Ivor Callely (Fianna Fail)

I congratulate the Minister on his work to date and on his endeavours.

On the purpose of the Act, we all are aware this is a complex area. I spoke following Senator Burke on the same issue yesterday. The language we all are getting to know about performing and non-performing assets, loans and transfers, SPVs and other stuff is quite complex.

In amendment No. 3, on restoring confidence in the banking sector, orderly property management strategy, maximising funds and steps to prevent recurrence, will the Minister clarify the position on a loan transferred in light of what has been stated about any equity value in a performing asset, or even in a non-performing asset depending on when it was purchased? Will the Minister simply clarify that it is the loan rather than the asset that is being transferred, the management of the loan continues with the financial institution, the conditions associated with that - unless a new agreement has been reached - remain in place, and the asset, or the portfolio, depending on the value and the size - is managed as it was prior to NAMA?

We are in a complex area, uncharted waters. As Senator Harris said, there is concern among certain groups in society who feel they are carrying the can. There are other groups within the financial institutions who are pointing the figure at NAMA and stating that the rules are being changed because of the transfer to NAMA.

I say this equally for the benefit of the Minister. My understanding is that there are a number of accountancy practices which are not able to grapple with what I stated here on where what is and who deals with what. Some state - this might come from some of the financial institutions along with the accountancy practices - one's loan and portfolio has been transferred. That is not my understanding and the Minister might bring clarity to that.

Maybe people are using this new tool as a vehicle to get out of a particular position or to change what has been prior to the birth of NAMA. When we get into the other amendments the position can become somewhat confusing. Will the Minister clarify that where people have a loan, it is the loan that is transferred, the management remains with the financial institution, and that the benefits, if any, arising from the portfolio, the performing asset or the non-performing asset can be utilised by the promoters behind the portfolio or the asset base. Will he clarify that NAMA will only deal with the financial institutions from which it takes the loans and there will be no direct contact with the customers of the financial institutions whose loans are being transferred?