Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context

Question 111: To ask the Minister for Arts, Sport and Tourism if he has had contact with the Department of Finance regarding the National Asset Management Agency legislation and the impact it may have on the hotel industry by virtue of the fact that a number of hotels are expected to be transferred to NAMA; and if he will make a statement on the matter. [37374/09]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

The Department of Arts Sport and Tourism maintains contact with all other Government Departments regarding matters that affect the tourism industry. In keeping with this practice the Department has been in contact with the Department of Finance and the National Treasury Management Agency regarding the operation of the National Asset Management Agency (NAMA).

At this stage it is too early to say what impact the operation of NAMA will have on the hotel sector. However, it is expected that a number of loans that are secured on hotel properties will be taken over by NAMA. It is also expected that the Board of NAMA will carry out its own assessment of the hotels sector to inform its policy on how to manage those loans. It will be a matter for NAMA to determine how those loans should be managed.

It is clear that the manner in which NAMA deals with non-performing loans and the hotel stock secured on those loans will impact on the future operation of the hotels sector. In this regard, my officials, will remain in contact with the Department of Finance and NAMA to advise on the likely implications of any actions NAMA may take and to promote positive solutions for the future viability of the overall tourism industry in Ireland.