Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

Question 85: To ask the Minister for Finance the type of management structure, governance, reporting arrangements, and the staff and board selection procedures which he envisages for the national asset management agency; and if he will make a statement on the matter. [19042/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The National Asset Management Agency (NAMA) will be established on a statutory basis, under the aegis of the National Treasury Management Agency (NTMA). NAMA will be an independent commercial entity run on an arms-length basis. It will be staffed by professionals whose objectives will be to maximise returns. Like any commercial entity it will want loan agreements honoured in full and will take all necessary steps to extract value from its acquired loan book.

I intend to introduce the necessary legislation before the summer. Matters such as the appointments of the Board, the Chairperson and the Managing Director as well as governance issues and staff recruitment will be addressed in the legislation. Preparatory work by my Department, the Office of the Attorney General, the NTMA and our legal and financial advisors for the establishment and operation of NAMA on a statutory basis is underway. This includes work on the assessment of the staffing needs of the Agency.

I recently announced the appointment of Mr Brendan McDonagh as interim Managing Director of NAMA. By appointing an interim Managing Director, the Government is ensuring the implementation process will be driven forward in the interim period pending legislation. Mr McDonagh will be assisted by a high level advisory committee that I expect to name shortly. I have also directed the NTMA to provide the necessary staffing and other facilities through its existing resourcing arrangements to support the interim operation of NAMA, pending its establishment on a statutory basis.