Andrew.Doyle@oireachtas.ie to bcc: me
show details 2:46 PM (2 hours ago)
Fine Gael has not supported the principle of NAMA as it is proposed, and our spokesman on Finance deputy Richard Bruton has been a consistent critic of the Government’s decision. As it is currently envisaged the Government and in particular the Minister for Finance will have a worrying degree of discretion and potential influence over the way “long term values” are determined. This provision could result in large developers indirectly exert ing pressure and undue influence on NAMA and their valuations.
Such a scenario means that the taxpayer is being left to underwrite with a blank cheque toxic loans on the books of all major banks without proper scrutiny and no guarantee that normal credit, (so vital to keeping our economy afloat) will resume.
We have never supported this approach and have outlined an alternative based on the following:
1. Establishing a National Recovery Bank which would be a state wholesale bank capable of getting credit flowing immediately using the existing banks as agents. It would use a small amount of State equity (€2 Billion) and use the ECB as a source of funding. (The French and the Danes have set up a similar institution with ECB backing)
2. Requiring the banks to use the remaining 13 months of the state guarantee to repair their own balance sheets by selling assets, attracting more deposits and renegotiating their own debts to international bond markets. If they fail in the process, they would then be nationalised and broken up into “good” and “bad banks”, with the toxic developer loans remaining with the private investors that funded them.
I can assure you that we shall put the Government proposals under the most severe scrutiny in order to protect the state from this hazardous venture.
Andrew Doyle T.D.,
Fine Gael, Wicklow/East Carlow Constituency,
Spokesperson for Food & Horticulture,
Leinster House: 01 618 3611
Constituency Office:0404 66622