Peter Mathews (Dublin South, Fine Gael) | Oireachtas source

Let me refer to the ownership of NAMA. In recent days, it was revealed that London-based Walbrook Capital purchased Irish Life's 17% stake in the special purpose vehicle, which owns 50% plus a share of the controlling ownership vehicle for NAMA. Do we know anything about Walbrook Capital or the probity of its promoters, directors and owners? Do we know about their integrity and abilities? Do we know anything about the fact that they could become predators of the assets in NAMA's portfolio? Have NAMA's owners a strict hands-off and brains-off policy regarding the portfolio of agency? Are the investors passenger investors?

I preface all my questions and remarks with the comment that I wish the delegates well and the optimum outcome in their endeavours. In referring to the optimum outcome, I do not necessarily mean achieving top dollar because, as Mr. McDonagh explained, this is a damage-limitation exercise by a work-out organisation. We must think of all the broader interests and, to some degree, ensure those with ability and the right attitude are not killed off. One of the great Irish recoveries, the agribusiness recovery, pertained to Larry Goodman's group, Goodman International. With co-operation and consensual effort, Mr. Goodman was able to earn his way out of his guarantees and return to owning his business. That should not necessarily be precluded in this scenario if it leads to the optimum outcome for NAMA as an organisation.

When the price of assets being transferred from the banks into NAMA was struck in 2009, there was a further fall-off in valuations. We can see impairments mentioned in the accounts. The juiciest parts of the portfolio have tended to be the ones that have been sold or are being sold. The cashflow, while strong, amounting to €100 million per month, or €1.2 billion per year, could dry up primarily for two reasons. The first is rent-break clauses in lease reviews and the second is the falling off and failure of tenants.

I do not have time to ask all the questions in my head but I would like to touch on them. The issue of upward-only rent reviews will not go away because of our lease arrangements, which are unique in Europe. They were invented approximately 40 or 45 years ago. In the rest of Europe, leases are much shorter, and open-market rents prevail. We know this because Irish Life has a property fund in Paris in respect of which the break clause by Rexel will be operated, and the loan fund of 75% from PTSB will disappear, leaving shareholders holding their files and nothing more.