Kieran O'Donnell (Limerick East, Fine Gael)

The introduction of the SPV question changed the whole debate on NAMA overnight. It brought into focus the fact that SPVs are private vehicles, in effect. It just so happens that the State will have a veto on the decisions taken by this SPV. The Minister's amendment No. 44 proposes the insertion of a new section that will make certain provisions for NAMA group entities. It appears that the only involvement the Minister will have in these entities will be in appointing their directors and disclosing their interests. What about the issue of reporting requirements? What about the lines of control? Will the SPV and NAMA have a common CEO? In terms of our dealings with the EU, will the SPV or NAMA be the formal reporting entity? As Deputy Burton has said, the SPV is being granted the authority to deal with all aspects of NAMA, in effect. It will be responsible for the purchase, management and disposal of loan assets identified and valued by NAMA. Major questions arise about the legal basis for that. A number of years from now, NAMA's veto over the board of the SPV could be legally challenged by private shareholders and its validity might not stand up.

It is understandable that taxpayers have major concerns about the proposal to give a private vehicle responsibility, in effect, for managing €54 billion of debt that is being borrowed on their behalf. I do not doubt that the Minister will have noted that a rating agency, the Fitch Group, today downgraded Ireland's credit rating from AA+ to AA-. The agency stated that it does not regard the off-balance sheet mechanism - the SPV - as an effective way of parking the €54 billion of debt I have mentioned. It said that it downgraded its rating of Irish Government debt partly because such debt will rise to 110% of GDP by the end of 2010.

This amendment raises the same question as the previous amendment, which related to the establishment of an Oireachtas oversight committee. It is a question of transparency and accountability. The Minister for Finance needs to take charge of the public purse and meet his commitment to look after the money of the Irish taxpayer. He should introduce legal provisions to ensure that the SPV is subject to proper reporting requirements.

I would like to raise a number of questions that the Minister did not properly clarify last week. He said that the master SPV may create a number of subsidiary SPVs, each of which will be responsible for the loan book of an individual financial institution. He emphasised that any such subsidiary SPV will be 100% owned by the master SPV. I would like the Minister to confirm whether subsidiary SPVs will be established to deal with the separate loan books of the individual institutions. Who will be on the board of these baby SPVs? I suppose the master SPV could be referred to as the Daddy SPV.

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