Paul Gogarty (Dublin Mid West, Green Party)

Indicating an intent to seek the establishment of a special purpose vehicle might have shed some light on the situation.

Neither I nor my party colleagues have an issue with the principle behind the SPV, particularly in the context of its being used to remove certain items from the balance sheet. However, there are valid questions to be posed in respect of the make-up of the SPV and also with regard to the fact that a number of mini-SPVs may be established. The more of these vehicles there are in existence, the less influence the Oireachtas will have on the process.

I agree with Fine Gael Deputies in respect of the need for strong committee regulation without, as stated earlier, there being a need for control to be exerted in respect of every minor matter. Will the Minister indicate if a committee will be in a position to engage in a thorough discussion with representatives of the SPV? Would a committee be in a position to invite these people or those representing the mini-SPVs to come before it in order to answer questions about their activities? To what level will the Oireachtas or its committee have power to examine matters in detail? Will the quarterly reports to be provided merely cover the NAMA "holding company", so to speak, or will they include details on how the SPV and the mini-SPVs operate? If the SPV continues to be subdivided ad infinitum, how will it be possible to regulate, control and monitor matters?

The SPV constitutes an attempt to clarify that what is involved here is a special loan which should not be included as part of the State's overall liability on a year-to-year basis. At the same time, it goes some way towards making provision for risk equalisation. The Green Party was criticised in respect of the additional €7 billion and €2.8 billion was quoted as being the magic figure in this regard. I am aware of the issues relating to contingent liability. Another issue relates to the 51%-49% shareholding in respect of the advent of private sector involvement. We cannot pre-empt any decision in respect of this matter but at some stage there will be increased shareholdings in the Irish banks. If those banks do well, then the risks involved will be shared through other means.

There has been much debate with regard to the valuation and the amount we are paying above that figure. In one sense, this is something of a red herring. Most Members would agree that there is a need to recapitalise the banks. If the money must be invested in any event, then a question arises with regard to what is the cheapest way to procure loans. I am of the view that the NAMA scheme, by means of which preferential loans can be obtained through the issuing of bonds, offers the cheapest way. Deputy Burton stated that this may actually increase-----

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