The Government has decided to refocus the €8 billion Ireland Strategic Investment Fund (ISIF) from a broad investment strategy to focus on dealing with key economic challenges facing the country.
Minister for Finance Paschal Donohoe had recommended to Cabinet colleagues that ISIF, a follow-on in 2014 from the national pensions reserve fund, prioritise funder investment on indigenous industry, regional development, sectors affected by Brexit, projects to address climate change and housing supply.
Mr Donohoe said that refocusing takes into account the risks that may be posed by economic overheating and aid in the delivery of Project Ireland 2040, a €116 billion national development plan that was unveiled in February.
The Government has previously outlined that €1.5 billion of ISIF funds will be allocated to a rainy day fund, that would help insulate the economy in the event of a future shock, as well as €750 million towards the Home Building Ireland Finance (HBFI) initiative unveiled in the last budget. HBFI would provide finance to developers that are not customers of the National Assets Management Agency (Nama).
Both the rainy day fund and HBFI will require enabling legislation to be established.