THE BILL to establish the National Asset Management Agency (Nama) is expected to pass all stages in the Dáil and Seanad by mid-November, Department of Finance sources said yesterday.
The recent fall in Irish bank shares was attributed to the Bill’s slow progress through the Oireachtas. Committee stage was completed early yesterday morning, after a marathon debate.
The report stage of the Bill is to be taken in the Dáil next Wednesday and Thursday. It is due to to be debated in the Seanad on November 9th, 10th and 11th, where further amendments are likely to be tabled. The final stage in the Dáil is scheduled for the following day, November 12th.
Once it has passed all stages, the Bill will be sent to Áras an Uachtaráin for the President’s signature. However, there is speculation she may decide to refer the legislation to the Supreme Court to test its constitutionality.
Meanwhile, Minister for Finance Brian Lenihan signalled his intention to set up an Oireachtas committee to monitor Nama’s day-to-day workings. He made this concession to Opposition demands during the 16-hour committee stage debate, which continued through the night.
In other amendments, a private company known as a “master special purpose vehicle” will be set up to supervise Nama. Guidelines are being set out to promote credit growth in banks that are beneficiaries of Nama and there will be a windfall tax of 80 per cent on profits from rezoned lands.
In the event that Nama makes a loss, a surcharge will be imposed on the taxes on bank profits. This amendment is to be introduced at report stage next week.
Mr Lenihan signalled that he could not go ahead with the type of levy proposed by the Green Party, because it was “necessary to ensure the balance sheets of the banks are not infected with a contingency that will devalue them”.
The Minister said: “While I do not envisage Nama will make a loss, this amendment will be drafted to strike a balance between protecting the public purse and not putting an unknown risk on to the balance sheets of the banks, which would defeat the purpose of the establishment of Nama.” There will also be provisions for the Minister to take a shareholding in Irish Nationwide and the EBS.
Mr Lenihan rejected Opposition claims that a clause in the legislation amounted to “gagging” senior officials from expressing their opinions on Government policy.
He said it offered them “protection” against Opposition TDs. Fine Gael and Labour deputies claimed the amendment was a response to comments by the National Treasury Management Agency chief executive Dr Michael Somers when he told a Dáil committee he knew little about plans for Nama.
Mr Lenihan insisted the measure was to protect the chairman and chief executive of Nama from “attempts to mobilise them as agents for Opposition parties in the destruction of Government policy” at the Committee on Public Accounts.
NAMA AMENDMENTS
Minister for Finance Brian Lenihan indicated he would introduce further amendments at the report stage next week.
They Include:
- The establishment of a special Oireachtas committee to monitor day-to-day workings of Nama;
- A Master Special Purpose Vehicle will be set up as a private company to supervise the working of Nama;
- Guidelines to promote credit growth in banks that benefit from Nama will be set out;
- Windfall tax of 80 per cent on profits from rezoned lands;
- A surcharge on taxation of bank profits, rather than a levy, is to be introduced in the event that Nama makes a loss;
- Provisions for the Minister for Finance to take a shareholding in Irish Nationwide Building Society and the Educational Building Society.