Speaking on the NAMA Bill today (Monday) in the Seanad, Fine Gael Cork Senator, Jerry Buttimer pointed out the many flaws inherent in the NAMA model and said that the Fine Gael ‘good bank’ alternative would see the risk shifted away from the taxpayer toward developers and investors and would get much needed credit flowing in the economy which would aid job creation and protection.
“The taxpayer is under the kosh where NAMA is concerned.
“The Government is playing roulette with our money with the taxpayer set to take the hit for the mistakes of others.
“The Government has paid little heed to what happened in France in the 1990s when they instigated the equivalent of NAMA, which was a disaster. In the United Kingdom a ‘good bank-bad bank’ model has recently been successfully used in respect of Northern Rock and Bradford & Bingley and in the United States, Washington Mutual has similarly been divided into a good and bad bank- all of which has been ignored by Fianna Fáil and their Green colleagues.
“The advantage of Fine Gael’s ‘good bank-bad bank’ solution is that the risks and responsibilities associated with working out distressed developer-related loans would remain with those professional bankers and investors that funded the loans and that are best placed to recover them. New state funding for the banks would be directly linked to new lending into the economy assisting in creating new job and holding on to the ones we have left. Instead of buying toxic developer loans with highly uncertain value, as under NAMA, the taxpayer would buy higher quality loans which are directly linked to new jobs and economic recovery.
“The Irish people want, and deserve, a banking system that is sound, trustworthy, accountable and transparent and a system that will allow credit to flow to the life blood of the economy – small and medium enterprises. In that way, business people in Cork City could get money to fund their overdrafts, pay workers and allow the system to flourish with job security at the very core.
“NAMA is not the only show in town. Fine Gael’s ‘good bank-bad bank’ model offers a solution which will protect the taxpayer and get things moving in the economy. NAMA will see us firmly under the kosh for generations to come.”