Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source

I would like to focus on my concern about the way in which NAMA has been dealing with developers. Particular cases have been brought to my attention. It would seem from both media commentary and information I have received myself that in many cases developers, some of whom have performing loans and were only brought under NAMA's remit through legislation, are being brought to their knees. These are the very people who have expertise and experience. They are the people to whom we look to grow our construction industry again.
I note in particular the judgment delivered by Mr. Justice Brian Cregan in the High Court in the Mr. John Flynn v.NAMA case. I believe that case was a damning indictment of how NAMA deals with developers. He ruled that NAMA had acted unfairly and unlawfully in calling in loans of €22 million from Mr. Flynn and his family. The large amount of information I have received about how NAMA deals with developers tallies with Mr. Flynn's own comment that dealing with NAMA was akin to the goings-on in North Korea and that developers could not speak. I know the media do not have too much sympathy for developers but many of them have performing loans.
One of the biggest loan sales was of the loans of developer Michael O'Flynn. His loan sales comprised much sought-after property and he believes that his loans were not sold to the highest bidder but to Blackstone. Is that the case or not?
In the case of the sale of Elverys Sports, I am delighted that the management buy-out proceeded and that jobs were saved. I would like to say fair play and give full credit to the management company there. However, I take issue with the dealings of NAMA in this case. On the Friday, everything was cleared, in place and financed to proceed with the management buyout. Come Monday, everything was off the table. The company was in freefall and by Wednesday it was in examinership. This had implications. The deal on Friday would have meant Revenue was paid in full as well as all creditors. There was €1.4 million due to small creditors, many of whom supply services and goods in my own county. In the subsequent deal after examinership, those small creditors, who were to get 100% of their payments, received 5%. Once the company went into examinership that had its own costs.
I am glad that the management buy-out proceeded successfully. When I raised this in the Dáil and the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton came in to deal with my concerns, however, I believe that misinformation was given to him. He was told that finance was not in place when it was in place. I would like some explanations. There are people in County Mayo, small creditors and businesses. The money that they have lost is making a big difference in their businesses. They are employing local people and paying for local services, paying local rates and all the rest. I think it is a disgrace and I would like an explanation.