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

PART 1 Preliminary and General

1. Short title and commencement

1. (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 by section 5(1);

“ICN Fund” has the meaning assigned to it by section 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

3. (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.

PART 2 Future Ireland Fund

4. Definitions (Part 2)

4. In this Part—

“FI Fund investment strategy” has the meaning assigned to it by section 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 2009[^1], as amended by Council Regulation (EU) No. 679/2010 of 26 July 2010[^2] and Commission Regulation (EU) No. 220/2014 of 7 March 2014[^3];

“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.

5. Establishment, purpose, control and management of FI Fund

5. (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

6. (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

7. (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 under section 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

8. (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

9. (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 under section 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 resolution under subsection (2), the Minister shall, in the year subsequent to the year in which the resolution is passed—

(a) not make a payment into the FI Fund under section 8(1), and

(b) pay into the FI Fund, from the Central Fund or the growing produce thereof, the sum specified in the resolution.

(4) Without prejudice to subsection (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) the deterioration, or likely deterioration, is of such significance that it would not be appropriate to make any payment into the FI Fund from the Central Fund or the growing produce thereof 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 no such payment be made in that subsequent year.

(5) Where, in a given year, the Government approve a recommendation made to them under subsection (4), 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 not to make any payment into the FI Fund from the Central Fund or the growing produce thereof in the subsequent year.

(6) Where Dáil Éireann passes a resolution under subsection (5), the Minister shall not make any payment into the FI Fund from the Central Fund or the growing produce thereof in the year subsequent to the year in which the resolution is passed.

10. Report by Agency to Minister on proposed payments from FI Fund to Exchequer

10. (1) The Agency shall, on or before 31 July 2040 and on or before 31 July in each subsequent year, prepare and submit to the Minister a report in writing setting out—

(a) the investment return of the FI Fund annualised over the relevant ten-year period in relation to the year in which the report is submitted,

(b) whether that investment return from the FI Fund so annualised was less than the interest cost of the general government debt annualised over that period, and

(c) the amounts that the Agency believes are appropriate to be paid from the FI Fund to the Exchequer in the year subsequent to the year in which the report is submitted and in each of the 4 years thereafter.

(2) The Agency shall, in determining the amounts referred to in subsection (1)(c), have regard to—

(a) the long-term basis on which the FI Fund is established,

(b) the requirement to preserve the value of the FI Fund capital in so far as possible,

(c) the desirability that the amount of money that is available to be paid from the FI Fund to the Exchequer in each year be of a similar value, and

(d) the requirements placed on the Minister under subsections (3) and (4) of section 11.

11. Payments from FI Fund to Exchequer

11. (1) The Minister shall not direct the Agency to make any payment before 2041 to the Exchequer from the FI Fund.

(2) Subject to subsections (3) and (4), the Minister may, in 2040 or in any year thereafter, make a proposal to the Government that a payment of a specified amount be made from the FI Fund to the Exchequer in the year subsequent to the year in which the proposal is made.

(3) Subject to subsection (4), the Minister shall not, in a given year, propose to the Government, pursuant to subsection (2), the making of a payment from the FI Fund to the Exchequer in the subsequent year of an amount—

(a) greater than 3 per cent of the net asset value of the FI Fund as it stood on 31 December of the year prior to the first-mentioned year, or

(b) that would cause the net asset value of the FI Fund as it stood on that date to fall below the value of the FI Fund capital as it so stood.

(4) Where, in a given year, the Minister is satisfied that the investment return from the FI Fund annualised over the relevant ten-year period in relation to the year was less than the interest cost of the general government debt annualised over that period—

(a) subsection (3) shall not apply, and

(b) the Minister shall not propose to the Government, pursuant to subsection (2), the making of a payment from the FI Fund to the Exchequer in the subsequent year of an amount greater than 5 per cent of the net asset value of the FI Fund as it stood on 31 December of the year prior to the first-mentioned year.

(5) The Minister, in determining whether to make a proposal under subsection (2), and where he or she makes such a proposal, in determining the amount that he or she proposes be paid under that subsection, shall—

(a) consult with the Minister for Public Expenditure, National Development Plan Delivery and Reform, and

(b) have regard to—

(i) the report of the Agency under section 10 prepared in the year in which he or she makes the proposal, and

(ii) the matters specified in paragraphs (a) to (c) of section 10(2).

(6) Where subsection (3) applies in respect of a proposal under subsection (2) and the Government approve the proposal, the Minister shall direct the Agency to pay, from the FI Fund to the Exchequer, the amount specified in the decision of the Government on or before 31 December of the year subsequent to the year in which the proposal is made.

(7) Where subsection (4) applies in respect of a proposal under subsection (2) and the Government approve the proposal, Dáil Éireann may, on a proposal by the Minister, pass a resolution approving the payment, from the FI Fund to the Exchequer, of the amount specified in the resolution on or before 31 December of the year subsequent to the year in which the resolution is passed.

(8) Where Dáil Éireann passes a resolution under subsection (7), the Minister shall direct the Agency to pay, from the FI Fund to the Exchequer, the amount specified in the resolution on or before 31 December of the year subsequent to the year in which the resolution is passed.

(9) Subject to section 12, the Agency shall comply with a direction under subsection (6) or (8).

12. Delay in certain payments from FI Fund to Exchequer

12. (1) Where the Agency—

(a) receives a direction from the Minister under subsection (6) or (8) of section 11 to pay, from the FI Fund to the Exchequer, a specified amount (in this section referred to as the “relevant amount”) on or before 31 December of a given year (in this section referred to as the “relevant date”), and

(b) is of the opinion that—

(i) an orderly liquidation of assets of the FI Fund to the value of the relevant amount may not be possible in advance of the relevant date, or

(ii) the liquidation of such assets to the value of the relevant amount may only be possible on terms that are not commercially acceptable,

the Agency shall notify the Minister in writing of that opinion as soon as is practicable.

(2) Where the Minister receives a notification under subsection (1) that relates to a direction under section 11(6), the Minister may, with the approval of the Government, specify a date later than the relevant date, on or before which the relevant amount shall be paid from the FI Fund to the Exchequer, and the Agency shall comply with the direction under section 11(6) on or before the date so specified.

(3) Where the Minister receives a notification under subsection (1) that relates to a direction under section 11(8), Dáil Éireann may, on a proposal of the Minister, brought with the approval of the Government, pass a resolution specifying a date later than the relevant date, on or before which the relevant amount shall be paid from the FI Fund to the Exchequer, and the Agency shall comply with the direction under section 11(8) on or before the date so specified.

PART 3 Infrastructure, Climate and Nature Fund

13. Definitions (Part 3)

13. In this Part—

“designated environmental project” has the meaning assigned to it by section 20(1);

“ICN Fund investment strategy” has the meaning assigned to it by section 16(1)(a).

14. Establishment, purpose, control and management of ICN Fund

14. (1) There shall stand established, on the coming into operation of this section, a fund to be known as the Infrastructure, Climate and Nature Fund (in this Act referred to as the “ICN Fund”).

(2) The purpose of the ICN Fund shall be to support State expenditure—

(a) in 2026 or any year thereafter, where there has been, or is likely to be in the subsequent year, a significant deterioration in the economic or fiscal position of the State, and

(b) in each of the years 2026 to 2030, on designated environmental projects.

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

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

15. Investment policy for ICN Fund

15. (1) The Agency shall hold or invest the assets of the ICN Fund on a commercial basis for the benefit of the ICN 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 ICN 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 ICN Fund to the Exchequer.

(3) The assets of the ICN 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 ICN Fund shall be paid into the ICN Fund.

16. Investment strategy for ICN Fund