Dáil Éireann Debate, Tuesday - 4 March 2014
42. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency has conducted an independent economic assessment of the proposed €20 million investment at Scotch Hall in Drogheda; his views on whether it is a prudent use of taxpayers money; and if he will make a statement on the matter. [10652/14]
View answerA key element in NAMA's strategic planning is recognition of the need for investment to preserve and enhance the value of assets securing its loans. Reflecting this, NAMA announced in May 2012 that it would provide funding of €2bn in Ireland over the period from 2012 to 2016 to enable construction projects currently in progress to be completed and to develop new projects to meet prospective supply shortages in certain market segments. In delivering on this commitment, NAMA is both making a vital contribution to the recovery in activity and employment that is now underway in construction and related sectors and to the provision of infrastructure to meet Ireland s current and future growth needs.
Decisions in relation to development funding are determined by NAMA s assessment of the projects most likely to generate a strong commercial return to the taxpayer. In assessing projects, a key factor is the level of advance interest by potential purchasers or tenants and typically approved funding is drawn down only on a phased basis in line with the achievement of pre-agreed sales or rental commitments. I am satisfied that NAMA s approach to project appraisal is thorough and rigorous. I have been assured that decisions around the case raised by the Deputy have followed such an approach.
However, it would not be appropriate for me, as Minister for Finance, to comment on individual projects or to become involved in the day-to-day detail of NAMA s development funding strategy, that is a matter for the Board of NAMA.
