Billy Timmins (Wicklow, Renua Ireland)
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137. To ask the Minister for Finance if he will confirm that the recently announced policy whereby the National Asset Management Agency will construct 20,000 houses in the next number of years is in compliance with European Commission state aid rules; if the Commission has been provided with the details of the scheme; and if he will make a statement on the matter. [36952/15]

Michael Noonan (Limerick City, Fine Gael)
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Against a background of continuing dysfunctionality in the residential development market and a major supply shortage in urban areas, NAMA has undertaken to fund the delivery of 20,000 residential units over the next five years in so far as that can be done on commercially viable basis. 

The issue of State aid does not arise.

NAMA will be providing funding to debtors and receivers on a commercial basis to develop commercially viable residential sites securing NAMA's loans. NAMA will work with existing debtors, where possible, but where necessary, will also work on a commercial basis with developers with no current links with NAMA on sites securing NAMA loans.

This will enhance the ultimate disposal value of these sites and increase the recovery on NAMA's loans securing these sites.

The funding to be provided to NAMA's debtors and receivers to enhance the ultimate disposal value of residential sites securing its loans will be drawn from the Agency's own resources. NAMA, like any other secured lender, will fund only projects that are commercially viable.   

Essentially, the programme will require investment of the projected NAMA surplus. NAMA expects to fully recover and enhance that surplus through this programme. This is entirely consistent with NAMA's commercial obligation under section 10 of the NAMA Act to optimise the value of its assets and is expected to enhance the overall surplus that will be available to the Minister after the sales proceeds from the programme have been received.