Stephen Donnelly (Wicklow, Independent)
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260. To ask the Minister for Finance if the objective of the National Asset Management Agency is to break even by the time it concludes its operations and if such an objective requires NAMA to generate a profit to offset its cumulative loss, and whether the NAMA objective of breaking even equates to a net annual return on assets under management of approximately 0.3% per annum for each of the next six years. [34241/14]

Michael Noonan (Limerick City, Fine Gael)
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In early 2013 after the appointment of Special Liquidators to IBRC, the State had a contingent liability of €43 billion, including NAMA's State-guaranteed senior bonds. By the end of 2015, this contingent liability will have fallen to €15 billion.

I am advised that one of NAMA's key objectives, over its projected life, is to redeem, at a minimum, the Senior Bonds issued as consideration for loans in addition to recovery of its carrying costs and recovery of working and development capital expenditure advanced to debtors. I am advised that, by the time it concludes its operations, based on the assumption that current market conditions will be sustained, NAMA expects that it will be in a position to repay its senior and subordinated debt and it is optimistic that it may also generate a surplus for the taxpayer. However, at this point, it is too early to speculate as to the scale of any potential future surplus and, by extension, the ultimate return that will be achieved on its acquired assets.

Stephen Donnelly (Wicklow, Independent)
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261. To ask the Minister for Finance the steps that have been taken by his Department or the National Asset Management Agency regarding target rates of returns on investment sought and obtained by asset management companies (details supplied) and other organisations which invested significant sums in Irish financial and property assets to ensure adequate returns on investment; and if he will make a statement on the matter. [34242/14]

Michael Noonan (Limerick City, Fine Gael)
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NAMA engages actively with a broad array of investors as part of its market activity. These investors are not homogeneous in their objectives and targets; they range from investors with relatively short-term investment horizons and high rate of return targets to investors with long-term horizons and requirements for steady, less volatile, returns. Their asset preferences will also vary by reference to asset classes and regions. Based on prices achieved and the level of competition evident, NAMA is satisfied that the diversity of the asset and loan portfolios which it has offered to the market over the past two years has been well aligned with the broad range of investor requirements.

Stephen Donnelly (Wicklow, Independent)
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262. To ask the Minister for Finance further to the publication of the report by the Comptroller and Auditor General into the operation of National Asset Management Agency on 20 May 2014, which recommended that NAMA adopt a target annual rate of return, and following the appearance by NAMA at the Committee for Public Accounts on 29 May, when the chief executive officer of NAMA rejected the Comptroller and Auditor General's proposal, his plans to direct NAMA to adopt a target annual return on investment; his views on NAMA’s rejection of the Comptroller and Auditor General’s proposal; and if he will make a statement on the matter. [34243/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised that NAMA is currently reviewing its options with regard to the C&AG's recommendation. As was pointed out by the NAMA Chairman at a meeting of the Public Accounts Committee in May, NAMA already has in place a high-quality Management Reporting and Key Performance Indicator (KPI) infrastructure. In that context, NAMA is assessing what incremental benefit, if any, a potential rate of return analysis would yield.

My officials have been in contact with NAMA regarding this issue since the C&AG's proposal and I look forward to hearing the outcome of NAMA's considerations in this regard.

Stephen Donnelly (Wicklow, Independent)
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263. To ask the Minister for Finance further to the statement by the chief executive officer of a company (details supplied); if he is concerned that State-controlled assets are being sold to this and similar organisations at prices which do not reflect long-term values; and if he will make a statement on the matter. [34244/14]

Michael Noonan (Limerick City, Fine Gael)
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It would be completely inappropriate for me to comment on these third party opinions. I am advised that NAMA's strategy in each of its main markets has been to release assets for sale in a phased and orderly manner consistent with the level of demand, the availability of credit and the absorption capacity of each market.  In Ireland, over the period from 2010 to 2012, NAMA adopted a strategy of limiting asset disposals into a market where demand was practically non-existent and where prices were still trending downwards. Releasing too many assets for sale could have damaged a very fragile market.  

In 2013, the Irish market stabilised and commercial yields were at levels which began to attract the attention of serious investors.  The strategy adopted by NAMA in its early years has contributed to the robust recovery that is now evident in the market, a recovery which in turn has enabled NAMA to increase the flow of assets for sale and to sell loan portfolios and properties at very competitive prices. 

NAMA's policy is that the sale of all loans and the sale of properties by debtors and receivers should be openly marketed to ensure that the best price available in the market is achieved in all instances. I fully endorse NAMA's strategy of taking full advantage of current strong market conditions to reduce the contingent liability on taxpayers represented by its senior, State-guaranteed, bonds.