Fergus O'Dowd (Louth, Fine Gael)

I thank Senator Clune for bringing this matter to my attention and I will report the issues she raised directly to the Minister for Finance. NAMA has advised the Minister for Finance that the matter of unfinished estates is complex with no readily available solutions. Although NAMA must strive to achieve and set an overall strategy, solutions may need to be tailored individually to the environment and could include sale, rent or completion. In some cases, the only available option may be restoration to agricultural use.

NAMA participated in a working group set up by the Government to examine the issue and the extent of unfinished estates in Ireland. The group's report was published in June by the Minister of State responsible for housing and it identified 2,800 unfinished estates, categorising them by reference to the extent to which they required remediation. The report identified about 225 category 4 estates, which are deemed to require immediate remedial attention. NAMA debtors have loans with an exposure to 28 of those category 4 estates and the agency has committed to undertaking an analysis of the 28 estates with a view to developing site resolution plans which will address the most pressing issues that require remediation.

The board of NAMA has advised that it wants to realise 25% of its portfolio by the end of 2013 and this has been factored into the debtor business plan process. The rate of progress in this sales process will be affected by the demand in the market and the availability of purchasers. It will be a matter for the NAMA board to manage and deal with acquired properties in a commercial fashion case by case to maximise value and generate the best achievable financial return for the State. The chairman of NAMA has explained that the best commercial return will not be achieved by engaging in a fire sale of assets. This is consistent with the approach recommended by the National Competitiveness Council that a programme of disposals should be orderly.

Under the NAMA legislation, the agency has power to borrow up to €5 billion in working capital for the purpose of advancing new money to complete developments or projects where it is commercially advantageous to do so. All approvals of working and development capital are subject to a credit decision-making process which has been approved by the board of NAMA. This is a point the Senator raised. To the end of April 2011, NAMA had approved over €800 million in new money advances, for example, NAMA advanced new money for the completion and sale of the high profile Montevetro building to Google for almost €100 million.

NAMA is aware of the need to enhance the availability of information with regard to properties. In that regard, under an initiative currently in preparation, NAMA will include on its website a database of properties which are under the control of receivers appointed to enforce against NAMA debtors, appointed either directly by NAMA or by participating institutions working on its behalf. This will provide a single source of information on NAMA assets which are for sale and it will be updated on a very regular basis. NAMA is currently undertaking a risk assessment of the project and is conducting a rigorous process of data verification to ensure that the information is factually correct. The agency expects this risk assessment and data verification process to be completed shortly, which would enable it to launch the site within the next few weeks.