299 | 1,434 | 1,642 | 1,904 | 2,196 | 2,314 | 4,458 | 2,093 | -4,366 |
| Of which Statutory contribution of 1% of GNP Proceeds from sale of BoI shares remitted to Exchequer | 972 | 1,035 | 1,103 | 1,177 | 1,320 | 1,446 | 1,616 | 1,690 | 3,000 | -1,018 | |
| Consolidated effect of NPRF on the General Government Balance 4 | 309 | 218 | 196 | 257 | 322 | 458 | 580 | 624 | 1,458 | 2,093 | -3,348 |
Notes:
1. In 2009 an additional contribution was made from the Exchequer to the Fund for the purposes of recapitalising Bank of Ireland and Allied Irish Banks, boosting the effect of the NPRF on the GGB by €1.4 billion bringing the contribution from the Exchequer to the NPRF in that year to €3 billion.
2. In 2009 and 2010 the assets of the pension schemes of Universities and non-commercial semi-state bodies were transferred to the fund, boosting the effect of the NPRF on the GGB by €1 billion in each year.
3. No contribution was paid from the Exchequer to the NPRF in 2010 and 2011 because the value of the additional contribution paid to the NPRF in 2009 and the value of the pension scheme assets transferred to the NPRF in 2010 and 2011 were offset against the requirement that the Exchequer make an annual contribution of 1% of GNP to the NPRF.
4. The decision by Eurostat to classify €3.8 billion of the July 2011 bank recapitalisation programme as a capital transfer worsened the performance in general government terms of the NPRF by that amount.
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