Timmy Dooley (Clare, Fianna Fail)

Notwithstanding the widespread negative comment about NAMA at the time, its establishment had the effect of cleansing the banks' balance sheets. While it has not resolved the problem and NAMA has come at a significant cost, the agency has created greater transparency, unbundled debt and simplified the balance sheets of the banks. As a result of its transparent balance sheets, Bank of Ireland has been able to attract outside investment. We need a similar approach to be taken in respect of debt settlement and mortgage resolution. The Keane report is flawed to the extent that it proposes that the resolution of the problem be placed in the hands of the banks. Rather than address the problem, the banks will continue to believe it will be possible to retain the full value of their loans, which is an unworkable approach.

Deputy Michael McGrath has met people who are dealing with this issue on the coalface, including representatives of New Beginning, the free legal advice centres and other groups. He has also consulted Members of the House who are encountering these issues daily. The people he has met do not believe the Keane report provides a basis for resolving the problem.

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