Colm Keaveney (Galway East, Fianna Fail) | Oireachtas source

The Government parties have attempted to paint the issue surrounding NAMA and the disposal of Project Eagle as a fuss stirred up by some in the Opposition, as an attempt to blacken the name of NAMA, or as a responsibility of the Stormont Assembly. The attitude of the Government with respect to the disposal of State assets alarms me, because we are managing a situation, as Deputy Cowen said, on behalf of the citizens of the Republic. With the scale of the portfolio involved, it is inexcusable that we do not immediately investigate, in the interests of the Oireachtas and the country, the conduct of NAMA and the disposal of the portfolio. The total face value of the loans associated with Project Eagle is in the region of €5.7 billion. It constitutes the biggest sale of what was a State asset, because, since its establishment in 2009, NAMA has been administering the disposal of State assets. The loans were packaged together on the basis of their connection with 55 borrowers based in the North. Of those involved with the assets, about half were from the North and the balance were from the Republic. Some were from the UK and Europe. The portfolio was eventually sold to a US private equity firm, Cerberus, at a price of €1.6 billion. NAMA originally bought the loans for €2 billion and impaired that loan to the value of €200 million. A sale price of €1.6 billion saw a further loss of €200 million. Of the face value of the asset acquired on behalf of the citizens of the State of €5.7 billion, the State discounted €4.1 billion. That is an astronomical sum given the context of the sum involved, as Deputy Cowen said, and the possibility of using funding to meaningfully address the housing crisis.

Among the pressing reasons for a commission of inquiry in this context are the questionable features of aspects of the disposal of the Project Eagle assets, particularly the methodology whereby the disposal was accelerated. That must be taken into context with respect to the rapidly growing property market in Northern Ireland. Commercial property prices in Belfast rose by 20% in the 12 months following the sale of Project Eagle. Property prices beyond Belfast had risen 10% in the same reference period. NAMA continues with its programme of disposal and it seems to be coming under significant pressure from the Government to deliver moneys to the Exchequer so that the Government can present itself in front of the citizens at the general election and say in a reassuring way that it has dealt with NAMA. The thought of a vulture fund quickly doubling its money by flipping property is repugnant at this time in particular when there are 1,500 children living in hotels in Dublin. The discussion about selling the assets in a block is a concern, because there is ample evidence that we could have broken down the Project Eagle assets into smaller lots and seen a greater return and percolation of that return to the community.

These concerns become sharper as we uncover aspects of the sale. Several apparent conflicts of interest were highlighted tonight by Deputy Michael McGrath. NAMA may not be directly responsible, but the robustness of its corporate governance structures is called into question. Pimco was forced out of the sale process by NAMA and the legal adviser it used was forced onto the bidders at the insistence of NAMA. Separately, and in somewhat curious circumstances, £7 million was found in a offshore bank account. These funds are related, we are led to believe, to the sale. We need a commission of inquiry, and I am surprised the Minister for Finance does not agree. The allegations set out by Deputy Mick Wallace have been covered in an earlier contribution. I commend him on his dedication, commitment and action in staying with this very thorny subject. It is incumbent on the House to establish an inquiry, not for political gain but for the 1,500 children out there tonight who have no homes. Sitting as a body, neither the Dáil nor the Committee of Public Accounts is adequately equipped to investigate this matter. I say that with due respect to the Deputies who serve on the committee and in the House, including my own party colleague Deputy John McGuinness.

There is a need to get answers to questions that the public are concerned about. People are concerned North and South of the Border. We owe it to our fellow Irish men and women in the North to establish an investigation into the truth. It is essential that the Houses of the Oireachtas and the Stormont Assembly come together to iron matters out and collaborate to be transparent and get to the truth. However, the existence of an investigation in the North does not answer the need for an inquiry in the Republic. This jurisdiction ends at the Border, but the consequences of the sale and the magnitude of the impact of that decision rest with the citizens of the Republic. I urge the Minister and Deputies opposite to reconsider their opposition to the inquiry. As the Taoiseach said somewhat dismissively one day, "Paddy wants to know." Paddy wants to know what is going on with Project Eagle. Paddy wants to know if NAMA is serving the interests of the citizen well. It is not unreasonable, in light of the scale of the resources involved, to table such a motion. I acknowledge the contribution made by Deputy Michael McGrath and his commitment and resolve in tabling this motion.

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