Dáil Éireann Debate, Tuesday - 4 April 2017
69. Deputy Thomas P. Broughan asked the Minister for Finance if his Department has requested NAMA to comment on claims made in a recently published report by a person (details supplied) produced for a developer regarding the value realised for the State from the operations of NAMA; and if he will make a statement on the matter. [16421/17]
Amharc ar fhreagra70. Deputy Catherine Connolly asked the Minister for Finance if he retains confidence in the board of NAMA in view of the fact that the practices of the current management have led to a loss of up to €40 billion for the State; his plans to change the structure or personnel in NAMA in view of the fact that the State will lose billions more in the future if the current practices are adhered to; and if he will make a statement on the matter. [16445/17]
Amharc ar fhreagra79. Deputy Richard Boyd Barrett asked the Minister for Finance if he has read the recent report by a person (details supplied) into NAMA, which claims it has failed in delivering its remit and has potentially lost €18 billion for the State; and if he will make a statement on the matter. [16467/17]
Amharc ar fhreagra87. Deputy Gino Kenny asked the Minister for Finance his views on the recent report by a person (details supplied) into NAMA's remit; and if he will make a statement on the matter. [16471/17]
Amharc ar fhreagraI propose to take Questions Nos. 69, 70, 79 and 87 together.
I would refer the Deputies to my comments made at the opening of the debate last week on the report of the Committee on Public Accounts regarding the sale of NAMA's Project Eagle portfolio, where I expressed my views on the recent criticism of NAMA following publication of a report commissioned by an ex-debtor of NAMA.
Deputies will be aware that during my opening comments I advised members of this House that before they accept as fact this analysis, they should read NAMA's response to this report, which is available on its website, www.nama.ie. NAMA has drawn attention to the fact that the report lacks rigour and objectivity and that it is fundamentally undermined by basic errors and invalid assumptions.
The main premise underlying the report's analysis assumes, unrealistically, that NAMA could have held the loans for seven years without generating any income from asset sales. It fails to acknowledge the Troika's requirement that NAMA redeem 25% (€7.5 billion) of its senior debt by end-2013, a target which could not have been achieved unless NAMA debtors had sold some of the assets under their control.
The report also fails to acknowledge the fact that NAMA's senior Government-guaranteed debt of €30 billion represented a contingent liability for Irish taxpayers and that it was a major concern for investors and for those lending to Ireland, including the Troika. In that context, it is unrealistic and naïve in the extreme to suggest that debtors and receivers could have withheld all assets from sale until 2017 and that NAMA did not have to reduce its guaranteed debt from an early stage.
The report also fails to acknowledge that NAMA is required by law to carry out its work expeditiously. Had NAMA debtors and receivers not sold Irish assets, NAMA would have been accused of hoarding and of preventing market recovery. It also fails to take account of the impact of NAMA sales in generating recovery in the Irish property market.
As the Deputies are aware, NAMA's purpose and objectives are set out in the NAMA Act as established by the Oireachtas. NAMA's primary objective is, as per Section 10 of the NAMA Act, to obtain the best achievable financial return for the State and to deal expeditiously with its assets in achieving this objective.
NAMA's continued strong performance since inception means that the NAMA Board now expects to achieve a surplus of up to €2.3bn over its life, subject to market conditions. I have stated consistently that I support the work of NAMA and I have full confidence that the Board and management of NAMA are achieving their commercial mandate in accordance with the NAMA Act.
