Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024

• Jurisdiction: Ireland
• Year: 2024
• Citation: IR No. 16/2024

Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024

2024 16

An Act to provide for the establishment of a fund to be known as the Future Ireland Fund for the purpose of supporting, in a consistent and sustainable manner, State expenditure in any year from 2041; to provide for the establishment of a fund to be known as the Infrastructure, Climate and Nature Fund for the purpose of supporting State expenditure, in 2026 or any year thereafter, in the event of a significant deterioration, or likely such deterioration, in the economic or fiscal position of the State and for the purpose of supporting State expenditure, between 2026 and 2030, on certain environmental projects; to provide for the control and management of those funds by the National Treasury Management Agency; to provide for the transfer of certain assets to those funds; to provide for the dissolution of the National Surplus (Exceptional Contingencies) Reserve Fund and the transfer of the assets of that fund to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund; for those and other purposes to amend the National Treasury Management Agency Act 1990, the National Treasury Management Agency (Amendment) Act 2014 and certain other enactments and to repeal the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019; and to provide for related matters.

[18 June 2024]

Be it enacted by the Oireachtas as follows:

1 Short title and commencement

(1) This Act may be cited as the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024.

(2) This Act shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

2 Definitions

2. In this Act—

“Act of 1990” means the National Treasury Management Agency Act 1990;

“Act of 2014” means the National Treasury Management Agency (Amendment) Act 2014;

“Act of 2019” means the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019;

“Agency” means the National Treasury Management Agency;

“FI Fund” has the meaning assigned to it bysection 5(1);

“ICN Fund” has the meaning assigned to it bysection 14(1);

“Minister” means the Minister for Finance;

“relevant GDP”, in relation to a year, means the gross domestic product for the second year preceding the first-mentioned year, estimated as of 31 July in the year immediately preceding the first-mentioned year;

“State expenditure” means expenditure that is funded out of moneys provided by the Oireachtas or from the Central Fund or the growing produce thereof.

3 Expenses

(1) The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Public Expenditure, National Development Plan Delivery and Reform, be paid out of moneys provided by the Oireachtas.

(2) The expenses incurred by the Minister for Public Expenditure, National Development Plan Delivery and Reform in the administration of this Act shall be paid out of moneys provided by the Oireachtas.

4 Definitions (Part 2)

4. In this Part—

“FI Fund investment strategy” has the meaning assigned to it bysection 7(1)(a);

“general government debt”, in relation to a year, means the total gross debt at nominal value of the general government of the State which is outstanding at the end of the year, as arrived at in accordance with Council Regulation (EC) No. 479/2009 of 25 May 2009¹ 1;

“relevant ten-year period”, in relation to a year, means the period of 10 years ending on 31 December of the preceding year;

“value of the FI Fund capital” means, at any time, the value of the aggregate of—

(a) all payments, valued on the date of each such payment, into the FI Fund, and

(b) all assets transferred, valued on the date of each such transfer, to the FI Fund.

¹ OJ L145, 10.6.2009, p. 1.

² OJ L198, 30.7.2010, p. 1.

³ OJ L69, 8.3.2014, p. 101.

5 Establishment, purpose, control and management of FI Fund

(1) There shall stand established, on the coming into operation of this section, a fund to be known as the Future Ireland Fund (in this Act referred to as the “FI Fund”).

(2) The purpose of the FI Fund shall be to support, in a consistent and sustainable manner, State expenditure in 2041 or any year thereafter.

(3) The FI Fund shall be controlled and managed by the Agency.

(4) Ownership of the FI Fund shall vest in the Minister.

6 Investment policy for FI Fund

(1) The Agency shall hold or invest the assets of the FI Fund on a commercial basis for the benefit of the FI Fund, so as to seek to secure the optimal total financial return, as to both capital and income.

(2) In the performance of its functions under subsection (1), the Agency shall have regard to—

(a)

the level of risk to the assets of the FI Fund that the Agency considers appropriate to the purpose of that fund, including any such risk posed by environmental, social or governance matters of relevance to such performance, and

(b)

the likely timing of payments from the FI Fund to the Exchequer.

(3) The assets of the FI Fund may be held or invested in or outside the State.

(4) All income, capital and other benefits received in respect of holdings or investments of the FI Fund shall be paid into the FI Fund.

7 Investment strategy for FI Fund

(1) The Agency shall, for the purposes of the performance of its functions under section 6(1)—

(a)

determine, monitor and keep under review an investment strategy for the assets of the FI Fund (in this Part referred to as the “FI Fund investment strategy”), and

(b)

act in accordance with that strategy.

(2) Without prejudice to the generality of subsection (1), the FI Fund investment strategy shall include—

(a)

appropriate benchmarks, against which the investment return of the FI Fund can be assessed,

(b)

a description of the classes of assets in which the FI Fund may be invested, including such derivative or other financial instruments as the Agency considers appropriate, and

(c)

a description of how the Agency shall, in the performance of its functions undersection 6(1), have regard to any risk to the assets of the FI Fund posed by environmental, social or governance matters of relevance to such performance, including a description of—

(i) the basis on which the Agency identifies categories of investment in which the assets of that fund shall not be invested in light of those matters, and

(ii) the categories of investment (if any) which have been so identified at the date of the publication of that investment strategy.

(3) The Agency shall, in determining and reviewing the FI Fund investment strategy, consult with the Minister and the Minister for Public Expenditure, National Development Plan Delivery and Reform.

(4) The Minister shall, in formulating views for the purposes of subsection (3), consult with such other Minister of the Government as the Minister considers appropriate having regard to the functions of that other Minister.

(5) The Agency shall publish the FI Fund investment strategy on a website maintained by, or on behalf of, the Agency.

8 Payments into FI Fund

(1) Subject to section 9, in each of the years 2024 to 2035, the Minister shall, from the Central Fund or the growing produce thereof, pay into the FI Fund a sum equivalent to 0.8 per cent of relevant GDP in relation to that year.

(2) Where, in any of the years 2024 to 2034, by a resolution passed by that House on a proposal by the Minister, Dáil Éireann approves the making of a payment of a specified sum from the Central Fund or the growing produce thereof into the FI Fund in the subsequent year in addition to the payment of the sum referred to in subsection (1), the Minister shall, in that subsequent year, pay into the FI Fund such specified sum from the Central Fund or the growing produce thereof.

(3) Where, in 2035 or any year thereafter, by a resolution passed by that House on a proposal by the Minister, Dáil Éireann approves the making of a payment of a specified sum from the Central Fund or the growing produce thereof into the FI Fund in the subsequent year, the Minister shall, in that subsequent year, pay into the FI Fund such specified sum from the Central Fund or the growing produce thereof.

9 Payments into FI Fund where deterioration in economic or fiscal position of State

(1) Where, in any of the years 2024 to 2034, the Minister, having carried out an assessment in accordance with section 26(1), is of the opinion—

(a)

that there has been, or is likely to be in the subsequent year, a deterioration in the economic or fiscal position of the State, and

(b)

it would not be appropriate to make the payment into the FI Fund undersection 8(1) in the subsequent year,

the Minister may, after consultation with the Minister for Public Expenditure, National Development Plan Delivery and Reform, make a recommendation to the Government that the payment into the FI Fund from the Central Fund or the growing produce thereof, in that subsequent year, should be reduced to a sum equivalent to 0.4 per cent of relevant GDP in relation to that subsequent year.

(2) Where, in a given year, the Government approve a recommendation made to them under subsection (1), Dáil Éireann may, on a proposal by the Minister brought before that House not later than 31 October in that year, pass a resolution authorising the Minister to pay into the FI Fund from the Central Fund or the growing produce thereof, in the subsequent year, a specified sum equivalent to 0.4 per cent of relevant GDP in relation to that subsequent year.

(3) Where Dáil Éireann passes a...