Enda Kenny (Mayo, Fine Gael)

Today, the Central Statistics Officer released figures which show emigration is a feature again in Ireland for the first time since 1996 and that we have also lost 174,000 jobs in the year to March. The House should really focus on the priority of a stimulus package to protect and create jobs and get the country back to work.

Among the population the general understanding is that the Government's proposal for NAMA will allocate €30 billion to Anglo Irish Bank and Irish Nationwide Building Society. This will not result in a single person being taken off any dole queue anywhere. The Government has defended NAMA on the basis that the €51 billion plus in taxpayers' guaranteed bonds used to acquire toxic assets will leverage money from the European Central Bank, which, in the words of the Minister for Finance, will be allowed to flow back as credit to help struggling businesses and families. Given that this is the main justification for the bailout of the banks and the protection of developers, there are several questions I wish to ask the Tánaiste and Minister for Enterprise, Trade and Employment.

First, when will lending conditions be eased as a consequence of NAMA? Last week, when asked this question, the Tánaiste said she was not in a position to answer. I am anxious to know if she has made inquiries since then and what answer she has been given.

Second, 40% of the total NAMA bonds will be used to buy toxic loans from Anglo Irish Bank and Irish Nationwide Building Society. Both are institutions which will never make another loan in the normal sense. In fact, in the case of Anglo Irish the only loan it is interested in is that from a zombie bank to an insolvent developer for a headquarters that is not required. The remaining bonds, some €30 billion, will go to solvent institutions. In turn, this could leverage 80% from the European Central Bank, amounting to €25 billion. Given that 40% of the bonds will be used to acquire toxic loans from Anglo Irish Bank and Irish Nationwide Building Society, how much extra lending does the Government estimate will be generated by NAMA?

The four clearing banks - mainly Bank of Ireland and Allied Irish Banks - are servicing loans from other foreign and Irish banks of approximately €140 billion. They are very eager to pay down these debts. For them, the overriding strategic position is to improve their capital positions and lower their overstretched loan-to-deposit ratios. NAMA will not achieve this. For this reason both the new Governor of the Central Bank, Professor Honohan and the economist, Colm McCarthy, said that there are serious doubts about whether these banks will lend on the extra moneys they get for credit and business here. It is not contained in the legislation. What guarantees have these banks given the Government that the extra money they receive will be lent to small businesses and struggling families across the country?

My three questions are, when will lending conditions be eased as a result of NAMA? How much extra lending does the Government estimate will be generated here? What specific commitments have the banks given the Government that they will lend the extra money to business, as credit is badly needed now because people are losing jobs by the minute?

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