Pearse Doherty (Donegal, Sinn Fein)
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122. To ask the Minister for Finance the effect on the fiscal space of a windfall gain following the wind-up of the National Asset Management Agency; and if he will make a statement on the matter. [11800/16]

Pearse Doherty (Donegal, Sinn Fein)
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123. To ask the Minister for Finance the effect on the fiscal space if the National Asset Management Agency transfers assets to the State at the end of its term; and if he will make a statement on the matter. [11801/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 122 and 123 together.

It will be a decision for the Government as to how any surplus returned by NAMA when it has completed its work will be utilised.

As per section 60(2) of the NAMA Act 2009, NAMA may use surplus funds to redeem and cancel its debt.  Surplus funds remaining after this redemption may only be returned to the Central Fund once NAMA's debt has been redeemed. In addition, as per Section 60(3) of the NAMA, assets remaining at the eventual dissolution of NAMA will be transferred to the Minister or paid into the Exchequer.

NAMA is currently progressing its objectives, which includes funding the delivery of 20,000 residential housing units, on a commercial and profit maximising basis, by end 2020, on sites securing NAMA's loans.

Any surplus funds paid into the Exchequer following the wind-up of NAMA would most likely be recorded in the General Government accounts as a withdrawal of equity under Eurostat rules.  This means that such proceeds would not count as General Government Revenue and, therefore, have no beneficial impact on Ireland's General Government Balance (GGB). Furthermore, it will not have any effect on the calculation of available fiscal space.

If NAMA hands over any remaining assets to the Minister for Finance, this would most likely be recorded as a withdrawal of equity in kind and similarly would have no impact on GGB or available fiscal space.  The use of such assets will be a matter for the Minister and the Government when and if there is such a transfer.