The €19 billion national pension fund has yet to follow through on a plan to invest in Irish companies through local venture capital funds.

The National Pension Reserve Fund is actively looking at a number of opportunities to invest in Irish venture capital funds, which provide cash for start-up and developing companies, particularly in key areas such as technology and the sciences.

Since 2005, the fund has been in talks with various Irish venture capital firms.

A year ago, National Pension Reserve Fund director John Corrigan told The Irish Timesthat the fund hoped to have invested a portion of its cash with these firms by the end of 2006.

However, a spokesman this weekend said it had yet to invest in these businesses.

According to the spokesman, the fund is "looking actively at a number of opportunities to invest in Irish venture capital funds". He said the process was ongoing.

The fund has not named the venture capitalists with which it has been dealing.

The agency, which manages the State's future pension liabilities, has not said how much cash it is willing to invest in Irish start- up businesses.

However, as part of a change in strategy, it has been moving some of its resources out of shares in global companies and into private equity.

It ultimately intends to have around €2 billion placed in private equity. A small proportion of this is likely to be invested with Irish venture capitalists.

Irish start-ups and developing companies attract around €200 million a year from investors, according to research completed last year by University College Dublin's centre for entrepreneurial studies.

Many of these businesses are operating in technology and sciences, which have been singled out in Government policy as central to future economic development.

However, the Irish Venture Capital Association has said that in order to have a viable crop of home-grown, high-tech and science-based companies, these businesses would need to raise €4 billion over the next five years.

The National Pension Reserve Fund is part of the National Treasury Management Agency, which has responsibility for the national debt and other State liabilities.

In 2006, the pension fund grew from €15 billion to €18.9 billion. It is not due to start paying out for another 19 years.