Brian Lenihan Jnr (Dublin West, Fianna Fail)

The EUROSTAT position on the balance sheet treatment of NAMA and the SPV took account of the balance between State and private engagement in the proposed organisational structure. I have a great deal of sympathy with the points put forward by Deputy Burton. In general, when there is an asset purchase arrangement in place when one is engaging in a commercial operation through borrowing - for example, when one capitalises a semi-State body - in Stability and Growth Pact terms, the transaction occurs off balance sheet. Even the capitalisation of Anglo Irish Bank is an off-balance sheet transaction in Stability and Growth Pact terms because that institution is a commercial entity.

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