The Government's proposal to establish the National Asset Management Agency has received backing from a second former Fine Gael leader.

Speaking on RTÉ Radio's This Week, Alan Dukes said he was for the idea, echoing the support given to NAMA by Dr Garret FitzGerald.

He described the Fine Gael proposal to set up a 'good bank', or National Recovery Bank, as 'very cumbersome, very doubtful of success, and much less clear than the NAMA proposal'.

Mr Dukes said he believed the establishment of NAMA was the Government's best option.

Last week, former Taoiseach and Fine Gael leader Garret FitzGerald warned of the dire consequences for Ireland if the Opposition voted against the NAMA legislation.

He said it could leave the country vulnerable to intervention by the International Monetary Fund.

Mr FitzGerald said that given a chance and some modification NAMA could work out.

Mr Fitzgerald said there would be difficulties with any approach.

He stressed that to restart the whole process - to abandon NAMA and adopt another approach - would take a long time.

'A defeat on this issue now, or indeed on the budget in December, could be very destabilising for our capacity to borrow abroad,' he warned.

Mr FitzGerald said it was vital to tackle the economic crisis without delay and that he was hopeful of a subsequent economic recovery.

Fine Gael moved swiftly to distance itself from his comments, saying he made the remarks as an independent commentator and they were not the views of Fine Gael party.