Terence Flanagan (Dublin North East, Independent)
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133. To ask the Minister for Finance his plans for making the National Asset Management Agency more accountable, and for eventually winding it down; and if he will make a statement on the matter. [24522/15]

Michael Noonan (Limerick City, Fine Gael)
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As previously outlined in my response to Dail Question 26 on 7th May 2015, I am advised that the NAMA Chief Executive, in his opening address to the Public Accounts Committee on 18 December 2014, stated that NAMA is aiming to redeem a cumulative 80% (€24 billion) of its Senior Bonds by the end of 2016 and that it hopes that it will have redeemed all of its Senior Bonds by the end of 2018. He stated that these targets are predicated on conditions in the Irish market remaining favourable and on NAMA being in a position to retain sufficient specialist staff to enable it to generate the optimal financial return from the realisation of its residual loan portfolio. NAMA has, to date, redeemed €19.35bn, that is 64% of the €30.2bn Senior Bonds issued. The current breakdown of the €10.84bn outstanding NAMA Senior Bonds by holding institution is available on NAMA's website, .

The Deputy may be aware that the NAMA Board has also undertaken to facilitate the timely and coherent delivery of key Grade A office space, retail and residential space within the Dublin Docklands strategic development zone and Dublin's Central Business District and to maximise the delivery of residential housing units in areas of most need. Given that these commitments were agreed with NAMA only in July 2014, it is too early to speculate as what date in the future NAMA will have made sufficient progress on its objectives as to warrant consideration of its dissolution.

As regards accountability, it is important to point out that NAMA is already subject to a high level of public accountability compared to other commercial bodies, including commercial bodies in the State sector.

In carrying out its functions the Board of NAMA must comply with its obligations under the NAMA Act. The NAMA Board comprises seven members, five of whom, including the Chairman, were Ministerial appointments. The Chief Executive of NAMA and the Chief Executive of the National Treasury Management Agency (NTMA) are ex-officio members of the Board. The terms of office of Board members range between three and five years and no appointed member is eligible to serve more than two consecutive terms.

The NAMA Act (Section 18) sets out the principal responsibilities of the Board, which are

- to ensure that NAMA discharges its functions efficiently and effectively;

- to set strategic objectives and targets for NAMA;

- to ensure that the appropriate systems and procedures are in place to achieve the strategic targets and objectives;

- to take all reasonable steps available to it to achieve those targets and objectives.

The Board has also established four statutory committees, under Section 32 of the Act, to assist in the discharge of its responsibilities and obligations: Audit Committee, Credit Committee , Finance and Operating Committee, Risk Management Committee.

NAMA's Annual Report and Financial Statements are laid before the Houses of the Oireachtas.  The level of disclosure in NAMA's Annual Report and Financial Statements is comprehensive and professional.  I would encourage anyone interested in the workings and performance of NAMA who have not yet read these reports to take the time to do so as they are a rich source of information regarding NAMA's performance.

In addition, under Section 53 of the NAMA Act, NAMA is also required to submit to me an Annual Statement by 30 September each year setting out its proposed objectives for the following financial year, the scope of activities to be undertaken, its strategies and policies and its proposed use of resources. I am obliged to lay these statements before the Oireachtas and I endeavour to do so on a timely basis. 

NAMA is also required to report to me on a quarterly basis giving detailed information about its loans, its financing arrangements and its income and expenditure. These reports, which also include other information specified under Section 55 of the NAMA Act, track NAMA's progress on a quarterly basis.  I am obliged to lay these reports before the Oireachtas and I endeavour to do so on a timely basis. 

The Chairman and Chief Executive are also accountable to the Committee of Public Accounts (PAC) and other Oireachtas committees and to give evidence to those committees whenever required to do so.  Furthermore, there have been numerous Parliamentary Questions addressed to me on NAMA-related issues and the associated replies are on the Oireachtas record. 

NAMA's accounts are comprehensively audited by the Comptroller and Auditor General, who has a permanent team of officers based in the Agency with unrestricted access to all its records and files.  If there is concern about a specific aspect of NAMA's work, it is within the power of the Comptroller and Auditor General to scrutinise any aspect of it.  The Comptroller and Auditor General has already produced three special reports on NAMA's activities and they have been broadly positive in their assessment of how NAMA is managing its complex business. 

In mid 2014, my officials also produced a special report on NAMA's activities in compliance with Section 227 of the Act.  This report assessed the extent to which NAMA has made progress toward achieving its overall objectives and whether the continuation of NAMA is necessary having regard to the purposes of the Act.  This report concluded that NAMA has made significant progress in achieving its overall objectives; and based on its performance and financial projections in light of the strength of current investor interest in Ireland, NAMA is well positioned to achieve its overall objectives and so continues to be necessary.

NAMA also recently became subject to the Freedom of Information (FOI) Act, 2014 on 14th April 2015. As you will be aware, the FOI Act provides that every person has the following rights:

- right to access records held by FOI bodies listed in the Act;

- right to have personal information amended or deleted where such information is incomplete, incorrect or misleading; and

- right for a person to be given reasons for a decision taken by FOI bodies that affects that person.

Finally, as the Deputy may be aware, NAMA operates a dedicated email address, , to enable TDs and Senators to raise any matter directly with the Agency. I would encourage the Deputy, and indeed any member of the Oireachtas with a NAMA-related query, to avail of the email service. I am assured by NAMA that all matters which are brought to its attention via this forum are fully, and promptly, responded to.

Against this backdrop, I do not accept that there is a need to make NAMA more accountable than is already the case.