NTMA
Updated Governance
The National Treasury Management Agency (Amendment) Act 2014 streamlines and simplifies the governance structures at the National Treasury Management Agency (NTMA) to enable a more integrated approach to the performance of its functions which have grown considerably since the Agency was established in 1990.
The Agency will be reconstituted as a body with a Chairperson and other members who will have over-arching responsibility for the Agency’s existing debt management and State Claims Agency functions, the role in relation to infrastructure projects currently filled by the National Development Finance Agency (NDFA), and the Ireland Strategic Investment Fund and NewERA (see following). There will be no change in relation to its role of providing business services and staff to the National Asset Management Agency (NAMA) which will continue to have its own separate board.
Before the 2014 Act, the NTMA did not have a board and its Chief Executive is directly responsible to the Minister for Finance for the performance of the Agency. The Chief Executive reports directly to the Minister for Finance on (i) the NTMA’s funding and debt management and State Claims Agency functions, which have been directed to it by Ministerial Order and (ii) its NewERA functions which it is currently performing on a non-statutory basis.
The NTMA’s governing legislation provides for an Advisory Committee and for a State Claims Policy Committee. The NPRF, NDFA and NAMA were established under their own governing legislation and each has its own board. The NTMA acts as the executive in respect of the NPRF and the NDFA. It assigns staff to NAMA and provides NAMA with business and support systems and services.
The National Treasury Management Agency was reconstituted as a body with a Chairperson and other members. It inserts a new section 3A and Schedule A in the NTMA Act 1990. There will be 9 members including the Chief Executive of the Agency, the Secretary General of the Department of Finance and Secretary General of the Department of Public Expenditure and Reform as well as six other members appointed by the Minister. The Minister will appoint one of the appointed members as Chairperson. The section inserts a Schedule A in the NTMA Act 1990 which deals with the appointment, terms of office and remuneration of members of the Agency.
New Funds
The Act converts the National Pensions Reserve Fund (NPRF) into the Ireland Strategic Investment Fund (ISIF) which will have a statutory mandate to make commercial investments in Ireland that support economic activity and employment. It also provides a formal statutory basis for the Agency to provide financial and commercial advice on commercial semi-state bodies to shareholding Ministers (in which role the Agency will be known as NewERA). In its NewERA role the Agency may also, in consultation with relevant Ministers, develop proposals for investment in specified economic sectors to support economic activity and employment.
The Act also establishes a Legal Costs Unit within the Agency State Claims function to deal with third-party costs arising from certain Tribunals of Inquiry.
There is an  Investment Committee, which will be responsible for the investment of the Ireland Strategic Investment Fund (ISIF), within parameters set by the Agency, and other committees, respectively. The Investment Committee will have up to seven members, two members of the Agency and up to five persons who are not members of the Agency but who have substantial relevant expertise and experience.
The  Chief Executive is to appear before the Public Accounts Committee of Dáil Éireann and for the Chairperson and Chief Executive to appear before other Oireachtas committees.
The Agency will provide financial and commercial advisory services to Ministers in relation to designated commercial semi-state bodies and otherwise. The Agency may be known as NewERA (the New Economy and Recovery Authority) when carrying out these functions.
Agencies Advised
The legislation sets out the designated commercial semi-state bodies on which the Agency will provide advice. They are the ESB, Bord Gáis ÉÃreann, Bord na Móna, Coillte Teoranta, EirGrid, Irish Water and any other State body which is specified by order.
The Agency will provide financial and commercial advisory advice in relation to designated bodies.
The  Agency may provide financial and commercial advisory functions relating to other bodies if requested by the Minister with responsibility for the body. The Agency may also, at the request of a Minister, provide advisory services or project management services in relation to the acquisition or disposal of assets and in relation to the winding up, reorganisation or restructuring of other State bodies that are not designated bodies.
Relationship with Minister
The Agency is to submit a report at least annually on the financial performance of each designated body to the Minister for Public Expenditure and Reform and relevant Ministers. The Agency, in consultation with relevant Ministers, may develop proposals for investment in order to support economic activity and employment in energy, water, telecommunications, forestry and any other sector that is specified by order.
The  Ministers shall provide the agency with the information and assistance necessary for the Agency to carry out is functions in its role as NewERA. A Minister must have regard to advice provided by the Agency but is not prevented from taking into account other advice and other considerations.
The Agency is to establish procedures with relevant Ministers in relation to its NewERA role.
The Agency shall have regard to policy directions and guidance issued by the Minister for Public Expenditure and Reform to State bodies on the financing of public investment projects and on PPPs. A State authority shall seek the advice of the Agency before undertaking a public investment project subject to guidelines issued by the Minister for Public Expenditure and Reform.
The Minister for Public Expenditure and Reform may, by order, prescribe a public authority for the purpose of this Part. The  costs and expenses incurred by the Agency in relation to a specific project are to be repaid to the Agency by the appropriate State authority. The Agency will make such payments out of advances from the Post Office Savings Bank Fund and will subsequently recoup the amounts from State authorities.
The 2014 Act  establishes a Legal Costs Unit within the State Claims Agency to deal with third-party costs arising from certain tribunals of inquiry. The Agency shall manage delegated claims for costs to ensure that costs and expenses are contained at the lowest level achievable.
Functions
The Agency has responsibility for the role in relation to infrastructure projects currently carried out by the National Development and Finance Agency (NDFA) which is being dissolved as a standalone entity.
It is a function of the Agency to provide advice to any State authority on optimal means of financing and refinancing public investment projects. The Agency can also enter into public private partnership (PPP) arrangements. The Agency can act as procuring agent for the Minister for Education and Skills in relation to schools or educational facilities.
The Government may delegate to the Agency responsibility for the management of claims for costs and counterclaims and sets out how the Agency is to fulfil this role. The Act  deals with the Attorney General’s functions in relation to the management of claims by the Agency insofar as his or her role as legal adviser to the Government is concerned., The Agency will perform those functions on the Attorney General’s behalf subject to the right of the Attorney General to receive such information as he or she requests form the Agency and to give directions to the Agency where the interests of the State so require.
There is an arrangement which will apply in relation to the payment of legal costs and professional fees. The Agency will make such payments out of advances from the Post Office Savings Bank Fund and will subsequently recoup the amounts from State authorities.
ISIF
The 2014 Act converts The National Pensions Reserve Fund (NPRF) into the Ireland Strategic Investment Fund (ISIF) with a mandate to invest on a commercial basis in Ireland in a manner designed to support economic activity and employment. The assets and the liabilities of the NPRF become the assets and liabilities of the ISIF.
The 2014 Act sets out the investment policy for the fund. The assets are to be held or invested on a commercial basis in a manner designed to support economic activity and employment in the State. The  Agency will determine, monitor and keep under review the investment strategy for the ISIF.
The  ISIF will be controlled and managed by the Agency. The Agency will hold and invest the assets of the fund. The Investment Committee will be responsible for the investment of the fund in accordance with the investment strategy, within such parameters as may be set by the Agency, and will advise the Agency on the investment strategy and oversee the implementation of the investment strategy.
The Minister may make payments into the ISIF and that a Minister may transfer non-cash assets (such as shareholdings) into the ISIF. The Agency shall make payments from the ISIF to the Exchequer as the Minister shall direct, following consultation with the Agency. There will be no payments to the Exchequer before 2025 (except in relation to proceeds from the disposal of directed investments). Other than in the case of the proceeds of directed investments, the total annual payment must not exceed 4% of the value of the assets of the fund.
The expenses of the Agency in the performance of its functions under this Part shall be paid from the ISIF.
Investments
The Minister, following consultation with the Governor of the Central Bank, may give a direction to the Agency to invest in credit institutions in the public interest to remedy a serious disturbance in the economy or to prevent potential serious damage to the financial system.
The  Minister may give directions to the Agency in relation to investments he has directed the Agency (and previously the National Pensions Reserve Fund Commission) to make in credit institutions.
Certain provisions of competition and takeover law do not apply in respect of an acquisition or proposed acquisition by the Agency of an interest in a credit institution or a transfer into the Fund of the Minister’s interest in a credit institution if the acquisition or transfer results from a directed investment. It also provides that nothing done by the Minister or the Agency for the purposes of a directed investment in a credit institution will constitute a reorganisation measure for the purposes of certain European Communities Regulations. The section defines a ‘‘relevant acquisition’’ and a ‘‘relevant transfer’’.
The  Minister, a member of the Agency, a member of a committee of the Agency and a member of staff of the Agency shall not be taken to be shadow directors within the meaning of section 27(1) of the Companies Act 1990 of a company or its subsidiary or subsidiary undertaking in which the Agency has a directed investment. The section also defines ‘‘subsidiary’’ and ‘‘subsidiary undertaking’’.
Dissolution of Former Bodies
The 2014 Act dissolves
- the National Pensions Reserve Fund Commission.
- the National Development Finance Agency.
- The  NTMA Advisory Committee.
- he State Claims Policy Committee.
The Act provides  transitional provisions governing the transfer of assets from the National Pensions Reserve Fund to the Ireland Strategic Investment Fund that are set out in detail in Schedule 4.