The Labour Party today pledged to drive investment in the economy with €2.8 billion from the National Pension Reserve Fund.
The party's spokeswoman on finance, Joan Burton, said that if elected in the election, it would establish a new strategic investment bank to fund projects to enhance infrastructure and generate employment.
The party also plans to channel start-up and scale-up finance to the small and medium enterprise sector and be a key lender to innovative firms. Ms Burton said Ireland has grave economic challenges, but far greater economic opportunities.
“With the right policies, there is a bright future for the Irish economy as a vibrant, open, trading economy that creates jobs and opportunities for our people,” she said.
The party proposed its State-sponsored bank work in two phases, initially acting as an investment vehicle to channel approximately €2.8 billion from the National Pension Reserve Fund.
As market conditions improve, it will later develop into a functioning bank, taking deposits and raising long term financing.
“Irish citizens and the Irish diaspora would be encouraged to make deposits in the bank, and to purchase Citizen Bonds with differing maturities as a way of investing in the recovery of the Irish economy,” Ms Burton said.
“It would also seek consumer deposits and access wholesale capital markets when conditions allow.” Labour maintains the remaining €2 billion in the pension fund will be allocated as capital.
Rejecting suggestions a strategic investment bank would further damage the country’s main, Ms Burton claimed it would instead be an essential component of the re-structured banking system.
“Labour believes that the strategic investment bank should be a successful essential component of Ireland’s re-structured banking system,” she added.
Fianna Fáíl leader Micheál Martin said yesterday Fine Gael’s approach to the three-way debate proposed by TV3 has descended into farce.
He said that debate is “the bread and butter of politics”’ and for Fine Gael leader Enda Kenny to pass up on the opportunity to engage in a three-way debate on TV3 with Vincent Browne was “incomprehensible”.
Mr Martin said that he was willing to debate one-on-one with Gerry Adams and John Gormley as well as participating in a five-way debate but he believed a three-way debate between the main parties was essential to enable people understand their policies and the policy differences between them.
Mr Martin was speaking during a canvass in his own Cork South Central constituency yesterday. Fine Gael said on Friday it would veto any debate hosted by TV3’s Vincent Browne.
Fianna Fáil politicians lined up earlier this week to taunt Fine Gael leader Enda Kenny over his refusal to participate in Tuesday’s TV3 debates chaired by Browne.
Mr Kenny said his decision was based on remarks made by Browne last year about suicide.