Bernard Durkan (Kildare North, Fine Gael)
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20. To ask the Minister for Finance the extent to which consideration has been, or will be, given to utilising personal savings which are currently the subject of deposit interest retention tax for strategic infrastructural national development purposes; if this would deliver a better return on those savings, given the current low interest rates, and the much needed funding to facilitate various infrastructural projects such as the housing building programme, either directly or by way of a government bond; and if he will make a statement on the matter. [40347/15]

Michael Noonan (Limerick City, Fine Gael)
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Unless provided for by specific legislation, all revenues including the proceeds of Government borrowing are paid into the Exchequer's Central Fund.  Revenues are not pledged/linked to specific projects but are used to fund Government expenditure generally, including capital expenditure. Liabilities under the State Savings products offered by the National Treasury Management Agency (NTMA) are a direct, unconditional obligation of the Government to link such investments to specific projects might have the consequence of reducing their security and their attractiveness to investors.

There are however a number of options available to individuals who wish to help support the Government's work in promoting economic growth and employment.

The National Solidarity Bonds were introduced by the Minister for Finance in 2010 to allow individuals to provide money to the State to stimulate economic recovery. The NTMA's other State Savings products such as Savings Bonds, Savings Certificates and Instalment Savings which are available in any Post Office also allow people to support the Exchequer.

The NTMA will continue to encourage personal savers to purchase NTMA State Savings products. The NTMA keeps the suite of State Savings products and the interest rates paid on them under constant review to ensure that the products remain competitive and attractive to savers. These products have been an important and dependable component of Government borrowing for many years and make a valuable contribution to the national finances.

There are also possibilities in place for people interested in investing in longer-term Government bonds. Irish sovereign bonds are available through Primary Dealers recognised by the NTMA. The NTMA has published information on its website () which gives the names and contact details for institutions which sell bonds to the public, and the fees they charge.

It also important to remember that any funding available from using savings would not be 'off balance sheet' in General Government terms and there is no fiscal space for any additional expenditure/investment 'on-balance sheet' without equivalent spending cuts or tax increases.

In terms of 'off-balance sheet' investment, there is currently no shortage of available funding for good projects of a commercial nature - the ISIF/SIB, the Connectivity Fund, the Strategic Housing Fund, the EFSI, etc., are all available to support such projects on a commercial basis.

I would like to draw the Deputy's attention to the recently announced joint venture between the Ireland Strategic Infrastructure Fund (ISIF) and KKR Credit.  The joint venture, named "Activate Capital" will invest in the development and construction of housing, with €500 million of financing, which will assist in normalising the sector and addressing the housing shortfall. The venture will be a €500 million vehicle and will be financed through a €325 million investment from the ISIF (its biggest single investment to date) and €175 million investment from KKR. This is good news for jobs, growth, potential house purchasers, and the construction sector. This joint venture will be an important source of funding for increasing the supply of medium to large housing developments. 

The ISIF also recently announced an investment mandate with US-based Quadrant Real Estate Advisers which will provide €100 million in financing for high-quality office development and construction projects in Ireland. It is anticipated that the investment will accelerate the delivery of urgently required prime office space, thereby improving the attractiveness of Ireland for foreign direct investment (FDI). It also has the potential to create in excess of 1,500 full-time construction jobs.