FINE GAEL last night described the Government’s Nama amendments as “weak and ambiguous”, dismissing in particular the risk-sharing commitments that have been included.
The party’s finance spokesman Richard Bruton said that the amendment on risk-sharing, which makes provision for a total of 5 per cent of subordinated debt, was “an embarrassment to senior Government Ministers who supported 50 per cent risk-sharing”.
In his general criticisms, Mr Bruton alleged that the language around the bank levy remained ambiguous. “Is the Bill actually putting the levy on a statutory basis or is it being amended to allow for its introduction at some future date?
“Fianna Fáil and the Greens need to confirm that they’re not trying to wriggle out of their commitment to recover from the banks the potentially huge losses to the taxpayer as a result of Nama.”
He said the proposal to clarify the scope of section 169, which restricts borrowers who default from buying assets from Nama, also needed to be clarified.
“At present, it would suggest that the Government may try to water down the commitment that Nama would not do business with developers that have defaulted on their loans to the taxpayer,” he said.
Labour Party spokeswoman on finance Joan Burton yesterday tabled 56 amendments. She said they were designed to increase supervision by the Oireachtas of the Nama process; place some restrictions on the otherwise limitless powers given to the Minister for Finance; and ensure greater transparency in the process.
She also said that some of the amendments provided additional protection for the taxpayer, and would help to reopen credit to small businesses.
Like Fine Gael, Labour has also tabled amendments to protect homeowners, including a two-year moratorium on applications for repossession orders on family homes by participating financial institutions. Ms Burton said: “While the Labour Party remains implacably opposed to the Nama plan, now that the second stage of the legislation has been passed, our key objective will be to try to limit the worst excesses of Fianna Fáil’s approach and to provide the maximum possible level of protection for the taxpayer.”
Fine Gael’s justice spokesman Charlie Flanagan yesterday also pointed out that one of the Fine Gael amendments would tackle conflicts of interest arising where professionals advise Nama as well as participating institutions.
Said Mr Flanagan: “We have seen again and again that the same small elite of lawyers, accountants, economists and consultants are frequently working for Government and agencies or institutions that Government is negotiating with.
“This is a very unsatisfactory situation for the taxpayer and Fine Gael has tabled an amendment to the Nama legislation to address potential conflicts of interest where Nama is concerned,” he added.
