Terence Flanagan (Dublin North East, Renua Ireland)
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147. To ask the Minister for Finance his plans to make the National Asset Management Agency more accountable, and for eventual winding down; and if he will make a statement on the matter. [32831/15]

Michael Noonan (Limerick City, Fine Gael)
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As I have previously outlined to the Deputy, in Dail Question No. 133 on 16th June 2015, in mid 2014 my officials produced a special report on NAMA's activities in compliance with Section 227 of the National Asset Management Agency Act 2009.  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.  

In the context of that review and as reiterated in his opening address to the Public Accounts Committee on 18 December 2014, the NAMA Chief Executive stated that NAMA aims to redeem a cumulative 80% (€24 billion) of its Senior Bonds by the end of 2016 and that it hopes to have redeemed all of its Senior Bonds by the end of 2018 - two years ahead of NAMA's previous target of 2020.  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. To date, NAMA has redeemed €19.35bn, that is 64% of the €30.2 billion Senior Bonds issued. 

The Deputy will also be aware that, entirely consistent with its objectives, the NAMA Board has undertaken to protect its ability to exercise a sufficient level of control to ensure the timely and coherent delivery of key Grade A office space within the Dublin Docklands SDZ and Dublin's Central Business District and more generally to maximise the delivery of residential housing units in areas of most need.

As set out in the NAMA Act, one of the specific purposes of NAMA is to deal expeditiously with the assets acquired by it. I fully endorse the NAMA Board's strategy to take advantage, to the greatest extent possible, of favourable Irish market conditions by increasing the flow of assets to the market.

Given that these commitments were made by 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.  I will be obliged to conduct another Section 227 review as of year end 2017 and will again take the opportunity to assess whether NAMA continues to be necessary at that point.

As regards accountability, it is again 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.

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. 

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's accounts are comprehensively audited by the Comptroller and Auditor General. For large parts of the year - typically between September and MayC&AG staff are based in the Agency, performing their audit function, 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.  I note that as part of its upcoming third Section 226 triennial review of NAMA, the C&AG has confirmed that it will perform a value for money review on various NAMA sales transactions.

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 - and most recently attended the PAC on 9th July 2015.  I understand NAMA are scheduled to appear before the PAC again on the morning of October 1st. Transcripts of these appearances are available from the Oireachtas website.  Furthermore, there have been numerous Parliamentary Questions addressed to me on NAMA-related issues and the associated replies are on the Oireachtas record. 

NAMA also recently became subject to the Freedom of Information (FOI) Act, 2014 on 14th April 2015.

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.