Fine Gael launches 11th hour bid to scrap NAMA

A DESPERATE last-ditch bid to scupper NAMA has been launched by Fine Gael, it emerged last night.

The party lodged an official objection to the setting up of the agency with the EU Commission in an attempt to prevent Brussels giving its approval for the transfer of €77 billion of toxic land debts from banks to the Irish taxpayer. Fine Gael Seanad justice spokesman, Senator Eugene Regan, said the move was needed because of the risk such a “disproportionate” movement of debt burdens the Irish economy with the greedy mistakes of bankers.

The 20-page submission was given to the commission last month and claims the agency breaks EU rules on impaired assets.

“Fine Gael has grave concerns about the NAMA scheme and the implications it will have for each and every citizen.

“Our concerns ... include the lack of transparency, flawed valuation methodology, no guarantee of credit flows from banks and inadequate burden-sharing between the banks and the taxpayer,” Mr Regan said.

The complaint to the EU demands the exclusion of scandal-rocked Anglo Irish Bank from the scheme and the removal of non-core assets of Bank of Ireland and AIB. Fine Gael claims this would ensure the focus of each institution is on the provision of credit to the Irish economy, not profit margins.

“The Government has so far presented EU approval of NAMA as a formality and I am asking the commission to critically examine the bankers/developers bailout known as NAMA with a view to limiting its scale and scope so that the cost to taxpayers and the state can be minimised.

“While the choice of asset relief scheme is decided by member states, the scale and scope of the NAMA project to be undertaken by the Irish Government, as set out in the draft NAMA business plan, is entirely disproportionate to the size of the Irish economy and budgetary resources and threatens the financial viability of the state itself.

“The scheme also ignores key guidelines issued by the European Commission in relation to transparency in the valuation of assets and the risk-sharing element which sees the taxpayer shouldering most of the burden. Furthermore, the unrealistic assumptions in relation to the ‘long-term economic value’ of assets will unquestionably have a severely negative impact on the Irish state, and its people, for generations to come,” the senator said.