Joan Burton (Dublin West, Labour)

Will the Minister outline the implications of these provisions for individuals or institutions subject to the NAMA process in regard to items or assets that are offshore? I raised this issue in the course of the debate and have not yet received a clear response. If I understand the Minister correctly, these provisions are intended to cater for a variety of situations, both onshore and offshore, within the scope of the legislation. It has been extensively reported in the media, as I am sure the Minister and his officials are aware, that various developers and perhaps also financial institutions have undertaken significant movement of assets in an effort to protect them. For example, there are indications that viable and positive assets have been segregated and, in some cases, transferred to spouses and other family members.

These sections deal with the application for designation of an institution, that is, the application by a credit institution or bank to partake in the NAMA process. What powers will the Minister have arising from these provisions to address the reality that in the 14 months since the institution of the guarantee to financial institutions, developers and financial bodies have been preparing their asset in anticipation of the NAMA process? For example, we saw in the High Court and Supreme Court cases in regard to Liam Carroll's Zoe Group that only 30 or 40 of the 200 or 300 companies in that group were subject to proceedings. Is it the case, under these provisions, that developers who are part of the NAMA process may only have part of their empires committed to NAMA, and that where they have been successful in transferring assets to spouses or other family members, that those assets will fall outside the NAMA process and will not be available as collateral for outstanding liabilities? I have not received a satisfactory answer from the Minister on this point.

In regard to designated credit institutions and their offshore activities, we are aware that some Irish institutions have made extensive use of offshore banking facilities. For instance, Mr. McErlean, the former internal auditor to Allied Irish Banks, described extensive transactions in the Cayman Islands and other tax havens. What will be the status of those types of activities once the credit institutions come within the remit of NAMA, as set out in these sections? The public has an entitlement to be informed by the Minister regarding his oversight of such activities, which were central to the failure of the banking and construction systems. Those involved in the operation of NAMA must be in a position to command this information. I would like an explanation and a detailed commentary from the Minister on these matters.

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