GOVERNMENT PLANS to establish the National Asset Management Agency (Nama) have suffered a significant setback with only 13 per cent of the attendance at a Green Party conference expressing support for the legislation in its current form.
The Nama Bill came in fourth out of six options placed before an all- day meeting of more than 140 Green activists from around the country held in Athlone, Co Westmeath.
The most popular choice at 23 per cent was for an agency which would pay only the current market rate for loans transferred to the banks.
In second place at 20-21 per cent was the so-called “Swedish solution”, which would also mean paying only the market price for loans.
This will place further pressure on Minister for Finance Brian Lenihan, who is to announce the valuation he will place on bad loans in the Dáil on Wednesday.
Although Green Party activists voted by a large majority to withhold the results of Saturday's "preferendum" for the time being, The Irish Timesunderstands the results were as follows:
1) Nama with strong Green Party policy conditions and only current market values being paid for transferred loans: 23 per cent;
2) The “Swedish solution” with each institution forced to write down its loan book to current market values and the possibility of separate asset management companies for individual banks: 20-21 per cent;
3) A free-market, laissez-faireapproach, with banks left to fend for themselves: 14-15 per cent;
4) The Nama legislation in its present form: 13 per cent;
5) Partial nationalisation, with a “good bank” to assist small and medium enterprises: 12-13 per cent;
6) Full nationalisation: 12 per cent.
Green Party sources have cautioned strongly against premature interpretation of the vote as a signal that the party would walk out of the Government.
The attendance at the special policy-making convention on Nama and the renegotiated programme for government on October 10th would have an attendance three or four times greater than last Saturday’s consultative session.
However, the vote is still likely to cause concern among the party’s coalition partners.
Pressure will increase on the Green Party leadership to win further concessions and on Fianna Fáil to agree to them.
Green Party sources said there was “a very intense debate” about the valuation announcement to be made by Mr Lenihan.
The format of the special convention on October 10th, which will be crucial for the future of the Government, remains unclear and is likely to be strongly influenced by negotiations on the programme for government.
