NAMA must not be allowed fail
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Friday May 15 2009
Everyone agrees about the scale of the economic emergency. Everyone agrees that it cannot end until the global economy recovers, and Ireland shares in that recovery. Almost everyone agrees that neither is likely to happen unless something is done about the huge losses sitting on the books of the global and Irish banking systems.
So the National Asset Management Agency is seen as a positive and rational way forward.
NAMA is to take all property loans off the banks' balance sheets. It sends a positive message to sceptical Ireland-watchers everywhere and tells us here at home that the Government has a workable plan.
And it is difficult to imagine a time when it has been more important for a a Government to reassure a people that it is in control and has a comprehensive blueprint capable of meeting the enormous difficulties we face. As today's disastrous opinion poll shows a large swathe of the public has no faith that this is the case.
It is therefore all the more troubling to hear the chief executive of the National Treasury Management Agency express negative sentiments about NAMA. The new agency is supposed to fall under the aegis of the NTMA and its interim managing director is a senior officer in NTMA.
Dr Michael Somers has told the Public Accounts Committee that his agency is not adequately staffed to deal with the banking crisis, that it has no experience in bank restructuring and that there will be paralysing court challenges.Mr Somers is telling the Government something very important about the scale of the task that NAMA faces and the resources it will require if it is to be a success.
A whistle has been blown, early enough in the game for something to be done. NAMA cannot be allowed to fail.
The Government must act quickly to allay Mr Somers' fears. Its fate, as the poll shows, may depend on it.
