Martin Cullen (Waterford, Fianna Fail)

The Deputy and I have been ad idem regarding her point for some time. That we have both raised the issue in our respective ways has been helpful. Obviously, I have discussed the matter with the Minister for Finance and raised it at the Cabinet table, where I intend to keep it. The construction and operation of NAMA will be crucial and I cannot countenance a situation in which hotels that are clearly non-viable are kept going simply to turn over money at rates below the real costs of hotel rooms, etc. in the marketplace. I have evidence to show that this situation is affecting competitive hotels, albeit ones that are struggling because of the decline in the tourism market. They can survive by setting intensely competitive rates, although not substantially below cost.

Notwithstanding the Deputy's points and the complexity involved in the various reasons for supporting hotels, the situation boils down to difficult decisions being taken quickly and early in the operation of NAMA. Businesses that are clearly incapable of functioning in the market must go out of business. There is an overcapacity in the market of approximately 15,000 beds. All of these do not need to go, but hotels are being supported despite not being viable.

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