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Maximising Investment and Creating Jobs
Minister Rabbitte, Minister Noonan, Minister Howlin and Minister of State O'Dowd at the launch today
Finance Minister Michael Noonan , Public Expeniture Minister Brendan Howlin, Communications Minister Pat Rabbitte and Minister of State with responsibility for NewEra Fergus O’Dowd, today provided an important update on The NTMA (Amendment) Bill 2013. This Bill will provide for the establishment of the Ireland Strategic Investment Fund (ISIF) by reorienting the National Pension Reserve Fund and making the €6.4 billion in the Fund’s discretionary portfolio available for commercial investment in Ireland. The Bill will also formally establish NewERA which will identify new investment opportunities and will take a commercial approach with an emphasis on return on capital to the oversight of the Semi State Sector.
The ISIF will develop a clear Investment strategy which will deliver investment in areas of strategic importance to Ireland particularly in areas that support economic growth and job creation in the years ahead. The fund will seek to recycle its capital investments over time so as to be in a position to make new investments in line with its mandate. The NTMA Amendment Bill will put NewERA on a statutory footing. This will improve the way the State manages its oversight of semi-state companies within NewERA’s remit from a commercial perspective and ensure the efficient use of capital. NewERA will provide advice to Government in areas such as corporate finance, financial performance and capital investment plans.
It will also work with stakeholders to accelerate investment in sectors of strategic importance in order to boost economic activity and create employment.
Speaking at the launch Minister Noonan stated:
The overall objective of this Governments approach is very clear - creating jobs and opportunities now and providing the basis for sustainable jobs and growth for the future. This bill which provides for the establishment on NewERA, the establishment of a €6.4 billion Ireland Strategic Investment Fund, and the streamlining of the NTMA will maximise investment, generate economic activity and create jobs across the economy.
Public Expenditure Minister Brendan Howlin added;
The overriding imperative is that we will have a well-resourced investment fund that we will use to grow jobs now and in the future. This is the first time that we will have a dedicated fund available to support economic growth and development in Ireland. This fund will continue to attract investment and will make best use of our resources. Given the overall budgetary constraints in which we are operating, it is essential that we continue to ensure investment in jobs and growth in a sustainable way.
NewERA project Minister Fergus O’Dowd said:
The establishment of NewERA on a statutory basis is an important element in the Government’s strategy to promote economic activity and employment. NewERA is charged with assisting in the development and implementation of Government plans for investment in key economic infrastructure in particular water, energy and next-generation telecommunications.
The required legislative changes and the development of the ISIF’s Investment Strategy coincide with the development of a medium-term economic plan where the ISIF has the potential to be a valuable resource. It is expected that all of these elements will be put in place this year.
Read the full press release here.