I think it might be helpful if I outlined the various activities under the aegis of the NTMA and the governance structures underlying them. The primary role for which the Agency was established is to ensure that sufficient funding is available at all times to meet the day-to-day requirements of the Exchequer, which involves borrowing funds as appropriate on behalf of the Exchequer and managing the Exchequer balances. The NTMA legislation provides for an Advisory Committee to advise the Agency on such matters as are referred to it by the Agency.
In addition the Government has subsequently assigned, under legislation, responsibilities in a number of other areas to the NTMA in order to draw and build on its expertise in the financial area and to maximise the benefits to the State of that expertise. These other activities include :
a number of related financial activities, including emissions trading, the provision of a Central Treasury Service to local authorities and non-commercial semi-state bodies and the management of the moneys in the Dormant Accounts Fund;
acting as Manager of the National Pensions Reserve Fund (the NPRF Act 2000 provides that the Agency is the Manager of the Fund for at least the first ten years of the Fund's existence). The investment of the Fund is the responsibility of the National Pensions Reserve Fund Commission and the NTMA acts as its agent in ensuring that the investment policy adopted by the Fund is implemented. The Chief Executive of the NTMA, in his role as Chief Executive of the Manager, is a member of the Commission;
the management of personal injury and property management claims against the State and the underlying risks as the State Claims Agency. The Agency is assisted in these activities by a Policy Committee to advise it on policy and procedures relating to the performance of its claims management and risk management functions;
the NTMA is also the body through which the National Development Finance Agency fulfils its functions. The NDFA is a company with its own board, of which the Chief Executive of the NTMA is Chairman. The NTMA provides the staff needed by the NDFA.
With regard to the measures introduced to deal with the banking crisis, NAMA is a body corporate, the board of which is responsible for ensuring that the functions of NAMA are performed effectively. The Chief Executive of the NTMA is a member of the board of NAMA and the NTMA is responsible for providing staff and business support services to NAMA. In December 2009, I introduced the Eligible Liabilities Guarantee Scheme to maintain the stability of the financial system in the State and appointed the NTMA as scheme operator. Last month I announced the delegation of additional functions in the banking area to the NTMA. These include: discussions with the covered institutions on their capital needs; discussions with financial institutions on realignment or restructuring within the banking sector; the management of the State's shareholding in the credit institutions, and advice on banking matters generally, including issues relating to crisis prevention, management and resolution.
All of these activities are treated as separate business units within the NTMA to which staff are assigned by the NTMA. The NTMA operates a shared services model to support the various business units. Statutory governance arrangements for the different business units have been designed to ensure effective oversight and management at the level of the individual unit. I am satisfied that the governance structures that were developed as additional functions were assigned to the Agency will ensure the continuing effective functioning of the entities in the NTMA group and the effective pooling of the expertise and experience in the financial areas available in the NTMA.
As far as funding is concerned, the NTMA has been allocated a gross budget of €60 million for 2010, as against €41 million in 2009. In relation to Freedom of Information (FOI), the Agency is not subject to FOI because of the commercially-sensitive nature of much of its activities and, in relation to the State Claims Agency, the fact that most of its work is covered by legal privilege. As regards NAMA, it is necessary to bear in mind that NAMA will have a commercial mandate to obtain maximum value for the taxpayer and, to achieve this objective, it will be required to enter into complex commercial negotiations with financial institutions and developers, the nature of which will require in many instances a high degree of commercial confidentiality. In view of this it is not considered appropriate to extend FOI coverage to NAMA.
