Michael McGrath (Cork South Central, Fianna Fail)
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236. To ask the Minister for Finance when he will establish the rainy day fund and the rules that will govern it; and if he will make a statement on the matter. [10653/16]

Michael Noonan (Limerick City, Fine Gael)
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Officials in my Department are currently reviewing the content of the Programme for Government and, in this case, the matter of the establishment of a rainy day fund. This commitment forms part of the stated aim of this and the previous Government to maintain sound public finances.

In considering this commitment, my officials are examining the necessary key features of such a fund, including that the fund should:

- be resourced sustainably so as not to result in undue stress elsewhere in the public finances;

- be of a critical size so that it can actually have impact if deployed;

- have clear criteria to facilitate its deployment effectively when required;

- have a clear investment strategy so as to ensure the resources yield a return while they are held in the fund and that they are not placed at excessive levels of risk; and

- consider the fiscal rules and budgetary implications of the fund's establishment and potential deployment.

In considering the rainy day fund, my officials will also examine how it interacts with the existing Irish Strategic Investment Fund (ISIF) and its unique mandate to invest on a commercial basis earning an economic return while creating jobs and economic growth.

I will revert to the House when all of these matters have been properly examined and the proposal has been considered by Government.