logo
Nama chief gets housing tsar or faces salary cut

Nama chief gets housing tsar or faces salary cut

Extra.ie​01-05-2025

The outgoing boss of Nama, Brendan McDonagh, is due to take a pay cut if he is not appointed as the Government's new housing tsar, Extra.ie can reveal.
Minister for Housing James Brown described Mr McDonagh as his 'preferred candidate' to take up the role as head of the Housing Activation Office on Tuesday.
Two Sunday newspapers reported at the weekend that Mr McDonagh is set to retain his €433,000 salary when he takes up the post.
However, Extra.ie has established that this salary is time-limited to Mr McDonagh's tenure at Nama, which is being dissolved at the end of this year. Brendan McDonagh. Pic: Leah Farrell/RollingNews.ie
A spokeswoman for the Department of Finance said Mr McDonagh is currently seconded from the National Treasury Management Agency (NTMA) and is due to return to that role when Nama is wound down.
'Nama will be dissolved by the end of 2025, subject to the enactment of required legislation currently being drafted,' she said.
'The current CEO of Nama is an employee of the NTMA, assigned to Nama, and until the dissolution of Nama, the agency remains focused on completing its phased and orderly wind-down and fulfilling its mandate.' Brendan McDonagh. Pic: Sam Boal/Rollingnews.ie
In 2009, Mr McDonagh earned a salary of €220,000 for his role as Director of Finance at the NTMA, but received an even bigger salary package to head up the newly established Nama in a time of national crisis.
While the exact figure of Mr McDonagh's salary if he returns to the NTMA is not known, it will have increased incrementally throughout his absence but will still be significantly lower than his current pay of €433,000 plus benefits.
The pay packet dwarfs that of the Taoiseach (€248,000) and Graham Doyle (€255,000), the secretary general of the Department of Housing, who Mr McDonagh would be working under. On Monday, Taoiseach Micheál Martin said that he 'understands concerns' about the package for Mr McDonagh. Pic: Gareth Chaney/Collins Photos
Despite Minister Browne declaring him as his 'preferred candidate' on the RTÉ News at One on Tuesday, both a spokesman for the Taoiseach and Tánaiste, Simon Harris, could not say he was their preferred candidate just hours later.
The Cabinet committee on housing will meet today, and Mr Browne will seek approval from the Coalition leaders and other senior ministers to ratify Mr McDonagh's selection.
Sinn Féin housing spokesman Eoin Ó Broin criticised the creation of the role, saying it will have 'no actual power'. Pic: Sam Boal/Collins Photos
Speaking on RTÉ's Today With Claire Byrne, Mr Ó Broin said that 'it will only work if it has powers' and that 'there are already too many groups of civil servants getting in the way [of housing delivery]'.
Mr Ó Broin said that the public will be 'scratching their heads' wondering why someone would be appointed at almost twice the salary of the Taoiseach 'to a role that is underneath them with no statutory underpinnings, no power and no clarity [on] what it is meant to do'.
Mr Browne has so far not outlined what powers, if any, the new tsar would have. The new office will have a budget of close to €1billionn for the next five years in a bid to unlock stalled housing projects.
The Cabinet yesterday approved the creation of the new office, which will be comprised of eight to 11 experts tasked with having a 'laser focus' on removing barriers to housing on specific sites.
The unit is proposed to support public infrastructure planning for the delivery of sustainable communities on brownfield and greenfield sites.
It will be supported by a housing activation delivery group, which will be chaired by Mr Brown

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

'Radical reset' of housing policy needed as targets to be missed by 10,000 AGAIN
'Radical reset' of housing policy needed as targets to be missed by 10,000 AGAIN

Extra.ie​

timea day ago

  • Extra.ie​

'Radical reset' of housing policy needed as targets to be missed by 10,000 AGAIN

Housing targets will be missed by up to 10,000 units again this year and will fall short for the next several years, can reveal. Officials in the Department of Housing have warned Minister James Browne that the number of new homes built this year is likely to fall 'somewhere in the low 30,000s', compared to a target of 41,000. Internal briefing documents prepared for the Housing Minister, obtained by under Freedom of Information legislation, also raised concerns over the construction of desperately needed homes into the future. Fianna Fáil and Fine Gael were accused of having 'misled' voters in the run up to last November's election, when they claimed 40,000 homes would be built last year but only 30,300 were delivered. 18/02/2025 Dublin Ireland. Fianna Fail Minister for Housing James Browne talking to the media on his way into today's cabinet meeting at Government Buildings. Photo: Sasko Lazarov/© In a statement to Extra, Mr Browne admitted this year's output will fall far short of target. He said it was 'difficult to see a pathway off the lower than expected base from 2024'. The Fianna Fáil TD insisted he is 'interrogating every area' that is delaying delivery of housing and 'demanding faster outcomes as soon as possible'. Ahead of the last election, the Government revised its housing targets upwards to account for Ireland's soaring population. Over the course of this Government's lifetime, the aim is to build 303,000 new homes – starting at 41,000 this year and ramping up to 60,000 by 2030. But there is already open admission within Government that their targets for 41,000 new homes this year and 43,000 next year will be widely missed, as the upward momentum in housing has evaporated. The documents prepared for the minister highlight the 'almost complete retrenchment of private international capital since 2022' as a 'significant factor' that will affect the delivery of housing in the coming years. Housing Development: Pic: Getty Images Institutional investors play a central role in the development of apartments and the 80% reduction in international capital since 2022 has led to a sizeable reduction in supply. The officials highlight that the pipeline for new apartments is slowing, with a 39% dip in planning permissions in 2024 'reflecting a general downward trend from the peak in 2020 and 2021'. This is already being felt in apartment completions which equated to 29% of all home completions in 2024, a drop of 7% from the previous year. The officials wrote: 'Delivery of apartments will be potentially constrained in coming years given the fall in institutional investment since mid-2022, and its slow return to date.' This depleted pipeline has placed the Government's housing targets beyond 2026 at risk, officials warned. They stated: 'The decline in overall approvals, as well as apartment approvals, has implications in the longer term for the delivery of Government's revised housing targets, with approvals falling short of the quantum needed to hit targets in 2026 and subsequent years.' Mr Browne said recently that he felt the Economic Social and Research Institute's prediction that 34,000 new homes would be built this year and 37,000 next year is probably broadly accurate. The internal documents prepared for Mr Browne by his officials in April state that an output in the low 30,000s this year is likely. They wrote: 'Published forecasts project between 32,000 and 35,000 new homes will be completed in 2025 – the forecasts will fluctuate as the year progresses, but somewhere in the low 30,000 range seems most realistic at this stage factoring in early feedback from the construction sector.' Minister for Housing, Local Government and Heritage James Browne TD speaking to the media in the Government Press Center following today's Cabinet meeting, Dublin. Photo: Sam Boal/Collins Photos The officials noted that while 'the emerging consensus from published forecasts' at the start of 2025 is between 32,000 and 35,000 new homes this year 'all forecasts should be treated with considerable caution at this stage'. They stated: 'A degree of circumspection is advised as a more conservative projection of 30,000, give or take, is mooted by stakeholders closer to residential construction sector.' Mr Browne said: 'I am seeing many of the same forecasts as are publicly available and most of them have the same trajectory for the year, which is in the low 30s, which seems realistic at this stage in the year – it would be difficult to see a pathway off the lower than expected base from 2024.' He said that he is 'interrogating every area' that is delaying delivery of housing and 'demanding faster outcomes as soon as possible'. Mr Browne added: 'I've been pulling together what's needed to boost delivery, including a revised National Planning Framework which will help increase our capacity and accelerate home building. The Housing Activation Office will hone in on the ground to address barriers impacting housing development. 'The buttons I press now may not feel like they have immediate impact but what I do now will impact home building for years and we have to get it right. I'm serious about that. Sorting out planning can be laboured – it is a rules-based process for many good reasons. That doesn't mean we aren't tackling it to speed it up. 'Measures to help scale-up delivery are being considered in the context of the next housing plan.' The officials pointed to planning permissions for 49,212 units that have not commenced in Dublin as one potential solution over the medium term. Of those, 7,272 are on sites where construction had started while 5,875 are being held up as they are the subject of a judicial review. Last week, Mr Browne announced plans to allow for the extension of planning permissions for developments that are set to expire and have not yet commenced. The permissions can be extended for up to three years. The proposals will also allow planning permissions subjected to or going through a judicial review to apply for a retrospective suspension of the permission for the duration of the judicial review. Pic: Sam Boal/Collins Photos Sinn Féin's housing spokesman Eoin Ó Broin told Extra: 'The ESRI and Central Bank, in their recent presentation to the Oireachtas Housing Committee, said that without a significant change in policy and investment, the new Programme for Government targets can not be met. 'All of the indicators are going in the wrong direction. 'Only a radical reset of housing policy, as recommended by the Housing Commission and Sinn Féin can start to undo the damage of years of bad Fianna Fáil and Fine Gael housing policy.' Mr Browne is set to unveil his new housing plan next month, prior to the Dáil's summer recess. Viability is a core challenge facing the sector, particularly in relation to apartments, with the Department of Finance in the process examining proposals to tackle funding challenges. It is expected that changes to apartment regulations will be made in an attempt to reduce the cost of building. The documents highlight the surge in the price of materials, which are now 33% higher than in January 2021. Officials wrote: 'Input cost inflation quickened for the second month running and was the steepest for almost two years.' The CSO's Wholesale Price Index for building and construction materials shows material input costs continue to rise. The Government has also been deciding on whether to retain, replace or amend the Rent Pressure Zones, which limit annual rent increases to 2%. It appears removing the 2% cap is now the plan. RPZs have been highlighted as a barrier to investment by institutional investors. Uisce Éireann has also warned that it will need an additional €2billion to connect new homes to the supply if it is to keep pace with increased housing targets. The housing officials pointed to issues in water and energy connections as one reason for the shortfall in completions last year as well as the Government's incentivising of commencing new developments.

Prominent businessman loses bid for reporting restrictions on £1bn loan fraud trial
Prominent businessman loses bid for reporting restrictions on £1bn loan fraud trial

Irish Times

time4 days ago

  • Irish Times

Prominent businessman loses bid for reporting restrictions on £1bn loan fraud trial

A prominent Belfast businessman accused of fraud in relation to a £1 billion (€1.2 billion) loan deal has been unsuccessful in his bid to have reporting restrictions imposed on the trial. Frank Cushnahan has pleaded not guilty to all charges. He had sought to have reporting restrictions put in place during the trial. His co-accused, Ian Coulter, has also pleaded not guilty to all charges. Mr Coulter did not seek to have reporting restrictions applied. The charges against the men relate to the sale of a loan book held by the National Asset Management Agency (Nama), which was set up by the Irish government to deal with toxic property loans after the banking crisis in 2008. READ MORE Mr Cushnahan had sought an order from the court pursuant to section 4 (2) of the Contempt of Court Act 1981, which states that reporting on certain proceedings may be postponed if there is 'a substantial risk of prejudice to the administration of justice in those proceedings'. In dismissing the application, Mr Justice Ian Huddleston of the Crown Court of Northern Ireland said there was 'no substantial risk to the applicant on the facts'. He said there is 'substantial public interest' in the trial. 'The public interest in fair and accurate reporting of criminal trials generally, and the promotion of public confidence in the administration of justice and the rule of law, is something which very much tends to the dismissal of the application,' the judge said. Nama's Northern Ireland loan book was sold to a US investment fund in 2014. Mr Cushnahan, a former member of Nama's Northern Ireland advisory committee, is charged with fraud for allegedly failing to disclose information to Nama between April 1st and November 7th, 2013. Mr Coulter, a solicitor, is alleged to have made a false representation to a law firm on or around September 11th, 2014. He is also charged with making an article in connection with a fraud, namely a £9 million invoice, and two counts of concealing or transferring criminal property on various dates in 2014. Both men are accused of making a false representation to Nama and a law firm in April 2014. They deny all charges. In his written judgment, which was delivered on Wednesday, Mr Justice Huddleston said: 'The application to this court was essentially by way of written submissions made by Mr Cushnahan's counsel as expanded upon orally but acknowledged by him to be unsupported by any evidential basis or other supporting information.' Mr Cushnahan was represented by Frank O'Donoghue KC and Bobbie-Leigh Herdman BL, instructed by Paul Dougan from John J Rice Solicitors. Four media organisations intervened in the case – The Irish Times, RTÉ, BBC and Mediahuis. They were represented by Richard Coghlin KC, instructed by Fergal McGoldrick of Carson McDowell LLP. Jonathan Kinnear KC and Lauren Cheshire BL, instructed by the Public Prosecution Service, supported the media interveners' submissions.

State should ease ‘financial burden' for people facing heavy legal costs at public inquiries, report finds
State should ease ‘financial burden' for people facing heavy legal costs at public inquiries, report finds

Irish Times

time4 days ago

  • Irish Times

State should ease ‘financial burden' for people facing heavy legal costs at public inquiries, report finds

The 'personal financial burden' of appearing before a Commission of Investigation should be eased by the State, the final report of the National Asset Management Agency (Nama) commission has said. The Commission of Investigation into the controversial sale of Project Eagle has called on the Government to change the 'strict' guidelines for covering the legal costs of those who appear before high-profile public inquiries. It said witnesses who 'diligently' give evidence, submissions and documents can end up in the 'very unfortunate situation' of having to personally pay high legal fees for their participation in the process. At the moment, the guidelines for legal costs under the Commissions of Investigation Act 2004 says witnesses can recoup some but not all of their legal fees. The current guidelines do not cover instruction fees, brief fees and legal fees incurred while making submissions. READ MORE In the case of the Nama commission, over two-thirds of the legal bills of the so-called 'bad bank' could not be recovered. It is understood that Nama's total legal costs reached €7.5 million, but it only received €2.4 million of that back from the commission. Thirty-six witnesses on behalf of Nama, including past and present employees, offered evidence and submissions over the seven years of the inquiry. All of these witnesses made claims for the payments of their costs. After assessing the claims for costs from Nama with the help of the State Claims Agency , the commission said it believed the current guidelines on legal costs would 'benefit significantly from review and updating'. 'Engaging with a Commission of Investigation can be an onerous task for private individuals, many of whom understandably seek legal advice and assistance in relation to their interaction with a Commission,' the commission stated in its final report to Taoiseach Micheál Martin . 'Witnesses who diligently provide detailed statements, attend to give evidence, provide documents and make submissions may find themselves in the very unfortunate situation of having to discharge significant fees personally due to the strict confines of the guidelines for payment of legal costs.' The commission, whose sole member is Susan Gilvarry, said Nama had tried to recoup 'substantial legal costs', but the commission wasn't able to consider or direct the recovery of any costs not set out in the current guidelines. It pointed out that the recovery of costs was less important in the case of Nama, where a state agency's costs are 'sought to be recovered from a Government department'. But it said that these 'discrete set of circumstances' would not apply in every case, so it recommended that the 'guidelines are revised and clarified to reflect the personal financial burden that witnesses or third parties may be subjected to by virtue of being requested to engage with a Commission of Investigation'. [ Department of Finance to wind down special bank shareholdings unit Opens in new window ] The Department of the Taoiseach did not respond to requests for comment. The report from the Nama commission said that its final costs, from the point it was established in June 2017 to April 2025, were €10.3 million. This included €4.6 million in legal fees, a salary cost of €1.75 million and administrative costs of €1.4 million. Since the late 1990s, the State has spent more than €600 million on tribunals of inquiry and commissions of investigation, including the €143 million Mahon/Flood Tribunal, the €85 million Commission to inquire into Child Abuse and the €83 million Moriarty Tribunal. In April, the billionaire businessman Denis O'Brien was awarded €5.8 million by the State Claims Agency for the legal costs he faced while a witness for the Moriarty Tribunal between 2001 and 2010.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store