Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

They will not be acting in the interest of the Irish taxpayer. That is why the language is couched in this fashion. If the Senator wants an explanation of where we are coming from, he should just read the Long Title. He will see that a Long Title always outlines the scope of a Bill and its position.

If this were normal legislation, I would be first to the agree with Senator Barrett's analysis, but it is not; it is emergency legislation introduced for the common good. A very simple definition of the common good is "That which is best for the ordinary taxpayer". By God, the ordinary taxpayers have suffered enough. We are putting their interest ahead of any special interests. We are blocking avenues of attack against the interests of the Irish taxpayer by these measures, which people might consider to be draconian.

I do not know whether there will be a deal tomorrow. It was discussed in detail in Frankfurt this evening and it will be discussed again tomorrow. I do not know whether the negotiating parties will sign off on a deal. It would be untrue to say there is not a proposal on the table and that I do not know its details. However, I do not know whether the details will emerge tomorrow; all I can say is that if the deal is agreed, it will be a very good one for the Irish taxpayer. It will be one that I will be recommending to the Houses of the Oireachtas, and the Houses may debate its merits. However, there may not be a deal tomorrow. Despite this, it was vital for me to introduce this legislation tonight in order to protect the assets of IBRC from attack. That is basically the position.

There were a number of questions and I will try to deal with some of them. The special liquidator will appoint independent valuers ? this was Senator Colm Burke's point ? to value the assets of IBRC. The special liquidator is subject to the instructions and directions of the Minister. Therefore, there is a political or democratic hold.

The reason is really that, when the assets are accorded a certain value, we want them to be transferred to NAMA at that value at the least. They can be offered publicly also. Perhaps somebody wants to buy a bundle of debt. That is what is happening with deleveraging anyway. If a third party makes an offer that is above the valuation price, we will sell to that party. We are not in the business of holding but of winding down. I do not believe there will be many offers. What will happen is that there will be valuations that will have to be matched by NAMA in the transfer of assets thereto. They will be placed in a special purpose vehicle and treated the same as other NAMA assets. As their values are realised, the NAMA bonds which will have gone to the European Central Bank will be redeemed.

Many Senators spoke about the nature of the deal. I do not think there is any mystery about what we are looking for. We are looking for a deal that has long maturities at low interest rates. I think Senator Hayden made the point that we all know about mortgages. If one had to pay the mortgage over five years, it would be a far greater burden than if one had to pay it over 30 years. I bought my house I think in 1968 for something over £3,000 and 20 years later, the mortgage was well covered by one month's salary. That is what happens when one can put the date out further because one gets growth in the economy and inflation and one can service it.

The interest rate on promissory notes is very high. First of all, it was pitched at approximately 6.5% but because the Government of the day decided to take a two year interest rate holiday, when we had to deal with the holiday down on top of the interest, the actual interest rate jumped to approximately 8%. If one looks at market rates at the moment, five year money is just over 3% while nine or ten year money in Ireland is not much more than 4%. Obviously, we will be negotiating for a much lower interest rate. If one combines longer maturities with the very big rate differentials, one changes the whole situation and one can get a good deal for Ireland. That is the basis on which the negotiations are proceeding but there is no deal or agreement. We will report to Senators if we get an agreement.

I am sorry I cannot deal with all the other points made. Again, I would like to thank all the Senators. I think I have, more or less, replied to the main points in general but I did not have time to individualise them. I appreciate the comments from Senator Darragh O'Brien, from the Fianna Fáil benches and, indeed, from everybody here. There were very supportive comments from my own colleagues in the Labour Party and Fine Gael. We will keep Senators briefed but I am looking for this legislation to be passed this morning. The President is coming back from Italy and if the Bill goes through, he will sign it at approximately 6 a.m. Then I will sign a whole load of legal documents. The man from KPMG will have a change in legal status. It will be the same person but he will be the special liquidator. I will issue quite a lot of instructions to him on how to proceed and I will place those instructions in the Oireachtas Library so that Senators have full information on the mandate under which he will operate.