EDITORIAL

NAMA: OUT OF THE TRAPS AND ALREADY STRUGGLING

The news today that only one-third of loans being acquired by the National Asset Management Agency (Nama) are generating interest payments is a further blow to the credibility of the Government's handling of the financial crisis.

When Nama was launched last year, to huge fanfare from Fianna Fáil and the Greens, it was confidently predicted that Nama would initially earn interest on 40 per cent of the acquired loans. Whatever about the rights and wrongs of NAMA as a scheme, every time there is a story like this public confidence in the Government goes down. And when public confidence goes down public anger generally travels in the opposite direction.

But it was perhaps another revelation from Brendan McDonagh, chief executive of Nama, speaking to an Oireachtas committee yesterday, that will have the biggest impact on the public perception of Nama. Mr McDonagh confirmed that Nama may knock down many of the unfinished properties that is now has responsibility for.

A key visual metaphor for the recession has been the sight of unfinished housing estates and office blocks lying dormant up and down the country. The hope was that these buildings would eventually be finished, perhaps to provide affordable housing to the many people who have been suffered most from the financial crisis.

Instead it seems that many of these buildings will be torn down if NAMA cannot make a profit from them. Surely there is a better way to deal with this? With a bit of imagination these buildings could be used to provide something of a silver lining to the dark cloud that has hung of Ireland for the last few years.

By the Editor (Liam Keegan)


Oxfam snubs Irish Aid


Oxfam’s recent statement regarding charitable donations, reveals a basic misunderstanding regarding the current economic climate.

At a time when many are finding both their jobs and homes at risk it is unseemly to
expect levels of Irish aid to remain as they were pre-2006.

The amount of aid donated by irish people is still one of the highest in the world, expected to be about €671 million.

In contrast to countries like Germany, Italy and Japan whose aid has fell by an average of 10%.

Whilst it is a tragedy that so many people in the developing world still live in dire poverty and increased levels of aid are always desirable. Oxfam risks alienating donars with it’s recent statements.

“This lacklustre performance from donors is not close to meeting the needs of poor countries, who are suffering now from the impact of the economic crisis,” said Max Lawson of Oxfam.

By the Deputy Editor (Caroline Ewins)