NAMA sideshow failed

NAMA is a sideshow — the real issue is government debt.

And here’s why: the Government’s day-to-day debt is so massive right now that just three years of that accumulated debt would buy all the NAMA loans lock stock and barrel (without needing to set up NAMA to do it).

The State — that’s you and me — would own the lot outright. And effectively actually own all of the associated property. Entirely.

If the actual market value was paid for those properties it would be closer to just two years worth of current government debt.

In December, Brian Lenihan will apparently outline a budget with approximately €4 billion worth of savings.

That’s a 20% “haircut” on the Government’s massive day-to-day debt.

The NAMA debate is distracting. The sums may be huge but they pale in comparison to the acceleration in general government debt.

Our general economic objective should be to become the most cost-effective location to do business of any kind.

This means low cost, hi-tech. Cheap office rents. Cheap homes. Cheaply delivered functional infrastructure. Small government.

With the focus on NAMA, and NAMA’s operation itself, the Government will actively attempt to prevent Ireland’s economy from adjusting to the new competitive reality. We must hope NAMA will fail. And not worry too much when it does — the country will be better off.

Patrick Walsh

Glenmore

Ballymore Eustace

Co Kildare