Lucinda Creighton (Dublin South East, Fine Gael)

I thank the Deputy for bringing this issue to the floor of the Dáil.

NAMA has a commercial remit under the National Asset Management Agency Act 2009 and must dispose of assets in a commercial manner in order to repay the loans it has incurred in the acquisition of such assets. However, within the legal and fiscal boundaries in which it must operate and notwithstanding its commercial remit, it plays a role in creating balanced and desirable places to live, with obvious benefits for sustainable social values. It is developing strategies to achieve its objectives, taking account of the need to contribute to the social and economic development of the State in the broader context of the National Asset Management Agency Act 2009. In doing so, it seeks to balance commercial requirements with providing for better social advances in so far as this is possible.

Within the context of its commercial remit, NAMA is at all times open to proposals and actively contributes to public policy processes, aimed at supporting the achievement of wider social and economic objectives. NAMA advises that there are wide-ranging examples of this, including through the agency's engagement with the Department of the Environment, Community and Local Government and local authorities regarding unfinished housing estates and the broader issue of social housing provision.

For example, following release of the report of the advisory committee on unfinished housing developments last June, the Minister of State with responsibility for housing established a national co-ordination committee to oversee action on unfinished estates and to monitor and drive progress. NAMA has two representatives on this committee, which meets regularly with the County and City Managers' Association.

The committee has focused its initial attention on the 243 estates categorised by local authorities as the most problematic from a public safety perspective - category 4. It is often assumed that the vast majority of unfinished estates are under the agency's control. However, only 29 - 12% - of category 4 estates are controlled by NAMA debtors or receivers. NAMA is funding, through its debtors and receivers, the cost of urgent remedial work on these 29 category 4 estates, which is estimated at €3 million, and very good progress has been made.

NAMA is also focusing attention on category 3 estates. Some 150 out of 1,500 estates in this category relate to NAMA debtors. Work is ongoing and at an advanced stage in regard to clarifying the status of each site and agreement of plans and timetables for optimum site resolution.

It is important to point out that NAMA's interest in the assets underlying its loan portfolio is that of a lender holding security rather than as an owner, except if a receiver has been appointed to a debtor or where a debtor has given express consent to NAMA. The agency is, therefore, bound by normal rules of banking confidentiality in most cases. This means NAMA, in general, will request debtors to engage directly with relevant groups in cases where a property that may be suitable for use by a public body is brought to the attention of the agency.

In exercising the commitment of the board to offer first option to public bodies, NAMA must be conscious of its overriding commercial remit, and the broader public interest also requires NAMA to maximise receipts for the taxpayer. Only a narrow sectional interest would be served by accepting a reduced price.

In December 2011, NAMA identified more than 2,000 properties as being available for social housing, representing, as the Minister for Environment, Community and Local Government described it at the time, potentially "one of the largest housing allocations made in the history of the State". NAMA is working systematically with local authorities and the Housing Agency to determine the demand and suitability for the identified properties. This work is well advanced and units will be coming on stream in the coming months.

In the context of the NAMA board's stated commitment to offer first option to public bodies on the purchase of properties which may be suitable for their purposes, the agency also advises of additional examples in terms of exploring potential synergies and delivering sites and buildings in respect of schools, health care facilities, including primary health care centres, community and recreational amenities and civil buildings. Towards this end, NAMA advises of ongoing and constructive engagement with the Departments of the Environment, Community and Local Government, Education and Skills, Health, and Arts, Heritage and the Gaeltacht, and with the universities and the HSE, with a view to identifying possible solutions for them. Examples include the provision of sites for the Department of Education and Science, UCD and UCC, and the development of a primary health care centre and ambulance station in Tallaght for the HSE. NAMA debtors are also facilitated in engaging with, inter alia, local voluntary and community organisations and sporting organisations on an ongoing basis in terms of identified land and property that may be suitable for their specific purposes.

It is clear that NAMA is making some progress in meeting the broad social and economic objectives set forth in the National Asset Management Agency Act of 2009 while continuing to seek a commercial return on the properties under its control.

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