National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019

Publication Date:January 01, 2019
 
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National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019

2019 18

An Act to establish a fund to be known as the National Surplus (Exceptional Contingencies) Reserve Fund for the purpose of the assets and sums hereafter mentioned of the fund being available to be drawn upon only in defined circumstances, being circumstances that involve certain contingencies of an exceptional nature; to provide for the transfer of certain assets and sums to the fund; to provide for the management and control of the fund; to amend the National Treasury Management Agency (Amendment) Act 2014; and to provide for related matters.

[26 June 2019]

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S-1 Definitions

1 Definitions

1. In this Act—

“Act of 2012” means the Fiscal Responsibility Act 2012;

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

“exceptional circumstances” has the same meaning as it has in the Act of 2012;

“Fund” means the National Surplus (Exceptional Contingencies) Reserve Fund established bysection 2;

“Ireland Strategic Investment Fund” has the same meaning as it has in the Act of 2014;

“Minister” means the Minister for Finance;

“prescribed amount” shall be construed in accordance withsection 5(3).

S-2 Establishment of National Surplus (Exceptional Contingencies) Reserve Fund

2 Establishment of National Surplus (Exceptional Contingencies) Reserve Fund

(1) On the commencement of this section, there shall stand established a fund to be known as the “National Surplus (Exceptional Contingencies) Reserve Fund” and which is in this Act referred to as the “Fund”.

(2) The purpose for which the Fund is established by this section is so that there may be held in the Fund the relevant assets unless and until, in accordance with this Act, some or all of those assets are permitted to be transferred from the Fund for the purposes specified in section 9(2).

(3) In subsection (2) “relevant assets” means the assets (including sums) referred to in section 5 that may be transferred to, or otherwise paid into, the Fund under that section.

S-3 Maximum amount that may stand to credit of Fund

3 Maximum amount that may stand to credit of Fund

(1) The amount of the assets (including sums), excluding any sums representing income received in respect of moneys placed or invested under section 8, that may stand to the credit of the Fund under this Act shall not exceed, in value, €8,000 million at any given time.

(2) Dáil Éireann may, on a proposal by the Minister brought before that House, pass a resolution authorising the amount of assets referred to in subsection (1) to be altered.

S-4 Management and control of Fund and keeping of accounts

4 Management and control of Fund and keeping of accounts

(1) The Fund shall be managed and controlled by the Minister.

(2) The Minister shall cause to be kept, in such form and manner as the Minister considers appropriate, such accounts in respect of the Fund as he or she determines to be appropriate; not later than 6 months after the end of the financial year to which those accounts relate the Minister shall submit the accounts to the Comptroller and Auditor General for audit.

(3) A copy of the accounts of the Fund so audited, together with a copy of the report thereon of the Comptroller and Auditor General, shall be laid by the Minister before each House of the Oireachtas.

S-5 Transfer of assets and certain sums to Fund

5 Transfer of assets and certain sums to Fund

(1) The Minister shall, not later than 30 days after the commencement of this section, cause to be transferred to the Fund, from the assets of the Ireland Strategic Investment Fund, assets of a value not exceeding €2,000 million.

(2) Subject to subsections (5) to (7) and section 6, the Minister shall, from the Central Fund or the growing produce thereof, pay €500,000,000 into the Fund in each of the years, 2019, 2020, 2021, 2022 and 2023.

(3) The foregoing sum of €500,000,000 is referred to in subsections (5) to (7) and section 6 as the “prescribed amount”.

(4) If, by a resolution passed by that House, Dáil Éireann approves the making of a payment of a specified sum from the Central Fund or the growing produce thereof into the Fund, the Minister shall, in addition to any assets referred to in subsection (1) and, as the case may be, sums referred to in subsection (2), pay into the Fund that specified sum from the Central Fund or the growing produce thereof.

(5) Where expenditure is incurred by the State in a year referred to in subsection (2) to defray unforeseeable costs arising as a result of a natural or other disaster, then, as specified in subsection (6), an amount that is lower than the prescribed amount may be paid into the Fund, under subsection (2), in that year.

(6) The amount by which the lower amount referred to in subsection (5) may be less than the prescribed amount shall not exceed the total amount of the expenditure referred to in that subsection.

(7) Where, in accordance with subsections (5) and (6), a lower amount referred to in those subsections is paid into the Fund, the Minister shall, as soon as possible after the making of that reduced payment, make a report to Dáil Éireann, in such manner as the Minister considers appropriate, as to the fact that such lower amount has been so paid, the amount by which it was less than the prescribed amount and the reason for the making of that reduced payment.

S-6 Supplemental provision in relation to section 5

6 Supplemental provision in relation to section 5

(1) Dáil Éireann may, on a proposal by the Minister brought before that House no earlier than the first day of November of a particular year referred in section 5(2), pass a resolution authorising the Minister not to pay the prescribed amount into the Fund in that year.

(2) Where such a resolution is passed by Dáil Éireann, then the Minister shall not pay the prescribed amount into the Fund in the year concerned.

(3) The Minister shall not make the proposal referred to in subsection (1) unless the Minister is satisfied on reasonable grounds that, by reason of the existence of exceptional circumstances, the making of the payment of the prescribed amount into the Fund would place an undue burden on the public finances.

S-7 Amendment of Act of 2014

7 Amendment of Act of 2014

7. The Act of 2014 is amended by the insertion of the following section after section 47:

“Transfer of assets (including money) from Fund to meet exceptional contingencies

47A. (1) This Part shall not operate to prevent the Minister from causing, by the means provided in subsection (2), the transfer of assets, including money, from the Fund, in accordance with an Act of the Oireachtas, to another fund referred to in that subsection.

(2) The Minister may give a direction to the Agency to transfer assets,...

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