Labour reveals State investment bank strategy

Labour has said it will take almost €3bn from the National Pensions Reserve Fund and use it to set up a strategic investment bank to drive economic growth.

It said the bank would lend to the Small and Medium Enterprise Sector and fund capital projects.

The party rejected the suggestion that a strategic invesment bank would do further damage to the other main banks struggling to get back on their feet.

Labour's Finance spokesperson Joan Burton said the new State-sponsored bank would allow credit to flow to business again.