Results 7,021-7,040 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: I welcome Mr. Daly, Mr. McDonagh and the other guests. It is hard to know where to start as NAMA is such a big and powerful animal in the country at present. I will cover some main points, and I hope to come back in later if I can. I will start with the global issue of NAMA’s performance and the expected outturn when it is eventually wound down. I am aware of the 80% target to...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: To be frank, we are expecting that bonus. It is not really a bonus because when NAMA was established massive losses were crystalised on the balance sheets of the banks, which were then filled by recapitalisation. Any surplus that NAMA can return will reduce the net liability to the State. We want it to achieve a surplus in terms of its return. As I am sure it has forecast this, I will put...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: That is based on certain assumptions.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: Does NAMA always sell to the highest bidder?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: If, for example, a receiver appointed by NAMA is selling a house and one person offers cash while another offers a higher sum subject to loan approval which might take two weeks, how does NAMA weigh this up?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: The primacy of selling to the highest bidder is subject to two conditions. The buyer must, first, have access to finance and, second, not insist on unreasonable conditions. We need to tease that out because Mr. McDonagh keeps reiterating the obligation on NAMA under section 10 to achieve the best financial return to the State. Have there been cases in which NAMA has not accepted the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: If somebody made a higher bid, would he or she be given a reasonable period with a strict deadline to come up with the funding?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: What kinds of conditions might NAMA find unreasonable?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: It is where NAMA believes there is a risk that the higher bid might not materialise for one reason or another.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: That is a clear and measurable risk but in all other cases, the highest bidder wins.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: NAMA has conducted €17.5 billion worth of asset sales. How much of that involves sales to foreign owned funds, for example, private equity funds? I apologise that I did not give notice of that question in advance.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: I assume these are private equity funds rather than private purchasers.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: Up to 90% of what NAMA has sold went to US buyers, the vast majority of whom are in private equity funds. Is that fair to say?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: In his opening remarks, Mr. McDonagh made it very clear that NAMA's position is to get the best return for the State and any decision taken by the prospective purchaser subsequently is a commercial decision. Does NAMA take an opinion on the attitude of the prospective purchaser of a going concern who plans to shut down the business to asset strip it and sell it in parts, even if that causes...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: Even if the purchaser said that, would it matter to NAMA? I am trying to get a straight answer on that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: Any wider implications for economic development is none of NAMA's concern. I am giving Mr. McDonagh an opportunity to defend his position because I think it is clear. NAMA will sell to the highest bidder irrespective of the bidder's intentions for the assets and the consequences, which may be positive or negative, for the economy. Is that NAMA's position?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: In Killarney in particular.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: I am conscious of the time and the length of time our guests have been here but I have a few brief questions. I submitted question No. 12 on page 9 regarding the cost of receivers. The information in the reply is that NAMA has spent almost €77 million on insolvency practitioners, which I assume refers to receivers and liquidators which have been appointed at NAMA's behest, and that...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: I am conscious it is a detailed question.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functions: National Asset Management Agency (22 Oct 2014)

Michael McGrath: My second question relates to when NAMA is selling a portfolio of residential properties, as it did recently in the case of apartment blocks. NAMA says that, strictly speaking, an individual purchaser or a normal Joe Soap could buy an apartment, but in reality apartments are sold en bloc, typically to a fund. Would NAMA be willing to consider selling properties on an individual basis or is...