Legislation by summer to allow for purchase of property loans - Tánaiste

LEGISLATION PAVING the way for the Government’s purchase of property and development loans is expected to be passed by the Dáil in the summer, Tánaiste Mary Coughlan said.

She said it would be drawn up in the coming weeks.

“We will provide as much time as is humanly possible in order that people may participate in the debate,” she added.

“Our expectation is that it will be passed by the end of the summer session.”

Ms Coughlan said the estimated costs and evaluations would be a matter for the National Asset Management Agency (Nama) and not the Dáil.

The Tánaiste was replying to Fine Gael’s Alan Shatter, who asked when the legislation would be published.

He said they needed to ensure the taxpayer would be protected.

“Will there be a degree of transparency in its workings so that members of the House and the public alike might be made aware of the value of the loan book they have acquired when it is taken from the banks?” Mr Shatter asked.

“We must know what steps will be taken to recover borrowings from debtors and realise assets and to ensure that the agency is immune from any influence that any person might attempt to impose on it in order to do favours for the friends of Fianna Fáil and to release them from borrowings that should never have been made available to them in the first place.”

Minister for Arts, Sport and Tourism Martin Cullen said Mr Shatter’s remarks were a “bloody disgrace”.

Timmy Dooley (FF, Clare) said that Mr Shatter should apologise.

Mr Shatter said the Government was responsible for the mess the State was in and should take that responsibility.

“It is time it apologised for what it has inflicted on the country, before the House goes into recess,” he added.

Ms Coughlan said the Government’s approach was in the best interests of the Irish economy.

“Contrary to what Deputy Shatter said, it is not a bailout of the banks,” she added.

Labour finance spokeswoman Joan Burton said many people were referring to the Nama proposal as the “banana” proposal.