The National Assets Management Agency (NAMA ) is far from “the only show in town” according to Kilkenny Fine Gael Senator, John Paul Phelan.
The Fine Gael alternative, proposes a good bank-bad bank policy, which, according to Kilkenny man John Paul Phelan is by far a better, clearer mechanism of ensuring we get money flowing in our economy.
“The people who started the fire and burnt the house down are now the fire-fighters,” the 31 year-old Fine Gael senator said, as Finance Minister, Brian Lenihan, addressed the Seanad on the NAMA Biol.
“A cosy relationship has existed for too long between the regulator, bankers, the Government, and developers. Nothing in this legislation proposes to change that cosy relationship in any shape or form. I refer specifically to certain areas of the NAMA legislation.
“For one thing there is a danger in the valuation mechanism which is like walking a tightrope. The whole purpose of NAMA would be defeated if the properties are undervalued, while if they are overvalued the taxpayer will be open to even greater exposure.
“Several Government speakers mentioned the notion that NAMA will get credit flowing in the economy. There is nothing in NAMA that will get credit flowing. That was the one fundamental reason I was fully in favour of Deputy Richard Bruton's proposal for a good bank-bad bank policy - because it was a clear mechanism of ensuring we would get money flowing in the economy.
“I am heartily sick of banks and bankers; not the clerks who put in hard work for an honest day's pay, but their leading executives. I am also heartily sick of the chant I hear from the Government side and elsewhere about there being no other show in town, apart from NAMA There are several other shows in town.”
He added: ‘The Government is engaging in a best guess situation, which is effectively a big gamble. I do not think this NAMA gamble is worth taking.”
The NAMA legislation has now gone through both houses of the Oireachtas.
