Richard Bruton (Dublin North Central, Fine Gael)

The Taoiseach is shifting the burden from where it was created to the taxpayer. That is not the correct approach we should adopt.

NAMA fails the critical tests of being effective, fair and of involving the least cost. It does not square up to those criteria. Its origins do not start with the needs of enterprises and families. It does not distinguish the important part of banking from the unimportant part. It is built on the silly notion that in order to protect our reputation we have to stop the laws of capitalism as it deals with investors, bondholders and subordinated bondholders in our banks. It places the objective of keeping the banks in private ownership on a pedestal above all other considerations, a pedestal on which it does not deserve to be placed.

Having listened to what the Minister said and the various changes announced or suggested by backbenchers, the fundamental principles of NAMA are still the same. It is the determination to pay hope value for these loans purchased, €7,000 million in excess of their actual market value. Asset recovery will still be operated as a politically controlled bureaucracy.

The conduct of this public business will be done under a veil of secrecy. There is an innocent faith at the root of it that the banks will suddenly lend. It is now the eleventh hour and the legislation is about to be passed and we have yet to see any aspects of the mechanism the Minister has told us he is dreaming up to make sure that NAMA gets credit flowing to business. We have been told that a mechanism is being hatched together-----

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