Mick Wallace (Wexford, Independent)
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69. To ask the Minister for Finance if he will reassess the role given to NAMA to address the current housing crisis; if consideration will be given to suspending the NAMA plan to build 20,000 houses by 2020; and if he will make a statement on the matter. [10012/17]

Michael Noonan (Limerick City, Fine Gael)
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NAMA was established as an independent commercial body to operate under the direction of its Board of Directors, in accordance with the NAMA Act. Under Section 10 of the NAMA Act, NAMA is mandated to act in a commercial manner to obtain the best financial return for the State.  As such, NAMA's dealings with its debtors, as well as the management, funding and sale of assets are all commercial decisions taken with consideration of NAMA's commercial obligations.

The Deputy will be aware that I, as Minister for Finance, have no role in respect of NAMA's implementation of its strategy through such commercial decisions.  These are matters for the NAMA Board in accordance with its statutory independent commercial mandate.

In October 2015, the NAMA Board set an objective to facilitate the delivery of 20,000 residential units by YE2020, primarily in the Greater Dublin area, on a commercial and value maximising basis.  The Deputy's question incorrectly suggests that NAMA was given this role.  NAMA was not given this role.  This is a commercial initiative that the NAMA Board has undertaken in an effort to maximise the recovery on NAMA's loans.  So when the Deputy asks me to reassess the role given to NAMA, I have no role in reassessing their residential funding programme.

I also would like to clarify the terminology used in the Deputy's question.  NAMA is not planning to build houses.  NAMA's intention is to provide funding on commercial terms to its debtors and receivers to facilitate their delivery of residential units on sites securing NAMA's loans.  NAMA only intends to extend funding to NAMA debtors and receivers on commercial arm's-length terms where there is an expectation that such funding will enhance NAMA's recovery on the loan. NAMA requires that the projected return resulting from the provision of additional funding must be the value maximising strategy for the asset and this is fully in accordance with Section 10 of the NAMA Act.  NAMA's actions also must be in line with market norms so as not to create any distortion in the market. This means NAMA will facilitate the development of only those sites that are commercially viable and where site development will deliver a better recovery than the sale of the undeveloped site and all funding will be provided on market terms.  The development locations reflect key demand and commercial viability.  In line with its commercial mandate, NAMA will continuously review the programme to ensure funding is provided only where this is the value maximising option in line with its commercial mandate.

I am supportive of the NAMA Board's decision to make this very substantial contribution, on a commercial basis, to the increased supply of new homes.  In fact, my Department's Section 227 review of NAMA published in July 2014 contained a recommendation that NAMA preserve the capacity to consider such a strategy as the commercial logic of such an initiative became clear.

Through this initiative, NAMA will continue to maximise its return to the Irish State and taxpayer, currently projected to be in the region of €2.3 bn when it completes its work, whilst also contributing to increased housing supply.