Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 149: To ask the Minister for Finance the process whereby the National Asset Management Agency agrees, in respect of certain debtors, to directly pay the salary, or provide the necessary working capital to facilitate the payment of the salary to the debtor; and if such approval may also extend to the salaries of employees with the debtor's organisation. [3703/12]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 150: To ask the Minister for Finance the number of salaries being paid, with the support of the National Asset Management Agency, to employees of debtor companies, as distinct from the principal debtor themselves, which exceed €100,000 and the number that exceed €125,000; and if he will make a statement on the matter. [3704/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 149 and 150 together.

NAMA advises me that it does not pay salaries to debtors or their employees, as NAMA is not their employer. NAMA informs me that it is the agency's practice to allow debtor companies to retain overhead costs from rental or other income that are produced by their assets, where this is necessary for that company's operations. In a minority of cases where assets are under development and not yet producing income, funds are advanced to debtors to cover essential overheads pending the completion of the project concerned.

NAMA assures me that the level of overheads is only agreed following a thorough and rigorous evaluation of the debtor's business plan by NAMA and that each cost element is reduced to the minimum. The level of overheads sanctioned by NAMA typically represent very significant reductions on the levels which prevailed in the past. Indeed, I am informed that NAMA on occasions has looked for and obtained a reduction of 50% to 75% in overhead costs.

As part of these agreements on overheads, NAMA sets a cap on the salary level of the principal debtor but it does not specify salary levels for any other employees. As a consequence, NAMA has no information as to how many employees in debtor companies are being paid in excess of €100,000 and in excess of €125,000.