Brian Cowen (Laois-Offaly, Fianna Fail)

Let me be clear about this, taking the subordinated debt into account, NAMA will have to achieve less than a 10% uplift over the current market values on its assets over ten years to break even. Any increase above this would accrue in its entirety to the taxpayer so the suggestion by Deputy Mitchell last evening that NAMA offers no possibility of a gain to the taxpayer is wrong. Finally, I refer to Deputy Burton's request for the publication of a business plan that would set out the cost of the agency's operations. I can confirm that such a plan will be provided before the end of Second Stage of the Bill.

There has been detailed discussion and commentary in the media on potential alternatives to the asset management approach and the establishment of this agency. Deputy Bruton's alternatives are premised on significant levels of default on Irish bank debt. This would have a severe detrimental effect on the remaining banks and, most importantly, the State's ability to fund itself. The Government does not believe the best interests of the State are served by allowing a culture of default or potential default to develop. This would undermine financial stability and result in the need for further action to rescue the banking system. The suggestion by Deputy Bruton that we can divide most or all of our banks into a good and bad bank system without disrupting the flow of finance to the economy is totally unrealistic in our view and not founded in any practical plan. If, as suggested, all or most of our banks were to be put into a bank resolution scheme we would be left for a significant period with zombie banks and very little lending into the Irish economy.

See this speech in context