Michael Noonan (Limerick East, Fine Gael)

The changes with regard to the National Asset Management Agency are good. It was ridiculous that every debt above €5 million was the subject of transfer when all the main banks have large units trained to work out, with the banks' clients, the wind-down of debt that cannot be paid. A threshold of €20 million is much more reasonable.

NAMA also made a mistake in responding to political comment by crystallising major debt much too quickly on the transfers. This was not necessary, particularly given that the liability only arises when the debt is crystallised. While we may praise ourselves for full transparency, if the debts had not been crystallised at such a rapid pace, the bills would not be coming in so quickly.

A secondary effect of raising the ceiling to €20 million is that debts of this order will not crystallise as quickly. There are 620 people who have debts of between €5 million and €20 million according to the figures provided. This gives certainty and is, therefore, worthwhile.

This morning, the Minister referred to the manner in which the money being transferred to the various institutions will appear in the national accounts. I ask him to elaborate on this matter in greater detail. I would like the Minister to go through that again in greater detail.

I understood the Minister to say that the fiscal deficit in 2010 will be 32%, an extraordinary figure. The promissory note is going into Anglo Irish Bank but the actual turn into cash happens over a number of years. From the EUROSTAT point of view, is the whole promissory note taken into account in 2010? More importantly, will that follow into the accounts of 2011?

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