Mr. Frank Daly:

There is no doubt that there is volatility. One could say we might have come before the committee today to express a much more pessimistic view were it not for the good management of NAMA assets in the past three years, from mandating the rents and investing to the sheer professional management of the assets. We have to take into account that we are in a somewhat volatile environment.

Our opening remarks and other recent statements point out that we are seeing good signs of stability in the market. These have been noted for several months and are not a phenomenon that has been noticed this month. There are signs of growth in certain areas of the commercial market. For example, there is a demand for prime Dublin space and huge investor interest because investors see Ireland as a good place in which to invest. In the residential space - the most challenged sector in the popular mind - there is resurgent demand in certain areas in Dublin. This is funding the building of houses in certain parts of Dublin and Cork. This comes as a surprise to people, but it is a reflection of current demand and a lack of supply in particular niche areas. The Deputy is right that the market is the market. To a certain extent, the way we manage our portfolio can help the market. If we had dumped assets or engaged in a fire sale in the past three years, the prediction would have been much gloomier. Just as the market went down in the past three years, it can also go up and it is definitely stabilising.