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National Asset Management Agency.

Dáil Éireann Debate, Wednesday - 3 February 2010

Wednesday, 3 February 2010

Questions (32, 33)

Ciaran Lynch

Question:

96 Deputy Ciarán Lynch asked the Minister for Finance if he has instructed, or will instruct, the National Asset Management Agency board of directors to prepare a new, realistic and updated business plan for NAMA, taking into account all relevant information which has become available since the original draft business plan was prepared; and if he will make a statement on the matter. [5314/10]

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Written answers

The NAMA draft business plan published in October 2009, was prepared by the interim NAMA team for the purpose of outlining the background to NAMA and the manner in which it will carry out its functions and duties. It is important to emphasise that much of the information regarding the prospective NAMA portfolio included in this draft Business Plan is based on aggregate data which had been provided by the various institutions.

The NAMA Board was appointed in December 2009 and they will consider the draft plan and how to update it or revise it. Any such revision will be based on detailed data which will be presented and analysed in the context of the acquisition by NAMA of eligible assets. It will not be possible to prepare a revised business plan based on an analysis of the actual data submitted to NAMA for some months yet.

The NAMA Act requires an annual statement by 1st July 2010 and a detailed quarterly report to be submitted by the 30th June 2010. I would expect that NAMA would also provide its revised business plan in or around that time.

Brian O'Shea

Question:

97 Deputy Brian O’Shea asked the Minister for Finance if, in view of falling prices in most sectors of the economy, he envisages significant scope for savings to be made in the operation of National Assets Management Agency through minimising fees and expenses, for which an annual amount of €240 million was foreseen in the draft NAMA business plan; the instructions he has given to NAMA officials in this regard; and if he will make a statement on the matter. [5321/10]

View answer

The National Treasury Management Agency has engaged various firms for advice in regard to the National Asset Management Agency. I have been advised by the NTMA that successful firms priced the work at a substantial discount to win the business. The costs to be borne in 2010 include detailed due diligence costs which are recoverable from the participating institutions as part of the valuation process.

NAMA's mandate is a commercial one. The purpose of NAMA is to obtain the best achievable financial return for the State and cost containment is and will be a key objective of the Board. The NAMA draft business plan published in October 2009, is a draft Business Plan that was prepared by the interim NAMA team for the purpose of outlining the background to NAMA and the manner in which it will carry out its functions and duties. The draft contains estimates based on aggregate information then available to the interim NAMA team. I expect that the details published in relation to fees and expenses will be updated in a revised business plan to be prepared by the NAMA Board for publication around mid 2010.

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