Eugene Regan (Fine Gael)

The National Assets Management Agency is mandated to assume the toxic loans of the banks and, where necessary, call in the securities provided and realise the value of the properties in question. The Government has not addressed a technical problem of fundamental importance to the ability of NAMA to realise the assets which underpin the loans it proposes to assume. This problem, of which the Government is aware, relates to lands and properties which are co-owned. In such cases, there is an inability to enforce the judgment mortgage and securities in the courts. This issue was highlighted by the Law Reform Commission in a consultation paper on judgment mortgages published in 2004 and in a High Court judgment issued by Ms Justice Laffoy in the Irwin v. Deasy case on 31 January 2006. It has also been noted at various law conferences in recent years. Despite this, no action has been taken to address the issue. I ask the Leader to address it to the Minister for Justice, Equality and Law Reform.

The effect of the problem to which I refer is that, in the case of loans secured on properties which are in co-ownership, the National Assets Management Agency would not be in a position to enforce securities and judgment mortgages. This appears to be a major impediment to the work of the agency. Notwithstanding the fact that the Fine Gael Party is not favourably disposed to the entire NAMA project, we would like the Government to get it right if it is intent on pursuing this option.