Dáil Returns For Crunch NAMA Debate

The NAMA proposals will finally be aired fully in front of a braced Daíl this afternoon, as Brian Lenihan readies his crucial estimates.

The Dáil returns from its summer break this afternoon with a crunch session, which is expected to be dominated by a discussion on the highly contentious National Asset Management Agency (NAMA), the Budget and the Lisbon Treaty.

Minister for Finance Brian Lenihan will be revealing to the house his estimated costs to the taxpayer for buying up non-repaid loans from the banks, and his numbers will be sharply scrutinized by a sceptical Daíl.

The summer months have seen regular criticism and debunking of the NAMA proposals by the opposition parties, with Labour launching a "Stop NAMA" campaign yesterday, and Fine Gael proposing legislation for an alternative model altogether.

TDs have cut short their two-month break by almost an entire week in order to start debating the NAMA legislation. The complex Bill is likely to take at least a month to pass.

Observers expect the Government to purchase loans worth between €55bn and €60bn after it has applied a discount of 30%.

Also scheduled for debate is the upcoming budget, and the Lisbon Treaty referendum.

Taoiseach Brian Cowen warned at the beginning of the week that "nobody should doubt that the coming budget will be difficult", and it is expected to be one of the toughest yet.

Following pressure from a variety of economic advisers, it is expected that public sector pay, unemployment benefit and child benefit payments will each be cut.

Speaking at the Fianna Fail party meeting on Monday ahead of the return to the Daíl, Mr Cowen said: "Here are some stark realities. This country is borrowing almost €400 million per week. That cannot continue.

"This year’s budget will be tough - it has to be. But it will be informed, it will be measured and it will be designed to ask those who can help most to do so, and to protect those that need it as far as is possible."

(DW/BMcc)