Aideen Hayden (Labour) | Oireachtas source

I welcome Mr. Daly, Mr. McDonagh and Mr. Mulcahy back again before the joint committee. We have now met on a number of occasions. As I am sure the delegates are getting tired at this stage, consequently, I will pick on something that might be a little different.

In his opening statement I note Mr. McDonagh points out that NAMA does not believe in a "one-size-fits-all panacea for the problems in the residential market". I assume that consequently, because of their lack of salability, he notes that in the apartment market, NAMA's focus is on renting. He then continues by observing that since acquiring loans, tenants have been secured for 4,000 previously vacant apartments in Dublin.

Mr. McDonagh then went on to note that at present, NAMA has 10,000 apartments and houses within its portfolio that now are rented, with an annual rent roll of €100 million. The first point that struck me was that a good number of them probably are in the Dublin region. The second point that struck me is that, on my figures, NAMA now controls one in every 25 rental properties in the State. When one considers that 20% of the Irish population lives in rented property at present, that makes NAMA quite a significant player in the rental market. While I acknowledge NAMA has an overriding commercial remit, it also has a social remit in the sense that, effectively, it belongs to the State and the assets must be realised for the benefit of the State. Of NAMA's 10,000 rented properties, can the witnesses provide members with a breakdown of those properties, whether they are one-bed, two-bed or three-bed units? I do not suggest they do so today. Of the aforementioned 10,000 units, what proportion are rented to recipients of rent supplement, by which I mean a State support for people in the rental sector provided by the Department of Social Protection?

There is significant concern about the activities of receivers in the rental market. As the witnesses may be aware, there has been much publicity to the effect that, although they are receiving rents, they are not acting as landlords in the way landlords are expected to act. They are not maintaining the properties and are not dealing with situations when tenants find themselves, for the sake of argument, without water, heating or whatever it happens to be. What arrangements has NAMA made for the management of its 10,000 properties? I wish to ascertain how these properties are being managed. How are the interests of the tenants in those properties being protected?

As for the future of those 10,000 properties, I have a certain amount of experience of dealing with Dublin City Council and it strikes me that there is a difficulty for local authorities in obtaining rental accommodation scheme, RAS, properties, that is, properties that are leased for shorter periods of four or five years. To what extent are any of those 10,000 properties being made available to RAS? Can they be made available to RAS or how long is NAMA prepared to engage in leases for the aforementioned properties?

My next question relates to social housing. I very much applaud the establishment of NAMA's special purpose vehicle to expedite the delivery of social housing. Mr. McDonagh stated NAMA has identified approximately 3,800 units for social housing. Like many people, I am seriously disappointed that this is the best social dividend that could be derived out of what has happened. Of those 3,800 properties, have the 10,000 rented properties been reviewed as to whether they would be suitable for inclusion within the social housing agenda? Alternatively, have the 3,800 properties been identified from the balance of properties that have never been put into the rental market? Incidentally, when splitting out the units into three, two and one-bed units, it would be very helpful were the witnesses to indicate their location by local authority area in particular.

I acknowledge the witnesses are tired and I do not wish to detain them. My final issue pertains to the real estate investment trusts, REITs. I share the witnesses' interest in REITs and, on a note of warning, I was involved in some research a number of years ago into the engagement of institutional investors in the residential property market. The results were incredibly disappointing in respect of their interest and willingness to engage. Consequently, the witnesses should indicate the extent to which they believe institutions in Ireland have an interest in investing in property, be it commercial, residential or both. To what extent do they believe a REIT could be a vehicle for institutions outside of Ireland to become engaged in properties within Ireland? The witnesses should indicate what they believe would have to change. I am aware NAMA has been discussing this matter with the Minister for Finance. What specific changes in respect of tax treatment and so forth does NAMA consider to be necessary?