Infrastructure pension plan welcomed
In a detailed submission to Government, the Construction Industry Council (CIC) has come up with a national economic recovery blueprint aimed at saving 70,000 jobs in the building industry and has called for the use of pension fund investment to effectively bankroll national infrastructure projects.
In a statement made yesterday, after holding talks with the Department of Finance, the IAPF said: “The general view expressed by us to the department is that any investment prospect that offers a potential high rate of return with an acceptable level of risk is likely to be attractive to pension funds. However, such an investment would need to be attractive in its own right and trustees and fund managers would need to consider whether or not they wished to partake in such an investment.”
It added that should a formal proposal be made, it would be happy to bring it to the attention of its members.
The same message was forthcoming from the Irish Association of Investment Managers (IAIM) head, Frank O’Dwyer. He said, yesterday, that while his organisation was only “a small part” of proceedings it is taking part in talks with the Department of Finance and is supportive of the proposal. He added there were “very critical decisions” to be made by individual pension funds over how a plan should be structured, involving fund managers and trustees.
The Construction Industry Federation (CIF) added, yesterday, that the Government must immediately introduce the infrastructure bond initiative “to try to halt the downward spiral in the Irish economy”.
“The infrastructure bond is a readymade solution in terms of saving jobs and kick-starting economic activity.
“Our proposal would save 70,000 construction jobs, giving a massive boost to the economy,” said CIF director general Tom Parlon.
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