Róisín Shortall (Dublin North West, Labour)

I have had a chance to read the Minister's brief, which has just been circulated. I am a little surprised because I understood an opportunity would be provided for pension trustees to purchase Irish sovereign bonds. The Minister's brief says trustees of pension schemes will be given an option to buy sovereign annuities issued by EU member states. I am trying to figure out the implications of that. Does this mean trustees could buy Greek bonds? If another EU country was in serious economic difficulties and its bond yields shot up, could trustees switch their funds from Irish bonds to that country's bonds? I am a little taken aback in that regard. I did not think that was what the industry was looking for. A few months ago, there was a certain nervousness about the question raised by Deputy Ring. There was some concern about what would happen in the event of a possible default. I would like the Minister to outline the provisions that have been made in the event of such bonds not being secure at some future stage. What kind of underwriting is the Government or the State prepared to do on behalf of such pension funds?

See this speech in context