#NAMA has failed to deliver for the Irish People…
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#NAMA has failed to deliver for the Irish People…
Dáil Diary no 49 - 16 July 2015
The manner in which NAMA has operated is a major concern for many Irish citizens. That the promised social dividend of this secret society, never materialised, was a great disappointment in itself. But the disappointment didn’t stop there. NAMA’s insistence on selling assets and loan portfolios for well below their real value is naturally a very serious issue for the tax payer, who is picking up the tab. The fact that they’ve been determined to sell properties in huge bulk, rather than breaking them up, has had further negative consequences. Firstly, only financial entities with the clout of US Vulture funds, have had the capacity to purchase these massive portfolios, secondly, the net financial return for the taxpayer was dramatically reduced, and thirdly, in many cases, it has allowed the same US vulture funds distort our property/ rental market, as these colossal organisations are developing a cartel, giving them a controlling influence over rental prices, which is to the detriment of any Irish people who may be trying to rent accommodation. All told, NAMA has delivered well for the massive foreign investment funds, but has failed to deliver for the Irish people. The cost of same, will remain with us for a long time. Here’s my Dáil contribution with Taoiseach Enda Kenny on Wednesday –
“Taoiseach, you said yesterday the Comptroller and Auditor General and the Committee of Public Accounts are the agencies in this jurisdiction for dealing with issues concerning the National Asset Management Agency, NAMA. We both know neither of them have the potential to fully hold NAMA to account. The legislation regarding the Comptroller and Auditor General does not allow for ongoing, intrusive oversight and monitoring and lacks asset management oversight functions.
There are many concerns around the workings of NAMA.
Cerberus expects to make a large fortune from the purchase of Project Eagle. The £7 million that ended up in an Isle of Man bank account will begin to look like small change. The big loser, though, is the Irish taxpayer in the South. NAMA says the sale of Project Eagle was lawful, but was the purchase lawful? I would have thought that a Fine Gael Government would have a bit more concern about slush moneys for fixers. I doubt the Taoiseach has heard the last of Project Eagle.
Does the Taoiseach know how many barristers, judges, solicitors, top-four accountancy firm partners and bankers are in syndicates which have been set up by Goodbody Stockbrokers, Anglo Private, Bank of Ireland Private, AIB Private, Davy, Warren and Quinlan which have transferred to NAMA but which NAMA has not enforced, despite personal guarantees being attached? NAMA is responsible for some people being tossed out of their homes, but it looks like some of the great and good of Irish society are blessed with NAMA’s goodwill.
What role did a former Secretary General of the Department of Finance, John Moran, play in NAMA’s handling of the Coroin group’s portfolio? This gentleman remarked at one stage that the number of home repossessions in Ireland was unnaturally low. It would appear he was unnaturally interested in playing a significant role in the outcome of the Coroin group’s portfolio.
All is not well. I know of a construction company, Taoiseach, which wanted to exit out of NAMA, so it asked the manager of its portfolio if it could happen and he said, "Yes, but it will cost you €15,000 in cash and I want it in a bag".
A few weeks later, they delivered the money. A few weeks later he demanded the same again. They duly obliged and all was sorted - a small window into the workings of NAMA. Is the Taoiseach still happy with the workings of this secret society?
The Taoiseach: The Deputy has made a number of comments and allegations here regarding people working in different sectors, including members of the Judiciary. He made comments in respect of a former Secretary General of the Department of Finance, as well as comments generally in respect of NAMA.
Let me repeat again for him. The process of accountability and transparency in this jurisdiction in respect of NAMA is the Committee of Public Accounts in the Oireachtas, chaired by a Member of this House. Personnel from the Comptroller and Auditor General’s office work with NAMA and have access to all the papers and documents relevant to any of these transactions.
I would suggest that, as a public representative, the Deputy has a facility where questions can follow his allegations. He should go to Deputy McGuinness’s committee, the Committee of Public Accounts, a committee of long-standing integrity in this House. The Deputy can make his claims, ask his questions. The Chairman of the committee, with his members, is entitled to call in personnel in respect of the issues the Deputy raised.
The Deputy has made some serious claims here. I do not have the detailed responses to them. The Committee of Public Accounts is the authorised independent entity in the Oireachtas for accountability and transparency in respect of NAMA. I suggest to Deputy Wallace that in the interest of public accountability and transparency, he goes to the committee, presents his findings and facts - if facts they are - and allow the Chairman and his committee to do their work in the interests of their political responsibility here.
Mick Wallace: I can only come to the conclusion that the Taoiseach does not seem awfully interested in getting to the truth. There is a stark contrast between how Northern Ireland is dealing with this and how the Government is dealing with it.
Can the Taoiseach tell me why did Mr. Frank Daly tell the Committee of Public Accounts that he did not know about the alleged £7 million in the Isle of Man bank account until I mentioned it? I know for a fact that NAMA knew this last January. What did it do about it? Did it tell the Minister for Finance or did it bury it with the rest of it? Mr. Coulter has denied the involvement of a politician. Well, he would, would he not? I decided to contact my sources this morning and ask them to what degree of certainty they could stand over the involvement of a particular politician. Their reply was, "Is 100% enough?". The Taoiseach has serious problems. Does he want answers to them? Do not bother asking me, Taoiseach, to go to the Garda
I will ask the Taoiseach again whether he is prepared to set up an independent commission of investigation. If he wants the truth, that is what he will have to do. The people would like him to do that. He owes it to them.
NAMA came to the Oireachtas last week and felt it was out of the woods leaving here, but do you know what, Taoiseach? The trees are only starting to grow.
The Taoiseach: The Deputy has stood up again now and he has made further allegations. I do not speak for anybody in Northern Ireland in regard to this. There is a criminal investigation going on there. As I understand it from yesterday's discussion here, there are no allegations against NAMA or personnel down here. I read out what the chronology of the actions of the Minister for Finance was following the process down here. Now, let me repeat what I said to Deputy McDonald yesterday. Deputy Wallace now tells me that he has facts. He now tells me that he has been checking with his sources. He has a duty and a responsibility to bring that to the attention of the accountable body in this Oireachtas, and that is the Committee of Public Accounts.
Mick Wallace: The Taoiseach has a duty to set up an inquiry.
The Taoiseach: Deputy Wallace is making allegations and assumptions in the middle of which he said he had facts. Well, I say to Deputy Wallace he has a duty to bring those allegations or those assertions or those facts to the accountable body in this Oireachtas, that is, the Committee of Public Accounts. The Chairman, who is present, with his members has full authority to follow through on those allegations, assertions or assumptions that Deputy Wallace makes.
As I understand it, there is no basis for any criminal charge that I have heard, either against NAMA or anybody associated with it or the Minister for Finance or anybody in the Department of Finance.
If Deputy Wallace has evidence to the contrary, he should bring it to the attention of the Garda if it is criminal or bring it to the attention of
If Deputy Wallace has facts and he has sources that he can check are authentic, he should bring them to the notice of the Chairman.
Mick Wallace: If the Taoiseach wants the truth, he will set up a commission of investigation.
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#NAMA Has Been a Dream Come True for Many US Vulture Funds...
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Dáil Diary no 48 - 10 July 2015
#NAMA Has Been a Dream Come True for Many US Vulture Funds...
The controversy over NAMA's sale of the Nothern Ireland loan portfolio, Project Eagle, has not gone away. It suited the Government just fine when the PAC said they would bring NAMA before the committee. - It also suited NAMA, whose polished performance was always going to give them some breathing space, given that the PAC, - no disrespect to any of it's members - just doesn't have the wherewithal to hold them to account. Here is a part of my piece on the workings of NAMA from last Tuesday, when we were debating a Housing Bill . -
"Aside from what seem to be a lot of spurious deals where it appears the taxpayer could have fared a great deal better, NAMA is actually boasting that it will make approximately €1 billion in profit over the six to eight year period. That still leaves the taxpayer about €40 billion short. Given that the market has been rising for a while, it is outrageous that more was not realised.
The point the Deputy made about the social dividend and NAMA's failure to provide it is a frightening one. What is really uncomfortable is the fact that we have a serious level of inconsistency in how NAMA has done its business. Sometimes it applies its rules rigidly and sometimes it does not. A simple example is that of the Dublin GAA trying to get hold of the Spawell but failing to do so. It beggars belief that a sporting organisation in Ireland would not have been facilitated and given a little bit of an extra chance. It is not like the GAA was going to make money on it. It intended to provide a social outlet for young people and should have been helped by NAMA. NAMA will argue that it is under an obligation to maximise the potential of the asset for the taxpayer. When it makes that argument, I would like NAMA to explain its approach when a bidder went to buy not the loans but the debt of the Chicago Spire, which was at $78 million plus costs which brought it to approximately $93 million. An investor sought to buy the debt, and this was every penny that was owed to the bank. This was not the reduced value, but the par value.
In other words, this investor was prepared to pay the debt in full but NAMA gave it to Jones Lang LaSalle in New York to sell. This was a site in Chicago. Even if NAMA thought it could get more for it, it was not in New York that it would have got it. It would have been interesting if it had marketed it in Chicago. Why could NAMA not accept the debt being bought out? It is estimated that it was sold for $35 million. NAMA refused $78 million, plus the cost, and it accepted a figure in the region of €35 million. That was claimed to be in the interests of the taxpayer in the same way as NAMA not accepting the bid from Dublin GAA for the Spawell because it claimed it was maximising the potential of the asset.
It is horrendous that NAMA could not deliver housing units for Dublin, in particular where there is such a serious housing crisis. It beggars belief. The argument was spun that certain property was not really suitable. The funny thing about that is that NAMA did not want to give much of the property that was suitable to the State because it was attractive to investors. What has happened is that vulture funds, mostly from the US, were allowed to cherry pick the best of it because NAMA sought to sell the best of it to them. It then considered some of the other property, which was not quite as attractive to the vulture funds, for social or affordable housing.
NAMA is a State body over which governments - this one and the previous one - do not seem to have much control. Issues are raised about it. The idea that the Comptroller and Auditor General has it all in hand beggars belief. I have seen too many things which I do not believe the Comptroller and Auditor General has seen, and I am going to give him the benefit of the doubt that he is honest. It would be an incredible challenge for the Comptroller and Auditor General and the few people working with him to keep tabs on everything that is happening within NAMA. It would be a massive challenge, and it is not only about auditing. Does the Comptroller and Auditor General have expertise in the area of markets, construction and the future potential of assets? Does he have all those people working for him in order to be able to test the waters and ensure NAMA is doing what is best for the taxpayer at every turn? It is asking way to much of the Comptroller and Auditor General to think that he could come up with all those answers. He would be an amazing man, irrespective of how many people he had working with him.
Sadly, there is now the idea that the Committee of Public Accounts can examine this, behind which the Government can hide, as if it is an Oireachtas investigation and the committee will see if everything is all right. That is not what will happen. If those in government want to know the truth and if they really want to know if the taxpayer was best served in these deals, they will eventually have to initiate an independent inquiry into the workings of NAMA. It is extremely important because not only are we dealing with things that have happened - people must be held responsible for what they have done - but there are so many assets still to be sold. Will that be done right? At present, we do not know and given that NAMA remains a secret society, we do not have a real opportunity to see how it operates. An independent investigation might bring us that. There is a great deal of money at stake. The figures are astronomical so it is extremely important the State addresses this.
The Government should not put this off and kick the can down the road. We need an independent inquiry established right now. How it would be structured is an argument for another day. The Government will probably have to bring in some people from outside the country. I refer to many of the more senior players in the services the Government might use. There is such an incestuous nature to much of what goes on this country that the Government will probably have to bring in some external expertise."
Mick Wallace.
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#NAMA - Only an Independent Inquiry will stop speculation...
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Dáil Diary no 47 - 2 July 2015
#NAMA - Only an Independent Inquiry will stop speculation...
There are a lot of people who believe that the workings of NAMA have left much to be desired. It is worrying that this State body which we’ve given the task of prioritising the best interests of the Irish taxpayer, has operated in such a secret fashion. Today, I asked the Tánaiste Joan Burton why, when she entered Government in 2011, she hadn’t followed up on her proposal in 2009 for an oversight committee that would put information re the working of Nama into the public domain, every 30 days. We will continue to have talk and speculation till we decide to have an Independent Inquiry, and find out what really happened. It may take a while, but the lid will not be kept on this forever. Here’s part of the exchanges in the Dáil today at Leader’s Questions, minus the parts with the Ceann Comhairle cutting my mic once again...-
"There is growing concern regarding the workings of NAMA and whether the taxpayer has been well served by it . The Taoiseach seems content that all is well, but I know many people who think otherwise. The Tánaiste is an accountant and might have more concerns than the Taoiseach. There have been disturbing allegations around the largest ever sale of property in the history of the island of Ireland. The Northern Ireland loan portfolio, Project Eagle, involving more than 850 properties with a par value of €4.5 billion, was sold to US private equity firm Cerberus Capital Management for less than €1.5 billion, a surprise winner of the tender.
In June 2012, following consultation with the Minister for Finance, Deputy Michael Noonan, and Mr. Sammy Wilson MLA, NAMA reappointed Mr. Frank Cushnahan and Mr. Brian Rowntree to the Northern Ireland Advisory Committee. Two weeks later, a report by a Northern Ireland auditor's office seriously questioned the stewardship of the Northern Ireland Housing Executive, which led to the resignation of Brian Rowntree and Frank Cushnahan. The report found breaches of housing executive guidelines in the sale of at least 27 land deals, the executive board being given wrong or no information relating to key property deals, favoured property speculators were allowed to buy land well under market value, expressions of interest from other parties not being declared or considered, and at times no reasons being offered for some off-market sales.
These two individuals stayed in NAMA, one of them up until the summer of 2014. Does the Tánaiste think this was a good idea? Back in 2009, the Tánaiste proposed an oversight committee for NAMA, with the purpose of informing the public about what is happening in NAMA. In the past four and a half years, has the Tánaiste at any time considered putting that idea forward again? Given this has not been done, does the Tánaiste believe now is the time for a serious look at how NAMA operates? We need an independent inquiry to see if the interests of the taxpayers have always been the top priority for NAMA.
The Tánaiste: I am not familiar with the details of the particular case the Deputy outlined. The issue of the oversight of NAMA and proper procedures is important because NAMA was, in effect, a kind of bad bank for the explosion that happened in the Irish property market when construction and the financing of it fell apart.
In regard to the arrangements made for NAMA, I suggest that if the Deputy has not already done so, he should submit a detailed question such as this to the Minister for Finance. I do not know whether any of these questions have been raised with NAMA or whether the Deputy has raised his concerns with NAMA.
However, as the Deputy knows, the Comptroller and Auditor General has oversight of NAMA and closely oversees the work it does. When the arrangements regarding NAMA and the banks, following the collapse of the banks, were established, a decision made by the previous Government was followed by the current Government. That decision was that the governance and organisation of NAMA's affairs would not be run directly out of the Civil Service and, in particular, would not be run directly by politicians. I believe this was the correct decision and that it is better that it is run as a business.
Mick Wallace: Am I to take from what she said that the Tánaiste is happy with how NAMA has worked? The oversight mechanism she proposed in 2009 has not happened, but does she not feel it would have been a significant benefit? She did not address that question.
The Tánaiste said it would be better if politicians were not involved in this episode.
We have had politicians involved and the Minister for Finance, Deputy Michael Noonan, and Mr. Sammy Wilson, MLA, were involved in the reappointment of the two men concerned. One of them was reappointed for a second time in 2014, despite the damning report of the Northern Ireland Housing Executive. I find that difficult to understand and I also find it difficult to accept that the Tánaiste would be okay with that.
The legal firm acting for Cerberus Capital Management, which purchased the Northern Ireland loan portfolio for €1.5 billion, was Tughans of Belfast. It has been reported that during a routine audit…
An Ceann Comhairle: This is not an inquisition. This is Leaders' Questions. Would Deputy Wallace put a question please? He is out of time.
Mick Wallace: We are talking about billions of taxpayers' money.
Does the Tánaiste have any concerns that a routine audit of a solicitor's firm that looked after the deal where €4.5 billion of assets were sold for €1.5 billion, with a massive loss for the Irish taxpayer? The routine audit showed that £7 million sterling ended up in an Isle of Man bank account-
It was reportedly earmarked for a Northern Ireland politician or party
Does the Tánaiste not think the matter should be looked at?
The Tánaiste: In terms of this House and under the Constitution, the Comptroller and Auditor General has a specific role, including in regard to the oversight of NAMA. There have been three special reports on NAMA's activities by the Comptroller and Auditor General and they have been broadly positive in their assessment of how NAMA is managing what is a very complex business. I regret that NAMA ever had to exist and that good builders such as Deputy Wallace and the people who worked for him ended up in the crash that followed losing a huge amount of employment and a huge amount of money, but that is what happened when the economy was run into a brick wall. It is very difficult to give a definitive answer on the recovery value of anything which previously had a certain value and which lost its value following the crash.
The Comptroller and Auditor General has done a series of reports on NAMA. I am not clear on whether Deputy Wallace is basically saying he does not accept the Comptroller and Auditor General's reports.
Deputy Clare Daly: Its remit is limited"
Mick Wallace.
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Government's Neo Liberal position enshrines Lack of Fairness & Inequality...
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Dáil Diary no 46- 26 June 2015
Government's Neo Liberal position enshrines Lack of Fairness & Inequality...
This week we had a debate on the idea of a Low Pay Commission. At this stage, most people realise that an economic philosophy called Neo Liberalism, is the dominant approach among Western countries today. It’s a system which thinks that the interests of financial institutions and big business should be put before those of the citizens. It’s a way of thinking that caused one Irish Government to decide to bail out a failed Banking system, and another Government to insist that the Bondholders of the same banks should be paid in full. It is the system that is presently trying to pauperise Greece, which goes against all rational thinking.
In Ireland, we know now that Fine Gael, Fianna Fail and Labour, are parties that have brought into the Neo Liberal philosophy. I believe that any ‘Independent; candidates running in the next election, should state in advance whether they would be prepared to go into Government with a Neo Liberal grouping – I for one, will walk from politics, before I would play any part in a Neo Liberal Government.
Here’s my Dáil contribution on the ‘Low Pay Commission’ debate -
“Ireland is the only EU15 country that has frozen the national minimum wage since 2007, which is eight years ago now. The idea of a Low Pay Commission is welcome, but I have the feeling that its recommendations are likely to be unimpressive and if the neoliberal agenda and austerity measures introduced by the last two Governments are not seriously scaled back, it will take more than a rise in the minimum wage to stop the march of rising inequality in Ireland. In the proposed Bill, it is stated that when making a recommendation on a national minimum hourly rate of pay, the effects of any proposed order on the cost of living will be taken into account – meaning that Government may keep the minimum wage low, in order to avoid any chance that the higher rate might drive the cost of living up. A form of reverse psychology. It is highly instructive as to the Government's framing of how the Low Pay Commission will work that there is no mention whatsoever in the Bill of taking into account the cost of living when making a determination as to what the new national minimum wage should be.
On top of this, the Government has done next to nothing to address the fact that we have one of the most inadequate universal public service systems in Europe, along with a cost of living that is 20% higher than the EU average. Instead of improving public services and investing in networks of the State so that we can continue to provide funding for social goods, this Government has engaged in the fire sale of national assets and investments through the medium of NAMA, IBRC and State-owned banks. It has attacked the social welfare system that is one of the last barriers to abject poverty for so many people and proposed tax cuts that will overwhelmingly benefit the highest-income earners. To quote Tom Healy of the Nevin Economic Research Institute,
“I suggest that we are wary of politicians, commentators and economists who come to our TV screens offering treats of ‘more money in your pocket’ through tax cuts. We might ask them to price these tax cuts in public service forgone, community health centres not opened, public transport not invested in, quality and affordable childcare not provided.”
Last Friday, the Tánaiste told an audience in the Croke Park conference centre that not having a job or losing a job is the root cause of inequality. This is a strange way to view the problem of inequality, which does not have a single root cause. It has multiple root causes, which create inequalities of outcome that contribute to worsening inequality of opportunity. Many people in Ireland work, and are still poor. This is due to many factors. First, there has been no Government policy to tackle the problem of low pay. More than 20% of people in employment earn less than two thirds of the average wage. This is one of the highest rates in Europe. Members of Fine Gael have uttered the phrase "living wage" just three times in this Chamber, twice in response to someone else bringing up the issue.
In Scotland, the government has been paying all of its staff above the level of the living wage for some time. More than 200 Scotland-based employers display the living wage accreditation mark, and they are on target to have more than 500 companies on board by March 2016. The living wage is an hourly rate that is set independently and updated annually. Employers choose to pay the living wage on a voluntary basis, while the national minimum wage is statutory and enforced by Revenue and Customs.
Instead of doing something as meaningful as this, that brings the issue of low pay to the forefront of the national conversation, the Government is promising to have a discussion about the minimum wage as long as it does not jar with any of the rules of neoliberal economics, namely that any recommendations by the commission should be made "without creating significant adverse consequences for employment or competitiveness." Globalisation, neoliberalism, the dismantling of international trade barriers, the rise of big business and the power of markets, and the consequent pressure put on countries to be internationally competitive, have led Europe from the golden age of economic stability and household income equality of the 1950s and 1960s to a situation in which, according to the French legal scholar Dr. Alain Supiot, "the problem is not that of adapting the economy to the needs of human beings, but rather the reverse - adapting human beings to the needs of markets, and especially to the needs of financial markets, which supposedly create harmony by making self-interest the basis for all human activity."
This position is one that fails to recognise that there is no wealth other than human beings and that an economy that ill-treats them has little future."
Mick Wallace.
Good soundness is a result of proper nutrition and hygiene. How can medicaments hels up? Circumstances that can influence your choice when you are buying medications are different. Below are basic reasons about cialis vs levitra vs viagra which one is better. Surely there are also other momentous questions. Choosing the ideal treatment variant for a racy disease can get really confusing considering the advantages and disadvantages of the existing treatment methodologies. When you buy remedies like Cialis you have to mind about levitra vs cialis vs viagra. The most significant thing you must look for is which works better viagra or cialis or levitra. A long list of prescription drugs can lead to erectile disfunction, including many blood stress medicines, pain remedies, and most of antidepressants. Sometimes the treatment options may switch on erectile dysfunction remedies or hormone treatments.
