Written answers

Thursday, 20 September 2012

Department of Finance

NAMA Debtor Agreements

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance the number of cases in which the National Assets Management Agency allows its debtors to retain part of the income from their income-producing assets to pay overheads including salaries to the debtors themselves; the number of cases in which debtors are receiving salaries; if he will provide a breakdown of the salaries received by these debtors; the number that are less than €50,000; the number that are between €50,001 and €100,000; the number between €100,001 and €150,000; the number between €150,001 and €200,000; and the number over €200,0001; the total cost to NAMA of paying these salaries in 2010, 2011 and to date in 2012. [39693/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by NAMA that it seeks to capture income generated by assets under the control of its debtors. Separately, it permits appropriate overheads where necessary for the preservation and enhancement of the value of property securing its loans. Overhead costs typically fall into two categories:

(1) Cost associated with the repair and maintenance of properties, insurance premia, local authority rates and professional fees. These are essential costs which would be incurred regardless of whether the assets are managed by debtors or receivers.


(2) Overhead costs also include allowances for the remuneration of debtors and the staff employed by the debtor to manage the assets. I am informed by NAMA that the alternative in these cases is to appoint receivers and that receiver costs tend to be substantially higher than debtor and associated staff salary costs.


As the Deputy may be aware, the NAMA Chief Executive advised the Dáil Committee of Public Accounts (PAC) in July that NAMA has permitted 168 principals to retain salaries from rental and other income generated by cash producing assets. NAMA's analysis shows that 7% or 29 principals retain income of up to €49,000; a further 43% or 73 principals retain income of between €50,000 and €99,000; 23% or 38 principals retain income of between €100,000 and €149,000; 15% or 25 principals retain income of between €150,000 and €190,000; and 2% or 3 principals retain income of €200,000. No principals have an agreement with NAMA to retain salaries of over €200,000.


NAMA advises that, based on this breakdown, the total principal salaries retained from income producing assets in 2012 will be of the order of €15.5 million. As advised to the Deputy in March (13975/12, 13th March 2012), NAMA had previously collated data on approved overhead costs where agreement had been reach by 31 December 2010 relating to 41 debtors. Principal salary allowances within the approved overheads of these 41 debtors, who collectively managed 25% of the total NAMA portfolio, were €4.1 million.

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