Brian Lenihan Jnr (Dublin West, Fianna Fail)

Deputy Lee, in a very interesting contribution, referred to the business plan. The latter is a draft interim plan and it was not concocted for a political purpose. On Second Stage, Deputy Burton inquired as to the whereabouts of the business plan and other Opposition Deputies were complaining that enough information was not being provided. In such circumstances, I asked the interim chief executive of NAMA and his staff to prepare an interim plan. They did so but I gave them no riding instructions in respect of it. When I introduced the legislation I made it clear that I would be quite satisfied if NAMA broke even. My instructions to my officials and to those working at the NTMA was that regardless of the way matters are designed, they must ensure that we break even in respect of NAMA.

I accept the plan is subject to the assumptions made in it. We can argue about those assumptions but the interim plan was prepared in good faith. There will be an onus on the board of NAMA, when appointed, to draw up a formal business plan. That is the key point. The relevant Dáil committee will be able to examine that plan and continue this debate. It would be more constructive if the debate were to continue in that context because the board, which will be charged with fiduciary obligations on the part of its directors, will be obliged to stand over the plan.

I wish to deal with a number of extraneous matters before commenting on the amendment. Deputy O'Donnell referred to the Fitch credit rating agency. He is correct in stating that this agency assessed our position on an Exchequer and on a Stability and Growth Pact basis. The latter is the basis upon which assessments will be made. It is better for the country that there is a Stability and Growth Pact basis which is separate from the Exchequer basis. The statement relating to the downgrading by Fitch makes for interesting reading. Although it is a downgrading of two notches to AA-, Fitch notes that the long-term outlook is stable and states:

Fitch has downgraded Ireland's sovereign ratings to reflect the severity of the decline in nominal GDP and the exceptional rise in government liabilities... However, the agency notes the vigour of the government's fiscal consolidation response to date, the expectation of further aggressive budget tightening and the likely success of the National Asset Management Agency (NAMA) in rehabilitating the banking sector. All these factors have helped stabilise the outlook for Ireland's creditworthiness.

Fitch also makes the point that NAMA is "likely to be successful in stabilising and rehabilitating the banking sector, providing both solvency and liquidity support and mitigating pressures on the supply of new credit to industry and households".

It was important to read that part of the Fitch statement into the record because the Deputy referred to the assessment in a particular context. However, the general context of the assessment is extremely positive with regard to this proposal. The contributions on this subject and in respect of this part of the Bill have been very positive as well. It is only natural that we all become lost in our rhetorical flights. However, the core of what was suggested and advocated was sensible. However, I regret to advise Members that this does not mean I am going to accept the amendment.

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