The Labour Party will be tabling a series of amendments to the NAMA legislation when the Report Stage of the Bill is taken in the Dail on Wednesday and Thursday aimed at increasing transparency, oversight and supervision of the NAMA process; providing additional protection for the taxpayer; and placing some restrictions on the vast powers the Minister for Finance is seeking to give to himself.

The Labour Party Spokesperson on Finance, Joan Burton TD, said today:

“It is now seven months since the decision to establish NAMA was announced in the April budget and three months since the draft legislation was published, yet the government has still not finalised its proposals as Minister Lenihan has indicated that he will be tabling further extensive amendments at Report Stage. This makes it very difficult for the opposition to do its job and also means that it is essential that the Dail be given adequate time for the Report Stage debate this week.

“The Committee Stage was very lengthy and exhausting for those involved, but it was worthwhile because much new information emerged during the debate, most notably about the central role that will be played by the Special Purpose Vehicle (SPV). This body, in which the private sector will have a majority shareholding, will now perform the core functions of taking over loans and the issuing of bonds. We will be tabling a series of amendments to ensure that there are proper powers of oversight and accountability in regard to the SPV.

“It also emerged during the Committee Stage that provision was being made to impose gagging clauses on the board and staff of NAMA and that court proceedings involving NAMA could be held in camera. While Minister Lenihan promised to look at these again, the Labour Party will be tabling its own amendments in these areas.

“The Labour Party also remains seriously concerned at the Minister’s powers in regard to the key Valuation Board. Not only will Minister Lenihan personally appoint the members of the Valuation Board, but he will also have the power to reject valuations made by the board. The sections of the Bill in regard to the Valuation Board were only reached between 3.00am and 4.00am on Friday morning and will have to looked at in detail again during Report Stage.

“Finally, I am very concerned at the decision of Minister Lenihan to take powers for himself to invest potentially vast sums of money in building societies such as Irish Nationwide and EBS. There are serious questions about the wisdom of this move, particularly in regard to Irish Nationwide and the Labour Party will be seeking assurances that yet more vast sums of taxpayers’ money will not be wasted in propping up non-viable financial institutions.