Sir, - The success of the National Treasury Management Agency (NTMA) in keeping control of the cost of servicing the national debt is evident from the report of your Markets Editor (January 2nd). Of concern, however, must be the suggestion (The Irish Times, December 12th) that the Government may give the NTMA responsibility for the investment of the pension funds of public service employees.
The two roles are incompatible. On the one hand, the NTMA's primary function is to manage the State's debt at the lowest cost to the Exchequer; on the other hand, if what is proposed is implemented, it would be expected to operate an investment policy for pension funds that would achieve the maximum return for pension fund members. It cannot be both gamekeeper and poacher!
The two functions are, and should be kept, quite separate if the NTMA is to avoid a charge of conflict of interest. - Yours, etc.,
Howth Road, Dublin 3.