Terence Flanagan (Dublin North East, Fine Gael)
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Question 102: To ask the Minister for Finance his plans to reduce the salaries being paid by the National Asset Management Agency to property developers in view of the economic difficulties being experienced by most households; and if he will make a statement on the matter. [1082/12]

Michael Noonan (Limerick City, Fine Gael)
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Both the Chairman of NAMA and I have separately explained on several occasions over the past few months that NAMA decides whether or not to work with any particular debtor on the basis of what will generate the maximum return for the taxpayer. NAMA only works with developers where it considers that this will provide the best return to the taxpayer. NAMA will continue to make its decisions on a case-by-case basis in line with its commercial mandate. I understand from NAMA that, as part of its business plan agreements with debtors, it normally looks for and obtains a reduction of 50% to 75% in overhead costs and that any remuneration paid to debtors is payable from this much-reduced budget. The fact that NAMA has had to take enforcement action in 99 cases so far shows that many developers are unwilling to work with NAMA because they consider the agency's terms and conditions to be too onerous.

NAMA has been established as a fully commercial agency to operate under the direction of a Board of Directors. As long as NAMA operates in accordance with statute, it would be inappropriate for me or my officials to attempt to interfere with the commercial decisions taken by the Board. On the basis of the information received from NAMA, I am satisfied that the Agency is acting appropriately in this matter and seeking to protect taxpayer's interests.