Seanad debates

Wednesday, 29 May 2024

Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024: Committee Stage

 

10:30 am

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I will take the amendments together as they relate to the management of the funds by the NTMA. The elements the Senator proposes to amend are very important operational positions that have been carefully drafted to ensure the effective management of the new funds and to align with the existing framework of the Ireland Strategic Investment Fund. Amendment No. 24 would prevent the agency from making indirect investment such as pooled or fund investments. The ability to make indirect fund investments is a key requirement for funds of this scale to ensure the agency can avail of the efficiencies, expertise and range of diversified asset classes that can be accessed through third party investment managers. These amendments would undermine the NTMA's ability to invest resources effectively through the use of experienced investment managers and custodians, ensuring the funds will have access to global diversification and the widest possible range of asset classes and investment opportunities. The use of investment managers and custodians is a standard practice throughout the process of investing and holding such investments. Investment managers are required to manage the investment processes subject to the investment strategy and custodians are required to hold the assets of the funds.

In respect of the role of the Ministers for Finance and Public Expenditure, National Development Plan Delivery and Reform in the appointment of custodians, it would not be considered proportionate to include this requirement. The Oireachtas is providing the agency with the mandate to invest these resources with a policy and strategy that ensures value for money for the State. It would be inappropriate for Ministers to second-guess the investment decisions made by the agency or be involved in the approval of every contract or commitment entered into by the agency. As for oversight and transparency of these appointments, under section 32 it will be a requirement for the agency to provide information related to the investment management and custodian arrangements to the Minister. It is important, therefore, that the NTMA has every option available to it when investing resources of both funds and to ensure value for money. On that basis, I do not propose to accept the amendments.

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