Cowen refuses to alter plan for NAMA

A DEFIANT Brian Cowen has slapped down any suggestion that the direction of the National Assets Management Agency project can be altered to appease disgruntled voices within his government.

And despite a growing band of renegade Fianna Fáil deputies abandoning the whip and the spectre of a grassroots rebellion within the Green Party, he believes he will get majority support when the legislation comes before the Dáil next month.

Speaking in Tullamore, Mr Cowen said the plan’s fundamentals – to buy €90 billion worth of distressed development loans from the banks – would stay intact.

“Obviously we’ve indicated that we want a strong debate on the issue so that all of the issues are dealt with. But the fundamental direction, if you like, the approach that we’ve taken, has been outlined, and that is the government approach.”

Earlier, the Greens confirmed a special conference will go ahead in early September, before the Dáil returns, to direct its parliamentary party on how they should vote on NAMA.

Mr Cowen said the Government may listen to good ideas put forward by party delegates but the thrust of the bill would not change.

He also dismissed the “glib one-liners” of Fine Gael leader Enda Kenny, who said NAMA was a “double or quits gamble” with taxpayers’ money.

Mr Kenny had earlier removed any wriggle room the Government had, as it sought to solidify the majority it needs for the bill to pass, by announcing his party will vote against NAMA.

Speaking ahead of a speech to the Humbert Summer School in Ballina, Co Mayo, Mr Kenny said there was still time for a different proposal to be put on the table. “It is not a done deal because the legislation is published in draft form. We don’t know the fundamentals of the valuations write-off that the Government propose here.

“And at the end of the day this is a massive gamble, unprecedented and quite extraordinary from an Irish Government that is not listening to reason or to the people. We will debate this on the floor of the House and vote against NAMA as it is currently proposed.”

He also fleshed out his party’s idea for a “good bank”. This involves moving the profitable assets on the banks’ books into a new institution which could start lending money immediately.

It would subcontract the services of the existing banks to operate the retail elements of the institution.

The shareholders and international bond holders in the banks would be the big losers and left to manage the toxic development loans.

“I firmly believe the Fine Gael proposal here is in the much stronger interest of Ireland as an economy and of Ireland as a people,” said Mr Kenny.

Labour Party finance spokeswoman Joan Burton said it was time for people to stand up to Fianna Fáil on the NAMA issue.

She told the Humbert Summer School there was no consultation and Mr Cowen and Mr Lenihan were running the Dáil like a “legislative dictatorship”.