Dáil Éireann Debate, Wednesday - 12 December 2012
54. Deputy Patrick O'Donovan asked the Minister for Finance the number of builders or developers on the books at the National Asset Management Agency; the number of these on salaries of €200,000 or more and the rationale behind paying these persons salaries; and if he will make a statement on the matter. [55896/12]
View answerAs at the 30th of June 2012 NAMA had assessed 800 Debtor Business Plans. NAMA advises me that it permits appropriate overheads where necessary for the preservation and enhancement of the value of property securing its loans. Overhead costs typically fall into two categories:
(1) Cost associated with the repair and maintenance of properties, insurance premia, local authority rates and professional fees. These are essential costs which would be incurred regardless of whether the assets are managed by debtors or receivers.
(2) Overhead costs also include allowances for the remuneration of debtors and the staff employed by the debtor to manage the assets. I am informed by NAMA that the alternative in these cases is to appoint receivers and that receiver costs tend to be substantially higher than debtor and associated staff salary costs.
As the Deputy may be aware, the NAMA Chief Executive advised the Dáil Committee of Public Accounts (PAC) in July and the Joint Oireachtas Committee on Finance, Public Expenditure and Reform in recent weeks that the Agency has permitted 168 principals to retain salaries from rental and other income generated by cash producing assets. NAMA’s analysis shows that 17% or 29 principals are authorised to retain income of up to €49,000; a further 43% or 73 principals are authorised to retain income of between €50,000 and €99,000; 23% or 38 principals are authorised to retain income of between €100,000 and €149,000; 15% or 25 principals are authorised to retain income of between €150,000 and €190,000; and 2% or 3 principals are authorised to retain income of €200,000. There are no cases in which principals have been authorised by NAMA to retain salaries in excess of €200,000.
