Pearse Doherty (Donegal South West, Sinn Fein)
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40. To ask the Minister for Finance if tenants in a National Asset Management Agency secured commercial property who have vacated the shop but still owe arrears will have these arrears sold on if the commercial property is sold, or if the debt will continue to be owed to the current owner. [12245/15]

Pearse Doherty (Donegal South West, Sinn Fein)
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41. To ask the Minister for Finance the number of commercial tenants who have had debts or arrears written off in National Asset Management Agency secured commercial properties; and the value of these arrears. [12246/15]

Pearse Doherty (Donegal South West, Sinn Fein)
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42. To ask the Minister for Finance with regard to the National Asset Management Agency, the level of tolerance permitted to be given to commercial tenants in cases of arrears; and whether the practice of parking arrears is acceptable to the agency. [12247/15]

Pearse Doherty (Donegal South West, Sinn Fein)
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43. To ask the Minister for Finance the point at which commercial tenants of the National Asset Management Agency who secured commercial properties should have been notified of the possibility of applying for the rent abatement scheme; and the independent appeal or review mechanism that exists for commercial tenants who believe their landlord did not offer them the opportunity to apply for such a scheme or refused their application. [12248/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 40 to 43, inclusive, together.

NAMA acquired and manages a portfolio of loans, not property. The properties securing NAMA's loans continue to be managed by their existing owners or, in the case of enforcement, on their behalf by the appointed receivers/administrators. These owners and receivers/administrators are responsible for the efficient management of properties, which includes the collection of rents and service charges in accordance with specific commercial lease terms entered into freely by tenants and landlords. Where a lease has been signed, legally binding contractual obligations clearly come into existence and govern engagement between landlords and tenants, including in relation to issues such as the treatment of rent arrears.  NAMA clearly is not party to these leases and cannot seek the setting aside or breach of legally binding contracts between landlords and tenants. Accordingly, the treatment of rent arrears is a matter between each landlord and tenant and is determined by reference to the related contractual terms and a range of other property management considerations. In cases where a property has been sold, any arrears remain a matter between the tenant and the original landlord.  In the case of a loan sale or the sale of a company, the property in question may continue to be managed by the original owner or receiver/administrator and in such circumstances existing lease arrangements would generally not be affected.

NAMA's concern as a lender/security holder is that properties securing its loans are professionally managed at the most economical cost and that rental and occupancy is optimised towards the servicing of interest and capital repayments on the related loans.

As advised to the Deputy in my response to Parliamentary Question 77 (22/01/15), in December 2011, NAMA introduced a rent abatement initiative to assist small and medium businesses in the retail sector that were experiencing difficulties meeting their contractual rent obligations as a result of the economic downturn.  Under that initiative, NAMA has received 370 applications for rent abatements through its debtors and receivers.  Of these, 341 have been approved and a further 17 are currently being assessed.  The aggregate annual value of rent abatements approved to date is in excess of €23 million and NAMA has also approved long-term rent reliefs worth in excess of €40 million.

The Guidance Note underpinning NAMA's abatement initiative is available on NAMA's website, . As advised to the Deputy in my response to Parliamentary Question 202 (27/01/15), if any tenant considers that his or her landlord is not engaging with them in accordance with the Guidance Note they can contact NAMA directly at and ask that NAMA look into the matter on their behalf.

In its role as lender/security holder, NAMA responds promptly and pragmatically to requests from its borrowers regarding lease arrangements including rent abatements on their properties where there is a justifiable case.  This is borne out by the approval of €23 million in annual rent abatements and €40 million in long-term rent reliefs. In this regard, the Deputy will note NAMA can only consider rent abatement applications presented by the landlord that accompanied by the relevant financial information as set out in the Guidance Note. Agreement to rent abatements outside of the terms of the Guidance Note would prove contrary to the requirement on the Agency to protect the position of Irish taxpayers by extracting the best possible returns on its acquired loans and underlying property assets.