Arthur Spring (Kerry North-West Limerick, Labour)
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Question 85: To ask the Minister for Finance the reason the National Asset Management Agency does not have to put contracts for services it utilises out to tender like other State agencies; and if he will make a statement on the matter. [41215/11]

Michael Noonan (Limerick City, Fine Gael)
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It is not correct to state that NAMA does not tender for services. NAMA as a contracting authority is subject to EU Directive 2004/18/EC, as implemented in Ireland by the European Communities (Award of Public Authorities' Contracts) Regulations 2006 (the "Regulations"), in respect of the procurement of goods, works and services above certain values (the "EU Thresholds"). The principles underpinning the Regulations are equal treatment, non-discrimination, mutual recognition, proportionality and transparency. Where the Regulations do not apply – either because the value of the procurement is below the EU Thresholds or falls outside of the Regulations – NAMA adopts a competitive process designed to obtain the best value for money which can be achieved in a manner that is both fair and transparent. This is in line with its statutory objective of obtaining the best achievable financial return for the State. NAMA informs me that it supports small and medium sized businesses in Ireland where that is possible without compromising its value for money principles.

In certain cases, NAMA has established panels of service providers who have demonstrated, through a tendering process, that they have the capacity to provide a particular service. NAMA advises me that it may then hold mini-tenders among suitably-qualified members of a panel to obtain the most competitive price for any particular assignment.

Arthur Spring (Kerry North-West Limerick, Labour)
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Question 86: To ask the Minister for Finance the reason the National Asset Management Agency did not contract Irish auction houses to auction art that NAMA repossessed recently; and if he will make a statement on the matter. [41216/11]

Michael Noonan (Limerick City, Fine Gael)
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NAMA informs me that when selecting a sales agent to manage the disposal of art works, the Agency adopted a tendering process. The tender was to dispose of 14 works of art, nine of which were by Irish artists and five which were by either British or American artists. Four auction houses were requested to tender, two of them Irish. Each tendering party had indicated that it would undertake the disposal process at no charge to NAMA. NAMA advises me that it was clear from the responses of the two Irish auction houses to the tender that they would not provide the full service sought, i.e. they had the capacity to sell some but not all of the paintings. In reviewing the tenders, NAMA selected the tenderer which, in its view, was likely to provide the most comprehensive service in the circumstances and thereby to maximise the proceeds from the sale of the art works. NAMA cannot, in law, discriminate on the basis of the nationality of a service provider.