Pension Reserve fund to be plundered again

THE National Pension Reserve Fund (NPRF) is being raided again by the Government.

This time it is taking €3.7 billion to give to AIB. Only a few weeks ago we were told that Ireland would contribute €10bn from the NPRF towards the rescue package for the country.

In just a few weeks that is €13.7bn that has been taken by the Government from the fund which, before that was worth €24.5bn. That leaves just €10.8bn for normal investment purposes.

In February last year the Minister for Finance announced that the fund would finance the €7bn bank recapitalisation programme.

It was established by then finance minister Charlie McGreevy with the intention of helping to secure the future of the state pension system.

Thinking that future Governments might want to get their hands on it, Mr McCreevy said at the time of setting it up that no money could be drawn down before 2025.

The NPRF is invested in share portfolios and property from Hong Kong to the US.

Well God Bless that Fund now. With the country well and truly in the trenches it has come to the rescue.

It was designed to meet the costs of Ireland’s social welfare and public service pensions from 2025 onwards when these costs are projected to increase dramatically due to an ageing population. Where is this money now supposed to come from if the investment in the banks does not pay-off?