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Thumbs up: Celebrating Europe Day at Leinster House

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NewsDigest
State urged to double oil tax take
A Joint Oireachtas committee has recommended that the State double its tax take for large oil and gas finds, and initiate a transparent system of public consultation in exploiting new finds, while advising against changes to existing agreements: page 2

EU leaders to discuss elections fallout

ARTHUR BEESLEY, RUADHN Mac CORMAIC and DAMIAN Mac CON ULADH EUROPEAN COUNCIL president Herman Van Rompuy has called EU leaders to discuss the fallout from the Greek and French elections and the increasing clamour for new measures to boost growth in Europes recession-struck economies. The informal summit on May 23rd follows the election of socialist leader Franois Hollande as French president. He campaigned against the inevitability of austerity and wants to put growth at the top of the political agenda. While German chancellor Angela Merkel is resisting Mr Hollandes push to reopen the fiscal treaty, the president-elect countered yesterday to say Berlin must take account of the rising demand for measures to promote growth. Mr Hollandes campaign to change the treaty is already creating problems for the Irish Government, where the No camp in the referendum argues that the people are being asked to vote on a pact that is set to be changed. However, a senior European source said it remained unclear whether the incoming president would accept a new growth initiative that would not necessarily be added to the treaty in a binding protocol. EU economics commissioner Olli Rehn declared that the debate of consolidation versus growth was a false one. In the current economic situation of low growth and high debt there is no choice we need to pursue both simultaneously. Taoiseach Enda Kenny said he supports the growth agenda of the new French president.I welcome his statement from the point of view that Ireland and other countries have been talking about this agenda for some months. Mr Kenny added that he had spoken to Mr Van Rompuy on Sunday and urged him to hold a summit meeting on a growth agenda, but there are issues that are clearly not in Irelands interests, including changes to corporation tax rates. EU Commission president Jos Manuel Barroso said there was no scope for any recipients of an EU-IMF bailout to deviate from policies to consolidate their public finances. Preparations for the summit are overshadowed by the uncertain political outlook in Greece. The leader of the second-placed party said the outcome meant Greeces commitments to austerity are no longer valid. Taoiseach supports Hollande growth plan, page 6; Tnaiste says No side playing with fire, page 8; Editorial comment: page 15

PROTECTING

CHILDREN
HelenBuckley Opinion,page14

Cuv will stay in FF and keep out of treaty debate

Fianna Fils amon Cuv announced he would remain in the party and reiterated his opposition to the fiscal treaty but said he would not comment further on the referendum: page 7

GREEK LESSONS
Richard Pine, page 11

Children from Gardiner Street Primary School marked Europe Day in Leinster House with Ceann Comhairle Sen Barrett, Cathaoirleach of the Seanad Paddy Burke, Sinn Fin leader Gerry Adams, Minister of State for European Affairs Lucinda Creighton, Fianna Fil leader Michel Martin and Catherine Murphy TD. Photograph: Maxwells

HomeNews
Cannabis: Use of cannabis can physically change the brain and increase the risk of schizophrenia in adolescents who are genetically vulnerable to such effects, a study has found: page 3 European Parliament: It has been claimed that two former Fianna Fil MEPs, while allegedly employing two women as assistants in the parliament, submitted assistant allowance claims for two others: page 4

Nama house sales show price drop of up to 80% from peak

Agency pilot scheme launched for 115 properties in 12 estates
SIMON CARSWELL and MARK HENNESSY HOUSES BEING sold by the National Asset Management Agency with protection for buyers against a 20 per cent drop in value have already fallen by up to 80 per cent from the peak of the market. Nama launched the pilot scheme for its negative-equity protection, 10 months after the plan was first announced, for 115 houses on 12 estates in Dublin, Meath and Cork aimed at first-time buyers and homeowners. Designed to protect buyers from negative equity and to kick-start sales in a moribund market, the scheme may eventually be offered on 750 of Namas 10,000 completed residential properties. One property for sale under the pilot, a four-bedroom house on an estate at Killeen Castle in Co Meath built by Dundrum shopping centre developer Joe OReilly, is being sold for 360,000. Four-bedroom houses on the estate were originally priced at 1.9 million in 2008, a decline of 81 per cent in four years. Under the scheme, Nama will defer 20 per cent of the price of the property for five years. If the house falls further in value over that time, Nama will bear that loss. If the price remains the same or rises, the 20 per cent will be paid to Nama by one of three banks that agreed to lend mortgages in the scheme Bank of Ireland, AIB subsidiary EBS and Permanent TSB. Its a good offer for buyers who want to remove any uncertainty from their purchase about price drops, said Nama chairman Frank Daly. The scheme was launched as Central Bank governor Patrick Honohan said the banks should begin crystallising losses on mortgages over the coming months. What concerned him most was to get a better handle on the state of mortgages at the banks, he said in a speech in London. The Central Bank wanted to see banks being more concrete in how they deal with loss-making and delinquent mortgages. House prices have fallen on average by 50 per cent at peak. It is natural that there will be delinquencies, that there will be losses in mortgages. That is what we hope to get a better grip on over coming months, he said. To help struggling borrowers, lenders are being pressed to develop new products such as split mortgages, freezing part of the debt and negative-equity mortgages where debts can be carried from one property to another. Dr Honohan also said in his speech that State spending would have faced a crash landing, rather than a gradual glide path without the help of the European Union and the International Monetary Fund. Nama, meanwhile, rejected the the myth that the agencys negativeequity protection scheme was another bubble-type interference in the property market, saying that it was designed to reduce prices, not increase them. We do not aspire to the type of market that was this countrys misfortune to have experienced in recent times a market which was driven by irresponsible lending, unsustainable prices and inglorious hype, said Mr Daly. Chief executive of Nama Brendan McDonagh said the State agency would not haggle with buyers as the 115 houses were already priced at a fair value. Nama is selling four-bedroom houses in an estate in Carrickmines, south Co Dublin, built by construction company Pierse and property developer Paddy Kelly for 310,000, which represents a 61 per cent decline from the peak of the market. One-third of houses for sale are on four developments in Cork built by local developer Michael OFlynn. The largest number of houses for sale in one development is at Devlin Banks in Naul, Co Dublin, which were built by a company co-owned by Dublin auctioneer Brian OFarrell. Mr OFarrell is better known as one of the Maple 10 investors who bought 10 per cent of Anglo Irish Bank held by businessman Sen Quinn in a secret agreement to shore up its share price in 2008.

INSIDE
G Nama may defer 30m in payment from buyers. Simon Carswell G There has to be something for people that got nailed on properties Business, page 3

BusinessNews
Honohan: Some of the 17 billion injected by Ireland into its banks last year using EU/IMF funds should have come from the European Financial Stability Facility, the Central bank governor has said. Economy: Consumer sentiment increased in April for the fourth successive month as the public took a less anxious view of the economic environment. The index rose from 60.6 in March to 62.5 last month.

WorldNews
Israel: prime minister Binyamin Netanyahu has struck a deal with leader of the opposition Shaul Mofaz to bring his centrist Kadima party into the coalition until the end of its term in October 2013, shelving plans to hold early elections later this year: page 9 US: Barack Obamas reluctance to state his position on same-sex marriage is dominating headlines. The president fears losing Independent, Hispanic and black voters if he supports gay marriage: page 9

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SportsWednesday
Soccer: Liverpool produced a rampant display against Chelsea to record their biggest league win 4-1 of a trying campaign. Chelsea must now win the Champions League final to qualify for next year. Rugby: Munsters injury woes continue, with captain Paul OConnell ruled out for the rest of the campaign and also likely to miss the Irish tour to New Zealand.

Priest accepts decision not to seek RT board resignations

PAUL CULLEN Political Staff FR KEVIN REYNOLDS has said he accepts Minister for Communications Pat Rabbittes decision not to seek resignations from the RT board over the Prime Time Investigates programme that libelled him. Fr Reynolds, speaking last night from his home in Ahascragh, Co Galway, expressed agreement with the response of his solicitor, Robert Dore, to the outcome of Mr Rabbittes two-hour meeting with the board yesterday. Earlier, Mr Dore said he respected Mr Rabbittes judgment and in particular his decision not to seek changes on the board. Pat Rabbitte is no eejit. If, in the light of reflection and the examination of the reports on the programme, he formed the view that there should be no changes, so be it. Mr Rabbitte said after the meeting that he didnt expect any changes on the board as a result of the controversy. No resignations had been sought or offered, he said. At the meeting, the Minister instructed RT to produce a report within a week setting out the reforms it plans to introduce following the publication last week of a report that was heavily critical of the Mission to Prey programme broadcast last year. The broadcaster will also have to deliver quarterly progress reports on its implementation of the reforms recommended in the report commission by the Broadcasting Authority. However, speaking to journalists after the meeting, Mr Rabbitte declined to say outright whether he had full confidence in the board. Later a Government spokesman also declined to say whether Ministers had full confidence. The Minister has said what hes going to say about it, and Im not going to qualify that in any way, he said. Last night Mr Rabbitte moved to clarify his stance, saying he had made clear that he was satisfied that the board appreciated the gravity of the authoritys report and was determined to implement its recommendations in full in order to regain public confidence. The board has my full support in this endeavour. The Minister also signalled he may change the law to allow members of the public who are unhappy about their treatment in radio and television programmes more time to complain. Under current rules, a 30-day limit applies but Mr Rabbitte said he was concerned whether this was adequate. The chairman of the RT Authority, Tom Savage, announced a further internal review by the editorial and creative output committee of decision-making processes within the organisation. Mr Savage also promised RT would implement all recommendations in the Carragher report within an agreed timeline. Report and analysis: page 5 Vincent Browne: page 14

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Weather
Dry start in many areas with sunny spells. Rain in the far south will spread through Munster and much of Leinster, but Connacht and Ulster should stay mainly dry. Top temperatures 10-13 degrees: page 16
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Volume No. 48835. Wednesday, May 9, 2012