Sir, - Denis Coghlan (May 9th) takes pension funds to task for "close-minded conservatism" in our approach to possible new financing mechanisms for infrastructure projects and repeats Ruairi Quinn's recent suggestion that we have stifled new thinking in this area.
Presumably, in making these criticisms, Mr Coghlan is not aware, and Mr Quinn has forgotten (even though he was Minister for Finance at the time), that it was this association which took the lead in commissioning a 1996 study on how new opportunities might be created for pension fund investment in Ireland. This study was co-sponsored by the Department of Finance and the Irish Association of Investment Managers and was carried out jointly by Peter Bacon and Deloitte & Touche.
The report suggested the privatisation of state enterprises and participation in infrastructure projects as being the most promising areas for substantial new investment by pension funds in the Irish economy. Specifically on the infrastructure side, the authors concluded that before any such private/public partnership are possible, a proper legislative framework is needed.
IAPF wholeheartedly supported these recommendations and has been lobbying for their implementation, unfortunately with no success to date. Therefore, it is ironic, and not a little annoying, that we are the ones accused of standing in the way of progress. - Yours, etc., Paul O'Faherty,
Chairman, Irish Association of Pension Funds, 6 Wilton Place, Dublin 2.