Brian Lenihan Jnr (Dublin West, Fianna Fail)

This is not a matter of one approach pioneered by one group. This was a very detailed exercise carried out within the NTMA, which advises the State on financial matters, building on its expertise and the analysis of the banks' loan books, which has been demonstrated since last September. The Government examined matters carefully. The Government and I agree with Deputy Bruton to the extent that the crucial issue regarding the operation of NAMA is the valuation of the books and the precise price at which the agency will acquire the assets. That is at the heart of the successful operation of the agency. That is why I have confined myself to date to a general statement of principle about how we will go about this approach. If we predetermine the valuation without further expert advice and analysis, we would expose the taxpayer. It is essential that a proper evaluation procedure be elaborated.

As I indicated in yesterday evening's debate on this, I am open to constructive suggestions from the Opposition on how we can proceed on valuation. No alternative system has been advanced in this House to address the question of how credit can be made to flow in the banking system again and how the banking system can be repaired. The approach taken by the Government is in accordance with best international practice and advice and the IMF has repeated again and again the need for states to clean up the balance sheets of the banks. If an alternative proposal exists, it can be evaluated, but no valid alternative proposal has been advanced from the Opposition benches.

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