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FINANCE MINISTER PASCHAL Donohoe today commenced the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019, which is more commonly referred to as the Rainy Day Fund.
The purpose of the fund, according to Donohoe, is to “mitigate severe economic shocks, in excess of the normal fluctuations of the economic cycle”.
Donohoe said that the establishment of the Rainy Day Fund is the culmination of a number of years’ work and delivers on a key commitment in the Programme for Partnership Government.
He added: “The Government is planning for the country’s long-term future by enhancing the resilience of the Irish economy and public finances to future economic shocks and strengthening the public finances.
“On foot of today’s commencement, I will shortly issue directions to the NTMA to transfer €1.5 billion from the Ireland Strategic Investment Fund (ISIF) to seed the Fund. I have also signed the necessary Delegation Order for the National Treasury Management Agency (NTMA) to manage the investment of the Fund on my behalf.
“Establishing this Fund is another Government action that better prepares us for any potential Brexit outcome. In the event that the economic impact of a disorderly Brexit is larger than assumed then the funds transferred to the Rainy Day Fund can be deployed to mitigate the impact of Brexit.”
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I hope it doesn’t get given away like the pension reserve fund was.
@Conall: Yes the National Pension Reserve Fund was set up by Charlie McCreevy in 2001. Its purpose was to build up assets which would part-finance the cost to the exchequer of social welfare and public service pensions from 2025 onward. A total of €17.5 billion of it was used as part of the €85 billion EU/IMF bailout that was agreed with €10 billion of that being used to recapitalise the banking sector in Ireland. So long rainy day fund!
@Sean: precisely. It ain’t a rainy day fund for you and I. Total sham.
@Conall:
Let’s not forget the six cumulative raids of €2.4 billion from workers lifetime pension funds.
These pension levies continue for lifetime of pensioners and then their spouses after pensioners death!!
@Sean: And Irish Water.
@Pat Dromey: and now they want to force us all to pay into another ‘ponzie pension scheme ‘ — how long before that ends up in the pockets of the bankers or ‘uncle Denis’ ?
Pascal the rainy day fund will benifit nobody only you and your buddies, it will be a useful as an Ash tray on a motor bike to the ordinary person.
Has he not been informed ….. it’s LASHING!
@Arthur O’Neill: it’s raining, giz a tenner
@Arthur O’Neill: skittin’!! That’s too funny.
Don’t often listen the radio chat shows but listened today to the bauld Pascal being interviewed and swear to God, his ‘discourse’ was so scripted for a short few minutes thought I was on to a call centre!!! And to be fair…and 18/19 year old school leaver in a call centre might have managed the scripted element with better decorum! The absolute tragedy of modern day politics laid out on a plate!!!
Investing it at the end of a ten year bull run that’s showing all the signs of blowing up over the next few years. Great stuff.
@The Guru: Why do you assume “investment” means equities.
Far more likely it’s in international bonds
Existing ISIF portfolio is equities, but all Irish companies and the point of the ISIF is to bankroll jobs and infrastructure.
Rainy day needs to be low risk and liquid so really very much doubt its in stocks
@Vin: most international bonds are yielding negative or extremely low rates so that’s hardly a great alternative.
Rainy day? I hope the homeless realise what a lovely day they’re having. Outdoor picnics for everyone
@Paddy O’Dea: Which homeless? The ones outdoors in sleeping bags or the ones in paid for hotels? The lines have been well and truly blurred !
@Gerry Cummins: Whether you’re in a sleeping bag or an hotel you are still homeless.This government should be truly ashamed of itself!
No doubt the German and French banks along with investment funds and other assorted vermin are eyeing it up to seize at their convenience….same as afore mentioned PRF
what a joke…..
@David cotter: yes.. We are 240bn in debt too..
1.5bn is nothing.
Imagine as an individual, starting a savings account while you had 50k in credit card debt with interest payable
Our government ladies and gentlemen
@Vin: yes we are 240bn in public sector debt.
Can’t imagine it will last very long or grow much bigger, as like everything in this country it will get wasted on propping up the health service, or public service wage demands, or infrastructure cost overruns.
Umbrellas for the bankers and politicians all round.. rainy day fund me b@llix..
@John Culhane: yeah and some ordinary folk went for a pint, instead of buying that umbrella !
@Gerry Cummins: yeah that’s why people are dying on our streets, hospitals are under staffed and police stations are closed, because I had a pint.
Not much in light of the Apple 16b giveaway
@Dnom: you don’t get that one do you? A little more research might help you!
@Dnom: bless the ignorant
All for inevitable crash ..
Not a Keysian, but this should be all spent on infrastructure when there is a downturn. Commit to the projects now, with proper planning, ensuring we don’t squander it all on bankers’ debts again.
@milton friedman: What do you mean “Again”. The word again would imply we paid off the bankers debts in the first place.
We didn’t. And whats worse is most of Irelands debt isn’t even banking debt, we borrowed heavily in the recession rather than take austerity measures and the debt quadrupled
@Vin: That’s just not true.The vast majority of our debt is down to the greedy bankers and their much vaunted wisdom.
@Vin: Define ‘We’.
@milton friedman: Money Multiplier effect has a greater impact on the economy if spent on infrastructure improvements instead of parked in rainy day fund. Anyhow, the rainy day fund should have existed in the good times not after taking on huge debt and interest repayable?
Good man, any chance that money can be used to help homeless people that have a lot of rainy days and nights
Another publicity sound byte from FG spin doctors.
Rainy day fund to help bail out the banks again I’d say.
Another sound byte from FG spin doctors
@Leo Lalor: I heard ye the first time. :)
Its pissing…
@Thomas Maher: only on some, who went for a pint rather than buying an umbrella!
@Gerry Cummins: In future if you are having a pint make sure you have your umbrella or Gerry will accuse you of spending your money on enjoying yourself.
1.5b more likely for there own pockets
He could use some of that to pay back the money that Michael Noonan stole from the savings of irish pensioners.
Have all TDs got a capacity to be in two places at same time, or is it just when expenses are available,, what what?
Savages and sociopaths
Just remember he would not have that rainy find, pension fund to pay remedy breach of fiscal impact treat deficit as a result of overspending but fur YOUR td voting to make the law the same TD who gave him permission n legislation to spend xxxx billion in estimates without even ensuring the money they are gjvjng him. Permission to spend will not touch the forty four billon. Euro loan fund from EU and imf until that deal is laid before dail when the deficit will be reduced until dsil approves terms. Think time to start asking your td who gave them mandate to accept Brian lenihan opinion to dail that deal he made with eu and imf for loan was a programme and did not require dail approval and then treat it as a public debt which he can’t do without dail consent and pushing the public deficit up so that eu commission can put pressure on and what are td going to do about it since govt is accountable to dail.
I see what benihan told dail was that really public finance matter between govt and eu govt looks after all the money incl loan monies and td just vote thru estimates but don’t ask govt to account cos govt may not reply. And td going along with it seems to me if we want money for housing and services again people are going to have to go to td who voting patter showing so clearly how they regard their duty to scrutinise public fund and public spending by the govt and term of loans on our behalf.
If deal laid before dail no need for fund but td p
@Mary Ward: well said Mary
@Shane Murray: lol!
@Mary Ward: I’m sure that was a very important diatribe.
We laugh at them and call them stupid but in reality, politicians are dangerous.
That a a day in the life of the HSE.
Paschal, can you investigate Fob usage in relation to allowances please
Another sound byte from FG spin doctors.
Ah another pot of gold for the ministers early retirement
Still no answer to where did the €10 BN go to that was given to banks for mortgages in distress, not 1 person in mortgage distress got a cent from it,.
@@mdmak33: It was probably to prop up the banks (i.e. bank shareholder’s) from taking a significant negative hit!
Let’s not forget six cumulative raids on private pension funds of € 2.4 billion. 2011 budget to 2014 budget – these six levies deducted monthly for life of pensioners to repay these six Government Levies!!
Leo leads pensioners to Poverty in current budget 2020.
Look outside Paschal it’s raining and there’s lots of people with no roof.
have your say