National Treasury Management Agency (Amendment) Bill, 2000

Mr Charlie Mc Creevy T.D. Minister for Finance today (30th June 2000) published legislation which will substantially extend the role of the NTMA and provide for the establishment of a State Claims Agency, a Central Treasury Service and a Fund Investment Service. The Bill follows the Government decision to establish these specialised services under the auspices of the NTMA.

In summary, the Bill provides for:

• the establishment of a State Claims Agency enabling the NTMA to manage personal injury and property damage compensation claims against the State and to provide risk management and advice services.
• the establishment of a Central Treasury Service enabling the NTMA to offer deposit and loan facilities to health boards, vocational educational committees, local authorities and other designated non-commercial public bodies. The objective is to offer these bodies a competitive service with a view to achieving savings for the Exchequer. It will be for each individual body concerned to decide whether or not to avail of the service.

• the establishment of a Fund Investment Service enabling the NTMA to provide investment services in respect of funds under the control of Government Ministers whenever such a service is required by the Minister concerned.
• the provision of consultancy services by the NTMA in its areas of expertise.

The Minister said that the establishment of the State Claims Agency would redress the present unsatisfactory arrangements for handling claims against the State and would provide a structured and coherent response to such claims. The main benefits envisaged from the establishment of the Claims Agency were savings in settlement costs and legal charges and, through its risk advice role, a reduction in the incidence of claims.

Referring to the central treasury and fund investment services, the Minister said that they would enable the State to utilise the NTMA’s professional expertise to ensure that public moneys were managed and invested in the most efficient manner possible and to provide public bodies with borrowing facilities on the most advantageous terms.

In conclusion, the Minister said that the conferring of these new functions on the NTMA, along with its recently announced role of manager of the National Pension Reserve Fund, would enable the State to take advantage of the strengths the NTMA already possessed as a debt management agency in the development and delivery of additional specialised services to the State.

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