Eugene Regan (Fine Gael)

We are discussing the National Asset Management Agency Bill 2009 today and information that is essential to have a proper debate on this Bill should be provided by the Minister for Finance. We are essentially adopting a framework decision with this Bill, but it all operates within the EU state aid guidelines. Those guidelines provide that aid given to financial institutions is either repaid or there is a restructuring process. That is the phase we are in.

Where are we in respect of the approval of the business plan and the extent to which the Government is subsidising the financial institutions?

What is our position on the European Commission? Commissioner Neelie Kroes indicated that while NAMA was moving in the right direction in principle, she wished to see the details. Has the Commission approved NAMA? While Members have been led to believe it has, my inquiries have revealed no such approval. It is all subject to the examination of the detailed restructuring plans of the banks and the submission of the business plan by the Government. Moreover, the guidelines provide that no state aid be given for non-viable institutions. Is there a reasonable prospect that the Commission might approve further aid to Anglo Irish Bank which, given the extent of its indebtedness, does not have a viable future?

I seek clarification as a preliminary step towards having a reasonable debate on the Bill. There is a suggestion that a surtax, rather than a levy, will be imposed on the banks. Ireland has fought long and hard to protect its corporation tax rate of 12.5% which was the subject of discussion in the Lisbon treaty referendum debate. Is varying the rate either realistic or permissible under European Union rules? It gives opponents the opportunity to call into question a single rate of corporation tax. I believe a surtax is not a realistic prospect.