Dominic Hannigan (Labour)

I welcome the Minister of State. I thank Senator Bacik for sharing time. I will not repeat the points she or other members of my party in this and the other House have made.

I will concentrate on a few figures I would like the Minister of State to clarify. I agree with previous speakers that this is essentially a high level business case. It is extremely optimistic. One could argue that the figures have been worked to give the right answer. In my previous existence I have seen many business cases, including for projects as basic as a train station, that would be more detailed than this business plan. Given that an expenditure of more than €70 billion is involved, I was surprised to see something as light as this document when it was published.

We will table amendments on Committee Stage, but I wish to pick the Minister of State's brain regarding a number of points. Page 10 of the plan deals with the assumption that loan defaults at a rate of 20% would provide a MPV of €4.8 million. It is noted in the Minister of State's speech and in the plan that if that rose to 31%, it would wipe the potential profit of NAMA. What sensitivity tests have been done and what analysis is there to support the contention that a 20% figure is reasonable? I would like the Minister of State to address that point.

The second point on which I seek clarification relates to fees and expenses. They are shown from 2010 on as being €240 million a year. They are broken down on the bottom of page 12 of the plan, although I am not sure if the Minister of State has it in front of him. I refer to table 7, NAMA budget projection 2010 to 2012, for the years 2011 and 2012. It shows liquidation expenses of €160 million in 2011 and €160 million in 2012. I am at a loss. No doubt the plan states somewhere - I want the Minister of State to confirm and clarify where exactly - why are we incurring liquidation expenses in 2011 when, according to the business case table, table 5, on page ten, we do not get any asset recoveries until 2014 and we do not get any debt repayment until 2013. I am wondering why we are incurring liquidation expenses of such a high figure, €160 million, from January 2011 onwards. If the Minister of State could clarify that, I would appreciate it. As I stated, my party will be tabling amendments on Committee Stage of the Bill and I will reserve my further comments until then.