Oireachtas Joint and Select Committees

Thursday, 20 September 2018

Public Accounts Committee

National Asset Management Agency: Financial Statements 2016 and 2017
Comptroller and Auditor General Special Report No. 102: National Asset Management Agency Second Progress Report

9:00 am

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank Mr. McDonagh. It obviously shows a huge amount of progress on our overseas property and loan portfolio. Obviously, when an organisation such as NAMA is acquiring in excess of 12,000 loans, there will always be public commentary and debate on aspects that people deem controversial. It was very clear from the NAMA Act, however, that assets were to be disposed of judiciously and that the aim was to try to get rid of the contingent debt.

I would like Mr. McDonagh to comment on some of the newspaper speculation and sales without getting into significant detail in each case. I have written down details of reports on sales I have seen in newspapers. Dock Mill, Barrow Street, sold for €1.3 million and within a year it was resold for €13 million. A site on Sir John Rogerson's Quay was sold for €7.5 million. It flipped two years later for €17.5 million. New Century House in the IFSC was sold for €28 million and was sold six months later for €47 million. What really got us into trouble in this country was speculation on property. Sometimes the metric the media and others use to adjudicate on NAMA is that of speculation. It is asked why the agency does not take advantage immediately of market values that may or may not rise in the future. It is asked why the agency is not more commercially sensitive or sharp, for want of a better word, but this does not take cognisance of the way it was set up and its remit in legislation, and also its remit to reduce the sovereign debt. How does Mr. McDonagh feel about this commentary? Does he believe it is unfair when sales such as the ones I have mentioned are picked out?

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