I propose to take Questions Nos. 84 and 94 together.
In late 2015, a complaint was submitted to the Competition Directorate of the European Commission (DG Comp) by a small number of property developers - including some former NAMA debtors - alleging that there may be State aid implications to NAMA's providing financing for the development of commercially viable residential projects by some of NAMA's debtors and receivers.
My officials, along with NAMA, have had extensive engagements with the European Commission in relation to the complaint over the course of the last two years, often in response to specific information requests from the DG Comp Case Team resulting from allegations made by the complainants.
As the primary relationship with the Commission is held by the State, all responses and correspondence with DG Comp is conducted through the Department of Finance with the assistance of NAMA. NAMA and my Department have co-operated fully with the European Commission throughout their preliminary investigations and have addressed all queries and provided all information requested by DG Comp to date.
I am pleased to inform you that on Thursday 25 January 2018 DG Comp issued its decision in relation to this complaint and found that NAMA did not breach EU rules. This decision allows NAMA to continue to work on maximising the number of housing units that are delivered from sites owned by its debtors and receivers. This strategy has already delivered the construction of an estimated 7,200 homes since 2014 and will enable NAMA to deliver its forecast surplus of €3bn which will accrue to the State over the coming years.
The referred statement of An Taoiseach correctly draws attention to the risk of infringing State aid rules if NAMA were to expand its remit beyond the management of the loan portfolio that was acquired in 2010/2011. The statement is fully in accordance with the decision of DG Comp and does not impact upon NAMA’s current operations regarding residential development which in line with its objective to obtain the best possible financial return for the State from its existing assets.
