Michael Noonan (Limerick City, Fine Gael)

The relationship framework between the IBRC and the Government ensures that the bank remains a separate economic unit with independent powers of decision and that its board and management retain responsibility and authority for determining the bank's strategy and commercial policies and for conducting its day-to-day operations. This relationship framework was put in place as a condition of the Government's programme of assistance. The proposal would be contrary to the bank's obligation to its clients and contrary to the IBRC's ability to operate commercially and in the public interest.

The existing commercial rules, which apply to both NAMA and IBRC provide for considerable transparency, consistent with bank confidentiality and maximising the commercial return from the assets. The Government is not opposed to maximising transparency where this is consistent with the commercial mandates of these bodies. In the case of NAMA, the existing legislation provides for extensive public reporting on its activities and for review of these reports by an Oireachtas committee. NAMA is already subject to a high level of public accountability compared to other commercial semi-State bodies, reflecting the fact that it is managing a significant financial exposure on behalf of the Irish taxpayer. I met with the NAMA board very soon after taking office and explained that I expected the agency to comply with the high standards of transparency provided for in the NAMA Act to the maximum extent possible. The board of the agency and I liaise closely on this issue.

The NAMA Act 2009 makes the agency accountable in a number of ways, including laying its annual report and audited financial statements before the Houses of the Oireachtas. The agency is also required to report to me on a quarterly basis and those reports are, in accordance with the Act, also laid before the Houses of the Oireachtas. The chairman and chief executive are also accountable to the Committee of Public Accounts and other Oireachtas committees. They give evidence to committees whenever required to do so. NAMA's accounts are comprehensively audited by the Comptroller and Auditor General, and it is also open to the Comptroller and Auditor General to conduct other ad hoc examinations.

Under the Anglo Irish Corporation Act 2009, a relationship framework agreement was specified by the Minister in relation to the bank and this agreement defines my relationship with the bank. The agreement, approved by our external partners, assigns responsibility and authority for all operations and business of the bank in accordance with the board's legal and fiduciary duties. The board also has responsibility and authority for ensuring compliance with the regulatory and legal obligations of the bank. The shareholding management unit in my Department oversees the operation of the agreement. Furthermore, as a licensed credit institution, the bank is regulated by the Central Bank of Ireland and also produces and publishes detailed audited accounts on an annual basis. Interim accounts are also published six months into the bank's financial year. In addition to that, the bank operates in accordance with the terms of a restructuring plan approved by the European Commission. The Commission has appointed a monitoring trustee to oversee the bank's compliance with the terms of the restructuring plan, which reports to the Commission on the bank's compliance on a regular basis. The level of oversight and published information is extensive, appropriate and in keeping with the commercial mandate of the bank. This is wholly consistent with other regulated financial institutions and the commercial and contractual sensitivity associated with the business of the bank. Nonetheless, the matter of transparency is kept under constant review.

Since 2011, NAMA has included on its website a database of properties which are under the control of receivers appointed to enforce against its debtors. This provides a single source of information on NAMA assets which are for sale and is updated on a very regular basis. In each instance, information to facilitate potential purchasers, such as contact details for the seller, is provided. The NAMA board issued policy guidelines in mid-2011 which require that all sales must be appropriately marketed and that an independent valuation of all assets is carried out.

The Government made a commitment in the programme for Government to improve the quality of information available on the Irish housing market by requiring that the selling price of all dwellings be recorded in a publicly available national housing price database, including prices achieved in sales by both IBRC and NAMA debtors and receivers. The register will comprise a database searchable by a number of criteria, including address or value of property by county, city or town. The information, which will be contained in the database, will be the full address of the property, its sale price and date of sale. The register will cover all sales from 1 January 2010. While September 2012 is the outer limit for publication of the register, it is intended to bring it on stream at the earliest possible date. A similar initiative is being undertaken with respect to commercial letting agreements and rent reviews. Commercial property is, more often than not, arranged by lease and therefore emphasis has been placed on leases rather than sales in those cases.

I would like to remind Senators of the potential positive contribution that NAMA can make to the recovery of our economy. The Government has been working with NAMA on plans for getting people back to work. This has recently culminated in NAMA's plan to invest at least €2 billion in Ireland over the coming four years. This investment by NAMA will be an important contribution to the Government's plans for getting people back to work. Some €2 billion of investment will generate up to 25,000 direct and indirect construction jobs and up to 10,000 additional jobs in the wider economy. NAMA has advised that this investment will include the completion of properties and, importantly, it will allow the development of land in anticipation of future supply shortages. Already, there have been discussions between NAMA and IDA Ireland about the development of additional office space to facilitate future foreign direct investment decisions as based on the number of announcements there is a likelihood of shortages emerging in the medium term.

I reiterate my point that the proposals in this Private Members' Bill have the potential to undermine the commercial mandate of NAMA and IBRC and place these institutions at a competitive disadvantage, thus allowing other banks and companies who are the direct competitors of NAMA and IBRC to make higher returns than is currently possible, at the expense of the Irish taxpayer. Clearly, this would not be a desirable outcome. The proposals also leave both NAMA and IBRC open to potential constitutional and other legal challenges. The existing transparency regimes at these institutions provide as much transparency as is consistent with bank confidentiality and ensuring a commercial return from their assets. The Government is committed to maximum transparency and accountability of these bodies.

Given all the above, I feel the operations of NAMA and IBRC are currently sufficiently transparent and this Private Members' Bill is opposed.