Fianna Fáil Finance spokesperson Michael McGrath pointed out that legislation underpinning NAMA's establishment includes as one of its purposes "to contribute to the social and economic development of the State".
Deputy McGrath stated: "I welcome the recent commitment by NAMA to deliver housing and high quality office space where they are most needed. However, we need to be acutely aware that, once NAMA sells on a portfolio of loans, it has no further influence over the future development of the assets attaching to those loans. We should be under no illusions as to the nature of many of the purchasers of NAMA loans. Vulture funds will typically take a short term outlook on their investments. While they may be in a position to make handsome returns by flipping assets they acquire this may not be consistent with the long term economic interests of the state.
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"It is clear that NAMA is now under considerable pressure to dispose of its loan book as quickly as possible. There needs to be a debate as to whether or not this is the correct course of action for the country. With every passing day we see more and more reports of acute housing shortages particular in the Dublin region. We are also aware that many housing units that are available do not meet the needs of families. We need to learn the lessons of past mistakes and ensure that in future we do not repeat them. The array of sites over which NAMA has control gives the State an unprecedented opportunity to have a positive influence on the future economic and social development of the country, providing both affordable housing and appropriate infrastructure for families and communities."
The Minister believes NAMA needs to take into account not just the price it is offered for a particular bundle of loans but also the nature of the prospective buyer and their long term intentions for the assets acquired.
He concluded: "NAMA should be cognisant of the plans for a site that a potential investor may have."
(CD/MH)
