Kieran O'Donnell (Limerick East, Fine Gael)

The problem with NAMA, in terms of market value, is that it is paying €7 billion over market value. The taxpayer is taking the majority of risk in terms of market value and the €7 billion. The banks are only taking a risk in respect of the €2.7 billion. Taking account of both factors, if the Minister goes with market value for NAMA and puts the €7 billion in by way of ordinary share capital, this would provide a better risk sharing mechanism in terms of the upturn and the banks. The banks' balance sheets would also be cleaned up. The problem with what the Minister is doing is that we effectively come in with an excessive hope value. This makes it less likely the taxpayer will earn a return.

I put two questions to the Minister previously, which he did not answer. I asked when the Mazars report would be issued and who would pay for it. I also asked about the €49 million taxpayers would put into the SPV and asked what exactly that money would be used for.

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