Brian Lenihan Jnr (Dublin West, Fianna Fail)

I said I was going to eliminate him before I addressed the merits of the amendment.

As Senator O'Toole rightly pointed out, section 12(2)(h) creates a specific power in NAMA to distribute assets in specie to the Minister. I am grateful to Senator MacSharry for providing a good translation of the term; its colloquial meaning is "as is".

Senator O'Toole was quite correct on the provenance of this provision. It stems from the provisions of section 60 which describes what happens at the end of NAMA. Having attended at the birth, it is very interesting to study what will happen at the end. Section 60(2) states:

NAMA may, from time to time, after consultation with the Minister—

(a) use any surplus funds of NAMA to redeem and cancel debt securities issued under this Act, and

(b) transfer any surplus funds remaining after that redemption to the Central Fund.

(3) The assets of NAMA and of any NAMA group entity at the eventual dissolution of NAMA will be transferred to the Minister or paid into the Exchequer as the Minister directs.

The Parliamentary Counsel considered the term "assets" as lacking sufficient precision to cover the transfer of all of the assets which NAMA will have at that time. Clearly, the provisions are wide enough to cover money because there is a specific reference to funds. The Parliamentary Counsel thought it desirable to insert an additional power to distribute assets in specie.

For example, NAMA might happen to have items of collateral such as some fields in Claremorris, bank shares which carry with them the right to collect a dividend or a racehorse or two stabled around the country.