Martin Mansergh (Tipperary South, Fianna Fail)

The mantra is being repeated in the belief that as many people as possible will believe NAMA represents a bailout for borrowers and developers. Such is not the case. NAMA is only in place because a functioning banking system is vital to our economic future. It is not a bailout for anyone. A developer whose bank loan is purchased by NAMA will have to repay NAMA just as he or she would have had to repay the bank. The terms and conditions of such a developer's business relationships with NAMA entities will not change as a result of the agency purchasing loans from his or her bank. In fact, since NAMA will acquire the loans at a significant discount from the banks' book value, it will be in a position to be more aggressive with borrowers if it deems this necessary. The draft legislation also contains a number of provisions which will assist it in its dealings with developers and ensure every last cent due to the taxpayer is pursued vigorously.

The Government's proposal for a national asset management agency is a prerequisite for economic recovery and the regeneration of employment. It will cleanse the balance sheets of Irish banks, thereby allowing them to focus their resources on discharging their essential role in the economy, the provision of credit. In tandem with other policy initiatives the Government is taking with regard to restoring competitiveness and bringing order to the public finances, it will ensure we will be best placed to take the earliest possible advantage of the economic upswing around the globe and in our export markets. The legislation introduced by the Minister reflects detailed consideration of how NAMA will need to operate in order to protect the State's investment and generate a return for the taxpayer. This is no gamble, but a very carefully worked out proposal. The approval of NAMA by this House is the key to the future of this country, which is why I encourage all parties and Members to support it.

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