FAILURE TO implement the National Asset Management Agency (Nama) will condemn Ireland to a period of “economic stagnation or worse over a long period of time,” Taoiseach Brian Cowen, has said in advance of today’s Dáil debate on the issue.
Speaking at the end of the two-day meeting of the Fianna Fáil parliamentary party at the Hodson Bay Hotel near Athlone, Co Westmeath, Mr Cowen said the Nama project had been designed to deal with the crisis in the banking sector while keeping the interests of the taxpayer in mind.
He emphasised that the European Central Bank had approved the Nama approach and was supporting the initiative.
Mr Cowen rejected the claim that Nama was a big gamble with taxpayers’ money. “I don’t accept that Nama is a gamble. The big gamble with this economy would be to do nothing. The cost of doing nothing is simply too large to contemplate. The initiative that is being taken is precisely about confronting this problem head on.”
He said Nama was also the means by which a stimulus was being provided to the economy.
“We don’t have room in our budgets to provide a fiscal stimulus. We have to provide a stimulus through this method.” Mr Cowen said that in the absence of Nama, credit would continue to be rationed in the economy and the working capital necessary to keep businesses going would be put at risk.
“For a modern economy to work, we need to have a fully functioning banking system. What we are seeking to do is to make sure that the banking system functions in a way that supports enterprise, that supports jobs and that supports taxpayers.”
Asked to comment about the intention of his constituency colleague, Seán Fleming, to put down an amendment to the Bill, Mr Cowen said the committee stage would provide the Government with an opportunity to consider further improvements in the legislation.
“What the Government is anxious to achieve of course is two things. One, extend credit back into the economy and secondly, of course, to protect the taxpayers interests. Whatever we have to do to ensure that and build public confidence we will consider,” he said.
Mr Cowen added that on Nama and other issues, Fianna Fáil TDs needed to advocate the party’s policies and take on those who sought to misrepresent their position and question their basic motivation. He said the contributions from TDs and Senators at the meeting was positive and constructive.
“What our colleagues are saying is that the values that inform our decisions are about equity, doing the best we can by everybody, seeking to protect those who are most vulnerable in the decisions we take. While recognising as we all do that the scale of the challenge is such that no area of expenditure can be immune from putting the public finances back into good shape.”
He added that continuing discussion would take place in the party over the coming weeks so that the best possible collective view was achieved about the best way forward. “But that is in no way to suggest that we will abdicate our responsibility to the country at this time. We will pursue a course of action that is necessary,” he said.
Asked about discussion at the meeting about the TDs who had lost the party whip over the past year, Mr Cowen said that the view in the party was that people would like to see them applying for re-admission.
He said that overall the two-day party meeting had been thorough and positive. “We have had an excellent conference with a full exchange of views on all the challenges facing us. We all know what those are. They are about securing a Yes vote to the Lisbon Treaty.
“Enacting and implementing the asset management agency legislation and farming and passing a budget. Each is a vital step in our future survival and recovery. For the sake of the country and the sake of our people, we intend to succeed in all of that.”
