Lenihan: ACC move makes NAMA urgent

FINANCE Minister Brian Lenihan said ACC Bank actions resulting in billion-euro examinerships for two developers have made more urgent the establishment of the National Assets Management Agency (NAMA).

Speaking ahead of today’s cabinet meeting to discuss the landmark bill setting up NAMA, he said the Rabobank/ACC tactic to break ranks and force Liam Carroll and John Fleming to seek court protection had not undermined NAMA’s creation but made passing the law a priority.

Mr Lenihan would not elaborate on the timetable, or suggest a summer recall of the Dáil to pass the legislation, but said it could not be unduly delayed.

“[The tactic] does point to the need... to establish NAMA as quickly as possible so that we have greater certainty about the position of the banks and their capacity to lend,” he said.

On Monday John Fleming’s Tivway followed leading-developer Liam Carroll into examinership. Both held borrowings in excess of €1 billion.

Mr Lenihan said the bank’s desire to demand repayment before theestablishment of NAMA did not undermine the strategy.

And he said the troublesome task of valuing banks’ toxic assets meant NAMA could not be created as fast as the Government would like.

“The precise value isabsolutely essential to the whole exercise. That is why, incidentally, you cannot go in the first week of August and legislate for [NAMA],” he said.

The Dáil has already been warned it was likely to have to pass the legislation in early September if it is not recalled sooner.

But until the legislative timetable was finalised Mr Lenihan could not give an exact implementation schedule to international markets.

“Clearly this is an urgent matter but I don’t want to give deadline dates until we finalise certain matters,” he said. But he said the legislation would be published this month.

Mr Lenihan spoke toreporters before he addressed a packed ballroom at the MacGill Summer School in Glenties.

Mr Lenihan also said he was determined to implement as many Bord Snip Nua recommendations as soon as he can.

“Every issue will be taken to each department and there will be an onus on each department to establish why we should not implement the McCarthy report,” he said.

He also said he will not increase the overall burden of taxation in December, meaning his €4bn savings target for 2010 will come entirely from spending cuts.