John McGuinness (Carlow-Kilkenny, Fianna Fail)
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58. To ask the Minister for Finance if a situation has arisen with the National Asset Management Agency whereby a borrower claimed that it could achieve a better outcome for the taxpayer than could be expected from following NAMA’s proposed course of action; NAMA’s policy when facing a situation such as this, and in the event of such a situation occurring if NAMA’s rationale for its decisions is available for independent analysis. [46569/14]

Michael Noonan (Limerick City, Fine Gael)
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In the context of the management of close to 800 debtor connections, numerous situations arise where debtors disagree with NAMA as to what may be the best outcome for taxpayers.  This is to be expected.  Whilst in many cases debtors may believe from their perspective that a certain course of action will achieve a better outcome, NAMA has been charged by the legislature with determining in each instance what course of action will deliver the best outcome for taxpayers. This requires it to take an objective view of both the potential rewards and potential risks attaching to any proposal and be guided by its overall objective which is to achieve the best financial return for taxpayers. NAMA must adopt a rigorous and prudent but commercial approach in relation to the expenditure of public funds and it seeks to ensure that taxpayers are not exposed to unwarranted risks. In making its decisions, NAMA has significant internal financial and project appraisal expertise and it has access, where required, to external advice and validation.

All NAMA decisions are clearly communicated to debtors.  All NAMA decisions are documented and signed off by the appropriate NAMA Board-approved delegated authority and are subject to independent review by internal and external auditors.  In addition, the NAMA Chairman and CEO have publicly stated on a number of occasions that any debtor with a concern or complaint in relation to their dealings with NAMA should directly contact them.  All such queries and complaints are fully investigated by the Chairman and CEO.  Ultimately, it is also the case that all debtors have recourse to the courts should they feel that such recourse is required.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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59. To ask the Minister for Finance if it would be appropriate for the National Asset Management Agency to make repeated demands for additional security over other assets, both unencumbered and encumbered, thereby prejudicing other creditors including the Revenue Commissioners, and if it is appropriate for NAMA to seek priority over other such creditors. [46570/14]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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64. To ask the Minister for Finance in the event of a borrower seeking to provide priority to another creditor over the National Asset Management Agency if the agency will consider such a borrower to be unco-operative. [46575/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 59 and 64 together.

NAMA's approach to unencumbered assets is determined on a case-by-case basis by reference to its assessment of the best achievable commercial outcome in any given situation.  It is not possible therefore to set out a general position in this matter.  It is clearly the case, however, that, in line with its statutory obligation to achieve the best possible return for taxpayers over its lifetime, NAMA is required to seek as much additional security as possible in circumstances where the balances on a debtor's loans are more than the value of supporting collateral.  This is necessary to ensure maximum loan repayment.  In so doing, NAMA operates fully in accordance with the mandate given to it by the legislature.

In seeking to maximise its own position on behalf of taxpayers, NAMA is aware that other creditors, including international banks, will seek to do likewise and it is important that the taxpayers' position be protected to the greatest extent legally possible.  In certain circumstances, NAMA is open to discussions regarding sharing arrangements with other creditors for unencumbered assets but, as outlined, this can only be considered on a case-by-case basis by reference to the unique facts of each case, including NAMA's position in the hierarchy of creditors. NAMA's view of a debtor's willingness to co-operate is based on a range of criteria, of which this is only one.

As the Deputy is aware, the Revenue Commissioners have significant rights regarding the collection of taxes and all creditors, NAMA included, must have due cognisance of these rights. 

In referring to 'encumbered assets', I assume that the Deputy is referring to assets that are already pledged to NAMA.  As with any secured lender, NAMA is clearly obliged to seek the realisation of assets that secure its loans. 

NAMA has to date obtained charges over additional security with an aggregate value in excess of €800m, which represents a significant additional protection for Irish taxpayers.