Paddy Burke (Fine Gael)

I support the amendment but want to raise questions on paragraphs (ix) and (xi). Paragraph (ix) states: "to ensure an orderly property management strategy over a ten year period ....". Paragraph (xi) states: "to take all the necessary steps to prevent a recurrence of the conditions that brought about the financial crisis". I raised this issue on Committee Stage yesterday and, unfortunately, the Minister was not present at the time but the Minister of State, Deputy Mansergh, was present.

The issue I raise is not unrelated to amendment No. 29 by my colleague, Senator Coghlan, who also raised it on Committee Stage. It concerns property acquired by NAMA. Obviously, such property will be taken in for a reason, say, if there are over €5 million in borrowings and they are related to housing, land and so forth. There are quite a number of developers and house builders in that bracket. I heard a house builder say on a radio programme that they could end up in NAMA; I speak about the likes of McInerney, which specialises mainly in house building. I put the question to the Minister of State, Deputy Mansergh, yesterday, that if that company has a performing asset on which equity has built up, it would be unable to use that equity as collateral for a further development. The Minister of State replied that it could use the equity but it would not be for housing. If it is not for housing then it must be for commercial use and there is probably an over-supply of commercial property in the State also. The main business of the likes of McInerney is house building and if what the Minister of State, Deputy Mansergh, stated is correct, then McInerney and companies like it will not be able to go forward in the business of building houses unless they can borrow from NAMA, which will have funding of up to €5 billion available for such work. I want the Minister, Deputy Brian Lenihan, to clarify this important point. It is the kernel of all of this. What we will have, in effect, is the State controlling house building and housing right throughout the length and breadth of the State, if a company which may be in NAMA cannot use its built-up equity for the purposes in which it specialises, namely building houses. It is an issue at which the Minister must look.

I would like to hear the Minister's views on it. Unfortunately, I will not be able to contribute subsequently as this is Report Stage. However, I draw his attention to the remarks made by the Minister of State, Deputy Mansergh, that the company would be able to use the equity, but not for housing.