Brian Lenihan Jnr (Dublin West, Fianna Fail)

Deputy Kennedy asked if there would be a separate SPV for each financial institution. There will not be. Also, the €100 million is the total consideration of the entire special purpose vehicle.

Deputy Bruton asked why have €100 million, why not establish a €1 company. In Deputy Rabbitte's constituency many years ago there were developers and builders who incorporated companies for £1 and then liquidated them when foundations of houses were unsound. A sovereign state cannot behave in that way. The subscribed capital is likely to be €100 million, a sum accepted by EUROSTAT as appropriate. I could not assure the House that EUROSTAT would find a €1 company to be appropriate. Deputy Rabbitte's then Labour Party colleague made his political reputation on dealing with these people who built houses with £1 companies covering them.

Of course the crucial point about subscribers is that the NAMA board will be able to decide who the subscribers should be. It will have complete control over that area. Fantastical pictures have been painted of hedge-fund owners and disguised banking interests moving in but the reality is that NAMA itself will have to make a commercial decision about an appropriate set of subscribers. I doubt it would be a natural person because a company would give the clarity a private individual would not have for a subscription.

Deputy Bruton also asked about the position of the Comptroller and Auditor General. The Comptroller and Auditor General will audit the special purpose vehicle. That is clear from the definitions in the legislation that have been strengthened by the amendments. It is under full control of the Comptroller and Auditor General.

Deputy Ardagh asked if the deal had been done on NAMA yet for the special purpose vehicle. That cannot be done until the board is established so there is no question of negotiations having been embarked upon or concluded because that is a matter for the board of the agency. This all illustrates the urgency of the appointment of the board of the agency. I want to proceed with this forthwith on the enactment of the legislation because it must attend to important responsibilities immediately.

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