Dáil Éireann Debate, Thursday - 5 November 2015
103. Deputy Michael McGrath asked the Minister for Finance the cost of the National Asset Management Agency's scheme to make retention payments to staff who remain with it; the amount each staff member will be paid; the reason he agreed to the scheme; his views that the payments are justified; and if he will make a statement on the matter. [38784/15]
View answerAs I have previously advised the Deputy in Dail Question 90 of 24 September 2015, the overall cost of NAMA's redundancy programme will not exceed €20 million. That figure includes a retention payment element which is designed to ensure that NAMA retains key staff, and the expertise they hold, within the organisation for as long as they are needed. As set out in my Department's Section 227 Review of NAMA in July 2014, the ability of NAMA to obtain the best achievable financial return for the State is heavily dependent on its retention of expertise. That view has been strongly endorsed by the NAMA Board. Given that, I agreed with the NAMA Board in the context of NAMA's accelerated senior debt redemption target and its ancillary residential and commercial development funding activities, that a redundancy programme reflecting public sector norms and also comprising a retention payment element would be introduced to enable NAMA retain key staff. The retention payment for individual staff is dependent on NAMA achieving its targets and on satisfactory individual performance ratings and will only be paid in the year the staff member leaves the organisation. I should add that the retention payment is subject to normal employment taxes and levies. The overall cost of NAMA's redundancy programme of €20 million should be read in the context of projected cash generation by NAMA over its life of €40 billion.
