Michael Noonan (Limerick City, Fine Gael)

The National Asset Management Agency, NAMA, has been established as a body corporate which is required to carry out its functions in a commercial manner. In this regard, it must consider on a case-by-case basis the overhead costs associated with leaving a debtor in place to manage his or her business at an agreed salary level versus the alternative of appointing an insolvency expert. I am advised by NAMA that when it decides that the better option for the taxpayer is to leave the debtor in charge of his or her business, it sets a limit for the overheads in the company or business and that this cap must cover all costs, including the debtor's own salary. NAMA takes a large number of factors into account before approving the overhead allocation for any debtor to operate the business. These include the debtor's knowledge of the assets, the overall value of the assets, his or her experience, NAMA's view of the extent to which he or she can add value and his or her level of co-operation with NAMA, including, where applicable, voluntary reversal of asset transfers and the pledging of unencumbered assets.

I understand from NAMA that, as part of its business plan agreements with debtors, it normally looks for and obtains a reduction of 50% to 75% in overhead costs and that any remuneration paid to debtors is payable from this much reduced budget. The chairman of NAMA has recently stated the majority of debtor remuneration packages fall into the €75,000 to €100,000 range, including all benefits-in-kind. I understand in two cases the debtors' remuneration package, authorised by NAMA as part of the budget for overheads, exceeds €100,000 and that the highest is in the order of €200,000.

The terms and conditions under which debtors work with NAMA constitute commercially sensitive, confidential information. I am informed that, under sections 99 and 202 of the Act, it cannot disclose the names of or details relating to individual debtors because companies and individuals whose loans have transferred to NAMA and who are meeting their obligations are entitled to have this information kept confidential.

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