Coalition changes tune as Daly rehired

When the Government came to power in March 2011, Frank Daly must have wondered if he would be allowed see out his five-year term as chairman of the National Asset Management Agency, never mind being offered an extension.

In opposition, Fine Gael and the Labour Party had been fierce critics of the establishment of Nama, voting at various times against the legislation to establish the agency. Fine Gael had advocated the establishment of a National Recovery Bank. In October 2009, Fine Gael's then spokesman on finance, Richard Bruton, poured scorn on Fianna Fáil's assertion that Nama could make a profit for the State.

“The tooth fairy, the Easter bunny and the Loch Ness monster are all more credible propositions than the financial projections this evening for Nama,” Bruton said.

How things have changed in the intervening years. Scepticism has turned into support as Fine Gael and Labour moved from opposition to Government.

And yesterday Noonan announced that Daly had been appointed for another five- year term, which will take him out to the end of 2019.

Of course, Nama might have been wound up by then, such is the pace of activity in asset sales now that the Irish economy has turned a corner and international investors are lining up to do business here.

Daly has had to endure many slings and arrows in his time at the helm of Nama, from politicians, many of the agency’s debtors and other lobby groups. Nama has been criticised for not being willing to sell assets and also for being too willing to sell them too cheaply. Accusations of cronyism and corruption have also been levelled at regular intervals.

Daly’s appointment might also be an indicator in relation to another high- profile State appointment.

John Corrigan steps down in December as chief executive of the National Treasury Management Agency (NTMA). A process to identify a successor has been under way for some time, with Nama chief executive Brendan McDonagh understood to be in the mix.

McDonagh has done an excellent job with Nama and is a credible candidate for the top role at the NTMA. But the agency’s gain would be Nama’s loss at a crucial juncture for the agency. In this context, Daly’s reappointment ensures some continuity in the top ranks of Nama.

Is Noonan’s reappointment of Daly a signal that McDonagh might be moving across the corridor at Treasury Buildings?