Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy Durkan for raising this issue of importance to all Deputies in terms of wanting to see development of their town centres and the return of economic activity.

As the Deputy is aware, NAMA is legally constrained from commenting on assets that are under the control of its debtors, which is confidential information as defined by the NAMA Act as passed by this House. On the general point, the Deputy is aware that all NAMA funding decisions are made in accordance with its statutory independent commercial mandate and its overriding objective of maximising the return to Irish taxpayers from the management and sale of its loans and the assets securing its loans.

In general terms also, I am assured by NAMA that if a project can be shown to be commercially viable, NAMA will look favourably at funding such projects. However, as the Deputy is aware, there are sometimes other stakeholders involved who also have to play their part and sometimes it is not possible that full co-operation can be achieved despite NAMA's best efforts. NAMA is committed to providing substantial funding on a commercial basis to its debtors and receivers to maximise the return that NAMA can generate on behalf of taxpayers from development assets within its portfolio. In other words, it is in the interest of NAMA to see development proceed so that it can return moneys to the taxpayer.

The NAMA board has, in this respect, undertaken to facilitate the timely and coherent delivery of key grade A office, retail and residential space within the Dublin docklands strategic development zone and to facilitate increased residential delivery in the greater Dublin area and other locations where residential development may be commercially viable. The Deputy will be aware, for example, of the recent announcement by the NAMA board that a residential delivery target of 20,000 units on a commercial basis by the end of 2020 is potentially achievable through NAMA funding. NAMA is making substantial progress in both respects. Just over a year since the NAMA board adopted its strategic business plan for NAMA assets in the docklands, it has facilitated planning processes relating to more than 2.5 million sq. ft. of commercial space. NAMA wants to get on with the job and to finish up its work as quickly as it can.

On the residential front, by the end of this year, NAMA will have funded the construction of more than 2,300 new residential properties in Dublin and in the neighbouring counties of Wicklow, Kildare and Meath. An additional 3,000 new residential properties are currently under construction and planning is in place for a further 4,900 properties.

NAMA's ultimate objective is to repay its debt and generate a surplus for taxpayers. It is well on track to do both and to do so sooner than could have been initially envisaged. NAMA has said that it aims to redeem a cumulative 80%, approximately €24 billion, of its senior bonds by the end of 2016 and to have redeemed all of its senior bonds by the end of 2018. This is two years ahead of NAMA's previous target of 2020. NAMA has, to date, redeemed €22.1 billion of senior bonds, 73% of the €30.2 billion of senior bonds originally issued in 2010 and 2011 to acquire bank loans. Reflecting NAMA's continued progress, it has redeemed €5.5 billion of senior bonds this year alone. NAMA has made major progress in reducing the State's contingent liability through the accelerated redemption of its Government guaranteed senior bonds. There is progress being made.

Since its inception, NAMA has reduced this contingent liability from €30.2 billion at its peak to €8.1 billion, a reduction from over 18% of GDP to around 4% of GDP today. The NAMA chief executive has said that NAMA remains confident that this senior debt contingent liability will be eliminated in full by 2018, two years ahead of NAMA's original strategic plan. NAMA is ahead of schedule because of its ability to take advantage of favourable Irish market conditions since the end of 2013 to increase the flow of assets to the market.

Coming back to the specific question, NAMA is legally constrained from commenting on assets that are under the control of its debtors because such information is confidential information as defined by the NAMA Act. Therefore, neither I nor the Minister for Finance would have, nor should have, knowledge of a specific property's relationship with NAMA, if any. NAMA operates a dedicated email address for Members to raise matters of concern directly with it and I have no doubt the Deputy has raised this matter with it. As I said, NAMA will look favourably on any commercially viable proposal but on occasion, it is just one of a number of stakeholders.

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